The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Purchased for £9million in Dec 2018, that's an effective way of 'spaffing' money down the drain in short order. I believe the then financial director resigned too when it came to light there were several legal claims against Gleason pending.. something he should have been aware of but wasn't. God Speedy have a history of employing some dumb people !
What a total pile of ****e this share has turned out to be. For 9 solid months now i keep getting daily alerts 'Speedy Hire has hit another all time low. I should have ditched this pile of garbage on results day last May when they hit 82p. Now they look incredibly weak even at 54p. To add insult to injury the 60.000 share buybacks yesterday looks utterly pathetic. They need to reduce by millions and quickly if they had any conviction. Management wont be reserved when it comes to dishing out additional share bonuses by millions at the end of the year. This half-hearted buyback will hardly make a dent in the number of shares in issue.
I never thought I'd live to see the day when there's more excitement and positivity on the HSS threads than there is here. That's how bad it's got. And by the way what exactly has Toscafunds action guy Daviid Shearer actually achieved since joining the board with his inflated salary in 2016?
Should reduce 528 million shares down to 476 million... preferably all purchased whilst the sp malingers down here in the gutter sub 58p. I would like to see the total number fall below 400 million .. but at least this is a step in the right direction.
You are probably right, but say Speedy were to make a bid, wouldn't they try to seduce the two major shareholders (61%)with a number of sweeteners to secure a deal?
All conjecture on my part, but this scenario has been mooted for years with no result!
Ragnar what are your thoughts about this new becoming a prime takeover target?
Even if Tosca do lob the lot, Exponent still own 33.8% and Ravensworth 27.5% so not sure how that would all play out.
Analysts at Panmure Gordon believe Speedy is benefitting from “robust demand” and recommends buying the stock at a target price of 113p.
The performance note said: “Superior service levels continue to be a key factor driving these market share gains. As the construction cycle progresses, we anticipate that the importance of service will trend even higher. In particular, we expect that clients will increasingly emphasise equipment availability and reliability over price. In this environment, Speedy Hire is well placed to benefit and we expect sales, margins and returns to all move higher.”
Speedy Hire has a new chief executive officer, is expanding, has gone green and stands to benefit from Britain's £650bn of spending on infrastructure in the year ahead, so "buy" is the Sunday Times's Sabah Meddings's tip for readers.
Under its new boss, Russell Down, the equipment and tool hire specialist is branching out into selling directly to customers through concessions at B&Qs.
Worth noting, the company's promise is that it can supply its 350 most popular items in under four hours thanks to its 200 depots located across the country.
Its delivery vehicles meanwhile have either gone electric or, in the case of its diesel trucks, use hydrated vegetable oil, which reduces their emissions by 90%.
There is also a growing focus on battery power, solar and hydrogen instead of diesel-powered generators.
The company is not immune to the supply-chain problems plaguing the construction industry having already raised its drivers' pay twice this year.
Nevertheless, the company is growing.
So for Meddings: "despite the pressure, it is in a good position to benefit from the £650 billion of UK infrastructure spending in the years ahead. It is already involved in projects such as Thames Tideway and HS2.
"Liberum has a 90p target share price, while Panmure Gordon has a 113p target. At its current price, Speedy Hire looks undervalued. Buy."
Nice positive write up in today's Evening Standard:
https://www.standard.co.uk/business/speedy-hire-after-the-plant-and-equipment-specialist-b937163.html
Excellent post F1. You outline clearly all the essential facts investors here should consider but rarely do.
I'd love your appraisal of Speedy Hire if you have time. I have a strong feeling their Final Results expected in May will exceed all expectations but would like your take on it.
At first glance it reads well with its spin of triumph over adversity.
But the true figures speak for themselves:
Fy Operating Profit 1.5 Million Stg Versus 16.8 Million Stg Year Ago
Fy Adjusted Ebitda Fell 26.4 Percent To 47 Million Stg
Fy Revenue Fell 17.7 Percent To 269.9 Million Stg
Fy Loss Per Share 2.03 Pence Versus 2.31 Pence Profit Year Ago
Welcome thinker, a very small group you'll find here, but am confident Speedy will beat expectations as the year progresses. I had a few bites of the cherry just now when the price momentarily dipped to 62p having sold some at 70p last November. This could dip back into the 50's but the half year report sounded quite bullish and hopefully that momentum is still building as we speak.
It's now twelve weeks since that report so a good trading update would be most welcome right now to lift the SP back up to that 69p support level
Decisions decisions!
Geason Training 's under-performance resulted in net exceptional items of £12.2m. £12.2m ouch!!
Management say changes are been implemented (including new managers) to turn it around.
On the plus side Peel Hunt have reiterated their buy recommendation, raising target price from 60p to 65p.
The dilemma now is whether to buy or sell!
Any thoughts on how the markets will react to tomorrow's results?
I hope we get a bullish move tomorrow. but it can't be overlooked Speedy's purchase of Geason was a stupid blunder. Considering how they keep banging on about making sound bolt-on acquisitions when it was prudent to do so and then discover a £2.6 millon claim for overpayment is pending! Yes Speedy can take this hit but at the same time as the Covid 19 crisis hitting profits as well?
Speedy do make a habit of shooting themselves in the foot every few years.
That was unexpected news this morning.Looks like Speedy were sold a pup with Geason not performing to expectations plus there's a separate expensive litigation pending also. The FD as a consequence has been given the boot .
Liberum cut its target price on Speedy Hire to 72p from 86p, noting: “Looking around at other countries, it is by no means clear whether construction sites will all close or remain open.”
But it argued that Speedy Hire was well positioned financially: “It has £180m of committed facilities and £220m of uncommitted facilities, and the ability to cut cost and flex capex further. These give it scope to weather much more significant revenue falls that we have modelled. The shares are attractively value, looking out to the other side, and we see over 50% upside to our target price of 72p.”
Shares in Speedy Hire were off 10% at 42.0p by 1330 GMT.
..Except it's impossible to buy any at the moment except the occasional 1 or 2 thousand.
I employed same strategy as you Nohearts. Sold a chunk at 75p and grimaced for weeks as the sp soared to 87p. I sold another chunk at 85p just before the drubbing which was a wise move. Will be happy to buy back at 66p here if in the next fortnight the world hasn't gone to hell in a handcart!