17 April 2013

Speedy Hire Plc

('Speedy' or 'the Group')

Year End Trading Update - Delivering on a Consistent Strategy

Speedy Hire Plc, the UK's largest provider of tools and equipment for hire and associated services, with a growing presence supporting its customers in the Middle East, is today releasing a trading update in advance of the publication of its preliminary results for the year ended 31 March 2013, on 15 May 2013.

Trading

The Board's strategy remains focused on generating high quality, secure, long-term and transparent earnings across the Group.  During the financial year ended 31 March 2013, Speedy strengthened its position as the market leader in rental services for large volume users and notably secured significant new contract wins with National Grid, in the UK, and ZADCO, in the Middle East.  In addition to the quality and visibility of the revenue secured, the new contracts involve the provision of end-to-end managed services as opposed to purely transactional volume hire.

Underlying* Group revenues in the fourth quarter to 31 March were up 0.2% against the prior year (UK&I down 2.2%, International up 55%), resulting in a full year underlying* revenue increase of 3.7% (UK&I up 1.1%, International up 61%).

Within the UK market environment, which remains challenging, the Group has continued to target specific sectors and customers that generate profitable work at attractive margins for the Group, as opposed to solely pursuing top line growth.  Coupled with a sustained focus on self-help measures, further progress has been made in reconfiguring the depot network and improvements in operational efficiency. As such, we expect to report PBT marginally ahead of the Board's previous expectations for the year ended 31 March 2013.

Financial position

Speedy's continued investment in its fleet has allowed it to support major customers in important long-term contracts that deliver visible revenues whilst maintaining its position as the market leader in terms of the quality and breadth of its product offering.

Net investment in hire fleet during the year was approximately £39m which has continued to be funded through cash generation and a disciplined approach to working capital.  Net debt at 31 March 2013 was £72.4m (31 March 2012: £76.3m).

Outlook

Although we retain an element of caution regarding likely market conditions in the financial year to 31 March 2014, the Board remains confident of the Group making further progress and being well placed to take advantage of improvements in trading conditions as and when they arise.

*excluding the disposed accommodation business and before planned disposals of hire fleet

For further information:

  www.speedyhire.plc.uk 

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 264 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 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 BITC Gold Award for CR Index 2012.