Trading Update & AGM Statement

RNS Number : 6850Y

Speedy Hire PLC

08 September 2022

 

Speedy Hire Plc
("Speedy", "the Company" or "the Group")

8 September 2022

Trading update and AGM statement

Speedy, the UK's leading tools and equipment hire services company, operating across the construction, infrastructure and industrial markets provides an update on trading in advance of its Annual General Meeting later today.

Trading performance

Trading overall is in line with the Board's expectations for the full year .

In the five months to August 2022 hire revenue is c.6% ahead of 2021. We have secured new contract wins from major customers effective from October 2022 which are expected to offset some recent weakening in market conditions. Price increases implemented in April 2022 have not had a material impact on volumes.

We are controlling costs through initiatives to improve operational efficiency and the effective management of our supply chain, mitigating the effect of inflationary pressures.

We have continued to invest in our Retail and Trade offering through development of the customer proposition in both B&Q stores and on diy.com. A significant national marketing campaign is underway to promote the hire proposition to consumers.

The Kazakhstan JV is continuing to perform well and ahead of expectations following new work secured in FY2022.

Balance sheet and investment in hire fleet

The Group has a strong balance sheet with net debt as at 31 August 2022 of c.£95m and cash and unutilised facilities of c.£85m.

The Group has invested c.£28m in the hire fleet in response to demand and to mitigate the impact of supply chain lead times and price inflation.  In line with the Group's strategic goals, the investment has been focused on sustainable products.

Share buyback

In January 2022 the Board commenced a share buyback programme of up to £30m reflecting the Group's cash generative ability and strong balance sheet. To date c.£18m of shares have been purchased under the programme. The general authority for the programme expires at today's AGM, where a resolution to renew the authority will be considered by shareholders and subject to approval of that resolution, it is the Board's intention to continue the programme for the balance of the initial £30m. Thereafter the Board will review the medium-term capital needs of the Group in deciding whether to undertake a further share buyback programme.

Management

As previously announced, Russell Down will step down from the Board and the role of Chief Executive on 30 September 2022. Dan Evans, currently Chief Operating Officer, will join the Board as Chief Executive with effect from 1 October 2022.

Outlook

Trading overall is in line with the Board's expectations for the full year. Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, our business is resilient and well positioned to manage any resulting changes in market conditions due to our diverse end market exposure, broad customer base and strong balance sheet.  

The Board will provide further details on Group performance at the interim results announcement on 15 November 2022.

Russell Down, Chief Executive, commented :

"Revenue for the first five months of the financial year has remained strong, with new contract wins effective from the second half also secured. Whilst the continuing macroeconomic uncertainty and inflationary pressures may impact trading performance, our diverse end market exposure, broad customer base and strong balance sheet provide resilience against changes in market conditions."

Enquiries:

Speedy Hire Plc Russell Down, Chief Executive James Bunn, Chief Financial Officer	Tel: [phone]
MHP Communications Oliver Hughes Andrew Jaques	Tel: [phone]

Notes to Editors:  Founded in 1977, Speedy is the UK's leading provider of tools and equipment 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 ISO45001. The Group operates from c.200 fixed sites and selected B&Q stores 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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