Speedy Hire Plc
("Speedy", "the Company" or "the Group")
21 July 2021
Speedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, provides an update on current trading and the renewal of its bank facilities.
Market conditions have remained favourable in the period since the year-end and the Group is trading in line with our expectations. Speedy has continued to win new customers and take market share. UK and Ireland core hire revenue for June is c.3% ahead of the corresponding period in FY2020 (being a more meaningful comparator than FY2021) and c.2% for Q1 in that period. Overheads remain tightly controlled following action to manage the cost base during FY2021; asset utilisation rates for Q1 FY2022 are c.2% ahead of Q1 FY2020.
As previously reported, Geason Training has been adversely affected by COVID-19 and market conditions. Speedy remains committed to providing training to our customers and will be concentrating on the success of short duration courses aligned to our core operations; we will cease provision of NVQs and Apprenticeships from 31 July 2021.
The Group entered into a Transitional Services Agreement (TSA) following the disposal of the Middle East business on 1 March 2021. This was due to expire on 30 June 2021 but has been extended to 30 September 2021, following COVID-19 related delays. On conclusion of the TSA, the Group will wind up its operations in the Middle East.
Cash collections have remained strong and following capital expenditure of c.£20m in Q1, net debt at 30 June 2021 was broadly unchanged from 31 March 2021.
The Group's £180m asset based finance facility has been renewed for three years, through to July 2024. In addition uncommitted options exist for a further two one-year extensions until July 2026. The additional uncommitted accordion of £220m remains in place through to July 2024. The terms of the facility, which is split equally between NatWest, Barclays, HSBC, Wells Fargo and ABN AMRO, are broadly similar to the expiring facility. The facility gives the Group headroom with which to support organic growth and acquisition opportunities.
Russell Down, Chief Executive, commented:
"I am pleased to report that we have maintained positive trading momentum and made further strategic progress in the first quarter of the financial year. We have a strong balance sheet and our renewed banking facility gives the Group substantial headroom to support future growth."
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
James Bunn, Chief Financial Officer
MHP Communications Tel: 0203 128 8147
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, ISO17020, ISO27001 and OHSAS18001. The Group operates from c.200 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations and through a joint venture in Kazakhstan.