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Corporate b/s.
Thanks for posting that.
Against a tough trading background in FY24, Speedy Hire has taken steps to build a platform for long term sustainable growth through the launch of its Velocity strategy. While progress has been more strategic than financial in the year – although we note positive underlying cash flow was achieved - new business wins, the acquisition of Green Power Hire and a transitioned B&Q model all suggest that profitability is likely to move ahead again from FY25 onwards.
Speedy’s FY24 pre close statement echoed January’s trading update, pointing to successful new business wins with National customers but also some mobilisation and adverse seasonal effects. Stated group revenue of c.£420m infers that H2 was slightly ahead of H124’s reported £208.5m. While closing year earnings expectations are likely to nudge down further, the prospect of year-on-year progress from FY25 onwards appears to be intact.
The launch of Speedy’s Velocity strategy in FY24 laid out clear group financial (FY28 revenue of £650m, EBITDA margin 28% with conservative gearing metrics) and operational ambitions (to deliver sustainable growth from an efficient digital and data-driven platform). The primary enabling actions are expected to be in place by the end of FY26, though there is clear capacity to accommodate an earnings recovery and growth beginning in FY25.
Notwithstanding market conditions, the company has taken clear strides in FY24 towards achieving its five-year targets, investing accordingly.
Link to research note: https://www.equitydevelopment.co.uk/research/building-a-robust-platform-for-growth-fy24-pre-close-statement
It sends a very strong positive signal to the market to see the directors on a buying spree
And still they're BUYING
I Don't blame them I'd be buying too (to average down) if I had funds.
They're all buying now :)
Looks like we hfinally have some insider buying to the value of £20k
It will cost approximately £13 million to maintain the current dividend. Being optimistic I reckon they wiil maintain it but not increase it.
Any other direction of travel admits a failure of the Velocity growth plan.
End of year coming up but results in July?
Https://www.investorschronicle.co.uk/news/2023/11/23/profits-down-at-speedy-hire-as-low-volumes-persist/
ok, this article is from Nov last year but it says,
"Broker Peel Hunt maintained its full-year Ebitda forecast of almost £110mn following the release of Speedy’s interims, although it did reduce its pre-tax profit expectations to £30.5mn from £33.5mn. "
10% lower would be about £27mn, which is still about 20 times better than last year as I understand it.
Did the article mention about cutting the dividend Simon? The yield was so good it was the main reason for many investing here.
The article in the Times said profit forecast was 8-10% down on expectations.
Didn't have another warning RNS, looks like institutional selling. Martin Currie Investment Management Limited is reducing its stake. Could be an interesting recovery play from here.
Looking extremely cheep.... and I'm considering averaging down.
I suspect the reaction to the profit warning was a huge over reaction,
However, does anyone know what the expected profit was and what the new expectation is?
Without knowing these two thinks how can anyone assess is the reaction to the profit warning was reasonable or not.
Interview worth watching.
https://www.youtube.com/watch?v=ZChWkz-7tMw
Speedy Hydrogen Solutions announce its first state-of-the-art 30kW H-Power Generator ready for hire.
https://www.linkedin.com/feed/update/activity:7172848763818991618
I would have more faith in the board of directors who have implemented the Velocity strategy if they were filling their boots at this low price.
I need double this price to escape unscathed. Patience my man patience!
'We are pleased by these contract wins and have a strong pipeline of opportunities. This new business has been secured with good pricing discipline and demonstrates the attractiveness of Speedy's customer offering'. This suggests new business rather than just the same again so if it is just a rolling of existing contracts they would be putting out a misleading release.
A new contract doesn't mean new business
An agreement that has expired but has been resigned for 2024 / 25 will be classed as a new contract. It's not brand new revenue
The operative word being "new".
I read it that the new multi-year contracts' revenue will show up in the FY25 accounts rather than in FY24.
So if I understand, your view is that contract renewals have been misrepresented as new contracts, and therefore don't offer the stated growth opportunities.
Basically you think they're lying , is that correct?
Yep, read the RNS
"we secured over £40m of annualised revenue from new multi-year contracts" is just the usual churn of existing contracts. No new business here
"Growth opportunities"
I have the opportunity to win the lottery every week.... But it doesn't happen
I hope you're right but unfortunately there isn't anything tangible in the RNS to demonstrate where such increased turnover and profit will come from to back up your 52p prediction.
The SP hasn't even hit the 40s in that last 12mths
I think you should read the RNS...
Sure ! Its not good to get a profit warning... although its the responsible thing to do,
However, considering we dont know how much lower then expectation it will be I feel the market has over reacted.
Considering this in the RNS
"we secured over £40m of annualised revenue from new multi-year contracts. These contracts represent attractive growth opportunities but have taken longer to mobilise, due to contract specific delays. Therefore, new contract revenues will have only marginal benefit in FY24 with the full effect coming in FY25."
I'm expecting to see the sp doubling in the next 12 months...