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Mr C started the cross hire of large plant within Speedy, the cost of testing, breakdowns deprecation fell at the feet of the supplier. Now Speedy have chosen to purchase large plant and the hire rates to the big nationals don't even cover the depreciation, even worse the cost of a tyre on a 6 ton dumper..! Local independents who have survived the recession in all parts of the country will always beat them, in every way. That's why their still trading. 25K machines sat in a yard doing nothing is insane. And as for the clown who thinks to prep a machine and pass that cost on to the customer is dreaming..! Small tools and access (tower) will always return more. Haulage costs are huge, cost, maintanence the same. Leave it alone.! In the fifty's soon..!!!
Take a step back and what do we as investors believe about Speedy. Its had its problems but seems to have recovered with a new management team and focus. Demand for plant and tools is high and so fundamentally the business model seems robust. We all want it to succeed and get back to 100p soon.
Yep I am. Surprised a high flying plant hire man like yourself has the time to read these boards. Are you doing it inbetweeen run and testing some Eqpt and charging that to unsuspecting customers?
You still here?
As expected....no answer :)
Goodbye toddle off.
Sorry Mr Corcoran didn't mean to insult you....but once again you haven't answered simple questions. I rest my case you are talking out of your backside. I would think that the closest you have been to a dumper or excavator is when you drive past one! You would be better changing your name to big head as you seem to be claiming to be an expert and yet are unable to answer a couple of questions based on comments you made.
You see what I am saying at last "Vast knowledge" and it amounts to a lot more than you will ever know from your attitude, you don't listen, just spout. And then throw insults at obscure scenarios which you dream up a bit like your view of the plant game.
Handbags...?
And for someone of your vast knowledge being unable to answer a couple of simple questions...how do you conclude that rehire of plant is a thing of the past....and tell me do you know of any customer that pays or any company that charges for preparing a piece of Eqpt for hire. Tells me that you know less than you are making out. So go back to putting your tinned beans on the shelf at lidls and stop talking rubbish on here!
You really are starting to show how little you know about the plant game .I suppose it is par for the course that someone does not see the bigger picture when they start quoting hire rates and vehicular transport logistics . You should concentrate on the SP a bit more.
Mickyinholland, What the feck is going on with LOND!!!
Still no answer to my question. Couple of points regarding your post..cross hire is a Thing of the past...where do speedy get most of the larger plant from...answer cross hire at low margins.what are the restriction on plant movements in the larger cities as this is something I'm unaware of and to be honest the likes of 9t dumpers Telehandlers and upto 12t exc can be moved on non articulated lorries so without too much hassle anywhere in most cities.
Ok so if no bid likely then it must be that the market sees this as a good business which is why the SP is bouncing back. either way its good news if it keeps rising.
You are right they do small plant and tools but have started buying some of the bigger Eqpt dumpers and excavators and at around 22k for a 6t dumper with a hire rate of around £130-£140 a week you need volume to make money. I don think anyone is going to buy speedy in the foreseeable future.
Connish. Thought speedy did both small plant and tool hire. From memory the margins on non operated plant/tool hire are much higher than operated plant for obvious reasons as no wage costs involved. Also seem to re call in a previous post that someone thought a possible reason for the rise in SP was due to bid rumours and if so who would be interested?
You didn't answer my question....it's not a difficult one?
You say in a previous post "anyone with a bit of knowledge" are you self referencing as it seems you fit that criteria. I should stop making statements regarding the plant hire industry if you don't know what is entailed from the beginning to the end.
Are you saying that the cost of preparing a piece of Eqpt for hire will be charged to the customer? If you are I am amazed...I don't know anyone who charges this or anyone that would pay it!
Cinkid You are fundamentally correct on your analysis of the plant and tool hire market ,but sometimes the synergies work and it is of significant interest that the logistics of plant movement within major cities is now very tight and restrictive so being able to source all your needs at one outlet is favourable to major contractors.The other aspect which you are missing is that Speedy as several national supply contracts with major contractors and may be obliged to have the requisite plant available.The cross-hire of plant is now a thing of the past as the regulations you put forward make it virtually impossible and very costly. As for costs of turnaround they will as always fall on the invoice to the customer in a well run organisation . The plant game is changing more from the regulatory aspect than any other and with that change comes new challenges , welcome or not..
Exactly.! The depreciation of large plant, the labour costs to maintain it, against the revenue when hired against small tools, it's ridiculous. The new HSE legislation when turning round plant kit is now half to a full day..! A breaker is minutes..! A six ton dumper for £75 a week..!!! A TE706 for £50 do the maths..!
A-Plant have no interest in Speedy. Speedy however playing at doing plant hire could very easily cost them dearly. They will need to throw a lot of money at it if they are to be successful and anyone with a bit of knowledge will know that plant does not carry the same margins as tool hire.
Buying Speedy, don't be foolish. Both Speedy and A-Plant have opened 2 massive superstores in one large city only recently with plans to open 2 x large plant depots in the same city. With respect I'd do a little research mono51 before posting,
interesting that Ashtead who own A Plant were off alot yesterday but came back today. I still think that they could snap up Speedy as they have buckets of cash
As Macaroo stated earlier 2m+ on the sale side today in extremely weak global markets. Granted that our Speedy hasn't followed market trends of late, it has nevertheless been quite resilient all factors considered. Today could have been squeaky bum time to quote a famous phrase as we've had a great run since July (+33%) but I was pleasantly surprised that they were only off a penny. I'm hopeful that we can have another bash at that 70p level tomorrow and make it stick.