Speedy Hire secures £220m growth funding
Published: 04 July, 2011
MERSEYSIDE: Tool and equipment hire group Speedy Hire has secured a £220m fund from a syndicate of six banks to support its growth plans at home and overseas.
The asset-based lending facility replaces its existing £210m cashflow-based loan facility, which was due to mature in June 2012.
The banks involved are Bank of America, GE Capital, The Royal Bank of Scotland, Barclays Corporate, TSB and Burdale Financial.
Speedy Hire chief executive Steve Corcoran said: "The support of our banks in providing a facility which gives additional headroom and is more flexible is a great vote of confidence and illustrates both the strength of our balance sheet and the quality of our asset base.
"We now have certainty with regard to our medium-term funding; this is another key step in our recovery and will underpin our strategy to grow the business in the years ahead."
Speedy Hire reported annual losses of £27m in the year to March 31 after being hit with restructuring costs, but saw a return to profit in the second half.
It made pre-tax profits of £12.9m in the second half, compared with a first half loss of £4.6m. Revenues were up 0.9% to £354.2m.
In other news, Speedy Hire has today announced the appointment of Dr Chris Masters to the board as a non-executive director.