REG - Speedy Hire PLC - Year End Trading Update

Speedy HireAnnouncement

05/04/2023 07:15

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RNS Number : 3955V  Speedy Hire PLC  05 April 2023

Speedy Hire Plc

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

 

 5 April 2023

 

Year End Trading Update

 

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 year ended 31 March 2023.

 

Positive trading performance

 

The Group expects to report adjusted profit before tax(1) for the year in-line
with the Board's expectations.

 

The Group performed well during the year, with revenue(2) up c.14% over
FY2022. Revenue growth was underpinned by rate increases to counter
inflationary cost pressures alongside a strong performance from the Services
business.

 

Against the backdrop of the continuing challenging trading environment, the
Group has experienced some softening of demand in recent weeks, although with
a strong pipeline of new business the Group remains confident of future
revenue growth.

 

Group initiatives, including an ongoing operational review and a management
restructuring, will improve the efficiency of our operations and are
progressing well.  The cost of these items in FY2023, including the depot
consolidations already announced, will all be accounted for as exceptional
items, and is expected to be c.£6.6m and will deliver associated benefits in
the region of £5m per annum.

 

The combination of these actions and contract momentum means we enter FY2024
with confidence.

 

Net debt

 

Following Improved working capital management in the second half of the
financial year, the Group expects to report net debt(3) at the year end of
less than £94m.

 

Share Buyback

 

In March 2023 the company concluded its share buyback programme to purchase an
aggregate value of up to £30,000,000 of the Company's Ordinary Shares. The
total number of shares repurchased (67,713,058), represents 12.8% of the
Company's issued share capital on the day prior to the commencement of the
share buyback programme in January 2022.  The weighted average number of
shares for FY2023 for the purposes of calculating adjusted earnings per
share(4) is c.485,297,297.

 

Update on non-itemised hire equipment

 

As announced on 8 February 2023, the Board instigated an external
investigation into the issue identified with non-itemised assets, including a
review of controls and accounting procedures. The investigation continues to
progress and a further update will be provided with our final results
announcement.

 

Management have taken corrective action and implemented new controls. The
Board is reassured that an asset count at the end of March 2023, as part of
the new controls, did not identify the need for an increase in existing
provisions.

 

Notice of results

 

The Group expects to announce its final results for the financial year ended
31 March 2023 on 6 June 2023.

 

 

 

Enquiries:

 

Speedy Hire
Plc
Tel: 01942 720 000

Dan Evans, Chief Executive

Paul Rayner, Interim Chief Financial Officer

 

MHP Communications
          Tel: 0203 128 8540

Oliver Hughes

Charlie Barker

Speedy@mhpgroup.com (mailto:Speedy@mhpgroup.com)

 

Notes:

 

(1) Before amortisation and exceptional items

(2) Unaudited and excluding disposals

(3) Pre IFRS 16 basis

(4) Earnings before amortisation and exceptional items

 

 

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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