Carillion awards major three year extension to preferred supplier agreement with Speedy Hire
Speedy Hire today announces it has signed a three year extension to its existing preferred supplier agreement with Carillion. The contract will now run from 2012 until 2016 and is expected to be worth in excess of £50m over the next four years.
The agreement reinforces Speedy's relationship with Carillion as its preferred supplier for a full range of products and services across all Carillion's UK operations including joint ventures where it is the lead company.
Steve Corcoran, Chief Executive, said: "I am delighted that we continue to develop our relationship with Carillion, one of the UK's largest construction and support services companies. This new agreement is another important step in our growth in our key markets of water, waste, energy and transport, all of which are undertaking major new infrastructure projects in the UK."
Speedy are prime for takeover condisdering their low share price, to increase their share price will take many, many years as they need to be posting profits like 2007 and prior. Reducing your debt levels does not particulary bring much value to share price, a merger or someone buying Speedy would bring huge value to the shares. At the end of the day its the city that really gets to decide, cant say anymore!
Rumours are strong, something happening here for sure! The largest takeover in UK plan history maybe? Who knows what the future holds but i am sure we all agree that our hire sector is in need of a shake. Rates are still very suppressed, the ever rising costs of plant to purchase and operational costs are all having an adverse effect on margins here in th UK. What was the 1% rule is now becoming 0.5% which means a 3 > 4 year payback, unsustainable i think is the word needed. Lets see what unfolds in coming weeks!
I bought into speedy 2 years ago, not because of the hire business but the services they are providing. In my local area there is a massive offshore wind farm complex going up, this only one of many going up off the coast of Britain billions of pounds worth of work. Speedy have got into the onsite servicing, working with some of the biggest offshore companies around. If Speedy get this right they have got to be onto a winner.
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