Interim Management Statement

RNS Number : 5868P

Speedy Hire PLC

20 July 2010

 



 20 July, 2010

Speedy Hire Plc 
('Speedy' or 'the Company' or 'the Group')

INTERIM MANAGEMENT STATEMENT

At the Annual General Meeting to be held at 11:00am today David Wallis, Chairman, will give the following update on the Group's progress since the start of the current financial year:

"Whilst market conditions remain challenging, Group revenues, excluding fleet equipment sales, in the three months to 30 June, 2010 were only 0.7% below the same period last year (quarter ending 31 March, 2010: -13.7%). This was in line with our expectations and the underlying steady improvement in year on year comparisons has continued into July.

Within the UK & Ireland Asset Services division, which constitutes over 95% of the Group total, monthly year on year comparisons have also gradually improved during the first quarter. Revenue in June 2010 was only slightly behind the same month in the prior year and exceeded £30m for only the second time since July 2009 with both volume and average hire rates improving, particularly in the smaller tools and equipment area.

Good progress continues to be made in both of our new operating activities, the International Asset Services ('International') and Branded & Advisory ('BAS') divisions, despite the deferral into the second quarter of a significant BAS training contract.  Although a substantial proportion of the International division's revenues are anticipated to occur in the second half of the year, it now has good visibility over its budgeted annual revenues, much of which derive from projects that are already underway. This provides confidence in the achievability of the targeted over £20m annualised run-rate of revenue at March 2011 from this division.

Net debt at the end of last week closed at £134.9m, which was broadly in line with our expectations. Cash generation continues to be the key area of focus and, with a continued tight control over cash, costs and capex, we aim to reduce net debt from this seasonal high over the remainder of the year.

During the period, the Group has successfully completed amendments to enhance its banking facility so as to provide greater flexibility for future capital investment, particularly with regard to our Middle East operations. The one-off cash cost of this exercise was approximately £3.5m in respect of bank and professional fees and will be reflected in the results for the first half of the 2010/11 financial year.

Whilst we are still early into our new financial year, given performance to date the Board confirms that the Group is trading broadly in line with its expectations for the year in respect of adjusted profit before tax (before amortisation and exceptional items). The outcome of the UK Government's Autumn Spending Review and the timing of any recovery within private sector construction will, however, be critical determinants of the future outlook for the business. In view of the uncertainty around these areas, we continue to take a cautious view about recovery prospects in the UK for the remainder of this year and next and continue to position the business accordingly, concentrating on the '3 C's' of cash, costs and capex.

However, with an improving trading performance, a clear market leading position in the UK and proven opportunities in BAS and International, we remain confident that the business is well placed to benefit from the upturn in activity when market recovery takes hold."

The Group plans to announce its interim results on 17 November, 2010.

For further information:

Speedy Hire Plc	Hudson Sandler
Steve Corcoran, Chief Executive Justin Read, Group Finance Director Tel:  [phone]	Wendy Baker / Kate Hough Tel: [phone]

Forward looking statements:

This release 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 release.

Notes to Editors:

Founded in 1977, Speedy is the leading UK provider of equipment rental and support services to a wide range of clients across the construction, infrastructure, industrial, manufacturing and facilities management sectors - as well as to local trades and industry.

Operating from over 325 fixed sites - together with a number of on-site facilities at client locations throughout the UK, Ireland and the Middle East - the company supplies a range of services including:

·      the hire of small tools and equipment

·      surveying and measurement instrumentation

·      lifting and materials handling equipment

·      powered and non-powered access equipment

·      temporary accommodation

·      compressed air

·      temporary power generation

·      mechanical pumps

·      temporary site communications

The Group also provides associated services through the provision of training, asset management and testing, repair, inspection and maintenance (TRIM), as well as offering advisory services in areas such as health and safety, environmental and regulatory compliance.

Website:  www.speedyhire.plc.uk

 

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