REG - Speedy Hire PLC - Year End Trading Update

Speedy HireAnnouncement

10/04/2024 07:00

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RNS Number : 9319J  Speedy Hire PLC  10 April 2024

Speedy Hire Plc

("Speedy Hire", "the Company" or "the Group")

 

 10 April 2024

 

Year End Trading Update

 

Speedy Hire, 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 2024 ("FY2024").

Trading performance

The Group has performed resiliently in the year against a challenging market
backdrop and wider macroeconomic uncertainty. Total Group Revenue(1) of
c.£420m for the year was down c.5% versus FY2023, impacted by
underperformance from our Regional base, the reduction in wholesale fuel
prices and the performance of our seasonal products, which were affected by
the warmer winter period.

 

The cost inflation and softer demand faced across much of the Construction
sector mean that revenues from our Regional customers closed 6% down
year-on-year, although these stabilised in the last quarter of the year and in
FY2025 trading to date. Revenues from our National customers whilst declining
in the last quarter had continued to trade positively year-on-year.

 

Despite the challenging trading environment through FY2024, the Group has
secured additional annual turnover in excess of £40m across multi-year
contracts with new and existing customers which, whilst slow to mobilise and
only providing marginal benefit in FY2024, give confidence for growth in
FY2025 and beyond. This new business has been secured with continued pricing
discipline and demonstrates the attractiveness of Speedy's customer offering.

 

Our Kazakhstan joint venture, following a record year last year, returned to a
more normalised performance in FY2024 due to the timing of various projects.

 

The momentum from securing major opportunities and progressing operational
efficiencies, positions the Group well to benefit from the anticipated
recovery of the wider macroeconomic environment during the second half of
FY2025.

 

As a result, while the Group expects to report results for the year towards
the lower end of the Board's expectations, it is encouraged by the commercial
progress in the business and the outlook for FY2025 given the recent contract
wins.

 

The Group has remained highly focused on working capital management and
expects to deliver free cash flow(2) in excess of £20m, with net debt(3)
reducing by year-end to c.£102m, within our target leverage range.

 

Velocity Strategy

We continue to progress our five-year strategy and transformation programme,
led by systems and data, to ensure that we will have an efficient operating
structure to power our growth and deliver long term benefits. The investment
in implementing our strategy and executing our transformation programme
represents a significant cost to the business and will be reported separately
at the year end. Our Velocity strategy represents a significant opportunity to
the Group in the future and we are committed to its development and execution.

Our partnership with B&Q has evolved to a more digitally focused model
during the final quarter of FY2024 and we have now fully exited the remaining
22 concessions. The Group incurred trading losses and closure costs in the
region of c.£2m in FY2024 which will not recur under the new, low
cost-to-serve model. Our products and services are now available for digital
hire in-store within every B&Q and Tradepoint as well as on the respective
websites, demonstrating strong strategic progress in our Trade and Retail
offering.

Green Power Hire Limited is performing in line with its acquisition business
plan and we continue to invest in the business to satisfy growing customer
demand. In March, we were also pleased to showcase the first H-Power Generator
for Speedy Hydrogen Solutions, our joint venture partnership with AFC Energy
Plc.  We look forward to growing the fleet during FY2025 and supporting our
customers with sustainable power generation.

The implementation of Velocity has also facilitated supply chain savings
alongside further management restructuring and depot optimisation projects.
These enabling improvements will continue to deliver benefits into future
years.

Notice of results

 

The Group expects to announce its final results for the financial year ended
31 March 2024 in mid-June 2024.

 

 

 

Enquiries:

 

Speedy Hire
Plc
Tel: 01942 720 000

Dan Evans, Chief Executive

Paul Rayner, Chief Financial Officer

 

MHP Communications
           Tel: 0203 128 8540

Oliver Hughes

Katie Hunt

Speedy@mhpgroup.com (mailto:Speedy@mhpgroup.com)

 

Notes:

 

(1)  Unaudited

(2) Free cash flow: Net cash flow before movement in loan balances, M&A
activity and returns to shareholders

(3) Pre IFRS 16 basis

 

Inside Information: This announcement contains inside information for the
purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

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 Hire 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 Hire
is certified nationally to ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and
ISO45001. The Group operates from c.150 fixed sites 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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