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Has anyone seen this? Seems to be all over the trade rags and social media. https://www.speedyservices.com/capital-commitment Views?
on the up
Interesting day?
Interesting thoughts Peabop Also, unless I've missed something, there has been no mention of PACS, a large customer that Speedy acquired when they got into financial difficulty early last year. This will have provided improved hire revenue by dealing directly with the principle end user customer (Alstom) and others of course but more significantly will have cleverly acquired their not insignificant consumable sales revenue, rumoured to be well in excess of �10m per annum.
6% revenue growth. No mention of like for like? Acquisitions in year and Lloyds British full year effect from prior year? Loss of Carillion should be in like for like, acquisitions not. Utilisation improving to 55% is okay, but suggests future revenue growth will need capex to support. Is ROCE being generated by short term sweating of assets dressed up as efficiency?
Liberum said this morning :"The improvement in utillisation suggests that the company is successfully execting its strategy to optimise fleet and improve the underlying performance of its core rental business. Crucially, not only is the 11% ROCE expected in FY18 well ahead of our previous forecast of 9.9%, it is also the first time in a decade that the group has generated a return at or above its cost of capital" brokerage Leberum added.
The positive trading update this morning should reassure Mr Market that Carillon's demise was a mere blip to Speedy's progress. Hereon in it's onwards and upwards!
The whole market is in a state of what i determine as "recession" similar to 2008ish plus mass-uncertainty of the Brexit all in all im keeping my holding.
Absolutely right burnie38. They've all been very clever restructuring and driving efficiency, but lets see some growth - otherwise its ever decreasing circles. They've had some acquisitions in the year (albeit not that significant), and Carillion will hit them the other way, so time to dig deep and make the business bigger. I'm not sure management know how to do this, or what this looks like. Shame because the competition certainly do.
turning into abit of a dog this share,been on a downward trend since the beginning of the year and mostly large sells since then,time for the management to step up to attract new investors or it`s down down down.
Despite the falling SP, it was all smiles and laughter last night in the restaurant in Newton-Le-Willows for Down, Morgan & Wright so they must know something we don't - or do they?
did we not have a buying patten like this a few months back ?
Nice rise again today hope it holds this time{:-))
I suspect there may be a small drop soon then a fairly decent rise however we shall see only a guess
Nice rise today hope it holds{:-))
Maccaroon, the trade to which you refer is classed as UT that is an Uncrossing Trade I have noticed in times past that a UT is usually shown as a Sell. I understand a UT is used for a balancing purpose? Nice to see you on here.
A 1 trade is a rns coming{:-))
JV�s
Sneaked it out before the close. Carillion effect �12m annual revenue, �2m receivables write off. Less whatever was to KV�s Better than I feared - not material effect on full year results
Looks like not too much damage done (hopefully). But good example how share price can over react on bad news - 10% yesterday seemed madness
Not good news but could be worse we will finish today as we started around the 60p give or take 0.5p
Liberum have just said although this news is "unhelpful it is not as bad as first feared. Despite the potential write-down of receivables that will result we believe the long-term impact on financials will be limited. This reflects the likelihood of JV Partners and other third parties taking on much of Carillion's workload, as well as the flexibility within Speedy's own operations" the broker adds. The broker added it sees Speedy's immediate share price reaction as overdone.
The other issue to consider is the amount of equipment that is likely to vanish! Also, any contractors picking up any Carillion jobs may well be signed up with others such as A Plant, Gap etc The RNS ought to eliver some news today one would hope given the gravity of the situation with such a prominent customer to give us all an accurate insight to their plight
Speedy Hire were Carillions preferred supplier - and had been for at least 9 years afaik. They will clearly have a bad debt write off which will be significant. I wouldn't be massively worried about the long term hit on revenue, the margin will have have been rubbish & they will pick some of it up with re-tenders. If the bad debt is as bad I expect, they should really be making a statement today or tomorrow - it would be pretty remiss not to know the exact number already.
Surely many of these contracts now in limbo will be re-tendered pretty quickly with Government help, otherwise its going to backfire quite spectacularly on the Conservatives. I note other companies like AHT and even HSS haven't reacted negatively at all.