17th Jul 2007 07:00
Speedy Hire PLC17 July 2007 17 July 2007 Speedy Hire Plc ("Speedy Hire" or "the Company" or "the Group") INTERIM MANAGEMENT STATEMENT At the Annual General Meeting to be held at 11:00am today Chairman David Walliswill give the following update on the Company's progress since the start of thecurrent financial year. "I am pleased to report that the new financial year has started well withoverall first quarter revenue increasing by 30% on the comparative quarter lastyear. Both the Tool Hire and Equipment Divisions continue to perform well.Tool Hire revenue increased by 15%, including like for like growth of 9.8%. TheEquipment Division performed strongly with revenue increasing by 41%, andutilisation remaining in line with previous periods at 70%. The Group continues to gain market share following our long-established strategyof expanding the network, consolidating the marketplace, and offeringhigh-quality service to customers. The revenue increase is partly driven by thefull period impact of our two acquisitions last year, LCH Generators Limited andLifting Gear Hire Limited. On 14 June 2007 we announced our intention to undertake our largest everacquisition, of Hewden Tools for a total consideration of £115m cash. This willbe a transformational deal, consolidating Speedy Hire's position as the UK'sleading hire company. We expect completion of the acquisition to be around 31July 2007. I am pleased to report we are making good progress towards this dateand are on track with the TUPE process, OFT submission, completion audit andasset verification exercise. We are now well positioned to offer our enlarged customer base an even higherlevel of service with a larger fleet of assets for hire and a diversifiedproduct range. In conjunction with the proposed acquisition, the Group has secured a reviseddebt facility of £325m, replacing the Group's existing facility of £210m. Thenew facility has been arranged for a five year term and with a margin broadly inline with existing terms. The Group also announced the intention to raiseapproximately £54m (before expenses) through a placing of new ordinary shares,equivalent to approximately 9.5% of the Company's existing issued share capital. The placing comprises two equal tranches, with proceeds from the first tranchehaving been already received. The remaining tranche is conditional uponcompleting the acquisition. At 30 June 2007, approximately £172m of the available bank facilities had beendrawn. Following the completion of the Hewden Tools acquisition, the Group isexpected to have drawn approximately £260m, and gearing is expected to be in theregion of 113%. Our major customers continue to report strong order books and the outlook forthe hire market remains positive. We are confident, subject to any significantchange in the economic outlook, of reporting further progress for the Groupthroughout the remainder of the financial year. For further information: Speedy Hire Plc Hudson SandlerSteve Corcoran, Chief Executive Wendy BakerNeil O'Brien, Finance Director Kate HoughTel: 01942 720 000 Tel: 020 7796 4133 Website: www.speedyhire.plc.uk Notes to Editors: Speedy Hire is the UK's No.1 provider of tools and equipment for hire. TheCompany operates from over 350 depots throughout the UK. The Group alsooperates in the Republic of Ireland. The Group's activities are the provision for hire of small tools, portableaccommodation, compressed air, pumps, lifting, material handling, survey andmeasurement instrumentation and power generation equipment. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Speedy Hire