Trading Update - Maintaining Momentum

RNS Number : 8380O

Speedy Hire PLC

17 October 2012

 



17 October 2012

Speedy Hire Plc

('Speedy', 'the Company' or 'the Group')

Trading Update - Maintaining Momentum

Speedy Hire Plc, the UK's largest provider of tools and equipment services, today issues a trading update ahead of the announcement of interim results for the six month period ending 30 September 2012 on 14 November 2012.

Trading for the period has been in line with the Board's expectations with underlying* Group revenues up 5.3% against H1 FY12.  This revenue growth, combined with an on-going focus on operational and capital efficiency initiatives, has enabled the Group to improve profitability, operating margins and return on capital employed.

In the UK, we have maintained our focus on the regulated industries and those markets supporting social and economic infrastructure, especially in the areas of water, waste, energy and transport.  Underlying* UK revenues for the first half were up 3.2% on H1 FY12, with increases in both volume and yield offset by decreases in product and customer mix. Underlying rate improvement continues.

In the International Division, revenue was up 77% on H1 FY12, predominantly driven by Speedy's growing presence in the oil & gas sectors.  Mobilisation has commenced on the first phase of the ZADCO project to support the drilling activity on four artificial islands in the Arabian Gulf that will allow land based drilling techniques to be used to exploit one of the largest offshore oil fields in the United Arab Emirates. This project is expected to result in revenues to Speedy of up to US$50m over the next 5 years and will support further progress in profitability in the second half of the year.

During the period we have continued to invest judiciously in fleet to support specific areas of growth in both the UK and overseas, funded predominantly through the strong cash generation within the business.  Net debt at 30 September 2012 was c£83m (31 March 2012: £76.3m) and during the period we successfully extended the Group's banking facilities on the same terms, by a further seven months through to August 2015.

Steve Corcoran, Chief Executive of Speedy Hire Plc, commented:

"Continued implementation of the Group's strategy and a range of self-help measures have seen Speedy make further progress during the first half.  Although market conditions remain challenging the Board is confident of meeting its expectations for the financial year and continues to look to the future with confidence."

*excluding the disposed accommodation business and before planned disposals of hire fleet

For further information please contact:

Speedy Hire Plc
Steven Corcoran, Chief Executive
Lynn Krige, Group Finance Director
Tel: [phone]

Hudson Sandler
Nick Lyon / Andrew Leach
Tel: [phone]

Note - 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 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 268 fixed sites - together with a number of on-site facilities at client locations throughout the UK, Ireland and an international hub based in the Middle East - the Group supplies a range of services including:

·      the provision of small tools and equipment

·      surveying and measurement instrumentation

·      lifting and materials handling equipment

·      low level access equipment

·      compressed air

·      lighting equipment

·      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).

Speedy is accredited nationally to ISO9001 and OHSAS18001 accreditations. In addition we have ISO14001 (210 depots) and nationally hold HAE SAFE Hire accreditation, as well as Achilles Link-up, UVDB, Building Confidence and F-Pal.

Further accreditations include Constructionline, SAFEcontractor, CHAS, LEEA and BITC Gold Award for CR Index 2012

 

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