RNS Number : 8904H
Speedy Hire PLC
18 July 2012
18 July 2012
SPEEDY HIRE Plc
("Speedy" or "the Group")
Interim Management Statement - Maintaining Momentum
At the Annual General Meeting to be held today at 11:00am Ishbel Macpherson, Chairman, will give the following update on the Group's progress since the start of the current financial year:
"The new financial year has begun satisfactorily and first quarter performance remains in line with management expectations. Despite the quarter trading being affected by the Easter break, May bank holidays and the Queen's Jubilee, underlying* Group revenues in the three months to 30 June 2012 are up 5.6% on the same period last year.
Against the backdrop of ongoing uncertainty in the construction sector, the Group's key growth areas of water, waste, energy and transport continue to offer opportunities for the business and provide management with confidence that Speedy will continue to make further progress in the current financial year.
Within the UK & Ireland Asset Services division, which constitutes over 95% of Group revenues, underlying* revenues were up 2.5% on the same period last year. During the period, UK yields were marginally down as a result of increasing volumes and rates offset by decreases in product and customer mix changes.
The International Division has seen an encouraging start to the year, with revenues for the first quarter some 61% ahead of the equivalent prior year period, driven predominantly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular. Having moved to a break-even position during the second half of FY12, the business is now trading profitably at an operating profit level and is on track to make further progress during FY13. The $50m, five year asset management and service support contract awarded to Speedy by ESNAAD is a key development for the business and illustrates well the potential for this part of the Group in the future.
During the period Speedy has continued to manage capex effectively and management remains focused on generating strong cashflow within the business. We have continued to invest in our hire fleet where there is demand from our customers for our services and in particular have strengthened the fleet in the areas of power generation, compressors and low level access.
As previously announced, we expect the Olympics to impact on trading in the second quarter. However we continue to make steady progress through working closely with our key customers, cautiously investing in our fleet, developing our property base and driving further efficiencies through the business. With its market leading position, strong balance sheet, and continued focus on self-help and growth markets, the Board remains confident that the Group is well positioned for the future."
*excluding the disposed accommodation business and before planned disposals of hire fleet
For further information please contact:
Speedy Hire Plc Steve Corcoran, Chief Executive Lynn Krige, Group Finance Director Tel: +44(0) 1942 720 000
Hudson Sandler Nick Lyon / Andrew Leach Tel: +44(0) 207 796 4133
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 trades and industry.
Operating from 283 fixed sites - together with a number of on-site facilities at client locations throughout the UK, Ireland and an international hub based in the Middle East - the Group supplies a range of services including:
-- the provision of small tools and equipment
-- surveying and measurement instrumentation
-- lifting and materials handling equipment
-- low level access equipment
-- compressed air
-- lighting equipment
-- temporary power generation
-- mechanical pumps
-- temporary site communications
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 and OHSAS18001 accreditations. In addition we have ISO14001 (210 depots) and 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
This information is provided by RNS
The company news service from the London Stock Exchange