TIDMSDY
RNS Number : 4834P
Speedy Hire PLC
10 October 2023
10 October 2023
Speedy Hire Plc
("Speedy", "the Company" or the "Group")
Acquisition of Green Power Hire Limited
Positions Speedy as a leading provider of Battery Storage
Units
Speedy Hire Plc, the UK and Ireland's leading provider of tools,
specialist equipment and services, today announces the acquisition
of the entire issued share capital of sustainable power solutions
specialist , Green Power Hire Limited ("GPH"), for an enterprise
value of GBP20.2m. The total consideration, which was funded from
the Company's existing debt facilities, represented GBP10m of
equity value and assumed debt of GBP10.2m which was settled at
completion. Speedy acquired GPH from its principal shareholder,
Russell's (Kirbymoorside) Limited, and four other shareholders.
GPH is a recognised industry leading owner and supplier of
Battery Storage Units ("BSU") to the UK rental market, mainly to
the construction sector. GPH's BSUs, with their market leading
digital capability, enable customers to achieve both financial and
environmental savings compared to alternative systems
available.
Speedy continues to experience strong demand from its current
and potential new customers for eco products and sustainable power
solutions, and an increasing number of tenders specify BSUs. The
acquisition positions the Group as a market leader in a key growth
segment, providing it with the critical mass to meet demand from
its customers and enabling it to retain more of the margin from
directly hiring to its customers. To date GPH's BSU assets have
been provided by Speedy to its end customers on a re-hire basis as
part of Speedy's Customer Solutions division.
The acquisition of GPH will enable the continuing rapid
development of GPH's business, with access to Speedy's broad
customer base, asset rental expertise, data and AI capabilities and
investment in expanding the number of BSU's. GPH will also benefit
from operational and scale efficiencies as part of the Speedy
Group. Mark Chamberlain, Director and one of the vendor
shareholders of GPH, joined Speedy at completion as an integral
part of the ongoing management team.
The acquisition is expected to be accretive to underlying
earnings in the first full year of ownership, with ROCE(1) also
exceeding the Group's cost of capital. The Group's balance sheet
remains strong, with pro-forma net debt(2) remaining at the top end
of the mid-term leverage guidance of 1.0 - 1.5x EBITDA(2) .
In July 2023, the business and assets subject to the transaction
were hived down from Russell's (Kirbymoorside) Limited into GPH.
For the year ended 31 October 2022, GPH generated unaudited
revenues of GBP0.4m and a loss before tax of GBP0.2m. The business
has grown rapidly and for the ten months ended 31 August 2023,
unaudited revenues were GBP5.9m, the business was profitable, and
it had unaudited gross assets of GBP12.5m.
Today the Group has announced a trading update for the half year
to 30 September 2023.
Commenting on the acquisition, Dan Evans, Chief Executive,
said:
"The acquisition of Green Power Hire is further evidence of our
Velocity strategy in action, strengthening our market leadership in
combining product innovation and sustainability, and positioning
Speedy well in a high growth segment of the market.
"Alongside investments such as our partnership with Niftylift
and our proposed JV with AFC Energy, the acquisition progresses the
sustainable and technological evolution of the sectors we operate
in, supports our ambitious plan to become a net zero business by
2040 and will deliver long term benefits to our customers, our
people and our investors."
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Dan Evans, Chief Executive
Paul Rayner, Chief Financial Officer
MHP Tel: 0203 128 8540
Oliver Hughes
Katie Hunt
Notes:
Explanatory notes:
(1) Return on Capital Employed: Profit before tax, interest,
amortisation and exceptional items divided by the average capital
employed (where capital employed equals shareholders' funds and net
debt(2) ), for the last 12 months.
(2) This metric excludes the impact of IFRS 16
Inside Information: This announcement contains inside
information for the purposes of article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of domestic law by virtue
of the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement via Regulatory Information Service, this
inside information is now considered to be in the public
domain.
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, industrial, and
support services markets, as well as to local trade, and retail.
The Group provides complementary support services through the
provision of training, asset management and compliance services.
Speedy is certified nationally to ISO50001, ISO9001, ISO14001,
ISO27001 and ISO45001 and holds ISO 17020 accreditation within our
Lloyds British National Contracts business. The Group operates from
c.180 fixed sites and selected B&Q stores across the UK and
Ireland together with a number of on-site facilities at client
locations and through a joint venture in Kazakhstan.
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END
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October 10, 2023 02:01 ET (06:01 GMT)
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