Speedy Hire : Results for the year ended 31 March 2015

Path to Sustainable Profit Growth

Speedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, announces results for the year ended 31 March 2015.

* before amortisation and exceptional items

Fixing the business

• Completed exit from general and spot hire in Middle East: process underway for sale of remaining business
• UK Sales & Marketing function re-structured delivering strong strategic customer growth
• Network Optimisation Programme completed ahead of schedule
• Implementation of new IT and MIS complete
• Re-established culture of; Safety; Governance; Service; and People Engagement

Improving performance

• Radically enhanced sales and marketing function in place to grow core hire
• Asset Optimisation Programme making good progress to improve asset utilisation
• Cost efficiency plans accelerating

Transforming the company

• Developing a broader range of complementary services to meet customer demand
• Significant opportunities to re-engage with Regional/Local market segment through Express network
• Further opportunities to deliver enhanced profit growth

Commenting on the results, Jan Åstrand, Chairman, said:

"I am delighted to report on a year of significant progress at Speedy. It is particularly pleasing that, despite all the challenges the Company has had to face, we have today reported a strong set of results.

"Shortly after he was appointed CEO, Mark Rogerson set out a clear plan to return the Group to health and build sustainable profit growth. Mark and his new leadership team have made significant progress, and whilst there is much to do, there is further opportunity to improve the business.

"In the Middle East, having completed the exit from general and spot hire ahead of schedule, discussions are underway regarding the disposal of the oil and gas services operations, our last remaining asset in the region.

"We can now turn our focus to developing the business in the UK where there are major opportunities ahead through further professionalising our sales and marketing activity supported by improvements in cost management and asset utilisation.

"We are, once again, in a position to deliver sustainable profit growth and our confidence for the future is underpinned by an increase in the recommended final dividend."

There will be an analysts' meeting at the offices at Instinctif Partners, 65 Gresham Street, London, EC2V 7NQ at 09.30 today. The presentation will be webcast at www.speedyservices.com/investors and there will also be a conference call facility. For details please contact Rosie Driscoll at Instinctif Partners on 020 7457 2020 or rosie.driscoll@instinctif.com

Note - 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 clients across the construction, infrastructure, industrial, manufacturing and facilities management sectors - as well as to local trade and industry. The Group provides complementary support services through the provision of training, asset management and testing, repair, inspection and maintenance (TRIM). Speedy is accredited nationally to ISO9001, ISO14001 and OHSAS18001. The Group operates from 221 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 hub based in the Middle East.

I am delighted to report on a year of significant progress at Speedy.

Shortly after he was appointed CEO, Mark Rogerson set out a clear three-point 'FIT' plan to return the Group to health and build sustainable profit growth. Despite some very challenging historical issues, Mark and his leadership team have made significant progress.

It is particularly pleasing that despite the many challenges the Company has had to face, particularly with regard to the Middle East, we have reported a 50% increase in PBT1. Underpinned by a further good performance in the UK & Ireland, Group revenues1increased by 7.2% to £375 million (2014: £349.7 million) and Group EBITA2 increased by 19.5% to £26.4 million (2014: £22.1 million). Earnings per share1 increased by 57.6% to 3.23 pence (2014: 2.05 pence). As at 31 March 2015, net debt was £105.3 million giving a net debt to EBITDA1 ratio of 1.45x (2014: 1.23x).

PBT1 increased by 50%, but was significantly affected by the losses in our International Division. We are therefore pleased to have exited fully from the general and spot hire market in the Middle East ahead of our 2016 deadline and are in discussions regarding the disposal of our oil and gas services operations which have returned to a break even position in March 2015. This is a very significant achievement. After de-risking the Middle East, completing the upgrade to the backbone of our network and having embedded our new IT and MI system, we are now in a position to concentrate our resources on the UK where we enjoy a market leading position and where there is considerable scope for sustainable profit growth. We will now increase our efforts to deliver further improvements in asset utilisation and cost management as well as professionalising the sales and marketing activities; all of which will contribute to an improvement in profits and ROCE.

On 18 September 2014 we announced the re-financing of the Group and secured a new £180 million 5-year asset-based revolving facility at an improved margin and with agreements in place to support additional funding, if required. Alongside our focus on cash generation, the new facility will provide us with the flexibility to support our strategy for sustainable profit growth.

Dividend

Our improved performance this year, and confidence in the future prospects for the Group, has resulted in the Board recommending a final dividend of 0.40 pence per share (2014: 0.35 pence). If approved at the forthcoming Annual General Meeting the total dividend for the year would be 0.70 pence per share (2014: 0.61 pence).

Board and people

I was appointed Chairman on 11 November 2014 following Ishbel Macpherson's decision to step down from the Board on the same date. Russell Down joined the Board as Group Finance Director on 6 April 2015 succeeding Lynn Krige who stepped down from the Board on 16 October 2014. Michael Averill, a non-executive Director since 1 May 2008, stepped down from the Board with effect from 26 February 2015. Dr Chris Masters, who was appointed a non-executive Director on 13 July 2011, succeeded Michael as Senior Independent Director and Chairman of the Remuneration Committee, also with effect from 26 February 2015. I would like to thank all our people for their professionalism, commitment and dedication over the past year. These have been challenging times and there is still a great deal to do but, thanks to some outstanding contributions and no little personal sacrifice, we can all look forward to a successful future for Speedy.

Outlook

In the UK we have a market leading position and see major opportunities ahead. Our initiatives to harness these opportunities are already well underway. We are, once again, in a position to deliver sustainable profit growth and our confidence for the future is underpinned by an increase in the recommended final dividend. I look forward to reporting on further progress.

Jan Åstrand
Chairman

1 Excluding exceptional items and amortisation
2 Excluding exceptional items, amortisation & International