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CITY

NEWS

SPEEDY STRUGGLES

TO RECOVER

Speedy, the undisputed No.1 in the Tool Hire Top Ten, is still struggling to recover from the recession. However, while he admits that the current year continues to be difficult, Chief Executive Steve Corcoran says he now feels more positive about the market in general, and his company in particular, than he has for some time. With the election behind us and the Coalition Government beginning to establish itself, the ground is, maybe, becoming a little firmer.

It is interesting to note that there are small signs of a revival in acquisitions in the market. Just a day before the election, Finning announced the sale of Hewden Stuart, and, more recently, HSS has acquired the training operations of Hydrex, while Vp has expanded its Groundforce business with the purchase of the pipeline pressure testing rental business, Harbray (Plant Hire). The latter two acquisitions are relatively small, but they do suggest that confidence may be returning.

SPEEDY HIRE: RESULTS FOR THE YEAR ENDED 31/3/10

31.03.10

Revenue Operating profit

before exc. items Operating (loss)

after exc. items (Loss)/Profit before

tax & exc. items (Loss)before tax & after exc. items

351.1 2.5

(£m) (£m) (restated)

482.7 40.0

(8.6) (11.7) (22.8) (50.7) 24.2 (71.1)

Note: Exceptional items of £11.1m in 2009/10 relate to restructuring and cost-saving initiatives including onerous lease provision to cover costs for up to three years of 51 leasehold properties closed during the year. In addition there were redundancy costs (317 positions) and other costs relating to regional back offices and the setting up of the Shared Services Centre.

31.03.09 % Change

-27.3 -93.8

- -148.3

Long term supply contracts

Speedy continues to lay emphasis on its strategy of securing long term supply contracts with major construction companies and others, such as utilities. The company says that the top 50 UK contractors now account for 26.9% of revenue, compared with 24.4% a year ago, and that it now has secured contracts forecast to achieve approximately £280m of revenues over their remaining terms. In the past year the company has secured 212 new or renewed awards.

As well as agreements with major construction companies, there have been some noteworthy successes with non-construction groups such as awards from ExxonMobil and Welsh Water, worth £7.5m and £4m respectively. Speedy states that revenues from non-construction activities now account for 35% of turnover.

AS SUN PURCHASES HEWDEN

Catherine Stratton provides a detailed assessment of Speedy’s latest annual results and considers the sale of Hewden.

Speedy, however, still has a stiff climb to get itself back on a sound recovery track. The company has seen its revenues fall by over 27%; it says that the last six months have, however, seen a progressive improvement in revenues and, at the end of this April, its volumes on hire were “broadly in line with those of April 2009”. This follows a continuing, albeit less severe, 12% decline in revenues in the first three months of the year. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56
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