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Share Name Share Symbol Market Type Share ISIN Share Description
Speedy Hire Plc LSE:SDY London Ordinary Share GB0000163088 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.60 -0.89% 67.00 67.20 67.60 68.70 66.00 68.70 234,337 16:35:14
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 363.6 12.3 1.8 36.8 354

Speedy Hire Share Discussion Threads

Showing 5351 to 5373 of 5525 messages
Chat Pages: 221  220  219  218  217  216  215  214  213  212  211  210  Older
DateSubjectAuthorDiscuss
16/2/2018
08:42
Russell Down made some recent comments about Carillion's collapse at the Speedy Expo at Liverpool Exhibition Centre at the end of January. They might give investors a little more insight after a month of agonizing uncertainty: We are confident of being able to absorb the blow. “We’re of a size where we can absorb that,” he says. “Our bank sureties are around £180m, so it’s not of a scale that’s material to us.” PwC has told hundreds of Carillion suppliers they will be paid for work and services provided following the contractor’s collapse on 15 January, and Mr Down confirms that its plant remains in use. “The equipment that was on hire from 15 January remains on hire and they [the liquidator] are going to pay for that equipment, they want it to remain business as usual from 15 January.” He does, however, acknowledge some uncertainty over Carillion’s problem Aberdeen bypass, Royal Liverpool and Midland Metropolitan projects. “All of those have equipment on hire from us,” he says. “We’re conscious of that and there remains some uncertainty, but the majority of the projects Carillion were working on will go ahead.” Looking back on the build-up to Carillion’s liquidation, Mr Down says Speedy was “monitoring it very closely”. “We were monitoring what we were being paid and we were around the 60-day payments terms with them,” he says. “Some of our business with them was being done through joint ventures as well, which obviously gives us more certainty with the recovery of that.” On Brexit: “I think it would be wrong to say it doesn’t concern me. One impact is the price of equipment – a lot of the equipment we purchase comes from Europe, so that has become slightly more expensive. The more challenging area is projects in the UK, but there are some significant-scale projects in the UK that are going ahead. We’re conscious of Brexit, but we’re not overly concerned at this point in time.” The hire sector: “I don’t think the industry as a whole is having a massive problem. Two years ago, we were having problems, but you look today and other people are having problems. Go back even further and A-Plant were having their problems. It is relentless – you can’t afford to take your foot off the gas.” Potential acquisitions: “Last year, EBITDA was broadly £65m, and at the half year it [was] under £60m. So at 1:1 for a hire business, we’ll probably be under-geared. We’d certainly be looking to borrow more money and acquisitions will be a feature of what we do. It’s unlikely to be more of the same – it’s more likely to be in specialised products or services.” [Speedy acquired two business specialising in powered access platforms: Prolift Access and Platform Sales & Hire.]
rumbers2
19/1/2018
12:15
Companies' rapid expansion built on debt, chasing turnover at the expense of profit margins and adopting aggressive accounting (to massage figures) is a recipe for disaster. They can only enjoy the good time for a limited period, but when the tide turns they will collapse spectacularly because the cash flow dries up. Turnover is vanity. Profit is sanity and cash is king. Speedy Hire still has not yet met all the best criteria until it has no net debt.
kingston78
19/1/2018
10:14
A strong recovery Equipment hire group Speedy Hire (LSE: SDY) ran into trouble a couple of years ago. But in my view the firm’s management have delivered a decisive turnaround, backed by a healthy balance sheet. The shares dipped earlier this week due to investor concerns over money owed to the group by collapsed construction firm Carillion. However, this doesn’t seem to be a major concern. Speedy Hire’s total revenue last year was in the region of £380m. Of this, revenue from Carillion totalled about £12m, of which £2m was outstanding at the time of its collapse. Speedy Hire’s management does not expect the collapse of Carillion to have a material impact on the group, and has left guidance for the year unchanged. Based on the latest broker forecasts, this means that adjusted earnings should rise by 46% to 3.57p per share this year. This momentum is expected to continue into 2018/19, with analysts projecting a further increase of 27% in the group’s earnings per share next year. This strong momentum puts Speedy Hire on a forecast P/E of 16 for the current year, falling to a P/E of 12.6 next year. A useful 2.4% yield is also forecast and should be covered by surplus cash, providing an additional attraction for shareholders. With no signs of a slowdown in the UK construction market, I believe the outlook for the firm is strong. In my view, Speedy Hire’s strong momentum and healthy finances suggest the stock remains a potential buy MOTLEY FOOL 18th JAN 2018
rounder2
17/1/2018
22:57
Kingston if you are upset at that you should see HSS accounts. They are insolvent but have managed to pretend they are a going concern.That said I agree with you and its a crooked world we live in.
my retirement fund
17/1/2018
22:16
Whilst I understand that the size of the non-performing debt is exceptional it should be reported as an underlying charge rather than non-underlying. Speedy Hire just wants to boost the KPI even though the bottom line is the same however it is reported.
kingston78
16/1/2018
14:47
Kingston in this event it would be classed as an exceptional debt. It’s not your everyday standard debt.
immokalee
16/1/2018
12:53
I am very surprised that the board of Speedy Hire announced yesterday that " It is intended that any profit impact of Carillion's compulsory liquidation will be recorded as an exceptional non-underlying charge in the income statement for the year ending 31 March 2018." Bad debts are foreseeable for every trading company, and bad debts are incurred in the ordinary course of business. It is "exceptional" because it is large but it should be classified as "within the underlying charge" not outside it. How can Speedy Hire massage its figures to misrepresent them to investors? The board is deceiving themselves as well as outsiders. I bet it will treat the exceptional item differently if it were a credit instead of a debit. If all companies, including banks and financial services companies, charge bad debts as exceptional and non-underlying they are making a mockery of accounting standards. Speedy Hire is going back to the bad old days of bending accounting rules and reporting.
kingston78
15/1/2018
21:41
Derwent, without doubt, sadly it had to go to the wall. Don’t have any outside exposure to CLLN but know those that have. While PWC say all payments will be made to suppliers and contractors from the date of liquidation, no word yet on what’s happening to previous outstanding owed. Given CLLN is a main customer may I ask how you have arrived at 3%?
immokalee
15/1/2018
20:05
hi Immokalee organically and by acquisition.if we do the maths carrillion was about 4% of our business and maybe about 3% of the profits which is probably around 600 grand at most so not that much of a hit although we could have done without it so if we take our recent acquisitions and the fact that Lloyds british which they bought last year is doing extremely well especially in india I am told and Russell saying we will meet their expectations thing aren't as bad as people think.one thing is for sure we have now got rid of all the deadwood here
derwent4
15/1/2018
19:06
SDY as well as other Hire companies can have their stuff nicked at any time and often do, larger equipment will be insured. We lease from Hilti, all handheld equipment, if it goes walkabout we are liable for a third of the cost. It’s built into contract as its probable... all depending on whose site you are on. As for JV contracts the load will be taken up by partners, ideas you check out BBY etc they will take a knock on these projects. Interesting BILN only Co to say no effect from CLLN, Yet KIE has some exposure although unknown £ and finish the day up. My question would be, looking forward how will lost revenue be replaced?
immokalee
15/1/2018
16:49
there you go mrf.any bad news is now out we carry on and its onwards and upwards expect s p in northern territory tomorrow
derwent4
15/1/2018
14:25
In terms of materiality, MRF is probably correct. That said, I would guess Speedy have bought some form of credit insurance against their £45 million three-year contract. Worth £15 million per year, or broadly equivalent to £5 million for four months outstanding invoices.
brummy_git
15/1/2018
13:26
Deafening silence from the board. 120 days of invoices will now never be paid and a shed load of plant never be returned.Then theres the delay to all the present projects as they get divided up .Judging by Connought this has got to end up costing Speedy at least 4 million at best and 8 million at worst.
my retirement fund
15/1/2018
13:03
we all knew we had problems re carrillio I believe all the bad news is out of the way share price not down much so will be back to its highs and more soon
derwent4
15/1/2018
12:30
Hi Rounder, I need to do some proper research but I can perhaps hazard a guess at how things have evolved. When you supply a company like Carillion and things start to go wrong you have two choices 1. simply stop supplying and accept it will take forever to get your money and you probably won't get what you are genuinely due 2. attempt to slowly wind down the exposure by getting aggressive on payment terms and putting prices up. If you can do enough of 2, then you can run with 1 later. My complete guess based on CLLN only being 3% of their business is that the management have been managing down the exposure through option 2 for some considerable time.
cc2014
15/1/2018
11:04
MRF Nice post ROK bankrupt 2010 Connaught bankrupt 2011 Live and learn maybe ??
rounder2
15/1/2018
10:50
Hmm interesting because if you look at the impact of previous insolvencies which have impacted Speedy such as ROK or larger ones such as Connaught, the impact was most certainly significant. Hers what Speedy reported about Connaught and for those who dont know Connaught were less than half the size of Carrilion ! Connaught plc Following the recent appointment of joint administrators to Connaught plc, to which Speedy was an exclusive provider of tool and equipment hire, it is anticipated that Speedy will take a charge of GBP1.7m in the first half of the current financial year. This includes a sum for debtors which are likely to remain unpaid, together with an assessment of the value of equipment on hire which may not be returned and a write-off of the unamortised portion of a premium to net asset value paid to Connaught earlier in the current financial year following an acquisition of assets from Connaught's ground care business. The charge referred to above does not include the potential impact of lost future revenues. Speedy's forecasts had included an assumption of approximately GBP1.7m in revenue from the Connaught group over the remainder of the current financial year (net of rebates). Whilst Speedy has close relationships with the two companies that have taken on the bulk of Connaught's contracts from the joint administrators, it is currently too early to indicate how much of this revenue will be retained.
my retirement fund
15/1/2018
10:40
Liberum have just said although this news is "unhelpful it is not as bad as first feared. Despite the potential write-down of receivables that will result we believe the long-term impact on financials will be limited. This reflects the likelihood of JV Partners and other third parties taking on much of Carillion's workload, as well as the flexibility within Speedy's own operations" the broker adds. The broker added it sees Speedy's immediate share price reaction as overdone.
rumbers2
15/1/2018
10:33
How much does carillion owe them
albanyvillas
15/1/2018
10:27
Rounder, In the construction industry things go missing all the time. It's a cost of doing business. For SDY thousands of items will not be returned to them every day. The sheer cost of the administration would not be worth it. It would be fraudulent to claim for insurance on an item where you haven't actually incurred a loss because they customer has covered the loss. I would concur the very high value items may be insured but I don't know that for sure.
cc2014
15/1/2018
10:23
For anybody that's interested here's my take on what's happened today , in a nutshell : Ultimately the doom merchants are not giving the management at Speedy due credit 1. Any higher value kit is fully insured , one way or the other 2. The debt is much less than it used to be circa 3-4million as we stand today 3. The contract didn't return much profit 4. The debt WASN'T insured ( cost prohibitive ) but it has been tightly managed 5. Carillion will have to continue to trade and SDY will up its prices accordingly and get some / most of the money back 6. Carillion was circa 3-4 % of SDY's overall annual turnover which isn't the end of the world and will no doubt be replaced with other , better paying work , over time . 7. The share price move down today is NOT institutional investors bailing , it's PI's who are more susceptible to shocks of this kind and triggered stop losses on derivative CFD's being hit 8. SDY will fairly quickly release a relatively reassuring statement to put market jitters at ease , institutional buyers will return " in force " 9. A couple weeks from now , concurrent to the early Feb trading update , this will all pretty much be forgotten and the share price will revert to " pre shock " levels For what it's worth
rounder2
15/1/2018
10:09
Whilst I know they will have varying degrees of insurance, in the main these giant companies often end up self insuring against run of the mill theft damage etc.The poster who suggested Carillion were blood sucking needs to ask himself if this were the case why an earth did they go bust.
my retirement fund
15/1/2018
09:55
CC2014 Respectfully , why would you say that the kit is uninsurable ? Just because SDY might perhaps ask the customer to pay in full for lost / stolen / damage , does that mean that it doesn't insure its own kit separately ?
rounder2
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