Last checked at 9 Oct 2020 07:00
9 October 2020
Speedy Hire Plc
("Speedy" or "the Group")
Half year trading update
Speedy, the UK's leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets provides an update on its trading performance for the period to 30 September 2020 ahead of publishing half year results, scheduled to be announced on 18 November 2020.
Trading update
Trading for the period was in line with the Board's expectations. The business adapted quickly to the changes brought about by the COVID-19 pandemic and has serviced customers effectively and safely during the period.
Group revenue, pre disposals, for the six months to September 2020 is anticipated to be c.20% lower than the prior year.
Revenue has continued to improve through the period as activity levels have increased. For September 2020, core hire revenue in the UK and Ireland was c.7% lower than the prior year and utilisation rates for the week ended 2 October 2020 were 55.5% (2019: 55.9%).
The Middle East business is performing in line with expectations, albeit slightly below the prior year. The principal contracts have been extended until 28 February 2021 and we remain in discussions with our client in relation to longer term opportunities.
Overhead costs across the Group have been tightly controlled through the period, including decisive actions taken in response to the COVID-19 pandemic. We now have no staff on furlough.
Net debt at 30 September 2020 was c.£60m (31 March 2020: £79.3m), reflecting lower capex spend and continued strong cash collections in the first half. All tax payments deferred as part of COVID-19 support measures were repaid during September 2020.
Guidance
The situation surrounding COVID-19 is likely to remain uncertain for some time. Further to our previous announcement on 10 September 2020, guidance consequently remains suspended.
Enquiries:
Speedy Hire Plc Russell Down, Chief Executive James Bunn, Chief Financial Officer | Tel: 01942 720 000 |
MHP Communications Oliver Hughes Andrew Jaques | Tel: 0203 128 8778 |
Notes to Editors: Founded in 1977, Speedy is the UK's leading provider of tools, equipment and plant hire services to a wide range of customers in the construction, infrastructure and industrial markets, as well as to local trade and industry. The Group provides complementary support services through the provision of training, asset management and compliance services. Speedy is certified nationally to ISO27001, ISO50001, ISO9001, ISO14001 and OHSAS18001. The Group operates from over 200 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations, from an international office based in Abu Dhabi and through a joint venture in Kazakhstan.