Speedy Hire Plc
('Speedy', 'the Company' or 'the Group')
ASSET DISPOSAL
Speedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, is pleased to announce the sale of its large mechanical plant fleet, for a total consideration of £14.4 million payable in cash.
The large mechanical plant fleet includes assets, notably excavators, dumpers and ride on rollers, of three tonnes or greater. As at 31 July 2016, the business had assets with a gross book value of £15.5 million. Unaudited financial information for the 12 months ended 31 July 2016, shows the fleet generated revenues of approximately £3.2 million and EBITDA of approximately £1.9 million.
Transaction highlights:
· Gross cash proceeds of £14.4 million;
· Net cash proceeds (after transaction costs and reorganisation costs) will be used to reduce debt;
· Speedy has entered into a five-year re-hire agreement, with an option to extend for a further two years, for large plant assets, with the acquirer of the business, Ardent Hire Solutions Limited;
· The profit on disposal (after transaction costs and reorganisation costs) will be reflected in the Group's FY17 results;
· The disposal will deliver a pro-forma increase in Speedy's return on capital; and
· Completion will occur on 9 September 2016 for assets held in England and Wales and 30 November 2016 for assets held in Scotland.
Commenting on the disposal, Russell Down, Chief Executive of Speedy, said:
"I am pleased that we have been able to conclude this agreement which both guarantees continuity of supply to our customers and will enhance our return on capital. The disposal is consistent with our strategy of focusing on core operations and further strengthening the Group's balance sheet."
Enquiries:
Speedy Hire Plc Tel: 01942 720 000
Russell Down, Chief Executive
Chris Morgan, Group Finance Director
Instinctif Partners Tel: 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
Notes:
Inside Information: This announcement contains inside information.
Forward looking statements: The information in this release is based on management information. This report includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date of this report.
Notes to Editors: Founded in 1977, Speedy is the UK's leading provider of tools, equipment and plant hire services to a wide range of customers in the construction, infrastructure and industrial markets, as well as to local trade and industry. The Group provides complementary support services through the provision of training, asset management and compliance services. Speedy is accredited nationally to ISO50001, ISO9001, ISO14001 and OHSAS18001. The Group operates from 206 fixed sites across the UK and Ireland together with a number of on-site facilities at client locations throughout the UK, Ireland and from an international office based in Abu Dhabi.
