TIDMSDY
RNS Number : 4924P
Speedy Hire PLC
10 October 2023
Speedy Hire Plc
("Speedy", "the Company" or "the Group")
10 October 2023
Half Year Trading Update and Notice of Results
Speedy, the UK's leading tools and equipment hire services
company, operating across the construction, infrastructure and
industrial markets, today provides an update on the Group's trading
performance for the half year ended 30 September 2023.
Trading performance
The performance in the first half has been satisfactory with
revenue from our national customers growing 5% on last year. This
has been offset by some softening of revenues with our regional
customers. We have seen recent improvement in both of these
areas.
As in prior years, the Group expects a second half weighting to
its hire revenues and profits, as the winter programmes commence
and new contracts extended and won fully mobilise in the period,
including those communicated at year end. In addition, Speedy has a
strengthening pipeline of new opportunities going into the second
half of the year. Consequently, the Group anticipates full year
performance to be in line with expectations.
Service revenues are expected to be lower, primarily due to the
decline in the wholesale price of fuel, down c.20% against prior
year. This has not materially impacted margin, as direct costs fall
proportionately.
Velocity, the Company's five year transformation and growth
strategy, was launched earlier in the year and is progressing well.
The implementation of Velocity has initially focussed on supply
chain benefits, which are anticipated to come through in the second
half of the current financial year and beyond. GBP1m of costs
relating to Velocity transformation have been incurred and expensed
in the half year.
The joint venture in Kazakhstan continues to perform well,
although there will be a second half weighting to profits. The
weakening of sterling against the US dollar has resulted in
slightly lower translation of profits for the period.
We recently communicated our intention to form a joint venture
with AFC Energy PLC (AIM: AFC) to support our customers in
decarbonising their power and energy solutions by transitioning to
hydrogen fuel generation. This remains on track and we look forward
to the exciting opportunities this will offer our customers. A
further announcement will be made in due course.
Acquisition of Green Power Hire Limited
In addition, the Group has today announced the acquisition of
the entire issued share capital of Green Power Hire Limited, a
leading supplier of battery storage units. The acquisition
positions the Group as the market leader in a key growth
segment.
Cash Flow and Net debt
The Group has continued to see improvements in working capital
management in the half year and has generated positive operating
cashflow after payment of its final dividend of GBP8.3m.
Net debt at the half year was c.GBP90m, an improvement on the
FY23 year end position. As expected, higher interest rates have
resulted in slightly increased interest costs for the period.
Update on hire equipment stocktakes
The actions taken by the Group over the past nine months to
improve asset controls continue to demonstrate benefits with
digital technology being trialled to further assist in the control
and counting of hire equipment. At the end of September a full
count of all itemised and non-itemised hire equipment was
undertaken. Initial results of the stock take have not identified
the need for any increased inventory provisions.
Notice of results
The Group intends to announce its half year results for the six
months ended 30 September 2023 on 22 November 2023.
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Dan Evans, Chief Executive
Paul Rayner, Chief Financial Officer
MHP Group Tel: 0203 128 8540
Oliver Hughes
Katie Hunt
speedy@mhpgroup.com
Inside Information: This announcement contains inside
information for the purposes of article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of domestic law by virtue
of the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement via Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Forward looking statements: The information in this release is
based on management information. This report includes statements
that are forward looking in nature. Forward looking statements
involve known and unknown risks, assumptions, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by
such forward looking statements. Except as required by the Listing
Rules and applicable law, the Company undertakes no obligation to
update, revise or change any forward looking statements to reflect
events or developments occurring after the date of this report.
Notes to Editors: Founded in 1977, Speedy is the UK's leading
provider of tools and equipment hire services to a wide range of
customers in the construction, infrastructure and industrial
markets, as well as to local trade and industry. The Group provides
complementary support services through the provision of training,
asset management and compliance services. Speedy is certified
nationally to ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and
ISO45001. The Group operates from c.180 fixed sites and selected
B&Q stores across the UK and Ireland together with a number of
on-site facilities at client locations and through a joint venture
in Kazakhstan.
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END
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