Speedy Hire PLC Asset Disposal - Large Mechanical Plant (1841I)
August 26 2016 - 2:00AM
UK Regulatory
TIDMSDY
RNS Number : 1841I
Speedy Hire PLC
26 August 2016
Speedy Hire Plc
('Speedy', 'the Company' or 'the Group')
ASSET DISPOSAL
Speedy, the UK's leading tools, equipment and plant hire
services company, operating across the construction, infrastructure
and industrial markets, is pleased to announce the sale of its
large mechanical plant fleet, for a total consideration of GBP14.4
million payable in cash.
The large mechanical plant fleet includes assets, notably
excavators, dumpers and ride on rollers, of three tonnes or
greater. As at 31 July 2016, the business had assets with a gross
book value of GBP15.5 million. Unaudited financial information for
the 12 months ended 31 July 2016, shows the fleet generated
revenues of approximately GBP3.2 million and EBITDA of
approximately GBP1.9 million.
Transaction highlights:
-- Gross cash proceeds of GBP14.4 million;
-- Net cash proceeds (after transaction costs and reorganisation
costs) will be used to reduce debt;
-- Speedy has entered into a five-year re-hire agreement, with
an option to extend for a further two years, for large plant
assets, with the acquirer of the business, Ardent Hire Solutions
Limited;
-- The profit on disposal (after transaction costs and
reorganisation costs) will be reflected in the Group's FY17
results;
-- The disposal will deliver a pro-forma increase in Speedy's return on capital; and
-- Completion will occur on 9 September 2016 for assets held in
England and Wales and 30 November 2016 for assets held in
Scotland.
Commenting on the disposal, Russell Down, Chief Executive of
Speedy, said:
"I am pleased that we have been able to conclude this agreement
which both guarantees continuity of supply to our customers and
will enhance our return on capital. The disposal is consistent with
our strategy of focusing on core operations and further
strengthening the Group's balance sheet."
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
Chris Morgan, Group Finance Director
Instinctif Partners Tel: 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
Notes:
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
accredited nationally to ISO50001, ISO9001, ISO14001 and
OHSAS18001. The Group operates from 206 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISLLFSETRIEFIR
(END) Dow Jones Newswires
August 26, 2016 02:00 ET (06:00 GMT)
Speedy Hire (LSE:SDY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Speedy Hire (LSE:SDY)
Historical Stock Chart
From Apr 2023 to Apr 2024