Year end trading update - Self-help delivering results
Speedy Hire Plc, the UK's largest provider of tools and equipment for hire, is today releasing a trading update in advance of the publication on 16 May 2012 of its preliminary results for the year ended 31 March 2012.
The business continues to implement its strategy of focussing on the private and regulated markets in infrastructure, particularly the areas of water, waste, energy and transport, where we see good long term sustainable growth.† We remain committed to securing high quality work from key clients with attractive pricing and yield dynamics in order to improve margins and return on capital.
We have continued our focus on self help measures to mitigate the effects of what remains a challenging market environment, with further progress made in the reconfiguration of the network, to drive improvements in operational efficiency, customer service and product availability.
Underlying* Group revenues in the fourth quarter to 31 March were up 4.5% against the prior year, resulting in a full year underlying* revenue increase of 5.0%.† We expect to report PBT in line with the Board's expectations for the year just ended.
Speedy's balance sheet has continued to strengthen during the second half of the year.† Net debt has reduced from £113.9m at 31 March 2011 to approximately £76.3m, a reduction of some 33%.
The debt reduction reflects a continuing focus on prudent cash management, along with inflows from the disposal of the accommodation business, offset by a year on year increase in net hire fleet investment of circa £19m.† Fleet investment has predominantly been focussed on the high utilisation product range and specialised fleet required to support the Group's core markets and customers.
The Board remains confident of making further progress in the year ahead although we remain cautious about market conditions during the early part of FY2013.† We expect the first half of the year to be impacted by one-off events including: the Olympics and Paralympics, which will result in trading restrictions and disruption to construction projects in the London area for a two month period; and the Queen's Diamond Jubilee celebrations, which will result in a reduction in trading days for the month of June, which is traditionally a holiday free period.
Nevertheless, with its strong balance sheet, secured funding and ever closer alignment to growth sectors and major customers, the Board considers Speedy well placed to take advantage of any improvements in trading conditions when they arise.
*underlying revenue is total revenue excluding revenue from fleet sales and adjusted for the disposal of the accommodation hire operations in April 2011 and the expiry of the Network Rail maintenance contract in December 2010.
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 leading UK provider of equipment rental and support services to a wide range of clients across the construction, infrastructure, industrial, manufacturing and facilities management sectors - as well as to local trades and industry.
Operating from c300 sites - together with a number of on-site facilities at client locations throughout the UK, Ireland and an international hub based in the Middle East - the Group supplies a range of services including:
∑ the provision of small tools and equipment
∑ surveying and measurement instrumentation
∑ lifting and materials handling equipment
∑ low level access equipment
∑ compressed air
∑ temporary power generation
∑ mechanical pumps
∑ temporary site communications
The Group also provides associated services through the provision of training, asset management and testing, repair, inspection and maintenance (TRIM).
Speedy is accredited to ISO9001 and recently has achieved national OHSAS18001 accreditation. Additionally we have ISO14001 (210 depots) and nationally hold HAE SAFE Hire accreditation
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