CITY NEWS
GROWING OPTIMISM
Catherine Stratton comments on share price rises, Speedy’s trading update and Andrews Sykes’ results.
The shares of most of the hirers quoted on the London Stock Market enjoyed a good October with Andrews Sykes, Ashtead , Speedy and Vp all hitting new 52 week ‘highs’ in the second half of the month. The big exception to this was Aggreko where reaction to its interim management statement led to a share price fall.
Speedy is sounding an increasingly confident tone; its recent trading update ahead of half year results on 14 November indicate that ‘underlying’ Group revenues are up 5.3% on the first half of last year’s financial year and the company’s profitability is improving, together with its operating margins and return on capital employed. In the UK underlying revenues rose 3.2%.
Growth has been strong in Speedy’s International division with revenues up 77% on the same period last year. The company attributes this expansion to its growing presence in the oil and gas sectors with activity levels set to rise further as the company prepares for the first phase of its five year contract in the United Arab Emirates, which will result in revenues of up to $50m for Speedy over the duration of the contract. Speedy shares hit a 52 week ‘high’ of 34.25p as we went to press on 8 November, valuing the company at £170.7m.
ANDREWS SYKES: RESULTS FOR 6 MONTHS ENDED 30/6/12 Six months to
Revenue EBITDA
Pre-tax profit
30.06.12 (£’000) 30.06.11 (£’000) 28,570 8,287 6,699
7,784 5,647
Six months to % Change 27,717
+3.1 +6.5
+18.6
Andrew Sykes has also seen its share price strengthen, reaching a 52 week ‘high’ of 207.6p in early November, giving the company a market capitalisation of £86.21m. Chairman JG Murray described trading conditions in the third quarter as ‘challenging’ for the core UK hire and sales business as the summer had not been sufficiently hot to boost demand for air conditioning equipment.
It is encouraging to be able to report improving share prices for hire companies. Ironically a major factor in this is almost certainly an unquoted company, HSS. The announcement that the tool hirer has been acquired by Exponent Private Equity has drawn attention to, and helped to renew confidence in, the market.
SIR MATTHEW GOODWIN
Like many others, I was deeply saddened to hear of the death of Sir Matthew. For me, he represented the very best in plant hire leadership. He established an outstanding company with an unmatched breadth of plant and equipment. More importantly Hewden Stuart earned a well-deserved reputation for integrity with its suppliers, customers and staff, and with the City.
Sir Matthew’s analyst briefings were unique. He was able to convey both his deep commitment to his company and his clearly outstanding skill at its management without a hint of self-aggrandisement. More than anyone, he helped to establish plant hire as a bona fide business in the City and everyone involved in the industry should be grateful for that legacy.
•
15
SEE US ON STAND C80
6 & 7 February Ricoh Arena, Coventry
www.executivehireshow.com
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 |
Page 57 |
Page 58 |
Page 59 |
Page 60