Mark Rogerson, the new chief executive of Speedy Hire (SDY), describes his first few months in the job as "somewhat interesting". Having joined shortly after the shock discovery of accounting irregularities in the international division, he has been working hard to stabilise the business and rebuild trust - a task made no easier by a surprise profit warning in March.
These results went some way to restoring confidence. The numbers were pretty dire, due to a £4.3m underlying operating loss in the international division and exceptional restructuring costs. But there were encouraging trends in the domestic business - UK and Ireland - where revenues rose 5 per cent in the second half, reversing a first-half decline. A number of recent contract wins with the likes of Babcock and Balfour Beatty highlight a welcome pick up in water, rail and energy projects.
But the improving picture at home will still be somewhat offset this year by a drag effect from the international business, which Mr Rogerson says could take some time to break even again. Broker Peel Hunt forecasts pre-tax profit of £20m this year, giving EPS of 2.9p (from £14.6m and 2.1p in 2012-13).
| SPEEDY HIRE (SDY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £297m | |
| TOUCH: | 57-58p | 12-MONTH HIGH: | 83p | LOW: 46p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 73 | |
| NET ASSET VALUE: | 46p* | NET DEBT: | 35% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 351 | -22.8 | -4.4 | 0.4 |
| 2011 | 354 | -27.0 | -3.8 | 0.4 |
| 2012 | 329 | 3.2 | 0.3 | 0.46 |
| 2013 | 340 | 11.3 | 1.4 | 0.53 |
| 2014 | 350 | 7.0 | 0.8 | 0.61 |
| % change | +3 | -38 | -45 | +15 |
Ex-div: 11 Jun Payment: 13 Aug *Includes intangible assets of £51.3m, or a 10p share | ||||
