Speedy Hire announces new chairman

Speedy Hire

Tool hire group Speedy Hire said it is trading in line with expectations, and announced its new chairman, today.

In an update ahead of its annual general meeting later today, the Newton-le-Willows group revealed that revenue for the first quarter of the year ending March 31, pre-disposals, increased by 6.6% on the prior year.

Hire revenue and services revenues grew by 5.5% and 8.4%, respectively.

UK and Ireland hire revenue increased by around 1% on a like-for-like basis, while the international business continues to perform well, with a strong pipeline of opportunities.

The group invested around £15.2m in the first quarter on new equipment for hire, up 4% on the prior year.

It said expenditure continues to be carefully targeted with average asset utilisation rates increasing to 55.7%, on a rolling 12-month basis.

Net debt at June 30 of £67m was lower than at the year end (£69.4m).

Return on capital investment for the 12 months to June 30 was 11.8%, compared with 8.4% a year ago.

Today’s statement said: “The group remains on track to deliver a result for the full year in line with the board’s expectations.”

It will also host a capital markets day for analysts and investors in Tamworth tomorrow.

It said no new material, trading or financial information, will be disclosed, and a copy of the presentations given to attendees will subsequently be made available on the Speedy website.

The statement added that, further to the announcement on May 16, and following the conclusion of an external and internal search process, David Shearer will succeed Jan Åstrand as chairman of the board and nomination committee with effect from October 1.

Jan Åstrand will remain as a non-executive director of the company and member of the nomination committee until October 31.

Mr Shearer has been a non-executive director since September 9, 2016 and a member of the audit and nomination committees from November 10, 2016 ,and of the remuneration committee from March 31, 2017.

He will cease to be a member of the audit and remuneration committees on September 30.

Commenting on the appointment Jan Åstrand said: “I am pleased to welcome David to the role of chairman.

“He is a valued member of Speedy’s board, with considerable external experience.

“I am confident in his ability to lead the board in building on the solid foundation established during Speedy’s recovery and helping achieve the next stage of its growth.”

Mr Shearer said: “I am delighted to be taking over from Jan as chairman of Speedy as we embark on the next phase of delivering the company’s growth strategy and look forward to working with Russell Down and the board in the years ahead.

“On behalf of the board, I would like to offer thanks to Jan for guiding Speedy through the last four years and wish him well for the future.”

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