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Speedy Hire says "many" construction projects continuing through coronavirus lockdown

Published: 08:34 09 Apr 2020 BST

Speedy Hire PLC -

Speedy Hire PLC (LON:SDY) said that while some business areas have been hit by the coronavirus lockdown “many projects are continuing” and some “new opportunities are emerging and others accelerating”.

The construction equipment rental group said it has therefore “retained a substantial proportion of its revenues” at the start of its financial year this month.

A final dividend, which is usually paid in August, will be considered by the board prior to the announcement of final results in May.

While some business is still going, Speedy has furloughed around half of its staff under the UK and Irish government schemes as many smaller depots have temporarily closed, while other employees working from home “where possible”. 

Larger superstores remain open only via digital platforms or by telephone for clients providing services deemed essential by the government.

Measures to cut costs have included a 20% reduction in salaries for directors and senior managers, with all non-essential spend suspended and variable operating costs reduced.

With cash collections in March remaining “strong”, net debt was around £80mln at the end of the month, excluding leases, with committed borrowing facilities of £180mln and covenant tests only applied if headroom falls below £18mln. 

The Speedy board said it was “confident that the group can operate within its existing debt facilities and covenant tests during a prolonged period of reduced trading activity”.

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