sdy18 Mar 2014 08:01
18 March 2014
Speedy Hire Plc
("Speedy" or "the Group")
Trading Update
Following a review of its most recent management information, Speedy today provides an update on trading and its outlook for the year ending 31 March 2014.
In the Interim Management Statement of 12 February 2014, we stated that "whilst performance in International is running behind expectation, the UK performance to date gives the Board confidence that the Group will meet its expectations for the full financial year". However,
· asset sales are running at a slower pace than anticipated and below historical trends;
· trading losses in our Middle East business are likely to be greater than anticipated as the business is being stabilised. The performance of the International division will also be negatively impacted by adverse foreign exchange movements relating to the Kazakhstan Joint Venture; and
· whilst total UK revenues are marginally higher than in the same period in the prior year, reflecting growth in services revenue, the higher margin hire revenues for February and March are below forecast.
As a consequence, the Speedy Board now expects adjusted PBT* for the year ending 31 March 2014, to be in the region of £14.5 million.
Focus for the Group is on completing the stabilisation of the International division, and in the UK, focussing the sales effort to take advantage of the improving economic conditions, and delivering the previously announced network and asset optimisation projects.
Speedy also confirms that its Preliminary Results for the year to 31 March 2014 will be announced on 13 May 2014.
* before amortisation and exceptional costs
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