Achieving Strategic Goals
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Achieving strategic goals Speedy Hire Plc Annual Report and Accounts 2019 Who we are Speedy is the UK’s leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets. Our vision is to become the best company in our sector to do business with and the best to work for. Our mission is to provide safe, reliable hire equipment and services to enable successful delivery of customer projects. We operate internationally, providing equipment and manpower to support the operation of offshore oil fields primarily for national government clients in the oil and gas markets, on long term framework contracts in the UAE and Kazakhstan. Contents Strategic Report Governance Why invest in Speedy? 01 Chairman’s letter to shareholders 47 Notes to the financial statements 103 Speedy at a glance 02 Directors’ Report 48 Company Balance Sheet 135 Company facts 03 Statement of Directors’ Company Statement of What we do 04 Responsibilities 51 Changes in Equity 136 How we do it 05 Board of Directors 52 Company Cash Flow Statement 137 Speedy Expo showcase 06 Corporate Governance 54 Notes to the Company Chairman’s Statement 08 Audit Committee Report 59 financial statements 138 A year in numbers 10 Nomination Committee Report 64 Five-year summary 143 Chief Executive’s Review 12 Remuneration Report 66 Revenue growth 16 Independent auditor’s report 86 Corporate Information Improving asset utilisation 18 Shareholder Information 144 Services revenues 20 Financial Statements Registered office and advisers 146 A customer led culture 22 Consolidated Income Statement 97 Digital 24 Consolidated Statement of Key performance indicators 26 Comprehensive Income 98 Investing in people 28 Consolidated Balance Sheet 99 Safety and sustainability 30 Consolidated Statement Financial Review 34 of Changes in Equity 100 Principal risks and uncertainties 38 Consolidated Cash Viability Statement 45 Flow Statement 101 Reconciliation of Net Debt 102 Our values Strategic Report Strategic Safe As One Innovative Driven the first priority in working together to continuously to deliver a first everything we do to collectively improve class customer achieve our goals experience Governance Visit our website to find out more speedyservices.com/investors Why our customers work with us By providing the latest safe, compliant and innovative tools and equipment, we protect our customers against commercial risk, enable the successful delivery of their projects and ensure their people are operating safely on site Financial Statements Why invest in Speedy? • We supply large national customers, including 85 of the UK’s top 100 contractors, as well as local trades and industries • We are the safest UK hire provider in the industry based on publicly available RIDDOR accident frequency rates • We innovate to make our customer projects more successful by taking advantage of technological advancements • We have high levels of customer advocacy, with a 92%* customer satisfaction score • We are improving asset availability, which is fundamental to ensuring that we provide great customer service Information Corporate • We have a strong balance sheet and significant banking facility headroom means that we can continue to grow the business organically and through value enhancing acquisitions • We aim to grow our services businesses faster than hire; this diversification will result in us being more resilient to economic downturn • We have a successful oil and gas business in the UAE and Kazakhstan * Based on responses to customer surveys in March 2019 Strategic Report Speedy Hire Plc Annual Report and Accounts 2019 1 Speedy at a glance We provide general and specialist tool and equipment hire and services, with a track record of acquiring businesses that add value to our customer proposition including: FY2017: Lloyds British enables us to FY2019: Geason Training extends our training provide specialist training, testing, offering by providing flexible, progressive training inspection and certification services apprenticeship and NVQ programmes to support customers across the UK FY2018: Prolift and Platform Sales & Hire enable us to provide larger powered FY2019: Lifterz completes our powered access equipment to service customers access national footprint with the addition of from our owned fleet four depots in the North of England and Scotland WHERE TO FIND US 200+ Stores Operational sites across the UK and Superstores Ireland providing national coverage, Multi Service Centres as well as operating internationally National Sales in the Middle East and Kazakhstan Distribution Centre Stores Superstores Multi Service Centres National Distribution Centre 2 Strategic Report Speedy Hire Plc Annual Report and Accounts 2019 Company facts Strategic Report Strategic 53,000* 2,180* 36,000* customers in the UK and Ireland, hire product lines and consumable product lines ranging from large national approximately 300,000 in our extended range contractors to local trades itemised assets for hire and industry Governance 4,063 92%** 0.10 employees customer satisfaction Safest hire provider in the industry, achieving our lowest recorded RIDDOR accident frequency rate at 0.10 per 100,000 hours worked Financial Statements Recognition and achievements during FY2019 Fleet Operators Network Rail RoSPA Recognition Scheme Route to Gold Gold Award for Occupational (FORS) Bronze Award Health and Safety for the Gold status (Speedy Rail Division) fifth consecutive year Corporate Information Corporate Sustainable Solution DVSA Large Employer of the Year Award (Driver & Vehicle of the Year 2018 - Wales LEEA Awards Standards Agency) Earned Aspiration Training Ltd Recognition Status *Figures are approximate **Based on responses to customer surveys in March 2019 Strategic Report Speedy Hire Plc Annual Report and Accounts 2019 3 What we do Hire Services 60% approx. revenue 40% approx. revenue Consisting of approximately 2,180 product Services revenues fall into lines, the hire business encompasses our the following categories: core tools business, and our specialist Testing, inspection and certification businesses which include lifting, survey, Provided through our Lloyds British brand, we ensure our power, rail and powered access. customers remain compliant through providing testing, inspection and certification for a broad range of market sectors Tools Training The latest hand tools and accessories including Supported by Geason Training acquired during FY2019, our extensive range of environmental next we can provide apprenticeships, NVQs, professional skills generation Green Options (GO) products and safety training along with other progressive end-to- Lifting end training courses A broad range of equipment for any lifting requirements, Product and consumable sales including hoists, winches, hydraulic cylinders and jacks We offer over 8,000 core product lines and 36,000 supported by our Lloyds British business in total in our extended range both at a local level Survey and through a central managed procurement team Some of the most technologically advanced and Fuel Management accurate instruments from leading manufacturers Speedy is the only UK plant hire company with its own in the industry, all fully maintained and calibrated fully integrated fuel division, providing a competitive by our expert teams at our approved service centres fuel supply or a fully managed service that can help Power customers reduce consumption, minimise deliveries An industry leading fleet of the latest energy and reduce overall costs efficient hybrid generators, compressors and Rehire pumps for every size of project, combined with We provide a one-stop-shop approach for customers our fuel management service with a complete plant and equipment service through Rail our partnerships with industry leading suppliers RISQS accredited, providing a range of industry compliant assets that are supported by a project management service Powered Access National offering through the recent acquisitions of Prolift, Platform Sales & Hire and Lifterz providing a wide range of equipment including boom lifts, specialist platforms and cherry pickers 4 Strategic Report Speedy Hire Plc Annual Report and Accounts 2019 How we do it Strategic Report Strategic Our customer hire journey We aim to deliver service excellence at every step of the customer journey. To this end, we survey our customers at order, delivery and collection points to measure their satisfaction with our service. Our customer satisfaction scores are consistently high, with up to 92%* of customers rating our service as good or very good. Governance Requirements I want... Order placement by phone, depot, online or via our new mobile app Financial Statements Settlement Deliver I pay... I receive... Invoicing and Receipt of order through payment to delivery or collection settle the Major, Regional customer account and Local Corporate Information Corporate Off-hire Get the job done I off-hire... I use... Off-hiring by collection, Use of our products returning to the depot, online or via the new mobile app Management I need support... Potential support through training and/or maintenance *Based on responses to customer surveys in March 2019 Strategic Report Speedy Hire Plc Annual Report and Accounts 2019 5 SpeedyThe Speedy Expo Expo showcase INDUSTRY INNOVATION AND EXCELLENCE Showcasing innovative products and services Our annual event, the Speedy Expo, is the largest private exhibition of its kind in the UK with an attendance of over 1,500 people. The event brings