Speedy Hire Share Discussion Threads

[rumbers2] 24/6/2022 17:35

No point asking me 1pig I've lost all hope. Shot my bolt far too early buying back in the '60's. I have a long,long wait until i break even again.

[1pigshit] 24/6/2022 15:39

wtf is happening here rumbers

[disc0dave45] 10/6/2022 11:36

My only slight issue here is why the £30m buyback rather than maintaining yoy debt, not doubling it!, that said it could increase forecast eps by 10% and purchasing at lows is hopefully an optimum strategy to maximise rate of returns.Do like the recent numbers, especially the gross margin on hire, with pricing power this is a inflationary hedge IMO - folks cutting back on higher ticket items will no doubt consider hiring as a viable alternative for those one off DIY/Gardening jobs.

[cravencottage] 08/6/2022 21:25

Finally the market awakes.. Hopefully just the beginning of a major re-rating..

[1pigshit] 08/6/2022 19:53

rumbers2 a bit more positive now have you added

[46maxon] 03/6/2022 23:40

This post Zion mark (5305) must be a bot. Similar posts on Barclays!! Be aware!!!!!

[46maxon] 03/6/2022 23:39

This post Zion mark (5305) must be a bit. Similar posts on Barclays!! Be aware!!!!!

[tole] 02/6/2022 18:58

Thanks rumbersToday's write up in the TimesSpeedy HireSpeedy Hire has the look of a company that has had a raw deal from investors. It had been pigeon-holed as a beneficiary of Covid lockdowns - housebound DIYers buying equipment to keep busy - and consequently neglected now that conditions are returning to something near normal. But it announced stellar results on Monday, and has robust pricing ability in the face of rising inflation.Pre-tax profit rose from £8.3 million to £29.1 million in the year to end-March, as a disproportionate chunk of a 16.4 per cent revenue increase dropped to the bottom line.As its name suggests, the company hires out everything from hedge trimmers and ladders to pipework and crowd control barriers. It therefore appeals to the whole range of construction and maintenance, from large building companies to local plumbers. The big firms used to be out of reach but in many cases they now hire more than they own, to use capital more efficiently and cut carbon emissions.The hire market is fragmented and highly competitive. Business customers can easily defect without disrupting their own activities. Speedy should respond to that threat by mopping up some of the tiddlers, but that would not make sense while its shares are rated so meanly.It has invested £70 million in its hire fleet over the past year, to meet increased demand and offset the effect of delayed supplies. Although net debt has doubled to £67.5 million in the past year, it is still less than annual operating profit.Russell Down, the chief executive, said: "We have made an encouraging start to 2022-23, with volume growth and price increases more than offsetting cost pressures."The gross profit margin is up from 55.6 per cent to 57.2 per cent, showing it can pass on price rises. If a customer needs an item, they are not going to be too fussy about how much it costs.At 2.2p a share, up 57 per cent from 1.4p a year ago, the dividend translates into a 4.7 per cent yield which looks eminently repeatable. The p/e ratio is a modest 11.4.ADVICE BuyWHY The shares are unfairly neglected and underpriced

[rumbers2] 01/6/2022 19:31

Thanks Tole, your research here is appreciated and thanks for breathing some life back into this moribund thread. A little disappointed with the 60p target. Barring a bloody world war i would expect this to rebound to at least 63-66p in short order. Happy holidays!

[tole] 01/6/2022 18:51

https://masterinvestor.co.uk/equities/speedy-hire-capital-growth-on-just-8-7-times-earnings-and-a-good-looking-5-5-yield/Speedy Hire – capital growth on just 8.7 times earnings and a good looking 5.5% yieldBy Mark Watson-Mitchell 01 June 2022 3 mins. to readSpeedy Hire – capital growth on just 8.7 times earnings and a good looking 5.5% yieldLast Monday's final results announcement from Speedy Hire (LON:SDY) reminded me yet again just how cheap its shares are currently.Several times over the last couple of years or so I have commented upon this group and I have no compunction about returning to do so after its latest figures and statement.The businessBased in Newton-le-Willows on Merseyside, the £231m capitalised group is the UK's leading provider of tools and equipment hire services.Its massive range of clients includes market leaders in the UK construction, infrastructure and industrial markets.It supplies large national customers, including 86 of the UK's top 100 contractors.It also deals with local trade and industrial companies across the country, as well as with the general public.In the last year or so it has formalised its partnership with the B&Q stores group, boosting its trade and retail sales through various of its depots, as well as through its diy.com website.Speedy itself has some 200 fixed sites across the country, supplementing its own online activities.The company hires out a range of tools and accessories, including access, lighting, survey, lifting, rail, safety equipment and ATEX, plant, site and traffic management, communications, and pipework and engineering equipment; compressors, generators, and pumps; and heating, ventilation, and cooling equipment.It also sells access, lifting, survey, rail, and personal protective and safety equipment; various tools and equipment; and cutting, grinding, and sanding equipment, as well as site supplies.In addition, the company offers partnered, fuel management, testing inspection and certification, advisory/technical, powered access, out of hours, building information modelling, and aviation services, as well as customer service centres, and training services.The group provides a unique industry leading national four-hour delivery promise on its 350 most popular products.It has some 300,000 itemised assets for hire and employs over 3,300 people.The EquityThere are some 510.5m shares in issue.The larger holders include Schroder Investment Management (12.8%), Polar Capital (7.23%), Abrdn Investment Management (6.02%), M&G Investment Management (5.11%), FIL Investment Advisers (UK) (5.09%), Jupiter Asset Management (5.01%), Aberforth Partners (3.98%), Franklin Templeton Fund Management (3.27%), Threadneedle Asset Management (2.77%) and Hargreaves Lansdown Stockbrokers (2.50%).Brokers ViewAnalyst Charlie Campbell, the sector specialist at the group's brokers Liberum Capital, after Monday's announcement, was impressed by the group's strong recovery over the last year or so.For the current year to end March 2023 he estimates £417m sales revenues (£387m), pre-tax profits of £34.3m (£29.6m), earnings of 5.4p (4.1p) and an increased dividend of 2.5p (2.2p) per share.For 2024 and 2025 respectively, he sees sales of £432m and £448m, leading to profits of £37.0m then £39.5m, worth 5.4p then 5.7p in earnings, sufficient to pay 2.6p then 2.8p in dividends per share.Nice steady growth all around.Campbell rates the shares as a 'buy', looking for an 80p price objective.My ViewI really like this little group. It is yet another in my series of 'basic' businesses, never going to set the world alight but where its shares are extremely attractive for capital and income growth.It has a strong balance sheet and very good banking facilities. It is continually updating its fleets and its product ranges, pandering to a growing customer demand.Importantly, it will be gaining in the current and next year as its hire rate pricing is moved higher.It will also benefit very well as its tight management will help to increase its utilisation rates and its margins.As the infrastructure sector grows apace it will be a clear beneficiary of additional business.The B&Q arrangement could also prove to be a winner in due course.At the current 47p share price I consider that this group's shares are ready for another lift upwards.That rates the shares on just 8.7 times current price-to-earnings and yielding a very handsome 5.5%.We did well subsequent to the first Profile on the group in late 2019 then at 52p, they hit 80p within months.I now set a new Target Price of 60p on the shares within the next year.

[baddeal] 31/5/2022 18:31

Downs not that confident, he's leaving!

[tole] 31/5/2022 15:35

https://www.thetimes.co.uk/article/speedy-hire-profits-jump-to-boost-annual-dividend-pcg586jz8Speedy Hire profits jump to boost annual dividendTimes Business ReporterTuesday May 31 2022, 12.01am BST, The TimesSpeedy Hire is navigating the storms of rising inflation and supply chain pressures, with profits and the annual dividend both risingThe burgeoning confidence at Speedy Hire was strengthened still further yesterday when the tools and equipment provider reported soaring annual profits and expressed confidence that there was more to come.Speedy Hire said that its pre-tax profit had risen by more than 250 per cent in the year to the end of March to £29.1 million, from £8.3 million previously. Its revenue rose by 16.4 per cent to £386.8 million and it declared an annual dividend of 2.2 pence per share, up 57 per cent from 1.4p a year ago.Its full-year figures came after the group revealed plans last November to rent out of tools and smaller plant and machinery to the public after a trial at several B&Q DIY stores. The company typically rents its construction equipment to British infrastructure contractors, housebuilders and thousands of small building companies and tradespeople. It has more than 3,700 staff and about 200 depots across the UK and Ireland. It also has international operations serving the oil and gas sectors in the Middle East and Kazakhstan.Speedy Hire said its latest financial year had got off to an "encouraging" start, with underlying revenue 8 per cent ahead of the most recent comparative period. Volume growth and price increases had more than offset inflationary cost pressure, it said, adding that it was confident of achieving its expectations for 2022-23.David Shearer, 63, its chairman, said: "I am pleased with the performance this year and that revenues are now ahead of the pre-Covid-19 period. We have a strong market position allowing us to take advantage of positive end markets and deliver continued sustainable growth. The board looks forward with confidence for the year ahead." Shares in Speedy Hire rose almost 2p, or 4.2 per cent, to 47¾p last night.

[cravencottage] 30/5/2022 21:05

Directors must be confident in Speedy's prospects to increase divi and continue with the share buybacks. Yielding 4% plus should attract institutional support.

[thechaiman] 30/5/2022 18:35

could do with director buying now

[tole] 30/5/2022 17:53

Demand still strong at Speedy HireThe tool, equipment and hire company looks well positioned for growth in spite of cost pressuresMay 30, 2022By Jemma SlingoGroup has invested heavily in hire fleetInflation expected to hit overheads Shares in Speedy Hire (SDY) have lost a third of their value over the past year. When you look at the group's performance, however, this doesn't seem fully justified. While the equipment company had a difficult lockdown, revenue and profit before tax now exceed pre-pandemic levels, and demand for tools and building equipment shows no sign of waning.Speedy Hire has invested around £70mn in its hire fleet over the past 12 months in order to meet increased demand and to mitigate the effect of increased supplier lead times. This has inevitably affected its financial position: net debt has doubled to £67.5mn since last year. Meanwhile, its operating cash flow has sunk by 60 per cent to £28.6mn and it has just £2mn of cash on its balance sheet. Despite this, the group's net debt-to-Ebitda ratio remains low at 0.9 times, and utilisation rates have increased to 57 per cent. The group has also managed to boost its gross profit margin from 55.6 per cent to 57.2 per cent, driven by a strong hire division. There are obvious concerns. Inflationary pressures on salaries, utilities and fuel are expected to bite in 2023. Meanwhile, the group's decision to end its apprenticeship scheme last summer won't help with potential labour shortages, although it has set a target to have at least 5 per cent of its employees on some kind of "earn and learn" programme within five years. So far, price increases have managed to offset the effects of cost inflation on both overheads and new equipment purchases. Many analysts also consider Speedy Hire's end markets to be strong, despite concerns about the outlook for UK construction. "We note that [the] government appears highly committed to its infrastructure programme and we are confident that housebuilders are likely to aim to grow volumes in 2023 even if house price inflation slows," analysts at Liberum said. This sentiment is echoed by Panmure Gordon, which believes the group is likely to see further upside from the government's levelling up agenda. A cautious buy.

[cravencottage] 30/5/2022 11:48

Commenting on the results Russell Down, Chief Executive, said: " I am pleased to report results that reflect the strong performance we have achieved this year. We have continued to progress our strategic goals by taking market share, developing a first class digital customer experience, prioritising our people and leading on ESG. This performance is testament to the hard work and dedication of all my colleagues. "We have made an encouraging start to FY2023 with volume growth and price increases more than offsetting cost pressures. Against a backdrop of positive end-markets and our unique leading service and ESG customer propositions, the Board remains confident that we will meet its FY2023 expectations." 2023 EPS forecast according to II shares is 5.39p Interesting.

[thechaiman] 30/5/2022 08:42

anyone know what price liberum have us at

[cravencottage] 30/5/2022 07:35

hopefully all those " Short" will run for the hills..

[tole] 30/5/2022 07:19

Current trading and outlook: o Encouraging start to FY2023 with underlying revenue up c.8%o Volume growth and pricing initiatives are more than offsetting inflationary cost pressureso Key end markets expected to deliver growth through demand-driven volume improvements, particularly from major infrastructure and energy projects including HS2 and nuclearo The Board remains confident of achieving its FY2023 expectations

[my retirement fund] 30/5/2022 07:18

EPS of 4.13p and 2023 target on track, looking rather cheap here now I must say. Good read across to HSS which looks even cheaper.

[niklol] 29/5/2022 17:05

Great! Thanks. How could you tell that please?

[thechaiman] 29/5/2022 16:46

it said it was a buy

[niklol] 29/5/2022 16:02

At 16.43 on 27th there was a transaction which went through of 850,000 £391.000. I wonder if it was a buy or a sell???