Speedy Hire Plc
("Speedy Hire", "the Company" or
"the Group")
10
April 2024
Year End
Trading Update
Speedy Hire, the UK's leading tools
and equipment hire services company, operating across the
construction, infrastructure and industrial markets, today provides
an update on the Group's trading performance for the year ended 31
March 2024 ("FY2024").
Trading performance
The Group has performed resiliently
in the year against a challenging market backdrop and wider
macroeconomic uncertainty. Total Group Revenue1 of
c.£420m for the year was down c.5% versus FY2023, impacted by
underperformance from our Regional base, the reduction in wholesale
fuel prices and the performance of our seasonal products, which
were affected by the warmer winter period.
The cost inflation and softer demand
faced across much of the Construction sector mean that revenues
from our Regional customers closed 6% down year-on-year, although
these stabilised in the last quarter of the year and in FY2025
trading to date. Revenues from our National customers whilst
declining in the last quarter had continued to trade positively
year-on-year.
Despite the challenging trading
environment through FY2024, the Group has secured additional annual
turnover in excess of £40m across multi-year contracts with new and
existing customers which, whilst slow to mobilise and only
providing marginal benefit in FY2024, give confidence for growth in
FY2025 and beyond. This new business has been secured with
continued pricing discipline and demonstrates the attractiveness of
Speedy's customer offering.
Our Kazakhstan joint venture,
following a record year last year, returned to a more normalised
performance in FY2024 due to the timing of various
projects.
The momentum from securing major
opportunities and progressing operational efficiencies, positions
the Group well to benefit from the anticipated recovery of the
wider macroeconomic environment during the second half of
FY2025.
As a result, while the Group expects
to report results for the year towards the lower end of the Board's
expectations, it is encouraged by the commercial progress in the
business and the outlook for FY2025 given the recent contract
wins.
The Group has remained highly
focused on working capital management and expects to deliver free
cash flow2 in excess of £20m, with net debt3
reducing by year-end to c.£102m, within our target leverage
range.
Velocity Strategy
We continue to progress our
five-year strategy and transformation programme, led by systems and
data, to ensure that we will have an efficient operating structure
to power our growth and deliver long term benefits. The investment
in implementing our strategy and executing our transformation
programme represents a significant cost to the business and will be
reported separately at the year end. Our Velocity strategy
represents a significant opportunity to the Group in the future and
we are committed to its development and execution.
Our partnership with B&Q has
evolved to a more digitally focused model during the final quarter
of FY2024 and we have now fully exited the remaining 22
concessions. The Group incurred trading losses and closure costs in
the region of c.£2m in FY2024 which will not recur under the new,
low cost-to-serve model. Our products and services are now
available for digital hire in-store within every B&Q and
Tradepoint as well as on the respective websites, demonstrating
strong strategic progress in our Trade and Retail
offering.
Green Power Hire Limited is
performing in line with its acquisition business plan and we
continue to invest in the business to satisfy growing customer
demand. In March, we were also pleased to showcase the first
H-Power Generator for Speedy Hydrogen Solutions, our joint venture
partnership with AFC Energy Plc. We look forward to growing
the fleet during FY2025 and supporting our customers with
sustainable power generation.
The implementation of Velocity has
also facilitated supply chain savings alongside further management
restructuring and depot optimisation projects. These enabling
improvements will continue to deliver benefits into future
years.
Notice of results
The Group expects to announce its
final results for the financial year ended 31 March 2024 in
mid-June 2024.
Enquiries:
Speedy Hire
Plc
Tel: 01942 720 000
Dan Evans, Chief
Executive
Paul Rayner, Chief Financial
Officer
MHP Communications
Tel: 0203 128
8540
Oliver Hughes
Katie Hunt
Speedy@mhpgroup.com
Notes:
1
Unaudited
2 Free cash flow: Net
cash flow before movement in loan balances, M&A activity and
returns to shareholders
3 Pre IFRS 16
basis
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.
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 Hire 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 Hire is certified nationally to
ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and ISO45001. The
Group operates from c.150 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.