Speedy Hire PLC Trading Update (0943R)

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RNS Number : 0943R

Speedy Hire PLC

19 September 2017

Speedy Hire Plc

("Speedy" or "the Group")

Trading update

19 September 2017

Speedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, today issues a trading update ahead of publishing half year results for the period to 30 September 2017, scheduled for 14 November 2017.

Group revenues for the period to 31 August, excluding disposals, are approximately 7.5% ahead of the prior year primarily due to growth in services revenues. Utilisation rates for the year to date have averaged 54.5%, an increase of c.6% over the corresponding period in the prior year. Net debt at the half year end is expected to be below GBP70m (30 September 2016: GBP85.4m).

Overheads in the period are expected to be broadly consistent with the prior period. As part of the Group's ongoing efficiency programme, further action has been taken this month to manage the Group's cost base and, consequently, the number of operating divisions and distribution centres has been reduced. These actions will result in overhead savings of at least GBP3m per annum. Net exceptional costs of c.GBP4.5m are expected to be recognised in the first half year.

Adjusted profit before tax for the full year is expected to be well ahead of the prior year and slightly ahead of the Board's previous expectations.

 
 Speedy Hire Plc                 Tel: [phone] 
 Russell Down, Chief Executive 
 Chris Morgan, Group Finance 
  Director 
 
 Instinctif Partners             Tel: [phone] 
 Mark Garraway 
 James Gray 
 

Notes:

Inside Information: This announcement contains inside information.

Forward looking statements: The information in this release is based on management information. This report includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date of this report.

Notes to Editors: Founded in 1977, Speedy is the UK's leading provider of tools, equipment and plant hire services to a wide range of customers in the construction, infrastructure and industrial markets, as well as to local trade and industry. The Group provides complementary support services through the provision of training, asset management and compliance services. Speedy is accredited nationally to ISO50001, ISO9001, ISO14001 and OHSAS18001. The Group operates from 210 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations throughout the UK, Ireland and from an international office based in Abu Dhabi.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 19, 2017 02:00 ET (06:00 GMT)