Tool hire specialist Speedy Hire (SDY) is still dealing with the aftermath of the much-publicised discovery of accounting irregularities at its international division in November 2013. The group has subsequently restructured the division, closing its operations in Egypt and Qatar, as well as selling its Oman business. And these full-year results indicate recovery is on track.
Exceptional charges linked to the disposal of oil and gas businesses put a dent in the reported numbers. But underlying operating profits grew a fifth to £26.4m, boosted by respectable revenue growth from business in the UK and Ireland. Operating profits for this geographic segment were up 14 per cent to £37.4m. Just over half of this work came from its existing major clients, while the rest included infrastructure and property project wins, including Hinkley Point power station.
The good news is that Speedy Hire's remaining oil and gas activities have achieved management's break-even target. The "number one priority" now is to dispose of the remainder of this business segment, according to chief executive Mark Rogerson.
Broker Investec Securities expects adjusted EPS of 3.8p in 2016, up from 0.04p this year.
SPEEDY HIRE (SDY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 75p | MARKET VALUE: | £391m | |
| TOUCH: | 74-75p | 12-MONTH HIGH: | 81p | LOW: 51p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | na | |
| NET ASSET VALUE: | 45p* | NET DEBT: | 45% | |
| Year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 354 | -27.0 | -3.80 | 0.40 |
| 2012 | 329 | 3.2 | 0.30 | 0.46 |
| 2013 | 340 | 11.3 | 1.40 | 0.53 |
| 2014 | 350 | 7.0 | 0.78 | 0.61 |
| 2015 | 386 | 2.1 | 0.04 | 0.70 |
| % change | +10 | -70 | -95 | +15 |
Ex-div: 11 Jun Payment: 12 Aug *Includes intangible assets of £48.6m, or 9.3p per share | ||||
