TIDMSDY
RNS Number : 3955V
Speedy Hire PLC
05 April 2023
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 tax(1) for
the year in-line with the Board's expectations.
The Group performed well during the year, with revenue(2) 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.GBP6.6m and will deliver associated benefits in the region of
GBP5m 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 debt(3) at
the year end of less than GBP94m.
Share Buyback
In March 2023 the company concluded its share buyback programme
to purchase an aggregate value of up to GBP30,000,000 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
share(4) 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
Speedy@mhpgroup.com
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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END
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April 05, 2023 02:00 ET (06:00 GMT)
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