REG - Speedy Hire PLC - Half Year Trading Update and Notice of Results

Speedy HireAnnouncement

10/10/2023 07:00

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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.  £1m 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 £8.3m.

 

Net debt at the half year was c.£90m, 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 (mailto: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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