Business
Disposal of Accommodation Hire Business
Disposal of Accommodation Hire Business.
About this update from Speedy Hire Plc
[{"type":"text","content":"\n \nRNS Number : 4107F Speedy Hire PLC 26 April 2011 \n \n\n26 April 2011\n \nSpeedy Hire Plc\n('Speedy', 'the Company' or 'the Group')\n \n DISPOSAL OF ACCOMMODATION HIRE BUSINESS FOR £34.9 MILLION & ENTRY INTO 3 YEAR JOINT SUPPLY AGREEMENT\n \nSpeedy Hire Plc, the UK's largest provider of tools and equipment for hire, is pleased to announce the sale of its Accommodation Hire business (previously known as Speedy Space) to Elliott Group Ltd ('Elliott'), a subsidiary of Algeco Scotsman, for a total consideration, on a debt and cash-free basis, of £34.9 million payable in cash on completion. \n \nThe Accommodation Hire business provides a range of temporary accommodation and storage units, both portable and modular, for hire or sale from 14 transferring leasehold trading depots throughout the UK. As at 30 September 2010, the business had net assets of £52.4 million and gross assets of £53.0 million (excluding working capital which will be retained by Speedy), and in the financial year ended 31 March 2010 the business generated revenues of £40.6 million, an operating loss (before recharges, central allocations, amortisation and exceptional items) of £2.1 million and a loss before interest and tax of £5.3 million. Unaudited financial highlights for the financial year ended 31 March 2011 include revenues of £35.5 million and an operating loss (before recharges, central allocations, amortisation and exceptional items) of £4.5 million.\n \nTransaction highlights:\n \n· Gross cash proceeds of £34.9 million payable on completion;\n· Speedy retains the projected c.£3.6m working capital in the Accommodation Hire business at the date of completion;\n· The net cash proceeds (after transaction costs, reorganisation costs and any completion accounts adjustments) will be used to reduce debt, resulting in pro-forma net debt of approximately £80 million at 31 March 2011;\n· Speedy and Elliott will enter into a three-year partnering agreement in which both companies will work together to provide customers with an integrated service that combines the expertise each company has in their respective products and services. ...