Speedy Hire PLC Trading Statement (1119H)
23 March 2020 - 6:00PM
UK Regulatory
TIDMSDY
RNS Number : 1119H
Speedy Hire PLC
23 March 2020
Speedy Hire Plc
("Speedy", "the Company" or "the Group")
23 March 2020
COVID-19 and trading update
Speedy ("The Group"), the UK's leading provider of tools and
equipment hire and services to the construction, infrastructure and
industrial markets provides an update on its trading performance
for the year to 31 March 2020, ahead of its full year results which
the Board plans to announce on 19 May 2020.
Group revenue, pre disposals, is expected to increase by c.3.5%
from the prior year. Hire and services revenues are expected to
grow by c.1.5% and c.6.0% respectively, with hire revenue from SME
customers growing by more than 25% following our strategic focus on
diversifying our customer base.
Whilst underlying business momentum has been positive, COVID-19
is now having an impact on our revenues with activity levels
reducing. Consequently, adjusted profit before tax for the full
year is expected to be slightly below market consensus of GBP37m.
Looking further ahead, the full impact of COVID-19 will depend on
the length and severity of the disruption to activity in our
markets. We continue to monitor the situation closely.
We anticipate that the exceptional profit relating to the sale
of surplus land of GBP3.9m, which we announced in October 2019,
will be largely offset by exceptional integration and property
costs.
The Group has a committed asset-backed facility of GBP175m and
an overdraft facility of GBP5m, available until October 2022. Net
debt, excluding lease liabilities, as at 31 March 2020 is expected
to be in the range of GBP80 - 85m, after continued hire fleet
investment of c.GBP55m in the year to support availability and our
four-hour nationwide service promise. This investment has
maintained the young age profile of the hire fleet, which will
allow capital expenditure to be reduced as required, while
maintaining the operational capability of the business. The Group
has significant headroom against its committed banking facilities
and, in addition, has an uncommitted accordion facility of GBP220m.
Net debt to EBITDA at 31 March 2020 is expected to be c.1.0 times,
below the Board's target range.
The Board has been assessing the potential for disruption caused
by COVID-19 and has put in place pre-emptive plans and measures to
respond. However, the Board recognises that additional measures are
likely to become necessary as this unpredictable situation evolves
and is making further plans to both protect the Company's cash
position and maintain a robust balance sheet, while seeking to
safeguard our workforce.
Russell Down, Chief Executive, said:
"Whilst COVID-19 is starting to have some financial impact on
the business, I'm pleased to report continued positive momentum
across the Group over the last 12 months. We have a well invested
fleet, diversified customer base and robust balance sheet.
We are operating in an uncertain macro environment, and our
number one priority is the welfare of our colleagues, customers and
communities. Management has robust contingency plans in place,
which are being continually updated as the situation evolves."
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
Chris Morgan, Group Finance
Director
MHP Communications Tel: 0203 128 8778
Oliver Hughes
Andrew Jaques
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, equipment and plant 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 ISO27001, ISO50001, ISO9001, ISO14001 and
OHSAS18001. The Group operates from over 200 fixed sites across the
UK and Ireland together with a number of on-site facilities at
client locations, from an international office based in Abu Dhabi
and through a joint venture in Kazakhstan.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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