Speedy Hire must have tendered a lower price in order to win the contract. HSS will have to look for new customers to replace this lost contract.
Speedy Hire's share price has recently risen from 24p to 32p today. HSS has fallen from 14p to 7p level in the same period. The loss of the Amey contract (10% EBDITA to HSS) does not warrant such a huge drop in its share price. |
SDY Speedy Hire won the Amey account. Announced today |
Fevertreeman.
Those stats at the end of your post says it all.
Yes, he has some explanation to put forward, alas us little minnows will be little thought of.
Gla |
Market seems to like Speedy Hire's FY results today, despite IMO being nothing to shout about bar decent cash and a held dividend and yet there continues to e a stark difference in performance, despite our CEO's vaunted tech heavy, asset lite model supposedly being the way forward. its all very well him trumpeting how much progress he has made flogging off revenue and profits, but seriously the market continues to be mightily unimpressed doesn't it? He's going to have to explain why his bullishness is not shared by investors, esp in light of the shock loss of Amey contract (who even knew it was this bloody big)
The lack of support for HSS is stark in terms of recent share price performance vs Speedy:
HSS SDY
1 month -18.6% +2.1%
3 month + 1.0% +18%
6 month -29% -7%
1 Year -39% -5% |
Let's wait and see agm and update in the meantime down about a penny since news of contract |
They sold the power business (and got very little for it) because over the last 8 years they failed to invest in new fleet and don't want to prioritise the cash into generators.Amex was 90% rehire contract so will hit mainly their services numbers - it's the area they have always trumped as being the growth story - not any more!Worry is they will now chase another large volume deal on price and get caught up with more poor margin business.Quested - I guess he had enough. Ashmore - 7 years (longer than any previous ceo) share price 70p to 7p. Sold off all the best parts of the group leaving the rump tools business which makes no sense money, and pocketed 2m bonus last year!Rest of the board -dinosaurs.... |
MJNeish,
Excellent points, well made! Ashmore & Quested have a lot of explaining to do at the AGM. Numis their brokers were clearly equally blind-sided by the announcement and scrambling to get an explanation as the calls came in from investors, including from me....Something doesn't add up.
The debacle may go someway to explaining why CFO has thrown in the towel. In a business where volumes are import, Ashmore's last 3 announcement are incompatible...2 announcements where a bloody great big chunk of revenues have been sold or lost vs the comment about gaining market share
Gaining market share whilst junking revenues needs a proper explanation (1) Power Generation sold in March contributed £34m revenues & £6m O'Profit in Yr to'22. But they claim £20m of the revs will continue to be available on the market place
(20 Loss of Amey contract |
 You call some right and you call some wrong. Only a fool presumes to know where the price is going, and an even bigger fool pays attention. All you can do is buy shares in a company that you think has good prospects, with attractively valued shares, then cross your fingers and hold for the long term. The situation doesn't look so dire that their banking covenants are an issue. The loss of this one contract in itself is a hit but isn't disastrous unless it's the start of a trend.
From the last results:
We enter 2024 with our business in great shape to continue taking market share and providing an alternative technology-driven, lower-cost operating model. Our one-stop shop proposition, combined with our self-service marketplace solution, provides customers with the opportunity to reduce their procurement costs which will be particularly relevant irrespective of market conditions.
We have made significant progress in recent years, transforming our customer proposition through the reorganisation of our business and the introduction of new technology. I believe these changes will deliver market share gains, enhanced customer service and greater productivity across the Group, as we leverage new product verticals, improved routes to market and our differentiated technology over the coming year. I am confident that this will deliver improved shareholder returns through progressive improvements in earnings per share. I remain excited about the prospects for the Group in FY24 and beyond.
Losing a big contract isn't compatible with gaining market share. The company will have a bit of explaining to do in their trading update on the 26th. |
Philmac AKA scarlet are you real |
Anyone any ideas about their banking covenants? |
Three unknown trades totalling 1,500,000
It's not me |
Lol poor phil |
You are an amateur phil |
Who has picked the contract up? |
About 25 million loss of revenue maybe 2mil profit Phil no one could have foreseen this except top management maybe he should resign you should contact him if you're not happy don't blame me |
You should have listened wen I told ya it was going bust you got annoyed and filtered me that's why I no you are in here big time sour grapes for you |
Will this affect HSS banking covenants? |
Its obvious by your posts Phil you're losing a lot of bread so sorry |
Thought you had got me on filter |
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