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I have to say, i found it really confusing, and in the basis of not investing in what I don’t know, I’m out, as the dragons say.

So Speedy coughs up £35m, for potential revenue from referrals.

Can’t help thinking if they’d kept their money, let HSS go pop, they could have picked up some real bargains or just cannibalized the customers.

It does have an air of desperation and trying to hard to justify about it

I just don't see it working (sorry). Speedy have been there before with B&Q - for those with a long enough memory. There is a market there, but I can't see the lower discounts offsetting the extra costs to support this level of customer. By all means make your own depots more accessible, and access the 'joe public' market, but you can do this without a tie-in to B&Q.

I'd find it hard to believe that this doesn't suit B&Q a lot more than it suits Speedy

You’d have to be a loon to think the £20m went missing after Down left… much more likely it wasn’t controlled for quite some time.

I’d give Mr Evans a chance. You need someone steeped in Hire industry to drive the business. What the past 8 years proved was being a competent administrator was only good at driving a business closer to the grave.

Speedy used to be good at understanding customers and delivering well. Recently, good at saying the right things for governance, and forgetting what they’re trying to do, whilst earning ridiculous bonuses for achieving very little

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.

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.

I think it must be a little more fundamental than that - I would hope before you put out an announcement, somebody asks - are we really sure about this...? speaks to real lack / failure of basic controls.

perhaps you should reduce directors shareholdings by the equivalent of the value of accounting errors made...?

it really isn't. it's about how competitive they can be against the big green machine.

What is it they say about keeping emotion out of business…? Someone forgot to tell whoever wrote that RNS on results delay…(!)

its been in the doldrums for the past 7 years - lots of excuses and reasons for not making progress, but I can only see one main reason - the board, and primarily the CEO. I'm not expecting anything dramatic to happen to this business, other than slow gradual death and ultimate sell off to either PE or competitor. Its interesting to compare the progress of Speedy with their most relevant UK competitor, Sunbelt (formerly Ashtead). Also notable how many former Speedy people now working at Sunbelt.
Look at the share price, and compare it with 7 years ago. Share repurchases are usually one of two things - making so much cash its embarrassing, and you can't hold on to it, or not having any leverage and having no strategic idea what to do next.

In the same article quoting the 113p target is reference to ‘new boss Russell Down’ who’s been in the business at least 5 years… says it all really…

Someone must know something. 25% decline in a month and a half without any announcement is strange...
Another month and a half to any half year trading update... can’t believe there’s significant Brexit impact.

Can’t agree re debt level. Last time I looked debt was in the region of one times EBITDA, and tangible asset cover is high - which means they’re holding onto shareholder value rather than returning it. Management talk enthusiastically about return finally exceeding WACC, but they could really help this by increasing proportion of cheaper debt finance. I’m also concerned that as they’re not growing top line as effectively as competitors, they’re supporting profit growth through sweating assets and driving efficiencies rather than through sustainable growth.
Their inability to find quality growth (one minor acquisition a year is not v impressive) concerns me - you can’t continue to cut costs to drive profit growth in the long term. It feels like it’s just a matter of time before there’s a stall, and I’m calling it now unless I can see some real progress.

I’m getting bored... when is something impressive going to happen? I don’t mean transformative acquisition, just a decent set of results that actually show growth in core top line, and management actions focused on growth rather than evermore cost-cutting and efficiency.
Look at the SP from one, two, or three years ago, and there’s little sign of movement (albeit a bit roller-coaster in between:
26 Feb 18: 53p
26 Feb 17: 50p
20 Jul 14: 54p

In the mean time:
HSS 28 Feb 18: 26p
Vp 28 Feb 18: 858p

AHT 26 Feb 17: 1649p

Can someone articulate why Speedy have got such a large debt facility and such low gearing and are using so much shareholder funding to deliver no share price growth?

Where’s my compelling investment case...?

Significant investment by Vp, resulting in revenue and profit growth. Interesting to compare to Speedy... Great track record, giving confidence in future performance. Challenge integrating Brandon to impact over next year, but nothing suggests they will struggle with this. Would love to have same confidence in the Speedy growth story - where’s the strategy?

Great set of results. Onwards and upwards. Really impressed with the consistent performance. Management clearly understand how to manage the business for growth.

Found it. £5.9m of revenue from acquisitions. If you add this, and the full year impact from Lloyd’s acquired in the prior year (say £8m), then c. £14m of the uk revenue growth was from acquisition. After adjusting for kit disposal revenue, uk growth is c£20.4m, so underlying growth is around 2%...

£2.1m on Carillion, £1.3m on people restructure and a large slug (£4.7m) on closing out property leases? Offset by international over provision. I’d like better view on impact from acquisitions. Not got to notes yet, but nothing in FD review talking about impact on revenue and profit. Stuffed £0.6m integration costs into exceptional, but no word on contribution to overall profit. Lots of explanation around last years disposal adjustment to show growth in revenue, but no backing out the revenue they bought in the year. They refinanced to give room for acquisitions, did two in the year (admittedly not very big) and then say nothing. Only comment on uk like for like is that it was positive. Think it’s safe to say if it was higher than broadly 0-1%, they might actually say what the number is. Growth is anemic compared to better performing end of peer group. Chairman stepping down - perhaps he doesn’t feel there’s much left in the tank. Net debt is nice and low - less than 1x EBITDA. How about some accelerated returns to shareholders to get that cost of capital down!

Any thoughts / expectations / predictions ahead of tomorrow's year-end announcement?

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?