Hydrex Equipment pre-tax profit down 75% at £1m

Hydrex Equipment (UK) has suffered a tumble in pre-tax profit to £1m, well down on the previous figure of £3.8m.

The latest figures cover the 12 months to 31 December 2007.

Turnover was £15m higher at £97m.

Hydrex’s market sectors cover quarrying, waste and material handling. The hire firm is also a major player in the rail sector, serving both Network Rail direct as well as its various track renewal contractors.

Hydrex took longer to pay its bills: the number of days purchased outstanding at the end of 2007 was 57, well ahead of the speedier payment situation that subcontractors and suppliers enjoyed in 2006 when the number of days taken was 42, on average.

The latest pre-tax profit was almost halved as a result of two exceptional cost items:

• £430,000 for restructuring and reorganisation.
• £385,000 resulting from goodwill amortisation.

In the previous year there were exceptional costs running to a total of £850,000, without which the profit would have run to £4.7m.

Hydrex has 960 staff, a rise of 150, with 690 of the latest total being involved in operations.

The wages and salaries bill ran to £26m while pension costs added a further £170,000.

The highest-earning director had a pay of £191,000 and a £13,000 contribution to his pension.