Speedy acquires Green Power Hire
10 October 2023
Speedy continues to expand its offering in the sustainability sphere with the acquisition of Green Power Hire Limited announced today for £20.2 million.
Green Power Hire, whose operation has been mentioned previously on the blog, supplies battery energy storage units to the UK hire market, mainly to the construction industry.
Speedy says it continues to experience strong demand from current and potential customers for such eco products and sustainable power solutions, and has previously supplied Green Power Hire's battery products on a re-hire basis.
Mark Chamberlain, Director and one of the vendor shareholders of the business, has joined Speedy on completion as part of the ongoing management team.
Commenting on the acquisition, Dan Evans, Speedy Chief Executive, said: "The acquisition of Green Power Hire is further evidence of our Velocity strategy [the company's five year transformation and growth plan] in action.
"Alongside investments such as our partnership with Niftylift and our proposed join venture with AFC Energy, the acquisition progresses the sustainable and technological evolution of the sectors we operate in, supports our ambitious plan to become a net zero business by 2040 and will deliver long term benefits to our customers, our people and our investors."
● In an update for the half year ended 30 September 2023 also announced today, Speedy reports that performance has been “satisfactory” with revenue from national customers growing 5 per cent last year. It says this has been offset by some softening of revenues with regional customers, although there has been recent improvement in both areas.
As in prior years, the group expects a second half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period. Service revenues are expected to be lower, primarily due to the decline in the wholesale price of fuel, down by around 20 per cent against the prior year. This, Speedy says, has not materially impacted margins, as direct costs fall proportionately.
The company adds that its actions over the past nine months to improve asset controls continues to demonstrate benefits, with digital technology being trialled to further assist in the control and counting of hire equipment. At the end of September a full count of all itemised and non-itemised hire equipment was undertaken and Speedy says that the initial findings have not identified the need for any increased inventory provisions.
