Speedy Hire says trading in line, announces Lifterz acquisition
Tool and equipment hire company Speedy Hire said on Wednesday that trading for the year to the end of March 2019 was in line, as it announced the acquisition of powered access specialist Lifterz for £9.6m in cash.
Based in Yorkshire, Lifterz has a fleet of about 1,300 access platforms and employs around 90 people. For the year to the end of January 2019, it generated unaudited revenue of £15.2m, with normalised earnings before interest, tax, depreciation and amortisation of £3.3m.
Speedy Hire said the deal complements its previous powered access acquisitions, creating a comprehensive national presence, which will allow the company to service customers nationally with larger specialist equipment.
The group also confirmed that trading has been in line with expectations.
Group revenue for the period to 31 March excluding disposals is expected to be around 5.5% ahead the prior year, with services revenue of approximately 9%. Meanwhile, adjusted pre-tax profit for the full year will be ahead of the previous 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.
Chief executive Russell Down 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."
At 1425 GMT, the shares were up 1.4% at 57p.
Liberum reiterated its 'buy' recommendation on the stock following the news. It said the acquisition gives Speedy critical mass and nationwide coverage in powered access, where demand is growing and utilisation rates are high.
"The combination of this news and a steady update on current trading has led us to upgrade earnings per share estimates by 2.5% in 2020 and 2021, set conservatively," it said.