Speedy Hire sells large mechanical plant fleet for GBP14.4m

Tools, equipment and plant hire services company Speedy Hire announced the sale of its large mechanical plant fleet for £14.4m in cash to Ardent Hire Solutions.

As at the end of July, the business had assets with a gross book value of £15.5m. Unaudited financial information for the 12 months ended 31 July shows the fleet generated revenues of about £3.2m and earnings before interest, tax, depreciation and amortisation of approximately £1.9m.

Speedy said it has entered into a five-year re-hire agreement, with an option to extend for a further two years, for large plant assets, with the buyer of the business.

The company said proceeds from the sale will be used to reduce debt and the profit on disposal will be reflected in its full-year 2017 results.

Chief executive Russel Down said: “I am pleased that we have been able to conclude this agreement which both guarantees continuity of supply to our customers and will enhance our return on capital. The disposal is consistent with our strategy of focusing on core operations and further strengthening the group's balance sheet."

At 1000 BST, Speedy Hire shares were up 2% to 38p.