Speedy exits Middle East

1 March 2021

In a trading update issued today for the year ending 31 March 2021, Speedy reports that business since 30 September 2020 has been ahead of expectations. 

In February, core hire revenue in the UK and Ireland was approximately 2% higher than the prior year and utilisation for the period 1 October 2020 to date is 58.7% (2020: 56.2%). Profit before tax for the year is anticipated to be well ahead of current market expectations. 

Regarding the company’s Middle East operations providing equipment and manpower services to the oil and gas market in Abu Dhabi, Speedy has today sold its equipment fleet, stock and other fixed assets relating to this business for $18m to ADNOC Logistics and Services LLC, its principal customer in this market. 

The transaction included Speedy entering into a transitional services agreement (TSA) with ADNOC for up to four months, to support the transfer of the assets, during which time it is anticipated that Speedy’s approximately UAE-based employees' will have their contracts terminated and be offered re-employment by ADNOC. 

On conclusion of the TSA, Speedy intends to wind up its operations in the Middle East.