Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Since speedy's self inflicted destruction not one of the national's have a dominant position. However VP have been allowed to go from strength to strength. Perversely Hewden have the brand and ambition but though currently without a proven leader and structure. Time will tell but I believe this is one to watch.
Your 5-8 years prediction is a finger in the air, so let's add some science. The hire industry is a very simple one, with basic fundamentals. Right kit, right compitance, right availability and last but factually least.....right price. These characteristics if prioritised accordingly are the basics. Return on capital not utilisation and relationships not process underpinn. So why has speedy got it so wrong? Perhaps what I have just described doesn't follow the standard MBA text book answers. Sadly SC who got these basics so right for so long, pushed the boundaries beyond those needed and his limitations were exposed. M R was a muppet and did dent have a clue, the current CEO will make less mistakes but is unlikely to make the quick decisions that Buck the text book that are required. Get the leadership right, invigorate the talent, win the confidence of disappointed stakeholders then attack the very unsophisticated competition and speedy' share price could be at £3.00 + in 2 years. Pipe dream or fact????? I will say no more other than suggest I'm speaking from experience not theory.........fact or fiction?????
I don't know the current CEO, though it seems a very tall order for his first CEO compounded by having no industry experience and customer base that's fed up see seeing a very simple business made complicated. getting the right competent people around him quickly that he can actively target and cherry pick, will also be vital. If those problems can be overcome soon then hats off. Sadly I'm not describing the knowledge, skills and credibility required, combined with the likely approach of a pure finance guy........mmmmm
18 months is based on the principle of the leadership having a proven track record, access to the right people, confidence to manage shareholders following to many pipe dreams. Focus needs to be placed on ROC during this term not utilisation. Market penetration is achieved from being experts in the appropriate discipline not average generalists (ironically VP and speedy have reversed their respective models......speedy madness) Genuinely believe these problems can be solved in the suggested timeframe, establishing a foundation from which the business can move forward strategically......and have a track record to support my comments.
A plant, why would they overpay???? Private equity, most likely. Read a lot of speculation and a lot of convoluted solutions. So here is my simple view. Refocus the strategy with a strong leader that understands the market intimately (sadly not mr c, though it hurts to say he created much of the problems of today). Exit plant, re-establish sector focus, loose current preoccupation with utilisation, reinstall local network capability, close msc's, incentivise success......for 18 months. This will provide a solid foundation to move forward
You have to ask yourself, how low will this PLC be allowed to go? The new guy will probably steady the ship, it's his first CEO role and he's an accountant so you won't see anything radical ( un-like the last one who for some strange reason believed his own hype). Take a longer term view, before long the Chairman will be forced into making a very simple but obvious decision, when he does those shares just may be worth a bob or two...........
Speedy once had a great model, strong leadership and clear direction.......all these factors could be repeated with the right CEO. Industry knowledge should not be underestimated as this has been the weakness of the current and last leader. Sadly Mr C lost the balance in the team around him, without he was free to change things every time he had a latest idea and the business lost its identity. I never thought I would hear myself say it (just don't like the man) but someone should try very hard to temp Mr W back. Few if any could doubt his success at Speedy and from what I can see his career has gone from strength to strength since leaving.......the market is strong and I'm sure speedy can be, hang on to those shares