Speedy sells plant fleet to Ardent
Speedy Hire has sold its entire large mechanical plant fleet to Ardent Hire Solutions for £14.4m.
The large mechanical plant fleet includes excavators, dumpers and ride-on rollers, of three tonnes or greater.
As at 31st July 2016, the business had assets with a gross book value of £15.5m. Unaudited financial information for the 12 months ended 31st July 2016, shows the fleet generated revenues of approximately £3.2m and EBITDA of £1.9m.
Speedy made a pre-tax loss of £57.6m in the year to 31st March 2016 and is engaged in a radical recovery plan. As previously reported, there is also a battle going on between the board and its biggest shareholder, Toscafund, which is agitating to remove the chairman and get Speedy to merge with HSS, another struggling tool hire chain.
Speedy said that net cash proceeds of the sale will be used to reduce debt, which stood at £102.6m at financial year-end.
As part of the deal, Speedy has struck a five-year re-hire agreement with Ardent, with an option to extend for a further two years.
It said that the deal would complete on 9th September 2016 for assets held in England and Wales and 30th November 2016 for assets held in Scotland.
Speedy chief executive Russell 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.”
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This article was published on 26 Aug 2016 (last updated on 30 Aug 2016).