Trading Update, Notice of CME and Share Buyback

RNS Number : 7716Z

Speedy Hire PLC

27 January 2022

 

Speedy Hire Plc

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

27 January 2022

Trading Update, Notice of Capital Markets Event and Share Buyback Programme

Speedy, the UK's leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets, today provides an update on current trading.

The positive trading momentum experienced during the first half year continued into Q3 including further contract wins and renewals. UK and Ireland Hire revenue for the nine months to December was c.4% ahead of the corresponding period in FY2020.  Hire revenue in January 2022 to date is c.7% ahead of the corresponding period in FY2020.  

The Group has invested c.£61 million in the hire fleet for the year to date in response to strong demand.  Consistent with the Group's strategic goals, the investment has been focused on sustainable products.  Asset utilisation rates for the year to date are 57.1%; c.1.4% ahead of the comparable period in FY2020.

The Group expects to report results for the year in line with the Board's expectations.

Capital Markets Event

The Group will be hosting a Capital Markets Event for analysts and institutional investors on 30 March 2022 at its Innovation Centre in Milton Keynes, which opened last year. The session will focus on our strategic growth initiatives including ESG and Retail.

Share buyback programme

The Group has separately announced today a share buyback programme of up to £30 million. At the time of the half year results in November 2021, the Board undertook to review the medium-term capital needs of the Group and consider potential returns to shareholders. The Board considers that a £30 million share buyback programme is prudent, reflects the cash generative ability of the Group and maintains a strong balance sheet consistent with its capital allocation policy.

Russell Down, Chief Executive, commented:

"I am pleased to report that our positive trading momentum has continued with further revenue growth in Q3.  Market demand has resulted in increased utilisation rates, on an enlarged hire fleet following accelerated capital expenditure. Overall results for the year are expected to be in line with the Board's expectations."

Enquiries:

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

Inside Information:  This announcement contains inside information.

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 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 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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