Speedy Hire Share Discussion Threads

[tiggertiger] 18/5/2016 12:03

I just don't get the stock market at all. When companies such as VTU release better than expected results with solid historic growth and a solid business plan and shares drop, how on earth are we seeing gains here after such a dire performance?

[blondeamon] 17/5/2016 19:20

The real concern is, if they couldn't bring this around on a year where the weather has been awful and floods everywhere would have boosted their sales...will they be able this year? I surely hope so.

[pugugly] 17/5/2016 13:47

Accounts as clear as ditchwater (imo) The £10.9 million in para 2 below (bad debt and credit note) is not (so far as I can see) fully included in Note 3 to the accounts - See my 3* below. Nor does it seem to accounted for in a provision against Revenue or profit - HELP What am I missing !

1. "Exceptional items totalled GBP59.9m (2015: GBP17.1m). These comprise the previously announced impairment of GBP45.9m of goodwill, GBP7.7m of restructuring costs, GBP5.5m of bad debt provisions in relation to a Middle East debtor and GBP0.8m relating to losses on disposals of assets in the Middle East"

2. BUT elsewhere it is stated that "Bad debt and credit note provisions totaled GBP10.9m at 31 March 2016 (2015: GBP6.3m), equivalent to 12.7% of the debtor book (2015: 5.7%). The increase in total provisions reflects the specific exceptional provision discussed in note 3. "

but in note 3 it states that

3 Exceptional items

For the year ended 31 March 2016

During the period, exceptional administrative costs of GBP59.9m have been incurred. The business has made an impairment provision against the carrying value of goodwill, finalised the roll out of its new network structure and fundamentally restructured its operations. In addition, a provision has been recorded in relation to proceeds recognised in the year to 31 March 2015 on the disposal of International assets which have not yet been received.

(3*) A provision of GBP45.9 million has been made against the Group's goodwill following a review of the carrying value as part of the annual impairment testing process. Trading performance during the year has resulted in the Group revising its assumptions regarding future activity levels. This has resulted in revised forecasts of cash flows arising in cash-generating units. An impairment loss has been calculated on a value-in-use basis.

Exceptional costs of GBP3.5m were incurred in the period as the programme to reconfigure the depot network was finalised. These costs include provisions for onerous leases which remain as a result of the changes and costs relating to implementing the change programme.

Costs relating to changing the management structure totalled GBP4.2m including redundancy costs and related expenditure.

Further costs have been incurred in exiting the International general and spot hire markets relating to disposals and professional fees, amounting to GBP0.8m.

The Group has made a provision of GBP5.5m against outstanding debts relating to international assets disposals following default by the purchaser on outstanding payments.

For the year ended 31 March 2015

During the prior year, exceptional administrative costs were incurred as the business rolled out a new network structure, changed management and restructured the International operations.

Exceptional costs of GBP6.4m were incurred as the programme to reconfigure the depot network continued. These costs included provisions for onerous leases which remained as a result of the changes and costs related to implementing the change programme.

Notes to the Financial Statements (continued)

3 Exceptional items (continued)

For the year ended 31 March 2015 (continued)

Costs relating to changing management totalled GBP2.2m, including redundancy costs and related expenditure incurred in the International division. A further GBP2.0m was incurred in respect of professional and legal costs associated with disposal activity.

In addition, a further GBP6.2m was incurred in respect of losses on the disposal of assets in the International division, related to the withdrawal from the General and Spot Hire markets.

Exceptional financial expenses of GBP0.3m related to costs incurred in cancelling debt facilities.

[thomasthetank1] 17/5/2016 12:13

Read Panmure Gordon & Co's note on SPEEDY HIRE PLC (SDY), out this morning, by visiting hxxps://www.research-tree.com/company/GB0000163088

"Speedy Hire had a challenging FY16. As previously flagged, sales have been impacted by the ill-advised strategies of the previous management team. However, the problems are being addressed, with greater focus and cost discipline being re-introduced. Q4 sales were up sequentially from Q3, providing some comfort that the problems are being fixed. We suspect the new management team will increasingly be put under pressure to consider M&A opportunities, providing further support for the share price..."

[dlku] 17/5/2016 10:24

Speedy crashes £58m into the red

[napoleon 14th] 17/5/2016 07:46

Reassuringly boring!
Better than LAKE who are still "kitchen sinking" IMO..

[james8] 06/5/2016 11:25

results Tues 17th May

[rumbers2] 06/5/2016 10:32

LIBERUM INITIATES SPEEDY HIRE WITH 'BUY' - TARGET 49 PENCE

[empirestate] 06/5/2016 10:03

results should be here next week, although there appears little or no weight on the share price at the moment probably best to wait and see them first before getting on board imo

[rumbers2] 29/4/2016 16:30

I note Tosca Fund have been buying both HSS and Speedy Hire shares over the last few days. They now own over 16% of HSS and 19% of Speedy. It wouldn't surprise me to see another RNS issued next Tuesday taking them over 20%.

[blondeamon] 26/4/2016 19:01

If recovery was on track why didn't the CEO even have a quote on the rns and no mention of turnaround? I worry there's a profit warning looming here. Hope I'm wrong and goes back to where it was last year.

[roofer2] 12/4/2016 10:15

Some nice big buys going through, I'm waiting 5 more weeks to find out on results day how the recovery is going, I'm bullish ATB

R2

[jas0701] 11/4/2016 22:12

Any idea, anyone, what's going on with this one. Seems to be going down every day.

[jas0701] 05/4/2016 08:52

Who's wasting their money, selling 2 shares at time.

[rumbers2] 02/4/2016 10:18

Held on to my shares during Thursday's helter skelter ride, even adding another 25k at 36.5p but admit bagging the profit on those yesterday when the share price retraced. Still have my core holding though.
Peel Hunt put out a sell recommendation but interestingly Panmure Gordon analyst said writing off the goodwill had drawn a definitive line in the sand for investors with the future outlook now more positive. Their target price..70p!!!

[hippo] 02/4/2016 07:32

Smells to me .......merger is on....

[praipus] 31/3/2016 16:26

Fantastic update £45m wiped off intangibles! This should tell potential share holders and customers they are dealing with a stable financially robust business. A board that can integrate a new businesses so well that it can write off good will!!!!!!

Serious investors and institutions add now I suspect.

Good news well done SDY.

[my retirement fund] 31/3/2016 07:40

There is no turnaround but they have given an update strategic review writing of goodwill so effectively the NAV has 45 million wiped off of it in an instant.Their bankers wont like that, the fact shareholders dont like it is immaterial. The question is was it enough. Its big brother HSS needs to do similar and will struggle to avoid negative value and insolvency imo.

[blondeamon] 31/3/2016 07:20

I'm out, I don't like the the fact that the RNS is missing

1) A progress statement for the turnaround
2) A comment from the CEO

Everybody is waiting for progress on the turnaround and if I don't hear anything about that when the CEO was so vocal about it in November, then I expect that there's something wrong.

Hope I'm mistaken and May results prove this to be a very good hold, I'd be happy and might re enter.

[salpara111] 31/3/2016 07:18

Well, I was waiting for that update but wont be investing.
A very cautious statement.
I had hoped that given their recent troubles were largely self inflicted they would be sorted out and as a result they would be able to say something much more positive.

[reallyrich] 31/3/2016 06:44

What a very poor trading update.

Not giving anything about current prospects.

P

[scapital] 31/3/2016 06:35

Not giving much away.

[oakville] 31/3/2016 06:20

Christ I could have written that !

[bertie bee2] 31/3/2016 06:17

Oh a very long time......