Business
Acquisition and Trading update
Acquisition and Trading update.
About this update from Speedy Hire Plc
[{"type":"text","content":"\n \nRNS Number : 3694T Speedy Hire PLC 20 March 2019 \n\nSpeedy Hire Plc\n(\"Speedy\", \"the Company\" or \"the Group\")\n \nAcquisition and Trading update\n20 March 2019\nSpeedy, the UK's leading tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, today announces the acquisition of powered access specialist Lifterz Holdings Limited (\"Lifterz\"), and confirms its trading performance for the year ending 31 March 2019 is in line with its expectations. \nAcquisition\nPowered access specialist Lifterz is based in Yorkshire, operating from a head office in Ossett, with additional sites in Haydock, Daventry and Bathgate. Managed by Malcolm and Ben Bowers, it has a fleet of approximately 1,300 access platforms and employs circa 90 people. \nUnaudited revenue for the 12 months ended 31 January 2019 was £15.2m with normalised EBITDA of £3.3m. Gross assets were £17.2m. Cash consideration paid amounted to £9.6m with net debt assumed of £11.9m, which was settled at completion. \nThe acquisition complements Speedy's previous powered access acquisitions, creating a comprehensive national presence, which will allow the Company to service customers nationally with larger specialist equipment. \nThe Group expects to benefit from revenue synergies through the provision of a national offering to major customers from its owned fleet of equipment. Cost synergies will be realised from the operation of a national powered access business through Speedy's national depot network. \nSince November 2017, the Group has invested over £50m in the powered access market in line with its strategy to build a national presence through in-fill acquisitions and organic capital expenditure. The acquisition of Lifterz now provides it with a comprehensive national presence in this sector.\nTrading update\nGroup revenues for the period to 31 March 2019 excluding disposals, are anticipated to be circa 5.5% ahead of the prior year, with services revenues growing by circa 9%. \nEquipment utilisation rates have continued to increase in the UK and Ireland and are circa 57% for the year to date.\nGeason Training, which was acquired in December 2018, is performing in line with our expectations.\nAdjusted profit before tax for the full year will be ahead of the prior year and in lin...