Speedy Hire Plc
("Speedy" or "the Group")
Annual General Meeting
Trading update and appointment of Chairman
19 July 2018
Speedy, the UK's leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets provides an update on current trading ahead of its Annual General Meeting to be held later today and announces the appointment of a new Chairman.
Revenue for the first quarter of the year ending 31 March 2019, pre disposals, increased by 6.6% on the prior year. Hire revenue and services revenues grew by 5.5% and 8.4% respectively. UK and Ireland hire revenue increased by c.1% on a like for like basis; the international business continues to perform well, with a strong pipeline of opportunities.
The Group invested c.£15.2m in the first quarter on new equipment for hire, up 4.0% on the prior year. Expenditure continues to be carefully targeted with average asset utilisation rates increasing to 55.7%, on a rolling 12 month basis. Net debt at 30 June 2018 of £67.0m was lower than at year end (£69.4m). ROCE for the 12 months to 30 June 2018 was 11.8% (30 June 2017: 8.4%).
The Group remains on track to deliver a result for the full year in line with the Board's expectations.
The Group will host a Capital Markets Day for analysts and investors in Tamworth on 20 July 2018. No new material trading or financial information will be disclosed. A copy of the presentations given to attendees will subsequently be made available on the Speedy website.
Appointment of Chairman
Further to our announcement on 16 May 2018 and following the conclusion of an external and internal search process, David Shearer will succeed Jan Åstrand as Chairman of the Board and Nomination Committee with effect from 1 October 2018. Jan Åstrand will remain as a Non-Executive Director of the Company and member of the Nomination Committee until 31 October 2018.
David Shearer has been a Non-Executive Director since 9 September 2016 and a member of the Audit and Nomination Committees from 10 November 2016 and of the Remuneration Committee from 31 March 2017. David Shearer will cease to be a member of the Audit and Remuneration Committees on 30 September 2018.
Commenting on the appointment:
Jan Åstrand said:
"I am pleased to welcome David to the role of Chairman. He is a valued member of Speedy's Board, with considerable external experience. I am confident in his ability to lead the Board in building on the solid foundation established during Speedy's recovery and helping achieve the next stage of its growth."
David Shearer said:
"I am delighted to be taking over from Jan as Chairman of Speedy as we embark on the next phase of delivering the Company's growth strategy and look forward to working with Russell Down and the Board in the years ahead. On behalf of the Board, I would like to offer thanks to Jan for guiding Speedy through the last four years and wish him well for the future."
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
Chris Morgan, Group Finance Director
Instinctif Partners Tel: 020 7457 2020
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, and services to the construction, infrastructure and industrial markets. Speedy provides large national customers, including 85 of the UK's top 100 contractors, as well as local trades and industry with a range of general and specialist hire equipment, consumables, training and testing, inspection and certification (TIC) services. The Group operates from over 200 sites across the UK and Ireland, and internationally in the Middle East and Kazakhstan, as well as online. Speedy is the safest hire provider in the industry based on recorded RIDDOR accident frequency rates, and operates quality assured processes which are accredited to ISO 9001, ISO 14001, ISO 17025, OSHAS 18001, and ISO 50001.