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Oh look, they are buying into new markets.... Lol.
We normally get a trading update by mid-September announcing the date for the interim results in mid November.
The fact that's only five weeks away and we haven't heard a squeak from woke Evans and his team is rather worrying. At least Russell Down maintained a steady ship without £20 million of equipment go missing.
I agree ragnarlothbrok. Speedy have a history (perhaps a long time ago now - 2007) of making a big acquisition. Wouldn't make sense to me. they'd spend the next 2-5 years eating themselves whilst the other competition focused on value growth.
They need to focus on value-adding products and services and gradually widen the core offering. track record of entering new markets / services seems to show its not their strength.
The fact that Toscafund has exited both probably says enough about the possibility of a merger. There are definite synergies to be had but neither company is likely to be doing any acquiring, they both have pretty clear organic growth plans. The market is so fragmented as the largest players they have no excuse not to leverage their scale to gain market share. Also, the barriers to entry are so low there is nothing stopping an acquired company's owners' from starting the same business again. HSS have admitted as much
Anybody remember this story of old when 'Rottweiler' Martin Hughes of Toscafund lambasted Speedy for its dire performance and called for a merger with HSS Hire?
https://www.thisismoney.co.uk/money/markets/article-3733598/Resign-Rottweiler-Hedge-fund-boss-rages-Speedy-Hire-chairman-falling-share-price.html
The share price is no better now than back in 2016 and Hughes no longer has skin in the game.... but it occurred to me that with HSS floundering the time could well be ripe for a Speedy takeover rather than a merger .
Any thoughts?
Took the dividend this week and decided to cash it in. Patience is low with Sdy so decided not to reinvest.
Bound to bounce now it always happens.
If the joint venture with AFC is having any impact on revenue?
Might need something bigger than an acrow prop to keep the share price up.
Wonder if RAAC inspections & acrow prop hire will boost Speedy's numbers.
Ashtead Q1 trading update read across. UK rental grew at 11% for quarter ended July, however UK market softening, so FY expectations reduced from 10%< to high single digits
Consensus for Speedy only expecting 4% revenue growth to £458m in 2024.
I would expect they would need to do better to stay on track for their target of £650m by 2028, the 4 year required CAGR 2024-2028 is 9% so they should be getting closer to 10% p.a. Lofty aspiration but not very realistic if only 4% in year 1.
https://otp.investis.com/clients/uk/ashtead-group/rns/regulatory-story.aspx?cid=664&newsid=1713231
The Bank of New York purchased 23,250,000 Speedy shares last Thursday ....the day of the tree shake.
That's quite an impressive initial investment!
Highly likely some exposure given roads and HS2...Speedy has 1,000s of customers. Bad debts will be an expected cost in this industry, particularly given construction focus
Does this company have any exposure to Buckingham Group?
Avoid if they do. Big drop incoming.
Someone sure is desperate to dump that 200k for 31.50…
Gone ex dividend yesterday so should have bounced back today. Normally happens but not with Speedy.
Maybe view it as a good buying opportunity?
Limited exclusivity isn't an issue. As Adam Bond says, Speedy has thousands of Gensets to replace. If it were only a few hundred they would not be getting exclusivity.
On the fuelling side:
"In one of our recent field deployments, the customer, using real life data, compared fuel costs of AFC Energy’s H- Power Tower to their incumbent diesel generators, and concluded AFC Energy’s cost per kW of fuel used was just a 14% premium to diesel, despite the current high pricing for hydrogen. Yet, with a more competitively priced, longer term hydrogen supply agreement, fuel cost parity could be achieved."
https://hydrogen-central.com/afc-energy-leading-provider-hydrogen-power-generation-technologies-provides-update-on-its-h-power-tower-deployment-programme/
The JV will take out a bulk Hydrogen supply agreement covering all of it's clients needs, thus achieving the cost parity (or possibly lower) with Diesel running costs.
There are also significant CAPEX cost reductions that are coming in the 50kva Generators that Speedy will be taking.
The TCO is obviously good enough for both companies to make a nice profit on a hire company basis otherwise Speedy and AFC would not be bothering.
If they can offer the fuelling / fulfilment service alongside the hire of equipment, this could be a big revenue-generator. only problem being there's limited exclusivity on providing this kind of thing.
AFC Energy CEO Adam Bond speaks about his collaboration with Speedy Hire. Going forwards this sounds like a good growth story.
https://www.youtube.com/watch?v=vdhQQVg7_0M
Hopefully this will be a good deal for both companies. The SP reaction for AFC has certainly been very strong. The hydrogen fuel cell product has been trialled and improved based on the feedback from several construction companies. AFC has a slow, steady strategy so as not to overreach and fail.
https://www.afcenergy.com/our-offering/technology-products
I'm all for innovation but as a shareholder this sort of thing makes me nervous with Speedys track record over the last few years being poor. Usually resulting in writing off a loss making venture in the annual results several years later.
Nice idea this eco energy but it costs more and in my opinion isn't going to boost the overall profits but I will wait to be proven wrong.
With SDY I see good revenue and low dept...
The dip in profit this year was due to the 20M right-off of lost equipment, which probably wont happen again.
Also, they're not focused solely on the building industry... so protected somewhat from high interest rates and cooling housing market.
I'm in two minds about the PE ration... any views welcome.
From the fundamentals...
...................2023......2022... etc
PE Ratio 6.40 12.80 20.70 20.70 8.90
I'm not expert but I can read... and some of what I read says low PE is good, some say high PE is good...
https://www.stash.com/learn/what-is-a-good-pe-ratio/#:~:text=Typically%2C%20the%20average%20P%2FE,different%20average%20P%2FE%20ratios.
https://www.forbes.com/uk/advisor/investing/how-to-understand-price-earnings-p-e-ratio/#:~:text=In%20its%20simplest%20form%2C%20the,expectations%20of%20future%20earnings%20growth.
Good article to read. It echo's my thoughts that although the builders having a bad time Speedy is not only servicing the building industry... they have a much broader customer base than that.
Prior knowledge of delayed results would explain the dip.
I don't like the look of the dip at the end of today, but it might be like Yu Group which dropped the day before then jumped 25% on results. Here's hoping anyway.