Trading Update

RNS Number : 9074L

Speedy Hire PLC

20 January 2009

 



20 January 2009

Speedy Hire Plc

('Speedy Hire', 'the Group')

Trading Update

Following a review yesterday of its most recent management information, Speedy Hire plc, the UK's largest provider of tools and equipment for hire, today provides an update on trading and its outlook for the year ending March 31, 2009.

In our interim results for the six months to September 30, 2008 issued on November 26, 2008, we reported that we remained cautious in our outlook and would not have sufficient certainty on our position until after the traditional Christmas holiday shutdown in the construction industry. We also reported that the positive impact of cost reduction initiatives and ongoing cost flexibility, together with reduced interest rates and fuel costs, led us to maintain our expectations for the current financial year, subject to no further deterioration in our markets.

Spending on infrastructure related projects continues to remain buoyant in both the Public and Regulated sectors and, as a result, revenues from the major contracting groups remains resilient. However, ongoing uncertainty in the credit markets continues to impact overall activity and further reduce confidence in the general construction market. 

If, as we currently expect, this trend were to continue or accelerate further throughout the remainder of the fourth quarter, we anticipate that our revenues in this quarter would be significantly below those in the same period in 2008, with the result that turnover for the year ending March 31, 2009 is now expected to be broadly in line with the prior year. As a consequence, and despite the substantial contribution of the cost reduction initiatives, which continue to be implemented, the Board now expects adjusted PBT (pre amortisation and exceptional costs) for the year ending March 31, 2009 to be in the range of £33-38 million.

The Group has a supportive and continuing close working relationship with its banking syndicate and a process has commenced to establish appropriate covenants for the remainder of Speedy Hire's £325 million five year facility which expires in June 2012.

Speedy Hire continues to enjoy significant strengths in this challenging market. The business continues to win new contracts and remains cash generative, with an ongoing target to increase further its financial headroom by reducing net debt to below the starting position of £255.6 million by the end of the current financial year.

Enquiries:

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

There will be a conference call for analysts at 7.45am this morning. For conference call details please contact Hudson Sandler on 020 7796 4133.

 

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