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Speedy Hire - Acquires leading rival

July 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SDY
  • Price:
  • 1317p
Final results from Speedy Hire, which were announced just after we went to press, were good as expected with pretax profit increasing 26% to £40.5m, on revenues which rose 32% to £336m. Eps increased 23% to 65p. However, these results have been subsequently overshadowed by news that Speedy has acquired Hewden Tools, the tool hire arm of rival Hewden Stuart, for £115m cash, which is by far its biggest deal to date. The acquisition is being funded by an increase in its debt facilities from £210m to £325m as well as a placing of 4.36m new shares (9.5% of its equity) with institutional investors at 1250p, to raise £55m before expenses. Hewden Tools operates a complementary business model and ...

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Speedy Hire - Take some profit after re-rating (March 2005)
Speedy Hire - Shares finally break their shackles (January 2005)
Speedy Hire (November 2004)
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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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