Speedy Hire Share Discussion Threads

[rumbers2] 01/6/2018 16:34

This share deserves a higher trading range.We had great full year results in May yet for more 18 months we have been gravity-bound between 50-60p.

[derwent4] 01/6/2018 16:21

doubt it numbers just trying to find out what gas man's heard

[rumbers2] 01/6/2018 15:56

God forbid there's an HSS merger derwent. I couldn't think of a worse nightmare. How exactly would that benefit SDY? Name one advantage given that HSS are nearly £230 million in the red and only just showing the first signs of tepid growth in the last quarter. Would any of SDY's shareholders be happy to take on that level of debt?

[derwent4] 01/6/2018 15:30

what exactly have you heard gasman.there has been talk of merging with hss as we all know I wonder if it is now a real possibility now astrand is leaving and hss now turning the corner we will see

[gasman10] 01/6/2018 12:02

Theres a rumour floating around that Speedy are merging with another player and will be announcing who it is shortly.Has anyone heard anything? As cant find anything to substantiate it...

[rumbers2] 18/5/2018 14:21

..and today David Shearer buys 100,000 shares too. That's conviction for you!
I think this management team have all the skills and determination to make this company great one again. A good year awaits us I feel. Although the grim reapers Kingston78 & MyRetirementFund will no doubt reappear on here to tell us otherwise.

[derwent4] 17/5/2018 18:26

even though the chairman is leaving he has still bought 100000 how's that 4 confidence

[rumbers2] 16/5/2018 12:07

A more muted market reaction to the one I was expecting but I think this will gain traction over coming weeks.
Looking for broker reaction I found this:

In a note to clients, analysts at Liberum commented: “Speedy’s focus on fleet optimisation and improving its relationships with SME clients has seen it deliver financial returns that exceed its cost of capital for the first time in a decade. We have long argued that this cross-over should act as an important catalyst for the shares, and continue to believe that management remains well placed to add significant shareholder value in the coming years.

“Although we acknowledge the uncertainties created by Carillion’s recent liquidation, we believe that the upside from the execution of its existing strategy is yet to be fully reflected.”

[rounder2] 16/5/2018 11:17

Speedy Hire PLC (LON:SDY) Shareholders Are Liking The News That Liberum Capital Has Reiterated Their Buy Rating on the Stock
May 16, 2018 - By Nellie Frank

Speedy Hire Plc (LON:SDY) Logo

Speedy Hire PLC (LON:SDY) Rating Reaffirmed
In an analyst report issued on 16 May, Speedy Hire PLC (LON:SDY) shares had their Buy Rating reiterated by research analysts at Liberum Capital.



Speedy Hire Plc (LON:SDY) Ratings Coverage
Among 2 analysts covering Speedy Hire PLC (LON:SDY), 2 have Buy rating, 0 Sell and 0 Hold. Therefore 100% are positive. Speedy Hire PLC has GBX 74 highest and GBX 65 lowest target. GBX 69.50’s average target is 17.10% above currents GBX 59.35 stock price. Speedy Hire PLC had 9 analyst reports since November 24, 2017 according to SRatingsIntel. The firm has “Buy” rating given on Friday, November 24 by Peel Hunt. The stock of Speedy Hire Plc (LON:SDY) has “Buy” rating given on Wednesday, May 2 by Peel Hunt. Peel Hunt maintained the stock with “Buy” rating in Wednesday, May 16 report. Liberum Capital maintained Speedy Hire Plc (LON:SDY) on Friday, November 24 with “Buy” rating. The stock has “Buy” rating by Peel Hunt on Thursday, January 25. Liberum Capital maintained the stock with “Buy” rating in Monday, January 15 report. The stock of Speedy Hire Plc (LON:SDY) has “Buy” rating given on Wednesday, May 16 by Liberum Capital. On Tuesday, January 23 the stock rating was maintained by Peel Hunt with “Buy”. The stock of Speedy Hire Plc (LON:SDY) has “Buy” rating given on Monday, March 26 by Peel Hunt.

The stock increased 0.59% or GBX 0.35 during the last trading session, reaching GBX 59.35. About 79,568 shares traded.

Speedy Hire Plc, together with its subsidiaries, provides tools, equipment, and plant hire services to the construction, infrastructure, and industrial markets in the United Kingdom, Ireland, and internationally. The company has market cap of 308.38 million GBP. The firm hires a range of tools and accessories, including access, lighting, site and traffic management, communications, survey, plant, lifting, safety equipment and ATEX, pipework and engineering, and rail equipment; power and pump equipment; 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.

[derwent4] 16/5/2018 07:27

wow what fantastic results and final divi lick ya boots

[rounder2] 30/3/2018 13:21

Tool hire company Speedy Hire (SDY) says its full year pre-tax profit will beat the board’s previous expectations, helping to drive up the share price by 9.7% to 53p.

The company continues to reduce the size of its hire fleet and return on capital employed (ROCE) is now up 3.3 percentage points to 11% from the prior year.

Liberum analyst Rahim Karin says not only did the 11% figure beat his own forecasts, but ‘it’s the first time in a decade that the group has generated a return at or above the cost of capital’.

ROCE is a good measure of how effectively a company reinvests cash back into its business to generate additional returns. It measures profitability after taking into account the amount of capital used.

The company’s revenue is also growing, with management guiding that it is up by 6% compared to the prior year. This is great news considering that Carillion, a major client of Speedy Hire, went into liquidation earlier this year.

The revenue uptick is down to the company’s ‘renewed focus’ on small-to-medium size enterprise customers.

The company has increased its asset utilisation in the 11 months to February 2018 to an average of 55.4% which refers to the amount of its kit that is being hired.

EARNINGS UPGRADES

Given the bullish tone Speedy Hire’s trading update, Liberum has upgraded its earnings per share forecast for the year to 31 March 2018 by 5% to 3.74p.

However, the investment bank does not make any changes to earnings forecasts for the subsequent two financial years, saying that is a prudent decision in light of broader market uncertainty.

Speedy Hire is now trading on 14.2-times 2018’s earnings with a 2.8% prospective dividend yield.

Full year results will be reported on 16 May.

[my retirement fund] 28/3/2018 09:42

What and break copyright laws?

[rumbers2] 28/3/2018 09:35

Can you paste the report here please?

[my retirement fund] 28/3/2018 08:54

Just aghast at reading Liberiums report which ends that they expect to see the first positive return on capital employed in this company since 2008.RTF! So we have just come to the end of one of the longest and sharpest economic recovery and growth cycles since WW2 and they have not even managed to make any real improvements to shareholders capital over this period.Excuse me for sounding surprised but if that's true then this business has NO business to be operating as a public listed company as I think it's pretty clear that the sector for which it operates does not lend itself to the format these Charlies run.

[rumbers2] 26/3/2018 08:34

A strong update from Speedy which should reassure Mr Market after two and half months of anguish following Carillion's collapse.
Liberum said this morning:"The improvement in utilization suggests that the company is successfully executing its strategy to optimize fleet and improve the underlying performance of its core rental business.
Crucially, not only is the 11% ROCE expected in FY18 well ahead of our previous forecast of 9.9%, it is also the first time in a decade that the group has generated a return at or above its cost of capital" brokerage Leberum added.

[derwent4] 21/3/2018 16:42

just my oppinion but I think Russell made a mistake when he showed everyone in the trade and investors the amount of work we were doing for carrillion over a three year period investors are now quite rightly concerned it's not happening I never tell anyone who my customers are.people now concerned lets hope they give us some positive news to quell the fears

[rumbers2] 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.]

[kingston78] 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.

[rounder2] 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

[my retirement fund] 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.

[kingston78] 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.

[immokalee] 16/1/2018 14:47

Kingston in this event it would be classed as an exceptional debt. It’s not your everyday standard debt.

[kingston78] 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.

[immokalee] 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%?

[derwent4] 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