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RNS Number : 1827P

Speedy Hire PLC

08 June 2020

8 June 2020

Speedy Hire Plc

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

Trading update and revised date for 31 March 2020 results

Speedy, the UK's leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets, provides an update on trading and the announcement date for the results for the year ended 31 March 2020.

Trading update

The Group took decisive action to manage revenue, contain costs and preserve cash following the COVID-19 pandemic, whilst maintaining the capability to support our customers and protecting the health and safety of our colleagues and stakeholders.

Group revenues in April were ahead of the Board's expectations, albeit 35% lower than the prior year due to reduced activity levels and suspensions of hired equipment. Activity levels have steadily improved during May as lockdown measures have eased and customers have returned to work. As a result, hire revenue for the week ended 5 June 2020 was c.17% lower than the prior year.

As previously reported, the Group had furloughed c.50% of its UK and Ireland workforce in April; as at 5 June approximately 1,200 colleagues (c.33%) remained on furlough.

Balance sheet and liquidity

The Group has a strong balance sheet and substantial unutilised banking facilities. Cash collections, which had been strong in March 2020, have remained strong in April and May. As a consequence of this and the utilisation of government support measures, net debt (on a non IFRS 16 basis) reduced from GBP79.3m at the year end to c.GBP68m at 31 May 2020. The maximum committed facilities amount to GBP180m, which expire in October 2022.

Based on various revenue downturn scenarios, and the measures outlined above, the Board remains confident that the Group can operate within its existing debt facilities and covenant tests during a prolonged period of reduced trading activity.

Revised date for 31 March 2020 results

On 12 May 2020 the Group announced that, in light of recent COVID-19 guidance from the FCA, the FRC and the PRA, it would announce its results for the year ended 31 March 2020 on 9 June 2020.

The Group and its auditors, KPMG, are continuing to finalise the year-end accounts, and given the practical challenges of remote working and the extra work required in relation to Geason Training as detailed below, these are now expected to be released on 23 June 2020.

The Group's training business, Geason, which was acquired for GBP9m in December 2018, accounts for c.2% of Group revenue. Geason has not performed in line with management's expectations and as a consequence the carrying value of goodwill and any contingent consideration payable will be written down to nil in the year end accounts. In addition, Geason received a claim from a funding agency in late April 2020 alleging poor financial controls and overpayments of up to GBP2.6m for the three year period commencing August 2017, which the Company is investigating.

Guidance

Further to its previous announcement on 9 April 2020, as the COVID-19 situation is likely to remain uncertain for some time all guidance remains suspended.

Enquiries:

 
 Speedy Hire Plc                  Tel: 01942 720 000 
  Russell Down, Chief Executive 
 MHP Communications               Tel: 0203 128 8778 
  Oliver Hughes 
  Andrew Jaques

Inside Information: This announcement contains inside information.

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 ISO27001, 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, from an international office based in Abu Dhabi and through a joint venture in Kazakhstan.

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