REG - Speedy Hire PLC - Trading Update

Speedy HireAnnouncement

30/01/2024 07:15

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RNS Number : 2908B  Speedy Hire PLC  30 January 2024

Speedy Hire Plc

("Speedy", "the Company" or "the Group")

 

 

 

Trading Update

 

Speedy, the UK's leading tools and equipment hire services company, operating
across the construction, infrastructure and industrial markets, provides the
following trading update.

Trading update

The business has continued to perform resiliently in the face of cost
inflation and macroeconomic uncertainty.  The challenges faced across much of
the Construction sector mean that revenues from our National customers are now
up 3% year-on-year as at end of the third quarter, compared to +5% at the end
of H1, whilst revenues from our Regional customers have continued to track 6%
down year on year, unchanged from the position reported at H1. The warmer
winter period has also impacted our revenue from seasonal products, despite us
being ready for the usual cold weather and the important support we provide to
our customers.

At the same time, we continue to see revenue growth from opportunities with
both new and existing  National customers and, in the third quarter, we
secured over £40m of annualised revenue from new multi-year contracts. These
contracts represent attractive growth opportunities but have taken longer to
mobilise, due to contract specific delays. Therefore, new contract revenues
will have only marginal benefit in FY24 with the full effect coming in FY25.
We are pleased by these contract wins and have a strong pipeline of
opportunities. This new business has been secured with good pricing discipline
and demonstrates the attractiveness of Speedy's customer offering.

Velocity Strategy

We continue to focus on delivering growth opportunities as well as operational
efficiencies through exceptional customer service, and excellent supplier and
customer relationships. We remain on track with the early progress of our
Velocity strategy launched at our Capital Markets Day in July 2023.

As anticipated, supply chain benefits arising from the implementation of
Velocity are being seen in the second half of FY24 and will continue to
deliver benefits into future years. Our acquisition of Green Power Hire
Limited ("GPH") continues to perform in line with its business plan and since
purchase we have bought further units to enlarge our battery storage unit
fleet and satisfy customer demand.

We confirmed in November that our partnership with B&Q was evolving to a
more digitally focused model. We are pleased to confirm that our products and
services are now available for digital hire in-store within every B&Q and
Tradepoint as well as on the respective websites, demonstrating strong
strategic progress in our Trade and Retail offering.

We continue to refine our strategy and transformation programme, led by
systems and data, to ensure that we will have an efficient operating structure
to power our growth.

Net Debt

With the acquisition of GPH, net debt increased to £117.3m as at 31 December
2023 which marks the normal seasonal high point. Working capital continues to
be well controlled and we expect net debt to reduce from this level in the
last quarter of the financial year, to end the year comfortably within our
target leverage range.

Outlook

We continue to make good progress with the implementation of our Velocity
strategy, which will deliver benefits and opportunity for Speedy for the long
term. Nevertheless, with weakness in some of our end markets and seasonal
product lines, and some delays in mobilisation of significant contract wins,
the Board expects the full year profits to be below its previous expectations.

 

Enquiries:

 

Speedy Hire Plc
 
                Tel: 01942 720 000

Dan Evans, Chief Executive

Paul Rayner, Chief Financial Officer

 

 

MHP
Communications
 

Oliver Hughes
 
                   Tel: 07885 224532

Katie Hunt
 
                       Tel: 07884 494112

 

 

Notes:

 

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.

 

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