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Speedy tries a quick fix

The tool hire company has attempted to reduce debt by selling off part of its business
September 1, 2016

A challenging few months for tool rental company Speedy Hire (SDY) has been epitomised by the continued battle between management and activist investor Toscafund. Financially, things have also been tough and now, in an attempt to pay down debt, the company has sold off a fleet of large mechanical vehicles, including excavators and dumpers, for £14.4m.

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This action is perhaps an attempt to ramp up the company's cash profile before next week's vote - enforced by Toscafund - on the future position of chairman Jan Åstrand. Mr Astrand has reportedly spoken against a potential merger with fellow tool company HSS Hire (HSS) in which Toscafund is also a major shareholder.

The war of words has continued in recent days too. Speedy's board responded to statements made by Toscafund on 22 July by saying the independence of David Shearer, the man whom the activist wants to replace Mr Astrand, had not been proven and that Mr Astrand's role as executive chairman was "temporary and appropriate". It added Speedy's recovery was "well underway".