Last checked at 5 Apr 2022 07:00
Speedy Hire Plc
("Speedy", "the Company" or "the Group")
5 April 2022
Year End Trading Update
Speedy, the UK's leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets, today provides an update on the Group's trading performance for the year ended 31 March 2022.
The Group expects to report results for the year in line with the Board's expectations.
The Group has seen a continuation of the positive trading momentum achieved throughout the year, with UK and Ireland hire revenue for the year c.5% ahead of FY2020. Hire revenue in Q4 FY2022 was c.7% ahead of the corresponding period in FY2021, which now represents a more meaningful comparator. The Group's key end markets continue to deliver growth through demand-driven volume improvements, with better rates helping to mitigate inflationary cost pressures.
Our investment in developing a retail business in partnership with B&Q has continued during the year. We expect to have a presence in 38 B&Q stores and on B&Q's website, diy.com, before Easter.
The Group has invested c.£70million in the hire fleet during the year, accelerating its capital expenditure programme in response to continued strong demand and to mitigate supply chain pressure. Consistent with the Group's strategic goals, the investment has been focused on sustainable products. We have maintained strong asset utilisation rates on our enlarged hire fleet, with utilisation for FY2022 of 57.0% (FY2020 - 55.5%).
The balance sheet remains strong, with net debt at 31 March 2022 of less than £70million, inclusive of £6million spent to date under the share buyback scheme.
Change of Auditor
Speedy intends to appoint PricewaterhouseCoopers LLP ("PwC") as its external auditor for the financial year ending 31 March 2023, subject to shareholder approval at the 2022 Annual General Meeting.
The selection of PwC follows a competitive tender process, overseen by the Company's Audit & Risk Committee. KPMG LLP, Speedy's current external auditor, will continue in its role to undertake the audit for the financial year ending 31 March 2022. This will conclude their 20-year tenure and satisfy mandatory rotation requirements.
Notice of results
The Group expects to announce its final results for the financial year ended 31 March 2022 on 24 May 2022.
Russell Down, Chief Executive, commented:
"I am pleased to report that our positive trading momentum has continued with further revenue growth in Q4. This has been supported by positive end markets, with strong demand resulting in increased volumes, better rates and higher utilisation, on an enlarged hire fleet. Results for the year are expected to be in line with the Board's expectations."
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 |
Inside Information: This announcement contains inside information.
Forward looking statements: The information in this release is based on management information. This report includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date of this report.
Notes to Editors: Founded in 1977, Speedy is the UK's leading provider of tools and equipment 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 ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and ISO45001. The Group operates from c.200 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations, and through a joint venture in Kazakhstan.