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Speedy Hire – “completion of investigation”, why no detail of the “problems” which have seen circa £20.4m of asset value ‘disappear’?!

In February a new management’s review at Speedy Hire (SDY) was noted to have identified a “deficiency” in ‘non-itemised’ hire equipment assets of more than 40% of the previously stated £49.9 million and an investigation was launched. The findings have now been announced.

NEWSFLOW

Speedy Hire (#SDY) – notes non-itemised assets shortfall resulted from problems with its controls and accounting procedures and there now a remedial plan

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Speedy Hire – update includes “a strong pipeline of new business”, but is a warning on trading actually ahoy?

Previously writing on tools and equipment hire and complementary services company Speedy Hire (SDY), in February despite the shares down to around 39p and it stating that it “continues to perform well” I concluded that the macroeconomic and asset situations still made me cautious. So what now of a “Year End Trading Update”…and the shares currently further lower at 31.35p?

NEWSFLOW

Speedy Hire (#SDY) – expects FY “in-line with the board's expectations”, “some softening of demand in recent weeks”

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Speedy Hire – argues “continues to perform well” and a “strengthened control environment”, But…

Tools and equipment hire and complementary services company Speedy Hire (SDY) has issued a “Financial and trading update”including that it “continues to perform well… revenue (excluding disposals) for the four months to 31 January 2023 up c.16% against the corresponding period in the prior year… continues to be confident in delivering underlying profit in line with its expectations for the full year”. So what of a current share price response down by more than 7% to around 39p?

NEWSFLOW

Speedy Hire (#SDY) – assets “deficiency” of c.£20.4m and investigation launched, underlying trading in line with expectations

NEWSFLOW

Speedy Hire (#SDY) – H1 adj. EPS +25%, DPS +7%, anticipates FY in line with its expectation

NEWSFLOW

Speedy Hire (#SDY) – new contract wins expected to offset some recent weakening in market conditions

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Speedy Hire (#SDY) – FY adj. EPS up to 4.24p, DPS 2.2p, “confident”

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Speedy Hire (#SDY) – Q4 hire revenue +c.7% YoY, FY “in line with the board's expectations”