Tool hire specialist Speedy Hire has reported a return to profits following a period of losses and boardroom unrest.

The firm, which came under attack from a rebel shareholder last year, said it was well-positioned for further growth after a much improved performance in the year to the end of March.

Figures for the year ended 31 March 2017 revealed a pre-tax profit of £14.4 million, compared to a £57.6m loss the previous year. Revenue increased 12% to £369.4m (2016: £329.1m) despite a round of cost-cutting measures.

The improved trading and £14m proceeds from the sale of heavy plant also helped to slash net debt from around £100m to £71.4m.

Russell Down, chief executive, said: “These results demonstrate the success of our turnaround plan with significant improvements across all financial and operational performance measures.

“While we have made a solid start to the year, the market remains competitive.

“With the business now stabilised and a strong balance sheet, we are well positioned to take advantage of market opportunities and continue to deliver sustainable profitable growth.”

He added: “Our focus on strong customer relationships has enabled us to win and renew a number of contracts with our larger customers, including a contract renewal, and scope extension with Carillion, which in total could be worth up to £45m over three years, and renewals with Babcock and Morgan Sindall.

“While there is some market uncertainty in the lead up to Brexit and the general election we are now well placed to deliver sustainable profitable growth.”

Chairman Jan Åstrand added: “I am pleased to report that the actions undertaken by management have enabled us to report substantially improved results; revenue and profits have increased, the hire fleet has been reduced, utilisation rates increased, and net debt has fallen significantly. The business has been stabilised and we have created a solid platform for the future.

“Having previously identified the underlying issues that had affected the group’s performance last year, management has improved engineering efficiency, addressed equipment availability, structured the sales force to ensure that we address large and SME customers alike, embedded ownership and accountability at a regional level, and invested in upgrades to our IT and management information systems; all of which have led to improved business performance.

“Customer focussed initiatives were launched to improve responsiveness and service levels, including customer surveys, and these have also made a major contribution to our strong performance.”