Speedy Hire PLC Trading Update (8890F)
July 21 2021 - 2:00AM
UK Regulatory
TIDMSDY
RNS Number : 8890F
Speedy Hire PLC
21 July 2021
Speedy Hire Plc
("Speedy", "the Company" or "the Group")
21 July 2021
Trading update
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.
Trading update
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.
Financing
Cash collections have remained strong and following capital
expenditure of c.GBP20m in Q1, net debt at 30 June 2021 was broadly
unchanged from 31 March 2021.
The Group's GBP180m 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 GBP220m
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."
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:
Inside Information : This announceme nt 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.
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END
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