Come on please what the point in still dreaming that Speedy are going to make profits in far east ! If there main business in uk is dead in water ! The main thing is there small fishes in a very big pond over in far east. The Uk government build they might get a share of the market !! Although we said this with olympic games and that did carry the losses. Think you better get some lotto numbers you will have more chance of a return !
Talking about the big contract in Middle East, i really do think Speedy will turn into a good investment may take longer than i hoped.Things can look a lot different in say 2 years i am going to hold till at least then.
Some people seem to have a few issues with SC, for me the guy is a great visionary and spokesman for Speedy. Not so sure about his choice in other board members, David Graham being one - HUGE EGO and split personality! Some great people have left the board like Simpson and Whitworth for instance, Whitworth had great integrity and was a strong leader. One good thing going for Speedy is having the legondary Gary Thompson in a senior role, this guy is immense!!!!! Lets get one thing right though, Speedy will only turn the corner when there shares are any value, need to be at least £2.00! How do you achieve this? Take years for Middle East operation to take the shares to this level, the UK market is very suppressed and will be for the next three years at least! What is the answer???
In a separate statement Speedy said trading in the new financial year had started satisfactorily and first quarter performance remains in line with management expectations.
It added that underlying revenues in the three months to 30 June 2012 gained 5.6% from the same period last year despite the quarter trading being affected by the Easter break, May bank holidays and the Queen's Jubilee.
Within the UK & Ireland Asset Services division, which constitutes over 95% of group revenues, underlying revenues rose 2.5% on last year.
The International Division enjoyed a strong start to the year, with revenues for the first quarter around 61% ahead of last year, driven mostly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular.
Despite ongoing uncertainty in the construction sector Speedy said it expects to make further progress in the current financial year and remains confident that it is well positioned for the future.
Speedy Hire, the tools and equipment for hire business, said its international division has been awarded a 5-year $50m contract to support ESNAAD in relation to ZADCO's artificial islands project in Abu Dhabi.
Speedy said it will provide logistics, asset management and equipment rental services to support Zakum Development Company's (ZADCO) flagship UZ 750 Project at Abu Dhabi's Upper Zakum field, the fourth largest oilfield in the world.
The use of artificial islands instead of conventional offshore rigs allows the use of land-based drilling techniques to reach 70% of the field's proven reserves, the UK equipment provider said.
"The contract, which is for an initial period of 5 years with a 2 year extension option, covers the full range of logistics, asset management and equipment rental services required to support drilling and processing activities on four artificial islands which are being constructed by ZADCO," Speedy explained.
The contract is expected to be worth in excess of $50m in revenues to Speedy over its initial term and phased mobilisation is to start shortly.
The International Division has seen an encouraging start to the year, with revenues for the first quarter some 61% ahead of the equivalent prior year period, driven predominantly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular. Having moved to a break-even position during the second half of FY12, the business is now trading profitably at an operating profit level and is on track to make further progress during FY13. The $50m, five year asset management and service support contract awarded to Speedy by ESNAAD is a key development for the business and illustrates well the potential for this part of the Group in the future.
During the period Speedy has continued to manage capex effectively and management remains focused on generating strong cashflow within the business. We have continued to invest in our hire fleet where there is demand from our customers for our services and in particular have strengthened the fleet in the areas of power generation, compressors and low level access. As previously announced, we expect the Olympics to impact on trading in the second quarter. However we continue to make steady progress through working closely with our key customers, cautiously investing in our fleet, developing our property base and driving further efficiencies through the business. With its market leading position, strong balance sheet, and continued focus on self-help and growth markets, the Board remains confident that the Group is well positioned for the future."
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