Speedy Hire Plc
("Speedy", "the Company" or "the Group")
5 April 2023
Year End Trading Update
Speedy, the UK's leading tools and equipment hire services company, operating across the construction, infrastructure and industrial markets, today provides an update on the Group's trading performance for the year ended 31 March 2023.
Positive trading performance
The Group expects to report adjusted profit before tax1 for the year in-line with the Board's expectations.
The Group performed well during the year, with revenue2 up c.14% over FY2022. Revenue growth was underpinned by rate increases to counter inflationary cost pressures alongside a strong performance from the Services business.
Against the backdrop of the continuing challenging trading environment, the Group has experienced some softening of demand in recent weeks, although with a strong pipeline of new business the Group remains confident of future revenue growth.
Group initiatives, including an ongoing operational review and a management restructuring, will improve the efficiency of our operations and are progressing well. The cost of these items in FY2023, including the depot consolidations already announced, will all be accounted for as exceptional items, and is expected to be c.£6.6m and will deliver associated benefits in the region of £5m per annum.
The combination of these actions and contract momentum means we enter FY2024 with confidence.
Net debt
Following Improved working capital management in the second half of the financial year, the Group expects to report net debt3 at the year end of less than £94m.
Share Buyback
In March 2023 the company concluded its share buyback programme to purchase an aggregate value of up to £30,000,000 of the Company's Ordinary Shares. The total number of shares repurchased (67,713,058), represents 12.8% of the Company's issued share capital on the day prior to the commencement of the share buyback programme in January 2022. The weighted average number of shares for FY2023 for the purposes of calculating adjusted earnings per share4 is c.485,297,297.
Update on non-itemised hire equipment
As announced on 8 February 2023, the Board instigated an external investigation into the issue identified with non-itemised assets, including a review of controls and accounting procedures. The investigation continues to progress and a further update will be provided with our final results announcement.
Management have taken corrective action and implemented new controls. The Board is reassured that an asset count at the end of March 2023, as part of the new controls, did not identify the need for an increase in existing provisions.
Notice of results
The Group expects to announce its final results for the financial year ended 31 March 2023 on 6 June 2023.
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Dan Evans, Chief Executive
Paul Rayner, Interim Chief Financial Officer
MHP Communications Tel: 0203 128 8540
Oliver Hughes
Charlie Barker
Notes:
1 Before amortisation and exceptional items
2 Unaudited and excluding disposals
3 Pre IFRS 16 basis
4 Earnings before amortisation and exceptional items
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.180 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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