Has Speedy hire turned the corner?
It's looking interesting. Any thoughts?
Takeover time?

sp 68p has gone into reverse, some large sells shown?

Trading Update

Speedy Hire Plc, the UK's largest provider of tools and equipment services, today issues a trading update ahead of the announcement on 12 November 2013, of its interim results for the six month period ending 30 September 2013.

Whilst UK market conditions remain challenging, the Group has had a satisfactory performance and is trading in line with management expectations. At a Group level, whilst H1 revenue decreased by 0.1% against the prior year period, Q2 saw an improving trading momentum with Q2 revenue increasing by 0.4%.

Whilst we are yet to see any material improvement in construction work, the UK and Ireland division continues to navigate through the economic challenges by focussing on active hire markets, service revenue streams, an increasing proportion of non-construction related activities and progressing with the depot network and logistics strategy. Although UK and Ireland revenue in Q1 fell by 2.6%, with the National Grid project now fully mobilised and new Q2 non-construction related contract wins (£4.2m in the Infrastructure sector and £6.5m in the Industrial sector) Q2 revenue decreased by only 1.6%, mitigating the overall fall for H1 to 2.1%.

The International division has once again made good progress with H1 revenues up 28.5% against the prior year period and mobilisation on key projects continuing to plan. During H1 we have also established a presence in Qatar to work with our teams in the MENA territories to capitalise on attractive opportunities in both the oil & gas sector and government-backed infrastructure initiatives across the region.

Getting clobered at the moment, suppose it was this......

"Whilst UK market conditions remain challenging",

Other peers doing well.

17 Oct: Investec Securities reiterates Buy - TP upped to 85p.

Looks ready to tick up again after a minor drop yesterday.

30 Oct: Investec Securities reiterates: Buy.
TP upped from 85p to 100p.

what do Investec know that others don't?

Interim results due next Tuesday 12th November.

Thanks for that h. Hopefully it will give the sp a kick up the wotsit!

Interim - Maintaining Our Consistent Strategy

Financial Highlights
· Revenue increased by 0.4% to £169.8m (2012: £169.1m)
· Earnings per share+ increased by 1.8% to 1.12 pence (2012: 1.10 pence)
· EBITDA decreased by 2.7% to £32.7m (2012: £33.6m)
· 3.0% increase in adjusted+ profit before tax to £6.8m (2012: £6.6m)
· Profit before tax increased by £0.6m to £5.3m (2012: £4.7m)
· Return on capital employed increased to 7.6% (2012: 7.0%)
· Net debt to EBITDA+ (trailing 12 months) improves to 1.1x (2012: 1.2x)
· Strategic investment in the hire fleet to support key sectors (£12.5m increase in net book value)
· Interim dividend increased by 18% to 0.26 pence per share (2012: 0.22 pence per share)
+ before amortisation

Trading and Operational Highlights
· Continued focus on active hire markets and increasing service revenue streams
· On-going evolution of customer base and improved quality, security and transparency of long-term earnings
· Strong growth in infrastructure: revenue from the UK's top 10 infrastructure customers grew by 31% - Group well positioned and growing revenue in its targeted markets of water, waste, energy and transport
· Satisfactory UK performance positioned for growth - Speedy's market share remains strong
· Full mobilisation of the National Grid contract will provide strong momentum into H2. International division continues to make good progress and is building a strong reputation for expertise and delivery - mobilisation on key projects continuing to plan and will enhance H2 revenues
· Rigorous approach to cost management and operational efficiencies continuing to drive improvement in costs and ROCE

Post Period Activity
· Advanced acceleration of depot network and logistics strategy plan based on success of existing Multi Service Centres (MSCs)
· H2 expected to benefit from post period contracts secured to underpin second half performance
· International set for further expansion with the investment in a joint venture in Kazakhstan, announced today, which will enable long-term access to a number of the world's largest oil fields in the Caspian region.
· Management team further strengthened through experienced UK and International appointments

Caspian Joint venture

Speedy's International Division enters into Caspian Joint Venture


Speedy today announces that it has entered into a 50/50 joint venture with J. & J. Denholm Group ("Denholm") to provide asset management and equipment rental services to the extensive oil & gas sector in Kazakhstan, including the "super giant" fields at Tengiz, Karachaganak and Kashagan, three of the largest oilfields in the world.

Denholm, through its specialist oilfield services business has a market-leading position in the provision of maintenance and turnaround services in Kazakhstan which it has established through 20 years of operating in the region. Since 1999 it has operated this business through Denholm Zholdas LLP ("DZ").

DZ is headquartered in Atyrau, with an operating hub at Karabaton, adjacent to the onshore processing facilities at the huge offshore Kashagan field. In addition to Karabaton, it has permanent facilities at the onshore production plants at Tengiz and Karachaganak and at the export port of Aktau, which also acts as a supply base to Kashagan.

The joint venture will trade and operate under the brand "Speedy Zholdas" in Kazakhstan. Both Speedy and Denholm have identified the opportunity to leverage DZ's existing infrastructure by providing a full range of asset management and equipment rental services in support of existing clients of DZ, who include amongst others Chevron and Exxon, whilst at the same time extending such services to other oil & gas clients with whom Speedy already has, or is targeting, long-term relationships.

.

I know the figures weren't particularly spectacular, but turnover, profit & divi are all slightly up, so a little positive sp action would have been welcome!

Yes - I'm getting bored now.

Investec Buy 68.63 100.00 100.00 Reiterates

there are some new boys on board - the CEO in an interview

Liberum Capital Buy 64.00 64.00 - 88.00 Initiates/Starts

RNS accounting irregularities in the middle east CEO resigns.

Not looking good - extended auction.

29 Nov: Panmure Gordon: Sell - TP down from 75p to 52p. Downgraded.

More on the SDY saga here:

http://www.telegraph.co.uk/finance/newsbysector/supportservices/10482201/Speedy-Hire-boss-quits-after-discovery-of-5m-accounting-black-hole.html

sp under 50p down 22% being hit hard by accounting problems overseas.