14th Sep 2005 07:01
Speedy Hire PLC14 September 2005 14 September 2005 Speedy Hire Plc ("Speedy Hire" or the "Group") Placing to raise c£15m & Trading Update Placing of new ordinary shares The Board of Speedy Hire announces that it is today placing 2,132,315 newordinary shares of 5p each (the "Placing Shares") at a price of 710p per shareto raise approximately £14.8 million net of expenses (the "Placing"). ThePlacing represents approximately 5% of the current issued share capital of theCompany and is being made by Oriel Securities Limited ("Oriel Securities"),Speedy Hire's broker. In the last 14 months Speedy Hire has completed seven acquisitions for a totalconsideration of £33 million, all of which were financed at the time fromexisting resources. The funds raised through the Placing, together with theGroup's recently renewed banking facilities, will allow the Group to continue tofund its programme of greenfield site openings and bolt-on acquisitions, of which a number are underreview at any one time. Speedy Hire will continue to seek to achieve itsstrategic objective of being number one or two in every sector in which itoperates. Speedy Hire has today entered into a placing agreement with Oriel Securitiesunder which Oriel Securities has agreed to use its reasonable endeavours toprocure subscribers for the Placing Shares. The Placing is conditional upon,inter alia, the admission of the Placing Shares to the Official List of the UKListing Authority (the "Official List") and to trading on the London StockExchange's market for listed securities (together "Admission") becomingeffective by 8.00am on 20 September 2005 (or by such later time and date asOriel Securities and the Company may agree, but not later than 3.00pm on the 30September 2005). The relevant applications having been made, it is expected thatAdmission will become effective and dealings in the Placing Shares will commenceat 8.00am on 20 September 2005. The Placing Shares will be issued credited as fully paid and will rank paripassu in all respects with the Company's existing ordinary shares. Trading update The Board of Speedy Hire is also pleased to provide the following update ontrading in advance of its interim results for the six months to 30 September2005. The Group continues to make good progress. For the five months to 28 August2005, total turnover increased by 24% and underlying like for like tool hireturnover was up 9%. Both the Tool and Equipment divisions are growing satisfactorily, performancefor the year is in line with management expectations. The Board is confidentthat Speedy Hire has continued to win market share and that the business remainson track to deliver another year of good growth. Commenting on the Placing and the Trading Update, Steve Corcoran, ChiefExecutive said: "Since the 1 April 2004 Speedy Hire has completed seven bolt-on acquisitions ata total cost of £33 million, which, together with greenfield site openings, haveadded a further 45 branches to our network. These investments in Speedy's futurewill enable us to continue to grow turnover in the coming years. I am delightedwith the result of the Placing and I am confident that the Group will continueto take full advantage of the many opportunities before it." -ends- www.speedyhire.plc.uk Enquires: Speedy Hire Plc 01942 720 000Steve Corcoran (Chief Executive)Neil O'Brien (Group Finance Director) Oriel Securities Limited 020 7710 7600Adrian McMillanNatalie Fortescue gcg hudson sandler 020 7796 4133Nick LyonJames Benjamin Note to editors: Speedy Hire is a leading provider of tool and equipment hire services to UKcontractors and builders, industry, utilities and the public sector, operatingfrom over 300 depots throughout the country. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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