REG - Speedy Hire PLC - Acquisition and Trading update

Speedy HireAnnouncement

20/03/2019 07:05

RNS Number : 3694T
Speedy Hire PLC
20 March 2019
 


Speedy Hire Plc
("Speedy", "the Company" or "the Group")
 
Acquisition and Trading update
20 March 2019
Speedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, today announces the acquisition of powered access specialist Lifterz Holdings Limited ("Lifterz"), and confirms its trading performance for the year ending 31 March 2019 is in line with its expectations.
Acquisition
Powered access specialist Lifterz is based in Yorkshire, operating from a head office in Ossett, with additional sites in Haydock, Daventry and Bathgate. Managed by Malcolm and Ben Bowers, it has a fleet of approximately 1,300 access platforms and employs circa 90 people.
Unaudited revenue for the 12 months ended 31 January 2019 was £15.2m with normalised EBITDA of £3.3m. Gross assets were £17.2m. Cash consideration paid amounted to £9.6m with net debt assumed of £11.9m, which was settled at completion.
The acquisition complements Speedy's previous powered access acquisitions, creating a comprehensive national presence, which will allow the Company to service customers nationally with larger specialist equipment.
The Group expects to benefit from revenue synergies through the provision of a national offering to major customers from its owned fleet of equipment.  Cost synergies will be realised from the operation of a national powered access business through Speedy's national depot network. 
Since November 2017, the Group has invested over £50m in the powered access market in line with its strategy to build a national presence through in-fill acquisitions and organic capital expenditure. The acquisition of Lifterz now provides it with a comprehensive national presence in this sector.
Trading update
Group revenues for the period to 31 March 2019 excluding disposals, are anticipated to be circa 5.5% ahead of the prior year, with services revenues growing by circa 9%.
Equipment utilisation rates have continued to increase in the UK and Ireland and are circa 57% for the year to date.
Geason Training, which was acquired in December 2018, is performing in line with our expectations.
Adjusted profit before tax for the full year will be ahead of the prior year and in line with the Board's previous expectations.
Exceptional costs in the second half of the year are expected to be approximately £2m, as a result of integration costs and professional fees associated with acquisitions, and depot restructuring costs.
Net debt at 31 March 2019 is expected to be approximately £90m (31 March 2018: £69.4m) after expenditure of £31m on acquisitions in the second half of the year.
The Group's full year results are scheduled to be announced on 15 May 2019.
Russell Down, Chief Executive of Speedy, said:
"The acquisition of Lifterz announced today is strategically important giving us a national powered access offering and enabling us to provide an end to end service to our customers right across the UK. I am delighted to welcome Malcolm, Ben and the whole Lifterz team to Speedy.
We are also pleased to report that full year revenues and profits will be ahead of the prior year and our results will be in line with expectations."
 
Enquiries:



Speedy Hire Plc                                              


Tel: 01942 720 000




Russell Down, Chief Executive








Chris Morgan, Group Finance Director


















 
MHP Communications                                            


 
Tel: 0203 128 8778




Oliver Hughes








Andrew Jaques



















 Inside Information: This announcement contains inside information.
 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, equipment and plant 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 and OHSAS18001. The Group operates from over 200 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations throughout the UK, Ireland and from an international office based in Abu Dhabi.
 




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