1st Jul 2015 06:53
LONDON (Alliance News) - Speedy Hire PLC was dealt a triple blow on Wednesday after it said its results for the full year will not meet expectations, that talks about selling its oil and gas assets have fallen through, and that its Chief Executive Mark Rogerson has retired from his role with immediate effect.
Speedy Hire said current Finance Director Russell Down has assumed the role of CEO.
The equipment and tool hire company said results for the full year will be "materially below" expectations and down year-on-year, after it had a "slower than expected start" to the year due to end March 31, 2016. It said it has identified three factors that are contributing to "poor revenue performance".
"This is extremely disappointing. I believe that Speedy remains a fundamentally good business but, whilst some progress has been made over the last year, the remedial action programmes have not been delivered as needed," said Chairman Jan Astrand.
Speedy Hire said a lack of available equipment during the network optimisation programme and its focus on strategic accounts ahead of SME customers had hampered revenue. "Poor customer service" caused by the introduction of a new IT system also contributed, it said.
"Our immediate priority is to accelerate the execution of those programmes and realise the upside we believe they will deliver over the medium term. Additionally, we will increase our focus on the SME core hire market," Astrand added.
"Whilst core hire trading across strategic accounts remains strong, without an improvement in revenue trend, and ahead of any delivery of the remedial programmes, the result for the full year 2016 will be materially below the board's expectations for 2016 and the reported result for the 2015 full year," said the company.
In another blow, Speedy Hire said the talks for selling its remaining oil and gas assets in the Middle East have been discontinued after the parties failed to reach an agreement. The company said it is still evaluating options for the business, which is currently operating at a break-even level.
Down will take up the role of CEO with immediate effect, and Astrand, who is currently a non-executive chairman, having been appointed in late 2014, will become executive chairman but will revert back to a non-executive in November, Speedy Hire said.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Sirius Minerals