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Speedy Hire Share Chat (SDY)



Share Price: 55.50Bid: 55.00Ask: 55.50Change: 0.00 (0.00%)No Movement on Speedy Hire
Spread: 0.50Spread as %: 0.91%Open: 55.00High: 56.50Low: 55.00Yesterday’s Close: 55.50


Share Discussion for Speedy Hire


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RedradScouser
Posts: 3
Off Topic
Opinion:No Opinion
Price:55.50
RE: Power Division - Trickey
Thu 07:40
Yes, on the one hand the current management have done a good job in making the existing business more efficient, but if as you say it's at the cost of missing the bigger prize in the future, then no they have not!

As stated earlier in the thread, there is little news on core hire improving so we have to assume it isn't, with the barely above inflation growth coming from other areas with lower margins - profitability thus sustained through continuing cost out.

My experience of hire businesses is that the decisions and actions made today, good or poor, often take 9/12 months to realise.

We've heard before about other specialist businesses within Speedy suffering at the hands of Tools management and lack of know how, so is this another nail in the coffin for the largest non-tools activity?

Only time will tell and I'm sure those senior Power people who have recently left will be doing their utmost to grab what business they can from what must now have reduced knowledge,capability and ongoing credibility?

Trouble ahead?.....................
 
peabop
Posts: 6
Observation
Opinion:Hold
Price:55.50
RE: Power Division - Trickey
Wed 22:28
you have to go a long way back to get the Power division numbers split out from the wider Tools business. 2009 was the last year reported with Power as separate companies. £32m revenue in Speedy Power and a further £49m in LCH generators. That was off hire fleet NBVs of £25m and £27m respectively, and it was back in the heady days before the results were affected by construction down-turn.

Of course, we never see the break-out of how these divisions perform, so it's all speculation I get the feeling it's a shadow of its former glory days however.

I take exception to Exhireman's view about Tools being the profitable core. I've seen loads of smaller independent niche plant operators making great, consistent, returns in the plant market. It's specialist though, and if you try and run it like a tools outfit, you'll stuff it up.

Examples? Fork Rent (became part of Ardent), A Plant, and Vp all have 'heavier' offerings than speedy, and all seem to have been able to make decent profits.

I really don't understand the logic though. They're reducing the number of divisions, and then encouraging specialisms having centralised it... Does that mean they get on a run their own business, or keep referring back for permission to do things...?

The declaration of focusing on secondary revenues feels a bit limp too. Why wouldn't you go after the core revenue when peers (lets forget HSS) are reporting +5-10% organic. Margins are far better, and you'd drive secondary revenues off the back of the bigger core.

I congratulate the current management on making the existing business more efficient, but it has all the hallmarks of being pleased at saving £5, and completely missing the £50 sales opportunity at the same time.

The next year will be the proof. It's one thing restoring a business to the level of profit it used to have (2015 = £22m PBT), it's another thing completely using the debt facility to invest in new business. Will they find the right deal? Do they have the courage?

They year after, assuming they make the investment, will be the decider. Can they realise the synergies, profit improvements the invement promised, and not make a total hash of integrating it into the Group. Speedy doesn't have a good track record on doing this.

Then, and only then, will I think they've delivered.

And if they don't invest, and sit on an ever-decreasing net debt position, can somebody get the cheque book out, get the business back to a sensible level of gearing, and buy some of my shares back at a decent price?

As for HSS, who knows. I really liked one of the comments below about penny shares and only being worth 10-15p. Anyone remember that company called Ashtead when they were on their uppers years ago, and the share price fell to 2p...? But it was a different world then...
rumbers2
Posts: 4
Off Topic
Opinion:No Opinion
Price:55.50
Re Power Division
Wed 20:47
How come Tosca's Martin Hughes has got his huge investment in HSS so badly wrong? I thought his business acumen was renowned.
What if he now tries to save his own skin by using David Shearer inside Speedy Hire to aggressively push for a merger. Would that succeed? Probably not.
Owning 20% of Speedy's shares Tosca might just get the additional support of Schroders with 10% but that's the limit. No one else would support this madcap plan, would they?
noheart
Posts: 16
Off Topic
Opinion:No Opinion
Price:55.50
RE: Power Division...
Wed 17:33
While Toscafund have 26% of HSS, the stake is worth a mere £13m and falling.

The people calling the shots are the senior secured notes holders - £130m

They will get their money out, as will the banks providing the £69m revolving credit facility.

The suppliers ? I'm not so sure, they'll be taking a haircut for sure.

This company needed a significant share issue to re-finance - and I'm talking at least £100m.

The feeling among of some main share holders is that it would be throwing good money after bad & arguably its getting too late in the day - they would have to issue the shares at something like 10-15p.
And really that's what the shares are worth - its a penny stock that 8 times out of 10 will be going pop, but occasionally miracles happen and things turn around.

As far as the Speedy Hire stake goes - the board can at least point out the calamity of a merger that was being foisted upon them. They have largely been proved right.

The merger had great operational and commercial logic, but HSS simply was a basket case with far too much debt
RedradScouser
Posts: 3
Off Topic
Opinion:No Opinion
Price:55.50
RE: Power Division...
Wed 16:43
Hmm - I don't like the sound of all that!

Maybe Ashtead or even VP should come in and sort it once and for all - or even Boules.

All three appear to have deep pockets?
Trickey
Posts: 3
Off Topic
Opinion:No Opinion
Price:56.00
Power Division...
Wed 15:33
Just wanted to see what people had under the hood... The top tier has indeed gone - by push and by choice (one of which reluctant to let go by and not foreseen by the powers that be) - they also canned off another circ 50 within Credit control and surrounding. Looks to be short term props whilst Tosca move the pieces within both Speedy and HSS...Feb to April may well see a new emergence giving 12 months of a power struggle..? only thoughts.....
RedradScouser
Posts: 3
Off Topic
Opinion:No Opinion
Price:56.25
RE: Power Division - Trickey
Wed 13:13
I also believe the Power figures were always included in the overall numbers but haven't they only got rid of the top tier of Power Management, with the bigger premises and fleet of HGV's still there and costing them??
The question is, have those remaining tools people got the know how to not only manage but grow what must still be a significant and complex part of the business?
Exhireman
Posts: 5
Answer
Opinion:Buy
Price:57.00
Power Division - Trickey
Wed 09:50
I think that you will find that the Power Division figures have always been included in the overall group figures. This is a significant and genuine improvement.

Tool hire has always been the profitable core of Speedy. Plant and Power require bigger premises and a fleet of HGVs, hence much greater overheads.
Trickey
Posts: 3
Off Topic
Opinion:No Opinion
Price:56.50
is it s profit.....
Tue 17:02
Someone might want to look into how much influence on declared T/O the absorption of the power division into the tools side of the business? no wonder they arn't shouting to loud.....Speedy Power is no more... where did the figures go?
noheart
Posts: 16
Off Topic
Opinion:No Opinion
Price:57.00
RE: Results
Tue 11:14
This is a very fair point peabop.

VP have a very strong board who know the market really well & looking to grow the business, Speedy hire has a board full of 'brought in' bean counters - Astrand, Russel Down and David Garman would all be happy to sell the business on at anything north of 90p over the next 18 months.

Speedy Hire is what it is now, a stable, fairly dull business.
I'm a buyer at anything less than 55p but while I think they are over due an upgrade, they aren't at the moment a growth story long term.
I'll be selling 1/2 my holdings at anything around the 70p mark.




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