Equipment and tool rental group Speedy Hire has increased third-quarter income by 43% as it reiterates limited exposure to the troubled house building and retail sectors.

The company has reported a positive start to 2008 as its main markets remain strong. Revenue within its tool hire and equipment division has grown 47% over the past quarter and 30% up over the past nine months.

It has completed the integration of Hewden Tools, which it bought for £115 million in June 2007. The business strengthens its geographical reach but has put pressure on borrowings.

Debt is still at high levels. At the end of 2007, net debt stood at £271 million, representing 110% Gearing. This is the level of the company's debt compared to equity capital. Typically, gearing in excess of 100% is considered to be high-risk.

Stockbroker Altium believes only around 9% of Speedy Hire's business is exposed to problematic industries, namely house building and retail.

In January, it bought Amec's tool and equipment hire business for £12.5 million.

Shares in Speedy advanced by 2% to 794.5p in early trading on Monday.