Trading Update

RNS Number : 6995Q

Speedy Hire PLC

17 October 2013

 



17 October 2013

Speedy Hire Plc

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

Trading Update - Maintaining Our Consistent Strategy

Speedy Hire Plc, the UK's largest provider of tools and equipment services, today issues a trading update ahead of the announcement on 12 November 2013, of its interim results for the six month period ending 30 September 2013.

Whilst UK market conditions remain challenging, the Group has had a satisfactory performance and is trading in line with management expectations. At a Group level, whilst H1 revenue decreased by 0.1% against the prior year period, Q2 saw an improving trading momentum with Q2 revenue increasing by 0.4%.

Whilst we are yet to see any material improvement in construction work, the UK and Ireland division continues to navigate through the economic challenges by focussing on active hire markets, service revenue streams, an increasing proportion of non-construction related activities and progressing with the depot network and logistics strategy. Although UK and Ireland revenue in Q1 fell by 2.6%, with the National Grid project now fully mobilised and new Q2 non-construction related contract wins (£4.2m in the Infrastructure sector and £6.5m in the Industrial sector) Q2 revenue decreased by only 1.6%, mitigating the overall fall for H1 to 2.1%. 

The International division has once again made good progress with H1 revenues up 28.5% against the prior year period and mobilisation on key projects continuing to plan. During H1 we have also established a presence in Qatar to work with our teams in the MENA territories to capitalise on attractive opportunities in both the oil & gas sector and government-backed infrastructure initiatives across the region.

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

"Whilst the UK market, particularly in construction, remains challenging, our strategy to diversify the Group's revenues to secure both hire and service agreements from companies in non-construction related activities and internationally in the MENA region is generating results.  With an improving trend in the UK and Ireland in Q2 and a strong H1 performance in the International division, the Group continues to trade in line with the Board's expectations and remains well positioned to benefit from the future UK recoverysupported by a conservative balance sheet."

NOTE: All revenue % above exclude planned disposals of hire fleet

For further information please contact:

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

Hudson Sandler
Nick Lyon / Katie Matthews / Charlie Barker
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 trade and industry.

Operating from 258 fixed sites - together with a number of on-site facilities at client locations throughout the UK, Ireland and from an international hub based in the Middle East - the Group supplies a range of services including:

·      the provision of small tools and equipment	·      compressed air
·      surveying and measurement instrumentation	·      lighting equipment
·      lifting and materials handling equipment	·      temporary power generation
·      low level access equipment	·      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, ISO14001 and OHSAS18001. In addition we 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 being ranked a Platinum company in the Business in the Community (BITC) CR Index 2013.

 

END

 

 

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