Speedy Hire PLC Trading Update & AGM Statement (6850Y)
September 08 2022 - 1:01AM
UK Regulatory
TIDMSDY
RNS Number : 6850Y
Speedy Hire PLC
08 September 2022
Speedy Hire Plc
("Speedy", "the Company" or "the Group")
8 September 2022
Trading update and AGM statement
Speedy, the UK's leading tools and equipment hire services
company, operating across the construction, infrastructure and
industrial markets provides an update on trading in advance of its
Annual General Meeting later today.
Trading performance
Trading overall is in line with the Board's expectations for the
full year .
In the five months to August 2022 hire revenue is c.6% ahead of
2021. We have secured new contract wins from major customers
effective from October 2022 which are expected to offset some
recent weakening in market conditions. Price increases implemented
in April 2022 have not had a material impact on volumes.
We are controlling costs through initiatives to improve
operational efficiency and the effective management of our supply
chain, mitigating the effect of inflationary pressures.
We have continued to invest in our Retail and Trade offering
through development of the customer proposition in both B&Q
stores and on diy.com. A significant national marketing campaign is
underway to promote the hire proposition to consumers.
The Kazakhstan JV is continuing to perform well and ahead of
expectations following new work secured in FY2022.
Balance sheet and investment in hire fleet
The Group has a strong balance sheet with net debt as at 31
August 2022 of c.GBP95m and cash and unutilised facilities of
c.GBP85m.
The Group has invested c.GBP28m in the hire fleet in response to
demand and to mitigate the impact of supply chain lead times and
price inflation. In line with the Group's strategic goals, the
investment has been focused on sustainable products.
Share buyback
In January 2022 the Board commenced a share buyback programme of
up to GBP30m reflecting the Group's cash generative ability and
strong balance sheet. To date c.GBP18m of shares have been
purchased under the programme. The general authority for the
programme expires at today's AGM, where a resolution to renew the
authority will be considered by shareholders and subject to
approval of that resolution, it is the Board's intention to
continue the programme for the balance of the initial GBP30m.
Thereafter the Board will review the medium-term capital needs of
the Group in deciding whether to undertake a further share buyback
programme.
Management
As previously announced, Russell Down will step down from the
Board and the role of Chief Executive on 30 September 2022. Dan
Evans, currently Chief Operating Officer, will join the Board as
Chief Executive with effect from 1 October 2022.
Outlook
Trading overall is in line with the Board's expectations for the
full year. Whilst the macroeconomic outlook is uncertain and
inflationary pressures remain high, our business is resilient and
well positioned to manage any resulting changes in market
conditions due to our diverse end market exposure, broad customer
base and strong balance sheet.
The Board will provide further details on Group performance at
the interim results announcement on 15 November 2022.
Russell Down, Chief Executive, commented :
"Revenue for the first five months of the financial year has
remained strong, with new contract wins effective from the second
half also secured. Whilst the continuing macroeconomic uncertainty
and inflationary pressures may impact trading performance, our
diverse end market exposure, broad customer base and strong balance
sheet provide resilience against changes in market conditions."
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
James Bunn, Chief Financial Officer
MHP Communications Tel: 0203 128 8147
Oliver Hughes
Andrew Jaques
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.200 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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