000739 - Tool Hire Top Ten 23/1/09 19:12 Page 3
Table II: Operating Profit (£m) % Change on previous year
1. Speedy Hire 43.4* +4.3
SPEEDY HIRE PLC
2. HSS Hire Service 9.8 -38.7
3. Hire Station 5.5 +91.4
Chief Executive Steve Corcoran
4. GAP Group Tools 5.3** +39.5
Head Office Chase House, 16 The Parks, Newton-le-Willows,
5. Supply UK Hire Shops 1.4 Unchanged
Merseyside, WA12 0JG
A-Plant Tool Hire Not available N/A
Telephone Number 01942 720000
Brandon Hire Not available*** N/A
Website
www.speedyhire.plc.uk
Hirebase Not available N/A
Hire activities Tools, power, survey and lifting equipment,
Jewson Hire Not available N/A
pumps, cabins
TP Hire Not available N/A
Geographical coverage UK, Ireland
*after £10m integration costs, relating to the acquisition of Hewden Tools
Status Public company, listed on London Stock Exchange
**EHN estimate
***In the year ended 31 July 2007 Brandon Hire operating profits were £6.6m.
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30
SEPTEMBER 2008 (IN BRIEF)
Table III: Gross Book Value of Hire Equipment
30.09.08 (£m) 30.09.07 (£m) % Change
Gross Book Value (£m) % Change
1. Speedy Hire 460.9 +36.4
Revenues 256.2 209.5 +22.3
2. HSS Hire Service 110.8 +22.8
Operating profit 28.4 26.7 +6.4
3. GAP Group Tools 51.0 +50.0
Profit before taxation, amortisation and exceptional costs
4. Hire Station 37.2 +20.7
23.8 22.9 +3.9
5. Jewson Hire 36.2 +3.4 Pre-tax profit 19.4 18.2 +6.6
6. A-Plant Tool Hire 35.0 -2.8
7. Supply UK Hire Shops 6.1 +29.8
COMMENT
Brandon Hire Not available* N/A
Hirebase Not available N/A Speedy’s interim results, issued in late November, have now been
TP Hire Not available N/A
superseded by a profits warning on 20 January (for full details see
*Brandon: at 31 July 2007 GBV equipment was £60.7m, a rise of 49.8% on the
previous year.
City News on page 9). The statement indicated that Speedy’s
revenues for the year to 31 March 2009 are expected to be ‘broadly
Table IV: Number of outlets +/- Change on year % Change on year
in line with those of the prior year’. As the company achieved a 22%
1. Speedy Hire 436 -76 -14.8
2. Brandon Hire 270 Unchanged N/A
growth in revenues at the interim stage, this is clearly suggesting a
3. HSS Hire Service 264* -27 -9.3
severe fall in the second half and gives credence to Steve Corcoran’s
4. TP Hire 252** +79 +45.7 view that 2009 is going to be “torrid” for the market as underlying
5. Jewson Hire 232 +6 *** +2.7
activity levels fall as order books are worked out and replaced. He
6. Hire Station 101 -8 -7.4
believes that construction activity could be set to fall by 15% this year.
7. A-Plant Tool Hire 100 No Change No Change
8. GAP Group Tools 59 +2 +3.5
Speedy has embarked on significant cost cutting and re-organisation
9. Hirebase 49 N/A N/A
to meet the demands of this rapid change in fortune. The company is
10. Supply UK Hire Shops 25 +4 +19.0 establishing a Shared Service Centre that will consolidate its back
* HSS branch network is comprised of 228 depots (2007: 254), 36 Agency
office and administration processes, thereby ‘removing the costs
branches (37); in addition HSS Hire is available through 192 (171) Dulux
associated with duplication of process and improving cash flow
Decorator Centres.
**includes 60 satellite depots *** 12 opened, 6 closed during the year
efficiency’. It is expected to become operational in June.
Table V: No. of employees (based on most recent accounts available,
except where provided by company)
Further consolidation of operations is planned: a year ago a Multi
No. of employees +/- Change %
Service Centre, housing all Speedy service on one site, was set up in
Change Warrington. Between 20 and 30 similar centres are envisaged.
1. Speedy Hire 4,662 +1,325 +39.7
Steve Corcoran believes that the steep downturn in demand will
2. HSS Hire Service 2,376 +47 +2.0
inevitably lead to rationalisation and consolidation in the construction
3. GAP Group Tools 880* +85 +10.7
4. Hire Station 695 +105 +17.8
market, with medium-sized contractors the most vulnerable. This will
5. Jewson Hire 491 -43 -8.0
clearly have an impact on the hire market. Steve declares “now is not
6. A-Plant Tool Hire 475 -26 -5.2 a time for hirers to be thinking in isolation; there is a need for a
7. Hirebase 162 N/A N/A
broader breadth of understanding” of the current market forces.
8. Supply UK Hire Shops 144 +14 +10.8
He is critical of what he describes as “very silly pricing in local
Brandon Hire N/A** N/A N/A
markets”, saying that it is preventing improvements in service quality
TP Hire N/A N/A N/A
*relates to whole company operation of plant and tools
and standards. He stresses that price stability is a paramount need
** The average number of employees at Brandon during the year ended 31 July for the health of the tool hire industry.
2007 was 1,282.
19
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