荷兰留学生课程作业 competitive Marketing Strategy As

荷兰留学生课程作业 competitive Marketing Strategy 市场战略作业定做

2008/9A ssessedC aseS tudy
Individual Assignment
Speedy Hlre
PLC
SubmissioDn ate:z lnd May, ZOO}
Page 1
Candidate'Bs rief
Youa ree mployeda sa n independenrte searchearn dm arket ing
consul tanitn the planta ndt ool hi rei ndust ryY. ouh avee xper iencien
marketr esearcahn da nalysisa,l ongw i th an abi l i tyt o makek ey
st rategicd ecisionsin, par t icularre lat ingto brandinga nds t rategy
developmentP. arto f your rolei st o develope ffectiveh igh-impact
market ings t rategiefso r companiesb,a sedo n marketr esearch.
Recent lyo u haveb eenc ommissionetdo producea signi f icanpti eceo f
researchth at includes:
. a cr i t icaal nalysiosf the planta ndt ool hi res ectora nd
o an in-depthp rof i leo f the tool ande quipmenht i reg roup,
SpeedyH i reP fc.
Youa ren ow requi redto analyseth isr esearchin preparat iofno r making
keys t rategicre commendat ionfosr SpeedyH i reo n 23 May 2009.
Page 2
Analysis
Thisa ssignmenrte qui resy out o makea pract icaal ndr easoned
evaluat iono f the problemsa ndo ppor tuni t ieyso u havei dent i f iedf r orn
the casem ater iapl rovidedo n SpeedyH i reP LC.
Fromy oura nalysiyso u arer equi redto preparea repor tt hat addresses
the taskso ut l inedb elow.
A summaryo f youra nalysissh ouldb e includeda sa nA ppendixto the
repor ta nds houldb e no moret hat 5 sideso f A4 in total( Arai l 1,2p oint ) .
Page 3
Tasks
In yourr olea sa n independenrte searchearn dm arket ingc onsul tanitn
the planta ndt ool hi rei ndust ryy,o u haveb eena skedto wr i te a repor t
(maximumle ngth1 5s ideso f 44 Ar ia l LZp oint )b asedo n the fol lowing
tasks.
Question One
Cr i t icalyf assestsh e UKa ndi nternat ionaolp por tuni t ieasv ai lableto the
tool ande quipmenht i res ectorh, ighl ight inpgo tent iaal reasw here
SpeedyH i rec oulde xpandth ei rs erviceo f fer ing.
(25 marks)
Question Two
Cr i t ical layn alyseth e rolet hat integratedm arket ingc ommunicat ions
hasp layedi n Speedy'ms arket ings uccessa,n dr ecommendh ow this
couldb e extendedto internat ionaml arketsin the future.
(25 ma rks)
Question Three
Cr i t ical ley valuateh owS peedyH i re'ss t rategiac pproachto business
developmenat ndm arket ingh asc ont r ibutedto i tss igni f icanftin anciaI
s u ccess.
I(25 marks)
ln addition2, 5m arksw illb ea fl ocatedfo rt hep repareadn afysoisf the
casea ndi tsa pplicatiotno theq uestionasb ove.
(25 marks)
(Total 100 marks)
Page 4
Index
Contents
Plant and Tool Hire Sector
Introduction
Merging of Distinctions
Market Size
Growth of the Sector
SWOT Analysis
The CompetitiveL andscape
Profileo f the Constructioann d EngineeringIn dustry#p#分页标题#e#
Speedy Hire Plc
Background
Structure
Values
Market
One Speedy Initiative
Summary of Financial Performance
OperationaHl ighlights
. Tool Hire Division Performance
. EquipmentH ireD ivisionP erformance
Speedy Hire's Strategy
CompanyD evelopmentth roughM arketing
ldentificationo f Target Groups
lntegratedM arketingC ampaign
Innovationa nd Creativity
Measuring Performance
QualitativeM easures
Summary
Bibliography
Appendices
6
6
B
B
13
14
15
Page
16
16
17
17
1B
1B
19
19
20
21
22
23
24
26
27
28
28
29
TheU K Plant& ToolH ireM arketD evelopmen2t0 08
ToolH ireO utperformtsh e UK Economy
Contributioonf Constructiotno wardsG DP( World)
Contributioonf Constructiotno wardsG DP( Europe)
MarkeVt alueF orecas-t European
MarkeVt alueF orecas-t Asia-Pacific
MarkeVt alueF orecas-t Global
SpeedyH ireC ompanyH istory
Mergersa ndA cquisitions
Officeo f FairT radingR eport
SpeedyH ireM arketR epor|2007S. ustaineMd omentum
FinanciaSl tatementfso r SpeedyH ire
30
37
46
47
48
49
50
51
58
59
63
69
Page 5
Introdu ction
UK Hire Market
The UK marketf or planta nd tool hirei n the constructiosne ctori ncludest he supplyf or
hire of:
. fi'r?chinerya nd plant with operators
. rTr?chinerayn d plantw ithouto perators
. handt oolsa nd specialisitm plementation
. scoffoldinga nd accesst owersa nd mobileu nits
. temporarya ccommodationa, nd powera nd climate-controel quipment.
Merging of Distinctions
A distinctionis oftenm adeb etween' planth ire'a nd 'toolh ire'.P lanth irei s associated
with long-termh irec ontractsa nd includest he rentalo f capitali tems of specialistp lant
and equipmen(te g. high-valuec apitale quipments, ucha s cranes),p articularlfyo r the
constructionm arket.I n the UK, B0% of largec onstructionp lanti s purchasedb y the hire
industryT. ypicalp urchasesin cludee arthmovinge quipmenot r liftingg ear,i ncludingto wer
cranesa nd plantu sed in the developmenat nd generalm aintenanceo f the transport
infrastructureT.h e rentala greementm ay includet he use of a certifieda nd trained
operatorq, ualifiedto uset he equipment.
Tool hire (marketf or hiringo f equipment)c, overst he rentalo f smalleri temso f planta nd
hand tools, often used by small builders and the general public. The focus tends to be
short-termh ire.T ypicalc ustomersa re ofteni nvolvedi n residentiahl ousinga nd individual
maintenancec ontracts.C ustomersi n the tool hires ectorh ave very differentn eedsf rom
hirers of large items of plant.#p#分页标题#e#
Althought herei s continuingp olarisatiown ithint he sectoro f companiess upplyingth e
planta nd tool hire markets,t he traditionawl ays of classifyingth e hiringo f toolsa nd
equipmenta re merging.F or many items,s uch as mini-excavatoras nd accessp latforms,
there is a degree of overlap between the two markets. Although the market is serviced by
an arrayo f differents izeda nd, usually,p roduct-specificco mpanies,t here is an
increasingd egreeo f blendingb etweent he sectors.F or example,t ool hire companiesa re
becomingm orei nvolvedin the supplyo f non-operateedq uipmente, .g.e quipmenwt hich
does not requires pecialisto perators.T his is illustratedin Diagram1 .
Page 6
Diagram 1: Blurring of Markets for the Hire of Plant, Tools & Equipment
SourceS. peedyH ire
Thec ross-oveorf productsb etweenc ompanietsh atw eret raditionalvlyie weda s eithera
planth ireo r a toolh irec ompanya, ccompaniebdy thec ustomer'csh anginga pproachto
a chosens ervicep roviderh, asr esultedin a blurringo f thet wot raditionaml arketsl.t is
arguedth ati n realityth erei s onlyo nem arkett,h e UK hirem arketw, itha n estimatedto tal
markets izeo f f4.3bn.
Page 7
Market Size
Key Notee stimatest hat the total UK marketf or plant,t ool and accessh irew as worth
f7.63bn in 2006.T hisf igurew as derivedf roma n analysiso f the t4.3bn turnovero f 1,152
companiese ngagedi n 'rentingo f constructioann d civile ngineeringm achinerya nd
equipmenta' nd the f9bn turnovero f 1,593c ompaniese ngagedi n 'rentingo f construction
and demolitione quipmentw ith operator'T. he latterf igureu ndoubtedlyc ontainsa high
proportiono f revenuesf rom activitieso thert han the rentingo f equipmentt o thirdp arties,
such as constructiona nd demolitions ervices,a nd it is a moot pointa s to wheret he
boundary should be drawn. Key Note decided on a figure of [3bn. The t4.3bn figure
again includesa ctivitiesb eyondt he scopeo f this research,b ut rentali s also undertaken
by firmso utsidet he mainstreamin dustry,a nd Key Noteb elievest hat these two
adjustmentsa re simifara nd cancelo ut. Key Note has addedt 0.33bn to the totalt o cover
scaffoldingre ntalb y specialisfti rms.T his figurer epresentsth e proportiono f scaffolding
rental that was not already included in the total for plant and tool hire.
The finala djustedv aluei s considerablhy ighert hant hatp ublishedb y manyo ther
sources, which may be explained by the wider scope of Key Notes's analysis.
Source: Key Note Ltd, 2007
Tabfe 1: UK Market for Plant, Tool & Access Hire at Current Prices (fm), 2002-2006
2002 2003 2004 2005
Plant hire 4,329 4,485 4,628 4,953 TI9
Tool hire 1, 254 1 , 2 7 8 1 , 3 1 9 1, 362 1 , 4 1
Scaffolding
and accessplatform
hire
790 820 860 848 908
Total 6,373 6,583 6,807 7,163 7,
% change#p#分页标题#e#
vear-on-vear 3.3 3.4 5.2 6.6
SourceK. eyN oteL td,2007
Growth of the Sector
Thet otalU Kc onstructioonu tputw asf orecastto be worth8 121.5bnin 2007,a ccordintgo
KeyN ote.f 45.Sbno f thisf igurew illb e the resulto f infrastructuaren dn on-housing
constructiopnr ojectsw, hicha ret he mainm arketsfo rc ompanieisn volvedin the planta nd
tool hire sector.
Table2 illustrateasn assessmenotf thel ikelys pliti n planta ndt oolh iret urnovebr etween
end-usesr ectors.
2006
7
B
_631
Page B
Table 2: The Main Users of Plant and Tool Hire in the UK by Value (%),2006
Plan
Facilitiesm anaqement
Housebuildinq
In frastructrue proiects
Do-it-yourse(Dlf lY)
Other civil enqineerinq
Other sectors
Total 1
lant Hire --t:
- --9
,j_a
- 414 -
3
00
Tool Hire
34
.t0
l5
I
?1,
3
100
Source: Key Note Ltd, 2007
The UK constructionm arketh as demonstrateds teadyg rowths ince2 0A1,a lthought here
is fiercec ompetitionin the planta nd tool hire sectora s a resulto f the saturatedn rarket
Thish as resultedi n enormousc hangest o the structureo f the UK'sh ires ectora nd to its
majorc ustomerc, onstructionS. omeo f thesec hangesi nclude:
. the disposalo f generalb uildingb usinessesto formerc ompetitorsb y many major
buildingc ompaniesi,n ordert o pursuep rivatef inancei nitiative(P Fl)' contractso r
to focus on privated evelopmenwt ork
. firms movingi nto the role of facilitiesm anagementa nd managementc ontractors
t e trend towardso utsourcingr esultingi n more extensiveu se of planta nd tool hire
by construction
. greatere mphasiso n healtha nd safetyr egulationse, ncouragingc onstruction
companies to move from ownership to hire
o e growingt rend towardsp referreda nd sole suppliera greementsb etween
contractorsa nd hire companies,o fteno peratingo n a nationals cale
. opportunitiesfo r periodicr egionalg rowthr esultingf rom climaticf actors,s uch as
the severe flooding in the UK in 2007.
In some cases, pfant hirers are partly owned by equipment suppliers and others have
dealershipa rrangementsT. he outsourcingo f plantr equirementsto specialistp lanth ire
firms is well establishedi n the UK. Key Note'sr esearchs uggestst hat more than 80% of
large plant is now owned by hire companies. The growth in the UK market for plant hire
between 2002-2006 is illustrated in Diagram 2.
t Britishg overnmenitn itiativeto involveth e privates ectori n the provisiono f publics ervices
Page 9
Diagram 2: The UK Market for Plant Hire at Current Prices (€m), 2002-2006
r
Source: Key Note Ltd,2007
Therei s also evidencet hat the tool hires ectorh as seen growthi n outsourcinga, ccording
to Key Note.C onstructionc ontractorsa re morea nd more inclinedt o outsourcet heirt ool#p#分页标题#e#
needss o that they do not havet o worrya boutm aintenanceis sues.O theri nteresting
features of the sector include:
a trendt owardse xternaml anagemenotf factoryp remises
replacingra relyu sedm aintenanceeq uipmenwt ithh irede quipmenwt hen
required
deliveryo f healtha nds afetytr ainingb y hirec ompanies
increasinugs eo f the internetto provideg reaterin formatioann dm oree fficient
serviceto customers.
The growthi n the UK marketf ortool hire between2 002-2006i s illustratedin Diagram3 .
Page 10
Diagram 3: The UK Market for Tool Hire at Current Prices (fm), 2002-2006
I
1,400
ii 1,350
1,300
1,250
1,200
2002
Source: Key Note Ltd, 2007
The tool hire market is now growing ahead of the overall UK economy and looks set to
continuet o do so as tool hirec ompaniese xpandt hrougha cquisitiona nd organicg rowth
The mainf actorg uidingt he growtho f the marketh as been repairs,m aintenancea nd
improvemen(tR Ml).
The outlookf or UK constructionis favourablea nd the industryi s reportings teadyg rowth
momentumd, espites omec onsumerc autionT. he UK hirem arketc ontinuesto show
robust growth ahead of the overall UK economy, and is expected to do so for the
foreseeablef uture.A ccordingt o Key Note 2007, the UK marketf or plantt oolsa nd
accessh ire is expectedt o show reasonablys trongg roMh between2 007a nd 2011. The
key UK playersa re benefittingfr om:
. ?cc€sst o new internationaml arkets,n ot previouslyt argetedb y UK firms
. cofltirued high levelso f activityi n the constructionm arket
. the drivet owardso utsourcingo f non-corea ctivities
. increasinge mphasiso n qualitya ssurances, upplyc haina nd healtha nd safety
standards,r equiringc onsistencyin servicesf or customerso peratingn ationally
o 3t'l improved climate for plant hire in the UK, resulting in continued momentum
towards hire and away from ownership
. the government'sc ommitment o improvingU K infrastructure.
Appendix One provides a summary of future trends in the plant and tool hire market.
Accordingt o the latesti nformationfr om the Britishg overnment'sD epartmenfto r
Business,E nterprisea nd RegulatoryR eform( formerlyt he DTI) 34o of construction
output in the UK came from the public sector. Some f26bn of private finance initiative
(PFl) work across 200 projects is in the pipeline and due to be completed by 2010,
accordingt o HM Treasury.T his opens up opportunitiesfo r more privates ector
involvementi n the provisiona nd modernisationo f publics ervices.T herei s furtherg rowth
fi nkedt o the 2012 OlympicG ames in London.I ndustryi nformationp roviderE map
Gleniganh as suggestedt hat the capitalc ost of installinga nd developingt he Olympic
venues will be in excess of the estimated t1Obn across 250 projects.
r t , + s o
Page 11#p#分页标题#e#
Researchp ublishedb y Key Notef orecastst hat growthi n the planth ire sectorw ill be
between 5 and 8%in the short term. Growth rates forthe tool hire market are not
expected to be as strong, with Key Note forecasting a growth rate of between 3 and 4o/o
in line with the growth in construction.
Diagram 4: Construction Spending % Change
Source: Speedy Hire
E
4
3
?
I
CI
-1
:?
-3
-4
2ff05 toos; 2oo7F 2008F 2009F
'itiuP.rr,lrb licS ectgri ncl. PFI
I nrivate Sector
Source: CPA. Wi*tsy 2006tr0? E"Estitnate F-Forecast
Page 12
SWOT Analysis of the Plant and Tool Hire Sector
STRENGTHS
. Customersp refert o rente xpensivep lanti temsr athert han buy them,a s a meanso f reduongc aprtal
expenditure
. Many plant and tool hire items are speciflc to certain applications Without the plant and tool hrre rndustry.
customersw ould havet o buy a wide rangeo f infrequentlyu sed plant
. Hiringp lantr athert han buyingi t allowsc ustomerst o use the lateste quipment
. The constructione quipmentr entalm arketi s continuallye volving,w rtha n underlyrngtr endt o hrgherl everls
of concentration
. The marketh as experienceds teadyu nderlyingg rowthd uringt he lastf ew years,r eflectingh rghl evelso f
governmente xpenditure(e .9.h ealtha nd safetya nd energye fficiencyle gislatrona)n d a continuatrono f the
trendt o outsourcinga nd facilitiesm anagement
. Customersw ho purchaset heiro wn toolsh avet o carryo ut regularm aintenanceto ensuret he toolsa fe In
good condition;in addition,t hey have to storet hem when they mightn ot have the space,a rrds toret herrr
securely
. Hiringt ools allowsc ustomerst o use the very lateste quipment
. Many smallerc ustomerss, uch as localh ouseb uildersa nd DIY enthusiastsc, annota ffordt o buy modern
tools,e speciallyif thesea re usedo n an infrequenbt asis
WEAKNESSES
. The very high levelo f marketp enetrationw ithint he UK limitso verallg roMh of the planth ire sector,
expansionh appensm ainlyt hrougha cquisitiono f otherp lanth irec ompanres
. Recessioni n the constructionin dustrym akesd isposalo f planth ire itemsd ifficult
. The planth ire sectori s very dependento n the constructionin dustry,w hich is very cyclical
. Reductioni n governmentf undedp rojectsc an lead to contractionin the constructronin dustry
. Economic slowdown can reduce the quantity of tools hired by customers who have to cut back on therr
hiring budgets or DIY projects
. There is strongc ompetitionin the UK tool hirem arket,a nd customersw ho use the rnternect an compare
prices easily for the best deals
. General lyg roMh in individual toohli rec ompaniesrs o nlyp ossrbleb y openingn ew branchesu sual lyr r r
areas where there is existing competition
. The DIY-based hire market is forecast to suffer a downturn#p#分页标题#e#
OPPORTUNITIES
. With more companiess eekingt o outsourcee quipment,p lanth rrec ompaniesc an gain stabilrtyb y
introducing long term contracts
. Large planta nd tool hirec ompaniesw ith nationalc overagec an affordn ationala dvertisingc ampaigns,t hris
attracting more customers
. lmprovementsin lT systemsa nd communicationsb etweenp lanth ire operatorsa nd a centrafisedp lanth ire
location would greatly improve customer service
. As large consumers of plant equipment, plant hire companies are in a better position generally to negotiate
good prices for buying plant
. PublicS ectorF inancea nd government-fundeidn itiativesp rovideo pportunitiesfo r big constructionp rojects
such as buildingh ospitalso r governmentb uildings
. Public sector constructiona nd infrastructurep rojectsp rovide opportunitiesf or expansion
. Tool hire companies can seek to introduce stability by entering into long{erm contracts with larger
companies
. There is a move towards preferred single supplier agreements
. Continued improvements in inventory control can gain a tool hire company a competitive advantage,
through centralised hire centres and offering the customer flexibility as to where tools can be hired from or
returnedto
. Periodicre gionagl rowtho pportunitieasr ise,r eflectintgh e impacto f climaticfa ctors( e.9.f looding)
. Whilstt he marketi s becomingm orec oncentratetdh rougha cquisitionasn dm ergerse tc,o pportunitiefso r
expansions tillp revaiiln the buildersm' erchantse ctor
THREATS
. Environmentaplr essuresa gainsct ertainla rgec onstructiopnr ojectsin the UK,s ucha s airportso r roads,
can meana downturnin the hiringo f largep lanti tems
. Secondhanpdl anti s becominmg orer eadilya vailablteh roughth ei nternevti aw ebsitesu cha s eBay
. Plantm anufacturerasr ep ersuadincgu stomertso rentd irectlyfr omt he manufacturerra, thert hanb uy
. Therei s a possiblen egativeim pacto n consumecr onfldencea ndt he marketf ollowingc urrengt lobal
financiapl roblems
. Barriersto entryi n the toolh irem arketa re low
. Companietsh atw orki n similasr ectorss,u cha s buildersm' erchantasn dD IYs toresh, avet hen ecessary
premises, equipment, finance and customers to move into the tool hire market
. There is a possible negative impact resulting from decline in housing market
Page 13
The Competitive Landscape
The highlyc ompetitiveU K marketm eanst hat planta nd equipmenut tilisatione edst o be
around9 0o/ow, hich is very difficultf or many organisationsto achieve.l ncreasingly,
organisationsa re investingin an InformationT echnology( lT) infrastructurwe hich will
enablet hem to be moree fficientin the loano f equipment.l T also improvesu tilisation
rates thereby enabling rentals to take place at a further distance from the depot than was
previouslyp ossibleI.n additions, omeU K firmsh ave beenp ursuinga growtha gendab y#p#分页标题#e#
targeting European markets, despite the fact that the markets in these countries are well
providedf or by locals uppliersA. ppendixT wo reviewst he performanceo f the top ten tool
and equipmenht irersi n the UK.
In ordert o divestr isk and buildl ongt erm stabifitym, any majort ool hirec ompaniesh ave
expandedo r are beginningto expandi ntoe quipmenth ire.O rganisationhsa vea lso
recognisedth e potentiafl or expansioni nto non-constructiomn arkets,s uch as utilities
and industriaal nd petrochemicailn dustriesT. he trend is towardsc onsolidationg, roMh
througha cquisitiona nd the targetingo f core sectors.
To be successfuiln the UK hire market,o rganisationsh avet o be vigilantb oth to the
changingd ynamicst hata re occurringin today'sm arketa nd to the challengeso f the
future.A s globalisatiocno ntinuest,h e sectori s seeingi ncreasingle velso f consolidation
acrossa wide rangeo f industrys ectors.T he industryi s demandingt hat chosenp artners
are able to provideq uality,c onsistencya nd added value to achieve" preferreds upplier"
status.
Diagram 5: UK Hire Market - Competitor Landscape
; VP tiroup
Speedy Hire has a diffororrtiateC
$osition in ths Ui( rrlarkrll
Br*ndoniWolerley Hire
i'! D{ lurnover doriving frsm conlra*lar and naiinnal rrccount aujlgmers
Butrhlc 5ho
feD ro.r nnls
r ol .1livc
Iur novg I
iUK only)
Annt,ol account$, compafry websiles
Stfalton "Top 100 tool hirtt 2007"
frlarragonr*nl E il ima tB
Aggroko UK spondlng only
SourceS: peedyH ire
Page 14
Profile of the Construction and Engineering Industry
The demandf or hireo f plant,t oolsa nd equipmentis closelyl inkedt o the fortuneso f the
constructioann d engineeringin dustryw hichi t servicesA. lthoughd emandw ithint he two
sectors is not directly related, groMh or decline in trade within the plant and tool hire
industryc loselym irrorst he economicf ortuneso f the constructiona nd civile ngineering
sector.D uringp eriodso f slumpa nd recessiont,h e trendi s towardso utsourcingp lant
needst o hire companiesi n preferenceto purchasingc apitale quipment.I n periodso f
boom and economicg rowth,o rganisationss tillt end to steera way from purchasingc apital
equipment,p referringin steadt o enteri nto long-termh ire agreementsa t preferential
rates.T herefore,g rowtho r declinei n the constructionin dustryi s reflectedi n an increase
or decreasei n demandf or the hireo f plant,t oolsa nd equipmentA. ppendicesT hreea nd
Four illustrateth e contributionm ade by the constructionin dustryt o the Gross Domestic
Producto f individuacl ountriesi n 2006,c ontrastedw ith figuresf or 2003 (or earlieri f
figures for 2003 are not available).
The followingi nformationc omes from Datamonitor'sa nalysiso f the industryw orldwide,
includingc ivile ngineeringc ompaniesa nd larges calec ontractorsb, ute xcluding#p#分页标题#e#
companiesin volvedin home-building.
The Europeanc onstructiona nd engineeringin dustryw as valueda t $611 .9bni n 2006,
havingg rownb y 3.1%t n the previoustw elvem onths.M arketf orecastsin dicatet hat its
value is fikely to increase by 18.9% to a total of $727.6bn, by 2011. This equates to a
compounda nnualg rowthr ate of 3.5o/oT.h e rate of groMh is forecastt o increasey ear on
year during this period (see Appendix Five)
The Asia-Pacific(A ustraliaC, hina,J apan,l ndia,S ingaporeS, outhK oreaa nd Taiwan)
constructiona nd engineeringin dustryw as valueda t $595.6bni n 2006,h avingg rownb y
3.1% in the previous twelve months. Market forecasts indicate that its value is likely to
increase by 29.6% to a total of $772.0bn by 2011. This equates to a compound annual
growth rate of 5.3%. The rate of growth is forecast to increase year on year, until 2010,
with a slight fall in the rate of growth in 2011 (see Appendix Six).
The globalc onstructiona nd engineeringin dustryw as valueda t $1,860.8bnin 2006,
havingg rown by 5.8o/oin the previoust welvem onths.M arketf orecastsi ndicatet hat its
vafu e is likelyt o increaseb y 28.8o/oto, a total of $2,395.9bnb y 2011.T his equatest o a
compound annual growth rate of 5.2%. The rate of groMh is forecast to decline year on
year during this period (see Appendix Seven).
Page 15
Speedy Hire Plc
Background
SpeedyH ire Plc was formedi n 1977f rom humbleb eginningsin Wallgate,W igan
(Lancashirew) ith one depot.l t is nowt he UK'sn umbero ne companyf or toola nd
equipmenth ire and is listedo n the StockE xchange.l t providesh ire servicest o
contractorsb, uilders,i ndustry,u tilitiesa nd the publics ectorf rom over 350 depots
throughoutth e UK and recentlya lsot he Republico f lreland.lt is the onlyt ool hire
companyt o be placedi n the FTSE2 50 (the 101stt o 350thl argestc ompaniesli stedo n
the LondonS tock Exchange)w, hichi n itselfi s a remarkablea chievemenitn an industry
that is largelyf ragmenteda nd diversei n nature.A ppendixE ightp rovidesa summaryo f
Speedy Hire's history.
Structure
SpeedyH ire is predominantlay business{o-businescso mpanys tructuredt o servicet he
UK hirem arkett hrought wo operatingd ivisions:
. Tool Hire, and
. EquipmenHt i re.
The Tool Hire Divisiono peratest hroughf ive regionalc ompaniesa nd has a total of 235
depots.l t offersa n extensiver angeo f light,m odernh iret ools includinga ccesst owers,
podiums teps,v ibration-reduceddri llsa nd breakersw, oodworkingto ols,h eaters,l ighting,
smallg eneratorsw, eldersa nd plumbinge quipmentI.n 2007,t hisa specto f the business
accounted for 52% of total revenue, 41% of total assets and 33% of total capital
expenditure.
The EquipmentH ire Divisionc omprisesf ive businessesth at operaten ationallyth rough
126 depots.l t suppliess pecialispt roductst o identifiedm arketst hroughi ts dedicated#p#分页标题#e#
national network of depots. Key markets include lifting and material handling, power
generation,c ompresseda ir, lightingt owers,p ortablea ccommodations, urveying
instrumentsa nd pumpinge quipment.I n 2007, this aspecto f the businessa ccountedf or
48% of total revenue, 59% of total assets and 61% of total capital expenditure.
Speedy Hire has grownr apidlyt hroughb oth organicg roMh and acquisitionsm, akingi t
the premierp layeri n the difficult ool hire market.T wo importanta cquisitionsw ere
announcedi n the equipmendt ivisionL: CH GeneratorsL imited( LCH)i n May 2006,a nd
Lifting Gear Hire Limited in October 2006 (see Appendix Nine, Mergers and Acquisitions).
AppendixT en, The Officeo f FairT radingR eport,p rovidesb ackgroundi nformationo n the
acquisitiono f the tool hired ivisiono f HewdenS tuartP lc in August 2007 by SpeedyH ire.
All of these acquisitionsh ave contributeds ignificantlyto the rapidg roMh of Speedy
Hire'sb usiness.T he structureo f SpeedyH ire is shown in Diagram6 .
Page 16
Diagram 6: Structure of Speedy Hire
:1 r
d
i{i ::
9..,."" ...*_.* ! : . 1 : . . . . . " 1 : r . - . *
I:'ii.:r,:*.i.i'l1.''i itc,' t]iI t,:rI i
i-li i.;* ttLl lrl r-:,.rltli ,.t
SourceS: peedyH ire
Values
SpeedyH ireh asp ublishead statemenot f itsc orporatvea luesT hesea re:
. lntegrityT:o be opena ndh onesitn allo urd ealingsa,n dd elivevr aluet o our
stakeholdetrhsr oughh ighe thicasl tandards
. SafetyT. o be committetdo promotinga safea ndh ealthyc ulturefo ro ur
customeras nde mployees
. SocraI r esponsibilitTyo. be mindfuol f the communitieisn whichw e operatea nd
ouri mpacot n thee nvironment
. Reputation:Tboe committetdo maintaininagn db uildingu pono urr eputatioann d
brand
. PeoPleT: o endeavoutro employt he bests taff,e ncouragaen d supporth eir
developmenatn dr ewardw ellf or successa ndl oyaltyth roughw, herevepr ossible,
a structureo f devolvedre sponsibility
. CommitmenTt.o workh ardt o maintaino ur' cand o' culturew, hichi s oneo f the
fundamentarel asonsfo ro urs uccess.
Market
Oneo f the company'gs reatesst trengthsa ppearsto be itsa bilityto closelym onitor
marketc hangesa ndf lexiblya pplyr esourcesin responseto regionavl ariationsin
economica ctivityT. hes trengtho f the nationanl etworkm eanst hatt he companyc an
mover esourcesb etweenr egionst,o targeta reaso f strongd emand.lt is difficulto
estimateth e sizeo f them arkefto rt oolh ire;h owevers, omea nalysisb y SpeedyH ire
indicatesth att het otalm arkest izem ayb e overf 3bn, witht het en majorp layers
commandinagr ounda f 1. 6bns hareo f the marke(t seeA ppendiEx leven).
*s*
,t
i.
ii
!XF.
Page'17
The company'sa nnualt urnoveri s now in the regiono f f340m and is expectedt o be
around f440m nexty ear. lt experienced2 8% growthi n an industryt hat generally#p#分页标题#e#
registersg rowtho f about3 % per annum.
'One Speedy' Initiative
As the rangeo f activitiesa nd geographicasl preadh ave increased,s o too has the
diversity of Speedy Hire's customers and the markets which the company serves. This
has led to a graduacl onsolidatioonf the brand.
The companyi s continuingto aligni tst oola nd equipmenbt usinesseso ntoa singlel T
platform.T he 'One Speedy'i nitiativeis designedt o make it easierf or customerst o deal
with the company,b y providinga singlem anagedp rocessf or purchasingfr om two or
morep roducta reas.T he aim is that 'One Speedy'willr aisec ustomera warenessa bout
the full productr angea nd providea greaterc onsistencyin service,a longw ith an
increaseda bilityt o cross-sellT. his will ultimatelye nablet he companyt o serve its
customeri n an integratedo, ne-stop,f unctionallye fficienwt ay.
Summary of Financial Performance
SpeedyH ire has delivereda strongp erformanceo ver the lastt hree years,w ith both
divisionsa chievingr ecordr evenuea nd operatingp rofits.T hese resultsr eflectt he benefit
of organicg rowth,a cquisitionsa nd start-upb usinessesw, hich collectivelyre sultedi n a
further increase in market share for the Group.
Tabf e 3: Speedy Hire Plc: Financial Performance (fm and number), 2005 - 2007
2005 2006 2007
335.5
31 9
Turnover (€m) 206.5 254.3
% change yearon-
year 23.1
Pre-tax profit (tm) 24.5 30.7 36.4
% change yearon-
vear 25.3 18.6
Number of
emplovees 2,619 2,932 3,573
Notet.h e% changefi guresa reb asedo nt hec ompanye'sx acttu rnovearn dp re-tapx rofifti gures,
rathetrh ant her oundefdig ures hownin t hist able.
Source: Key Note Ltd,2007
The mainf inanciapl erformancien dicatorfso r2 007c anb e summariseads follows:
totalr evenuesin creasebdy 31.9%t o a recordf3 35.5m( 2006t:2 54.3m)
like-for-fiktoeo lh irer evenuesg rewb y 7.3o/oin, linew itht he company'fsi ve-year
average
equipmenhti rer evenuegsr ewb y 5a.5%t,o f 166.6m(2 006t:1 07.8m)
equipmenhti reu tilisatiorna tesr emainedre asonablsyt ablea t675% (2006:7 }Yo)
operatingp rofitsb eforea mortisatiorno seb y 31. 2o/loo a recordf 50.0m( 2006:
f 38.1m)
margins(p re-amortisatiorenm) aineds tronga nds tablea t 14.9oh(2 006:1 5.}Yo)
Page 18
. returno n capitalr emained( ROC)s teadya t 16 9'1,b y 31 March2 007( 2006
17.5%)
. profitb eforet ax grewb y 18.6%t o t36.4m (2006.f 30.7m)a fterc hargingn et
financiael xpenseso f f9.5m (2006:t 5.9m) The effectiveta x ratei s 26.9%(,2 006
27.5%).
Financiasl tatementsfo r SpeedyH irea re includedin AppendixT welve.
Operational Highlights
Withini ts AnnualR eportf or 2007,S peedyH ire identifiedit s operationapl erfornrance
highlightsa s follows:
. or'g?nicg rowthf or the companyo utperformedth e UK hire marketg rowthr ate by#p#分页标题#e#
nearly three times
. the company'sla rgest*evearc quisitiono,f LCH GeneratorsL imited,w as
concludedin May 2006,f ollowedb y the acquisitiono f LiftingG ear HireL imitedi n
October 2006
. the companyc ompletedit s firstf ully earo f operationsin Northernl relanda nd the
Republico f lreland
. SpeedyH ire'sp umpsb usinessw as launchedin stand-aloned epotsw ith a new
product offer
o e new Group-wide'P eopleP lan'w as introduced
. eXponsionco ntinuedw ith the openingo f 20 new greenfieldd epots
. Centreso f Excellencew ere openedi n access,c oncretinga nd lightp lanta nd
towable products
. the firstp haseo f a new Group-widei ntegratedlT systemw as rolledo ut
. the third share offer as part of the company's SAYE (Save As You Earn)
shareholdesr chemew as introducedw, itha pproximateloyn e-thirdo f employees
engaged.
Tool Hire Division Performance
The Tool Hire Division saw total revenue groMh of 16.2% in 2006/07 and like-for-like
revenueg roMh of 7,3%.T his was significantlya heado f the generalh ire marketg rowth
of 6%. The division generated record levels of revenue and profit and further increased
its market share.
Ten greenfieldd epotsw ere added to SpeedyH ire'sn ationaln etworkp rovidingg reater
coveragea nd improvedc ustomers ervice.N ew operationsi n Dublina nd Belfastp rovide
a solid platform from which to drive further groMh in Northern lreland and the lrish
, Republic. The company hopes to grow further through a mix of additional greenfield
depots and via acquisitions.
Speedy Hire continues to target growth through new product areas and by identiflTing
growtho pportunitiesfr om within its existingp roductr ange,s uch as concreting,a ccess
and engineeringl.t has also developedi ts overalls erviceo fferingb y expandingi nto nonhire
relateda ctivitiese, .g. traininga nd consumablep roducts ales.
During the year, the company also increased its commitment to Speedy on-site depots
(i.e. depots on customers' sites), which have become an integral part of its offering, and
now number 14 across the UK. By becoming an integral part of the site team, the
companyf eels betterp lacedt o serve the full rangeo f tradesa nd sub-contractorsw, hilst
also improvingi ts clientr elationshipth rought he deliveryo f site specific' tool box talks'
and the provision of tailored products and services for hire or sale.
Page 19
Withini ts AnnualR eportf or 2007, SpeedyH ire identifieds ome of the Tool Hire Division's
operationahl ighlightas s follows:
. the openingo f 10 new greenfieldd epots
o fl totalo f 14 on-sited epotsw ith majorc onstructionc ompanies
o now Centreso f Excellencee stablishedto increases pecialisationc,u stomerf ocus
and operationael fficienciesin access,c oncretinga nd lightp lantp roducts
. the launcho f a 'Let'sc leart he air'd ustc ampaignto instrucet mployeesa nd#p#分页标题#e#
customersa boutt he dangersa ssociatedw ith dust inhalation
. the provisiono f a new rangeo f consumables afetyp roducts,e .g. site safety
glasses, gloves and boots.
SpeedyH ire'sp rioritiesfo r the Tool Hire Divisionf or 2007l0Ba re to:
. continueto strengthenth e company'sr eputationa s the UK'sn umbero ne hire
company
. increasel ike-for-likeg roMh in its existingd epotn etwork
. furthere xpandt he Centreso f Excellenceto providea nationaln etworko f
specialisct entres
. promote greater customer service, improve market knowledge and drive
increaseds ales by a greaterf ocuso f the salest eamso n customersa nd markets
. furtherd evelopt he award-winningin itiative's afety from the GroundU p'.
Equipment Hire Division Performance
The EquipmenHt ireD ivisiong rew rapidlyi n 2006/07,b otho rganicallay nd throught he
additiono f two majora cquisitionsT. he f 55m acquisitiono f LCH GeneratorsL imitedi n
May 2006w as the company'sla rgestw, hilet he acquisitiono f LiftingG ear HireL imitedi n
October2 006h as madeS peedyH iret he leadingn ationali ftingb usinessT. his has
enabledt he companyt o providea dditionasl ervicesi n the testing,s ervicinga nd
inspectiono f customerso' wn fleets,w hilstb roadeningit s customerb ase.T he strong
focuseso n employeer etentiona nd customerm anagementw, hich have underpinned
both acquisitionsh, ave ensureda n orderlyb randm igration.
SpeedyH ire has furthere xpandedi ts presenceb eyondi ts traditionacl onstructionm arket
into new areass uch as events,p etrochemicalas nd telecommunicationsF.e bruary2 007
saw the launcho f the firstS peedyd epotd edicatedt o safetyp roducts.A s part of Speedy
Survey,t he depot,b asedi n East London,w ill supportc onstructiona nd infrastructure
projects such as the 2012 Olympic Games. The depot provides a full range of safety
equipmenti,n cludingn oisea nd dust monitorsb, reathinga pparatusg, as monitorsa nd
safetyh arnessesa, nd is one of the first in the countryt o hire marines afetye quipmentt o
, supportw atersidei nfrastructurep rojects.
Within its Annual Reportf or 2007, SpeedyH ire identifieds ome of the EquipmentH ire
Division'so perationahl ighlightsa s follows:
. the successfucl ompletiona nd managedI ntegrationo f the LCH and LiftingG ear
Hire acquisitions
o reVerue growth of 54.5%
. the openingo f ten new greenfieldd epots
. achievemenot f Investorsin Peoples tatusf or four equipmentb usinesses
. the successfuel xpansiono f the pumps businesst o five dedicateds tand-alone
depots
. the extensiono f the SpeedyS pace businessi nto modulara ccommodationa nd
welfaref acilities,p rovidingc lientsw ith improveds ervices"
Page 20
SpeedyH ire'sp rioritiesfo r the EquipmenHt ireD ivisiont or 2007108a re to:
. extendt he reacho f the businessin toi ndustriaml arketsa nd site-baseds ervices#p#分页标题#e#
(on-site support)
. furtheri mprovei ts approacht o assetm anagement hrougha new lT platfornra nd
by changest o operationapl rocesses.
The companyh opest hat botho f these initiativesw ill providei ncreasedc ross-selling
opportunitiesb,y improvingit s capabilityto supplya broaderr angeo f end-userm arkets.
The increaseda warenesso f the risksa ssociatedw ith noisea nd dust,a nd the
subsequenti ghteningo f the relevantl egisfationw ill significantlya ffectS peedyH ire's
power business. However, the company's high level of investment and its modern hire
fleete nsurest hat the companyi s well positionedto benefitf rom the increasedd emand in
complianet quipmentO. therh ealtha nd safetyi nitiativerse latingt o manualh andlinga nd
liftingr egulationsp rovidef urthero pportunitiesfo r the company'sl iftingb usiness.C lients
are increasinglfyo cusingo n reducingth eire xposuret o manualh andlingr isks,t hrough
the use of mechanicala ids that helpt o alleviated iscomforta nd preventa ccidents
associatedw ith liftinga nd handlingi njuries.
Speedy Hire's Strategy
Speedy Hire's national network, modern fleet, range of products and commitment to
safetys tandardsd ifferentiateth e companyf rom many of its competitorse, speciallyt hose
that servicet he more opportunistico r localisedh ire markets.T he companym arketsi tself
mosta ctivelyt o the regular,h igh-volumec ustomersw ho appreciatet he rangeo f
products,t he fleeta vailabilitya nd the qualityo f customers ervice( Source:L ychgate
ProjectsL td).A large proportiono f SpeedyH ire'sb usinesss ervicesc ontractorsa re
engagedi n publics ector-basedp rojectss uch as schools,h ospitalsa nd other
infrastructure projects.
SpeedyH ire'ss trategyr emainso ne of growtha nd its visioni s to be establisheda s the
leadingU K hire companya nd one that is recogniseda s beinga "WorldC lass"s ervice
provider.l ts principalo bjectivesi n deliveringit s growths trategya re:
. to operatet he most modernc omprehensivefl eeti n the industryi n order to
improvea vailabilitya nd reliabilitya nd ensurec ompliancew ith currentl egislation
and increased client productivity
. to have an effective national network that provides a full range of services on a
national basis, to ensure customers have access to more products in a consistent
way, and to improvep roductivitya nd reliability
. to increaset he rangeo f hire servicesa vailable,t o ensurec ustomerso btainm ore
high quality,c onsistents ervicesf rom fewer suppliers,i ncreasingc ross-sellinga nd
improving client relationships
. to developn ew businessest hat provides ector-specifipc roductsf or hire,i n order
to open up new marketst hrought he identificationo f sub-sectorsw here
penetrationis low
. to serve customers'b usinessc riticala reas bettert han competitors,in ordert o win#p#分页标题#e#
their trust to cross-sell
Page 21
. to open up new marketst hrought he identificatioonf sub-sectorsw here
penetrationis low
. to developc omplementarnyo n-hires ervicesin ordert o buildc loserc lient
relationshiptsh at havea higherv aluea ttacheda nd improvest he 'valuea dded'
contribution
. to maintainp roducte xpertisei n ordert o buildc ustomerst' rust and customer
retention
. to positiona nd promotet he brandi n an effectivew ay and ensuret he organisation
is at the forefronto f respondingto the futured ynamicsa ffectingt he industryf rom
a customer,s uppliero r legislativep erspective
. to employ a large direct sales force in order to understand customer needs and
theirc hallengesa, nd providet he flexibilittyo respondt o changingd emanda t a
local level
. to playa leadingr olei n the continuedc onsolidatioonf the industry
. to be a promoter and leader in product and service innovation.
Company Development through Marketing
In an industrys ectort hat has alwaysb een undifferentiatedS,p eedy Hire has developed
an interestingd ifferentiatiosnt rategyb asedo n particulara reas that are generally
overlookedS. peedyH ire operatesi n a rapidlyc ommoditisingm arket.T here area huge
numbero f hirec ompanies,o fferinga similarr angeo f equipmenta t competitivep rices.A
numbero f accountsa re typicallyt hrough' spoth ire'( one-offh ire)a nd there is no real
differentiationb etweenh ire companiesa t the nationala ccountc ustomerl evel.T his led to
huge margine rosionw ith the adoptiono f an aggressived efensivep ositiont o maintain
key accounts. Clearly the company needs to develop a market position that will create
longt erm sustainablec ompetitivea dvantagea, nd to differentiateit selff rom the
competitionb, ringingi t closert o its customersa, nd redefiningit s relationshipsa nd
business offers. Hence it aims to:
. builda positiona s the UK's numbero ne hirec ompany
. penetraten ew markets egments( outsidet he constructions ector)
. differentiatet he offer.
The marketingo bjectivesa re to:
. position Speedy Hire as the UK's number one hire company for health and safety
- differentiatingit selff rom the competition
. builde nd customers'a warenesso f the new regulationsa nd their consequencesin
terms of employee health and well-being
. build increased business in terms of new products, more volume, and more
customers,b y targetingp rospectso utsidet he constructionin dustry
. 'p?iott he town red' by placingc ommunicationm aterialsi n Speedy Hire's
corporater ed colours trategicallyth roughout he country.
The company has decided that a major area of concern is safety. Safety is generally
overlookedi n a marketw here,f or instance,c ontinuousu se is made of vibration
equipment. How to make tools safer and less harmful to long-term health became a#p#分页标题#e#
serious mission for the company. In doing this, the company changed the sector
Page 22
mentalityf rom cost over safetyt o an equale mphasiso n cost and healtha nd safety
(H&S).
The campaigno n safetyh as helpedt he companyt o builde xceptionarle lationshipws ith
customersm, anyo f whom,s ucha s Carillona nd MorganS indall,h aver equestedd ual
brandingo n the company'sc ommunicatiopna cks.W orkingw ith the customersh as
helpedt o providei t with solutionst o industryp roblemsw ith regardt o safety,s uch as
workinga t height,h and-armv ibrationa nd dust.A new campaigna imeda t addressing
noisel evelsw ithint he sectori s in the plannings tage.
ldentification of Target Groups
The companyi dentifiedth e needso f the targetc ustomerg roupsb y runningc ustomer
focuss essionsa t differentl ocationsa crosst he country,i n order to assesst heir
perceptionso f the company.T he questionst hat were askedw ere.
. What is your view of Speedy Hire?
. What can we do well?
. How could we improve?
. lf we werey our dreams uppliero, thert han supplyingp roductsf reeo f charge,
what could we do?
In response to this research some key findings emerged:
. health and safety was taken very seriously
. the healtha nd safetyt eams and directorsw ere aware of the new regulations
. therew as an issuew ith regardt o communicatintgh e new regulationse,s pecially
at site level
. customersw anteda n off{he-shelfc ommunicationk it to help raisea warenesso f
the new regulations
. cUStomerns eededt raining/awarenessse minarso n the new regulationsa nd the
safe use of new equipment.
Speedy Hire was perceived to be only providing equipment that was fit for purpose, much
the same as all their competitorsa, nd the companyd id not have a differentiatingp osition
in the marketplace.
Customersw ere also asked:' What are the awarenessl evelso f the new regulationsa t
the tool/equipmenut ser levef?'N o organisationh ad ever undertakens uch a study.
Manufacturersh ad also failedt o undertakea ny marketr esearchi n this area.T rawling
through the UK's Health and Safety Executive (HSE) and university databases also
, indicatedt hat no such researchh ad been commissionedb y anyone.I n responset o this
finding,S peedy Hire commissionedin dependentr esearch,u ndertakenb y Lychgate
Projects Ltd to address this question.
Page 23
Diagram 7: Awareness of HSE Regulations
SourceL. ychgateP rojectsL td
Thesei mportanftin dingsid entifietdh eo pportunitfyo rt he developmenotf a campaignto
emphasissea fetya s SpeedyH ire'sg reatesdt ifferentiatinfagc tor,p rovidintgh ef ollowing
benefitsto its customers:
. raisinga warenesos f newr egulationwsi thc ustomers
. providingtr aining/awarenessesm inarsin, cludingto olb oxt alkst o ensureth e
messagegs ett o sitel evel#p#分页标题#e#
. providingn ext-generatioenq uipmenwt,i ths aferp latformfso rw orkinga t height,
lowerv ibrationto ols,a ndi ndependentet stingo f allt he producrta ngei n
collaboratiowni tht heO ff-highwaPyl anta nd EquipmenRt esearchC entre( Operc)
facilitya t LoughborougUhn iversity.
Theb iggesbt enefitto bothp arties(S peedyH irea ndi tsc ustomersh)a sb eent he
partnershiapp proachto addressintgh e keyi ssuest,h rougho ngoingd ialogueo n the
campaigno n dust( to improveth e healthp roblemso f keyo perativeasn dt hew idera ir
qualityfo rc ommunitiewsi thinr eacho f constructiosnit es)a ndt he forthcomincga mpaign
on noise.
IntegratedM arketingC ampaign
Thec ompanyu seda rangeo f differensto urcesto developit sc ampaigna ndi ntegrated
thems o thata commonm essagew asd elivereda t eachp ointo f contacwt ithc ustomers
and stakeholders.
CommunicatioPn acks
Thisw ast hed evelopmenotf a rangeo f communicatiomna terialtsh ata ree asily
understandabalen da pplicabloen siteo r in the boardroomT.h eyi ncludep ocket-sized
publicationfso r easyu seo n site,a ndt he useo f a cartoonm otift o get messageas cross
easilya nde ffectivel(yit alsom akesi t harderfo r thec ompetitiotno copyt he ideas)T. he
communicatiopna cksa rea vailablteo allt hec ustomersa,n dc ana lsob e downloaded
Awareness of HSE Requlations
HSE Regulations
Gontractor's
policy
Site Manager
100% aware
Sub contractors
75o/o
"wora
Operatives
33% aware
Page 24
fromt he website.A communicatiopnr ogrammea imeda t reachingc onstrttcttost'ttt es
neededa 'physical'andv isualh igh-qualitcyo mmunicatiopna ck
Diagram 8: Speedy Hire's Communication Programme
il
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i mt $$m$mffi€* t -
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ffiwsWg'8w s'&
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ffiesE*:**
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$Hlsasa€r'*
I
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I
r.J
${mw$Rgsx m
$$w$ffwimmw ss
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i smm*wx
Source. Speedy Hire
Tool Box Talks
In ordert o augmentt he high-qualitcyo mmunicationp acks,t he companys tillf eltt hat it
was important to deliver the message on site, by delivering short 'tool box' talks. These
ensuret hat operativesu nderstandth e key H&S issuesi nvolved( whichh elpsb oth
individualsw ith literacyp roblemsa nd alsot hosew hosef irstl anguageis not English).
The tool box talks also mean that operatives are more likely to refer back to the
communicationp acksa s and when needed,t o refresht heir knowledge.
Training
Speedy Hire also offersm ore formalc ustomert rainingo n H&S, particularlyo n new
regulationsa nd on new productr anges,a s part of the campaignt o continuallyd evelop#p#分页标题#e#
knowledgea nd understandingo n site.T his is particularlyu sefulf or new saferw orkinga t
heighte quipment,a nd to raisea warenessa nd understandingo f lowerv ibration
equipment to reduce hand-arm vibration (this produces a very painful condition called
vibration white finger).
Posfers
A large posterc ampaigni ncorporatesth e Speedy Hire distinctiver ed coloursa nd the
cartoons to further spread the message, and to help to achieve the objective of 'painting
the town red!' The cartoonsa re a constantr eminderi n an accessiblef ormato f the
dangers of working at height and of hand-arm vibration.
Page 25
Road Shows
Thesea re usedt o launcht he campaignto get the messagea crosst o all the employees
and also to raisea warenessa t sitest hat are just startingc onstructionw ork. This type of
face{o-facem ethode nablest he attendeest o clearlyu nderstandth e commitment hat
SpeedyH ire has to the successfudl eliveryo f this campaign.
The marketingc ampaigni ntegratedr eallyw ell,w ith the postersa nd road shows raising
initiala wareness.T he communicationp acks,t rainings upportingth e messagea nd the
tool box talks haved eliveredt he messaget o the 67% of operativesw ho were unawareo f
safetyi nformationT. his campaignw as endorsedb y the HSE. SpeedyH ire made sure
that its materialc omplementedth e HSE materiala nd couldb e used eithero n its own or
with HSE materialT. he HSEw as hugelys upportiveo f thisa pproachl.n additiont o this,
customersh ave also shownt heirc ommitment o the campaignb y lookingt o joint
brandingo n 'Safetyf romt he GroundU p' materialsa nd communicationp acks.T hey have
also been instrumentainl suggestingn ew issuesf or'Safetyf romt he GroundU p' in areas
sucha s dust and noisep reventionS. uppliersto o playa key rolei n the process,r ealising
that the campaignr epresentsa win/wins ituationf or not only SpeedyH ire and its
customers, but also themselves.
Involvemenitn this processh asc ome abouti n a numbero f ways:
. the initialr esearchin tot he developmenot f the marketingc ampaigni ncludedth e
manufacturerisn SpeedyH ire'ss upplyc hain
. the suppliersp rovidedt he latesti nformationo n new productsi n the pipelinea nd
theirw ork on vibrationr eduction
. the supplierss upportedS peedyH ire'st rainingf unctiono n new equipmentu se by
adding their own expertise.
Criticalt o the marketingc ampaigni s the abilityt o supplyc urrenta nd new productst hat
are able to satisfyt he demandf or safetyt hat is generated.S peedyH ire engagesi n
communicationo n a supplier-by-supplibears ist hroughoutth e design,l auncha nd
delivery process.
Innovation and Creativity
'Safetyf rom the GroundU p' is the first integratedm arketingc ommunicationc ampaignt o
be launched by a hire company, and the largest health and safety campaign ever#p#分页标题#e#
undertaken by Speedy Hire or the wider hire industry.
Working at Height
. SpeedyH irew as firstt o marketw ith a communicationp ack and tool box talks
. Speedy Hiret rainedo ver 700 customer-facingp ersonnelp riort o the launcht o
ensuret hat the messagesw ere consistentw ith thoseo f the HSE
. The campaign involved seven of the nine Speedy Hire businesses and saw them
all working together and going to market on the same day. Never before had such
a high levelo f orchestrationb een attemptedo r implemented.
Hand-Arm Vibration
. SpeedyH irew as the firstc ompany/organisatiotno undertaker esearchi nto
awarenesso f new regulationsa t the tool/equipmenut ser level
. The campaignw as specificallyfo cusedo n the tool user rathert han the healtha nd
safetyt eams,t herebyc ommunicatingd irectlyw ith the targeta udience.S peedy
Hire drovet he supplierst o producei ndependenrt eal-lifev ibrationt estinga t
LoughboroughU niversityr, athert han relyingo n laboratoryd ata that was not
reflective of real-life situations.
Page 26
. As an innovatorS, peedyH iret ook a greatr isk,a s therew as a largec ost
associatedw ith developingth e materialsa nd purchasingf2 m wortho f new
equipmenot n the assumptionth at extrad emandw ouldb e createda s a resulto f
the campaignT. he campaigna lso meantt he variousp artso f SpeedyH iret hat
previouslyo perateda s autonomousb usinessu nitsw erew orkingt ogethero n
sales.
Measuring Performance
In monitoringa nd measuringth e impacto f the 'Safetyf romt he GroundU p' cantpaigna
number of data capture systems were put in place.
Response to Advertising
All the communicationsm aterialf eatureda caflt o actionw hich meantt hat customers
could call a serviceh otlinet o receivea free informationp ack on healtha nd safety.E ach
enquiry was fielded by the customer services team and routed to the appropriate
businessu nitt o followu p. Over3 ,000e nquiriesw erec apturedi n the first1 2 months.
Data Warehouse
A sales categoryw as set up to capturer evenueg eneratedf or working-at-height
productsC. umulatives alesw ere up by 28% comparedt o the previousy ear.T his
representeda significanitm pactf or two furtherr easons:
. the industry forecast was for a stagnant market for access equipment i e
equipmentu sedf or workinga t height
o ?ccesse quipmenta ccountsf or the largestp roportiono f turnover,w ith around
30% so any increasein salesi s very significanfto r SpeedyH ire.
Sa/es of New Products
A specific product report was also developed to measure the performance of new
productsi n the accessm arket( primarilyt hose with safetyf eatures)a gainsta lready
establishedp roducts.S alesp erformanceo f the newers afer productss aw almost
exponentiagl rowth.T his indicatedth att he campaignw as receivinga tremendous#p#分页标题#e#
response.
Health and Safety
Speedy Hire hopes that its stance in areas such as health and safety has had a small
impacto n the recentlyr eleasedh ealtha nd safetys tatisticss howinga drop from 33% to
12% of falls from heightc ausingf atalitiesa nd injuries.'S afetyf rom the Ground Up' has
helped Speedy Hiret o stando ut from its competitorsa nd the companyi s now perceived
as having healtha nd safetya t the core of its activitiesW. atht he companye mphasising
best practicei n the workplace,i t appearst hat customersh ave chosent o use Speedy
Hire as the preferred supplier for their tool and equipment supplies, as they feel that the
newest products olutionsw ill be availablet o supportt he adviceo ffered.
Speedy Hire's success has spurred on other companies within the hire industry to
respond by developings imilarh ealtha nd safetyc ampaigns,b ut Speedy Hire is regarded
as the leader and has first mover advantage. However, the company is continuing its
effortsa nd is constantlyw orkingw ith supplierst o offert he very latestp roductsa nd
solutions.T his often meanst hat contractorsl ookt o SpeedyH ire first beforet he other
players in the sector.
Page 27
Qualitative Measures
Customerf eedbacki ndicatesth at the companyh as achievedm any of its primary
objectives.
"Their developmenti nto one of the leading hirersi n the UK has been achievedb y their
investmente, nthusiasma nd customerf ocusedc ulture."R obertB otright,R egionalS upply
ManagerA, MEC.
"We are attractedt o Speedy'sw illingnessf o discussh ow they might innovatet heir
processest o help meet our needsa nd fhoseo f our client."C hris Dyson,S upplyC hain
DirectorC, arillonR egionaBl uilding.
"Speedy encompasses the very besf of industry initiatives, providing us with added value
and continuousim provemenat t an energeticp ace."G rahamE dgell,G roup Procurement
ManagerM, organS indal l .
Summary
SpeedyH ire'ss uccessfubl usinessa nd marketings trategiesh ave ensuredt hat it is well
positionedt o grow its shareo f the UK hire market.T he companyi s quoteda s sayingt hat
its principalm arketsr emains tronga nd the mid-termo utlooko f their businessesis
positive.
The organisation's uccessi s largelya ttributedto stayingc loset o its customersa nd
understandingth eir needs.M any of SpeedyH ire'sc ustomersr egardi ts branda nd its
proactive approach to health and safety as the gold standard in the tool and equipment
hire business.
There are stillo pportunitiesfo r groMh and expansion,b oth geographicallya nd in the
rangeo f productsa nd serviceso ffered.A s the leadingc onsolidatoor f the UK market,
SpeedyH ire is mindfulo f new and profitablem arketo pportunitiesa s they emerge.
Speedy Hire is keent o developm ore long-termr elationshipws ith its customersa nd#p#分页标题#e#
suppliers and to invest more in its business, products and people. The company is
confidento f its abilityt o achieveg roMh, successa nd sustainablep rofitability.
Page 28
Bibliography
Key Note (2007\ Plant and Tool Hire market analysis. Hampton, Key Note
Publications.
Datamonito(r2 007)C onstructiona nd EngineeringE urope: industry profiles.L ondon,
Datamonitor.
MBD (2008)U K plant and tool hire marketd evelopment.M anchesterM, arket&
BusinessD evelopment.
Anon (2007) Speedy Hire Plc: annual report and accounts.
StrattonC, . (2007)S ustainedm omentum. /n Anon QAAT)S peedy Hire Plc: annual
report and accounts.
StrattonC, . (2007)T ool hire outperformst he UK economy.ln Anon (2007)S peedy
Hire Plc: annual report and accounts.
Page 29
Appendix One - The UK Plant & Tool Hire Market Development 2008
1. By 2012,t he UK planta nd toolh irem arketi s anticipatedto reacht 5,861 million( at
2007 prices),e quivalento a realt erm increaseo f 17o/oco mparedw ith 2007. Demand
in the planta nd tool hire marketi s expectedt o continuet o be drivenb y a positive
developmenitn the constructionm arket,a lthoughs ome strongr egionalf luctuations
are anticipatedF. or example,i n the SouthE astd emandf or planta nd tool hire is
anticipatedto be boostedb y constructiona ctivitya ssociatedw ith the 2012 London
Olympics.
2. The plant hire sector is expected to account for an increased 82% of the total plant
and tool hire marketi n the UK by 2012.S alesa re projectedt o increasey ear on year
with annualg rowthr ateso scillatingb etween3% and 5o/oin realt erms.B y 2012,s ales
are anticipatedto reach t4,832 million( at2007 prices).
3. Unliket he planth ires ector,w hichi s almoste xclusivelyd ependenot n civil
engineeringa nd constructioonu tput,d emandf or tool hirei s also influencedb y DIY
activity,l evelso f housem ovinga ctivitya nd consumerc onfidenceA. s such Market
and BusinessD evelopmen(tM BD) projectm oderatei ncreasesi n both 2008 and
2009.O veralla realt erm increaseo f 6% is anticipatedta kings alest o f 1, 010m illion
in 2012 (at2007 prices).
4. Strongg rowthi n both sectorsi s projectedt o reflectt he increasedi nvestmentin
infrastructuraen d the government'as im of buildingm oreh ouses,e speciallyin the
South East.C onstructionp rojectsr elatedt o the OlympicG ames are also anticipated
to further growth in both sectors.
5. The planth irei ndustryis directlyd ependenot n the activityle velsi n the UK building
and constructions ector.T herefore,t he reducedc yclicalityo f the constructions ector
is makingi t easierf or planth ire companiest o anticipatea nd facilitated emandf or this
buildings ector.M BD believet hatt his is an opportunitfyo r planth irec ompaniesto
considerd iversificationin toa reas such as car hire.
6. Due to the oftenl argen umbero f planta nd toolsa vailablein planth ireo utlets,t he#p#分页标题#e#
task of keeping accurate records on the equipment and customers is relatively
complexa nd time consuming.T hus recenty ears have seen a numbero f software
packagess pecificallyd esignedf or the planth ire industrye volving,m akings tock
control and invoicing quicker and more accurate. The increased use of ICT is fuelled
by increasingc ustomerd emands;h owever,M BD believet hat internetu sage in the
plant and tool hire industry is limited, as the customer often needs advice on the type
of planto r tool neededf or a particularp urpose.
Market Size
The key featureso f the civile ngineeringm arketa re varied,w ith the sectorc omprisingo f
so many differents mallere lements.I n general,t he privatisationo f many of the utility
sectors has changed the emphasis of the market forces away from public spending policy
towardsi ndividuacl orporatei nvestmentle vels,a lbeitm any of these are undertaken
under regulatoryb odies.
Even in areas that are more stronglya ssociatedw ith publici nvestmentt,h e Private
FinanceI nitiatives( PFl) have,t o some extent,t aken the focusa way from government
spending( the effecto f which is to facilitateg reaters pending).
Page 30
The government'fso cuso n housingw illa lsoh avea n impacto n crvile ngineeringo utput
Socialh ousingi s expectedt o doublet o 45,000b y 2010111T he governmenat lsow ants
to build two million new homes by 2016 and three million by 2020. These new homes will
requires upplyf acilitiess uch as gas, electricitya nd water,t ogetherw ith accessf acilities
to these areas such as new road schemes.
Furthermorea,s the 2012O lympicG amesw ill be hostedi n London,t hisw ill havea
profounde ffecti n the areasw here much of the Olympic-relatede velopmentw ill be
focusedT. he Olympicsn ow providec ertaintyth att he cruciali nfrastructuruep gradesi n
regeneratioanr easw ill happenw ithina fixedt imescaled ue to the needt o create
accessibilityto the OlympicG ames.
Tenderp ricesf or UK construction/infrastructuwreo rk are due to soar by almosta third
overt he nextf ivey ears,a s demandf or buildingin creasesa nd the escalatingc ost of raw
materialsta kese ffect.T hisw illa lsoa dd to the currents hortageo f labouri n the industry.
In May 2007,t he government'sD epartmenot f Communitiesa nd LocalG overnment
(DCLG)p ublishedit s WhiteP aper'Planningfo r a Sustainablefu ture'u nveilingm a1or
reforms of the country's planning system. The White Paper has four key pillars
. Bringi n a new systemf or dealingw ith major infrastructured ecisions( transport,
water, waste and energy: a new system is to replace over eight different planning
regimes)
. Slashp lanningr ed tapef or localh ouseholdear pplicationas nd supportinglo cal
planners
. New measurest o tacklec limatec hange
. Ensuringt he plannings ystems upportsv ibrantt ownc entres.#p#分页标题#e#
Duringt he forecastp eriod,i nfrastructureo utputi s expectedt o demonstrates trong
groMh, reflectings ignificanrt ailways tatione xpansionsa nd refurbishmenpt lannedf or
BirminghamN ew Streeta nd Nottingham.I n July 2007,T ransportS ecretaryR uth Kelly
approveda t120 milliong rant for the developmento f Birmingham'sN ew Streets tation
and additionacl arriagesw ill be providedi n Birminghamt o help relieveo vercrowding.
Work is expected to start in 2009 and be completed by 2015. July's Rail White Paper
announced that up to t10 billion will be invested in growing capacity in the period to
2014.M oret han 150 stationsw ill be refurbisheda nd upgradeda t a cost of t150 million.
Otherw ork includest he Metrolinki n Manchestert,h e M6 toll road, HeathrowE ast,t he
M25, expansiono f the Victorianu ndergroundli ne in London,e xpansiono f portsa t
HanruichF, elixstowea nd GreatY armoutha s well as the Olympicsi nfrastructurew ork.
However,M BD believet hat growthw ill be restrictedb y increasings killss hortages.
ConstructionSkillbse lievest hat 87,600n ew recruitsw ill be needede ach year between
2007 and 2011 in order to meet demand. This view is supported by other research
suggestingt hat contractorsw ill strugglet o find enoughp rojectm anagerst o oversee
large infrastructures chemes.
Page 31
Forecast Civil Engineering Construction Output in Great Britain, 2008-2012
(€ Million at2O07 Prices)
+3o/o
+3o/o
8,367 +3o/o
8.599 +30h
8,856 +30h
Note:F iguresi ncluder oadm aintenance
Source: MBD forecasts
Table Highlights:
Totalc ivile ngineeringo utputi s anticipatedto demonstratey ear on year growtho f 3% in
real terms to f8,856 million in 2012 (at 2007 prices). Growth in the short term is expected
to reflecta nticipatedw ork in many of the sectorsi ncludingth e utilities,r ailways,h arbours
and roads.W ork carriedo ut in the utilitiess ectorw ill reflectt he impacto f recentp eriodic
reviewsa nd increasedl evelo f investment.
Although skills shortages in the industry have fallen to the lowest in over two years, due
in partt o the enlargemento f the EU in May 2004,w hich begant o ease recruitment
difficultiesa s immigrantsw ith constructionin dustrys killsm ove to the UK, skillss hortages
are stille xpectedt o be an impedimentto strongg rowthi n the civile ngineeringm arket.
Furthermoreth, e 2012 OlympicG amesw illi ncreased emandf or civile ngineeringto build
the supportingin frastructurteh att he OlympicG amesa nd OlympicV illagew ill need.T he
OlympicG amesp rovidesa fixedt imescalef or cruciali nfrastructurefa cilitiest o be builti n
time.
UK economicg rowthi s anticipatedto moderatei n 2008 due to a combinationo f factors,
amongstw hicha re the turmoili n the financialm arketsw hich has squeezedc reditl evels
and is anticipatedto restrictb usinessi nvestmentl,o werc onsumerc onfidencec ausedb y#p#分页标题#e#
the firstr un on an Englishb ank sinceV ictoriant imes,t he fifth rise in interestr atess ince
August2 006,t he slowdowni n house priceg roMh and generalu ncertaintya boutt he
economic climate.
However,e conomicg rowthi s anticipatedto pick up from 2009 onwards,a lthought his
view may changed ependingo n eventsi n 2008.
The short-termp rospectsf or the constructions ectora re relativelyb uoyant.O lympicrelatedc
onstructionw orks are projectedt o cost upwardso f t3.08 billionw ith a further
t1.67 billiont o be spent on infrastructurea nd regenerationI.n January2 008,w ork is due
to start on the Greenway project. In the Summer of 2008, work is expected to start on the
Olympic stadium groundworks and the Aquatics Centre. The Games are expected to act
as a catalystf or what is billedb y the governmenta s "the most ambitiousr egeneration
programme in recent memory". The programme will include the development of five new
permanent sports venues and a number of temporary venues, a one million sq ft media
centre,4 ,000 homesw hichw ill be convertedf rom the Olympicv illagea nd a further5 ,000
which will be providede lsewherei n the redevelopmentF. urthermoreo, ne of the largest
shoppingc entresi n Europei s projectedt o be built,i nvolvinga n estimatedf 7 billiono f
private sector investment.
Page 32
Forecast Construction Output in Great Britain, 2008-2012
(€ Mif lion at2007 Prices)
116.197
121,885
128.014
lfi,6sz
138,041
+3o/o
*so/u
+So/u
+4oh
+4oh
Source: MBD forecasts
Table Highlights:
MBD has revisedd ownwardsi ts forecastf or constructiono utput in 2008 due to the
expecteds lowdowni n economicg roMh in the year. Nonethelesst,h e levelo f
constructiona ctivityi s anticipatedto demonstratey ear-on-yearg rowthb etween2 008 and
2012,w ith annualg rowth rateso scillatingb etween3 o/oa nd 5% in realt erms By 2012,
output is expected to reach t138.04 billion (at 2007 prices), equivalent to a real-term
increaseo f 22o/oc omparedw ith 2007. The developmento f the marketi s expectedt o be
stronglyi nfluencedb y the deliveryo f governmentin vestmenta nd the abilityo f local
authoritiesto avoidt he deferralo f essentialr epaira nd maintenancew ork.
Duringt he forecastp eriodt he constructionin dustryi s expectedt o benefitf rom continued
groMh in bothp ublica nd privateh ousingo utput,w hereg overnmentta rgetsf or the
provisiono f housingc ombinedw ith a continueds upplys hortagea re expectedt o buoy
outputi n the shortt o mediumt erm. Outputr elatingt o contractsa ssociatedw ith key
projectss uch as the OlympicG ames in 2012 are also expectedt o contributet o output
growthd uringt he forecastp eriod.H owever,t he industryw ill have to deal with weakening
private sector demand and rising energy and raw material costs.#p#分页标题#e#
The prospectsf or privatei ndustriacl onstructiono utputa re anticipatedt o be positive
during the forecast period. However growth is expected to be moderate in 2008 reflecting
the anticipateds lowdowni n UK economicg rowthf rom a level of 3o/oin 2007 to an
estimated2 ohi n 2008. Furthermoreg, rowthi n the manufacturings ectorh as been
compounded by high raw material and commodity prices together with high energy prices
in recent years. These trends are expected to continue during the forecast period.
The following table analyses the short term prospects of the overall private industriaf
constructionm arket.
Forecast Private Industrial Construction Output in Great Britain, 2008-2012
(€ Million at2007 Prices)
Source: MBD forecasts
Page 33
Table Highlights:
MBD projectso utputi n the privatei ndustriacl onstructions ectorw ill demonstratey ear on
year growthi n the five yearst o 2012,c ulminatingin an overalli ncreaseo f 24o/oto t6,476
million in 2012 (at 2007 prices). Much of the growth is expected to reflect the strong
anticipatedd evelopmenot f the privatew arehousings ectorw hich is expectedt o continue
to benefitf rom fast growthw ithint he distributiona nd logisticss ectors.
TheU K Plant& Tool HireM arketD evelopmen2t0 08,P p 94-97
Source:M arketa nd BusinessD evelopmenwt.w w.mbdltd.co.uk
Prospectsf or the planta nd tool hire marketa re lookingg ood. lndeed,t he Hire
AssociationE urope'sl atestq uarterlys urvey,p ublishedi n the summero f 2007, suggests
thata lmost6 9% of its respondentisn the EU (includingth e UK) expectt heirb usinessto
growo vert he next 12 monthsw itho nly 1.5%p redictinglo werl evels.F or 62oho f
respondentse, mployeen umbersa re projectedto remains tatic,w ith around3 2%
anticipatinagn increasein the numbero f employeeso vert he next 12 months.H owever,
for 25% of respondentse, conomicu ncertaintyw as a sourceo f concern.
Environmentacl oncernsa re increasinglyb ecomingi mportanti ssuesf or planth ire
companiesa nd a companyw itha strongf ocuso n environmentaisl suesm ay wellg aina
competitivea dvantageC. ustomerso f planth irec ompaniesin cludeb luec hipc ompanies
and locafg overnmentw, hichh aves tricte nvironmentaslt andardsP. lanth iringc ompanies
are tryingt o becomem oree nvironmentalrlye sponsiblea, trendw hichM BD believew ill
continue during the forecast period. For example, Hewden offers, on request, a range of
machinesw ith biodegradableo il. SpeedyH ire has recentlyp laceda n orderf or an initial
four Modec electric trucks for its delivery fleets. lf the move is a success, the company is
planningt o order more electricv ehicles.S peedy'sG eneratorsd ivisioni s also tryingt o
reducei ts customers'carbonf ootprintb y introducingb iopower.T he generatorsa re
poweredb y 100%b iofuel,a clean-burninga lternativefu el producedf rom oilseedc rops#p#分页标题#e#
Planth irec ompaniess pecialisinign cranesr entala re likelyt o see somec hangesi n the
way theirb usinesso peratesA. numbero f cranec ollapsesin the pasty ear (e.9.C roydon
- June 2007)h as givent he industrya bad reputationa nd led to the developmento f an
actionp lan.l t has been suggestedt hat maintenanceis a key issuet hat needst o be
solved.T he currentp racticei s for routinei nspectiona nd maintenanceto be carriedo ut
by a fittere mployeds olelyt o travelf rom site to site carryingo ut plannedm aintenanceo f
the hire company's fleet. However, it is believed that these fitters are often overstretched,
meaningt hat maintenances tandardsa re allowedt o slip.O ne solutionw ould be to give
responsibilitfyo r the maintenanceb ackt o the operator,w hich used to be common
practice up until the mid-80s.
A significandt ebatef or planth ire companiesi n Londoni s stillu nderwaya nd a solution
has yet to be agreed upon. Towards the end of 2006, the Greater London Authority
(GLA)i ntroduceda best practiceg uidec overingc onstructions ites.T he Construction
Plant-hireA ssociation( CPA)b elievest hat planth ire companiesm ay strugglet o adaptt o
London'sn ew stricte missionsl egislationT. he GLA recommendst hat locala uthorities
when grantingp lanningp ermissions houldi nsistt hat all plantd iesele ngineso ver 37 Kw
shouldb e fittedw ith an approveda fter-treatmensty stems uch as a dieselp articulate
filter.H owevert he CPA arguest hat introducingfi ltersw hich can cost upwardso f
f 12,000,a re impracticafl or a lot of plant,b ecausef iltersc an interferew ith engine
performancei,m pedev isibilitya nd get so hot that they becomea safetyr isk.
Furthermoref,i ttingt he new filtersc ouldt ake anythingf rom five weeks,a t best, up to two
months. The CPA has warned that if no suitable compromise could be reached it would
Page 34
advisei ts memberst o thinkl onga nd harda boutt he practicalitieasn d cost intplicationosl
fittingd ieselp articulatefi ltersa ndw hethert o supplye quipmento n highp rofiles ites,
whichw ill includet he Olympics ites.
Main drivers of the market are expected to be:
. infrastructursep ending( especialloy n sewers,w ater,r oadsa nd nuclearp ower
stations)
. healtha nd safetyl egislatio(nw hichi s encouragingc onstructiocno mpaniesto
move from ownership to hire of tools)
. outsourcing
. corstructiona ctivityr elatedto 2012O lympics.
Takinga ll thesei nfluencesin toa ccountt,h e followingta bleo utlinest he expectedt rends
in the UK plant and tool hire market during the forecast period.
Forecast UK Market for Plant and Tool Hire, 2008-2012 (t Million at 2007 prices)
5.148 +3o/o
5,261 +2o/o
v ' r v ' |
- - . - , , - - l - . -
+!o/o
+4o/o
ij"z"
l_,1e3_
5.701
5,861
Source: MBD forecasts#p#分页标题#e#
Table Highlights:
By 2012,t he UK planta nd tool hirem arketi s anticipatedto reachf 5,861 million( at2007
prices),e quivalentt o a real-termi ncreaseo f 17o/oc omparedw ith 2007. Demandi n the
plant and tool hire market is expected to continue to be driven by a positive development
in the constructionm arket,a lthoughs ome strongr egionalf luctuationsa re anticipated.
For example,i n the southe ast demandf or planta nd tool hire is anticipatedto be boosted
by constructiona ctivitya ssociatedw ith the 2012 LondonO lympics.
Market Segmentation
One of the areas expected to show strong growth in the plant hire market is powered
accessp latforms,i ncreasinglyg ainingm arkets harea t the expenseo f traditional
scaffoldingF. urthermoret,h e marketf or crane hire is expectedt o remainc ompetitivew ith
improvingp rofitabilitya, lthoughm arginst end to remains lim. The changingl and use of
the UK and increasede mphasiso n groundsm aintenanceis also expectedt o encourage
growth in the diggers sector during the forecast period.
The followingt able illustratesth e forecasts egmentationo f the marketf or planta nd tool
hire duringt he periodb etween2 008 and 2012. This illustratesth e changesi n the
forecast market development within the sector.
Page 35
Plant Hire (fm
% of Total
Tool Hire (€m
% of Total
Forecast Segmentation of the UK Market for Plant and Tool Hire, by Sector,
2008-2012 (t Million and % ot Total)
18o/o
5,493
Note.
Source:
Totals may not add up due to rounding
MBD forecasts
Table Highlights:
The pfanth ire sectori s expectedt o accountf or an increased8 2% of the total planta nd
tool hire marketi n the UK by 2012.S alesa re projectedto increasey ear on year with
annualg rowthr ateso scillatingb etween3o/aon d 5% in real terms.B y 2012, salesa re
anticipatedto reach f4832 million( al2007 prices).
Unliket he planth ires ector,w hichi s almoste xclusiveldy ependenot n civile ngineering
and constructiono utput,d emandf or tool hire is also influencedb y DIY activity,l evelso f
house movinga ctivitya nd consumerc onfidenceA. s such MBD projectm oderate
increasesi n both 2008 and 2009.O verall,a realt erm increaseo f 6% is anticipatedta king
safe s to f 1010 millioni n 2012( al2007 prices).
Strong growth in both sectors is projected to reflect the increased investment in
infrastructureasn d the government'sa im of buildingm ore houses,e speciallyi n the south
east. Constructionp rojectsr elatedt o the OlympicG amesa re also anticipatedto further
growth in both sectors.
The UK Pfant& Tool HireM arketD evelopmen2t 008,P p 119-121
Source:M arketa nd BusinessD evelopmenLt td.w ww.mbdltd.co.uk
Page 36
AppendixT wo - Tool HireO utperformsth e UK Economy
Catherine Stratton, author of the famous Plant Hire Investment Reports, compiles#p#分页标题#e#
her exclusive New Year review of the UK's Top Ten tool and equipment hirers.
Thisi s the fifthy eart hat EHN has publishedit s rankingso f the UK'st en largestt ool hire
operationsl.n termso f 'peckingo' rder,t he changess incel asty earh aveb eenn rinor
Twelvem onthsa go,o ptimismw as the hallmarka, lmostw ithoute xceptiono, f the ten
companiesa, nd,t o a largee xtent,t hat has beenj ustified
Nowt he tone is ratherm ores tudiedo; n the whole,c ompaniesa re stillf orecastingg rowth
butt hey are alsoa wareo f the increasingu ncertaintys urroundingth e economy Several
majorp layers,s ucha s HSS and Hewden,a re stilli n the midsto f re-organisationH;i re
Stationh as completedi ts re-organisatiopnr ocessa nd the recenti nterimr esultsf rom
parentc ompany,V p conflrmedt hat the tool hireri s now back in profit.A -Planth as
continuedt o expand its tool hire offeringsi nto its plantd epotsa nd confidencet here is
beingh elpedb y the acceleratingre coveryo f Ashteada ftert he completiono f its refinancingw;
hileG AP,t he onlyf amily-ownedb usinessa mongstt he ten, has continuedto
expandi ts combinedp lanta nd toolso fferings o that it can now justifiablyla y claimt o
'nationalc' overage.
AfterB randon'sr apide xpansionla sty ear( thec ompanya chievedt he highestt urnover
growth of the ten companies - see Table lA over), it appeared to falter a little in the first
halfo f 2005,b ut its halfy ears tatemenitn dicatedth at it was backo n coursei n the
second half. As last year, it is, however, Speedy which has continued to make the most
impacti n the marketp lace,e xtendingit s leadershipfu rtherw ith a 19o/eox pansionin
revenue,a nd reinforcingit s previousm essagest o competitorst hat SteveC orcoran's
successionto John Browna s ChiefE xecutiveh as beena 'seamlesso' ne.
Our survey of the Top Ten follows its usual format; the ten companies remain unchanged
and fall into three categories:
a) Those that are primarilyd edicatedt o tool hire and closelya lliedo perations:S peedy,
HSS,H ewdenH ireC entres,B randonA, -PlantT ool HireS hopsa nd HireS tation.I n the
caseso f both HSS and Hewden,r e-organisatioins takingp lacet o implemen'th uba nd
spoke' structures - further details are included in the Comment on the individual
companiesA. ll six companiesa re eitherp ublicc ompanieso r subsidiarieosf public
companies, except for HSS, which has been privately owned with venture capital funding
since a Management Buy-ln two years ago.
b) Tool hireo perationso wnedb y builders'merchantsH:i re Centre,J ewsonH ireP oint
and TP Hire.2 5% of HireC entreo utletsa re 'standalone'a; ll the businesseso f the other
two are located within builders' merchant outlets.
c) One companyc ombinest ool and planto perationsf rom all its locations.G AP Group.
THE SIZE OF THE TOOL HIRE INDUSTRY
Each year we attempt to evaluate the size of the UK tool hire market in terms of annual#p#分页标题#e#
revenue;a t the same time we pointo ut that such estimatesa re fraughtw ith difficulty.T he
first problemi s one of demarcation- where do you draw the line between' tools'a nd
'plant'?A lmost all traditionatl ool hirersa re wideningt heir offeringi nto compactp lant and
increasingt heir specialistp roductss uch as liftinga nd safetye quipment.S econdly,
althought he ten companiesf eaturedh ere representa relativelyh igh proportiono f the
turnovero f the tool hire industry,t here is an enormousn umbero f qualityi ndependent
Page 37
hirersc ateringf or localt radesp eoplea nd the DIY market.F inally,a s Speedy'sS teve
Corcoranh as pointedo ut in his Comment,t herei s tremendousp otentiaflo r equipment
hiret o be extendedt o new usersi n a wide rangeo f activitieso utsidet hat of traditional
construction.
The disparityi n size betweent he largestt en playersa nd what we called' The Next Tier'
in our articlel ast May is significanto; nly the specialistli ftingc ompanyL GH had a
turnoverin excesso f f20m. The nextn inec ompanies(i .e.n umbers1 2-20i n the tool hire
rankingsh) adt urnoversr angingf romf 7.8m to f3.2m). Althoughs omeo f these
companies are growing at well above the average rate, their national market share
remainso f limiteds ignificancew hen comparedw ith the Top Ten, althought hey are each
significanpt layersi n their regionafm arkets.
As in 2005 and 2004,w e have producedt wo turnovert ables:T able I showso ur
estimatesf or the turnoverl evelsb eingc urrentlyg eneratedo n an annualb asisa nd Tabfe
lA shows the historic annual turnover of each company. The latter is based on the most
recenta nnuala ccountsw heret hesea re availableo r on informationp rovidedb y the
individuacl ompanies.
The CurrentA nnualT urnoverT ablei ndicatesth e growthl evelsw hichw e anticipatefo r
the top ten tool hirers.A year ago,w e were projectinga n aggregatet urnovero f f653m
for these ten companies, which compares with the total of f663m for this year's Historic
TurnoverT able,i ndicatingth at our estimatesw ere slightlyc onservative.
Our 2006 CurrentT urnoverT ablef orecastsa n aggregatev alue of f730m, suggestinga n
overalfg rowth rate of 10%. Extrapolatings tatisticsi s a hazardousu ndertaking,b ut it
seems clear from the evidence of these tables over the past few years that the tool hire
industryi s continuingt o grow at a rate abovet hat of the overallU K economy.
Estimateso f the actuals ize of the tool hire marketh ave variedw idely;l asty ear we held
to our view that it was worth in excesso f t1 billion.T he projectionsfr om our Current
TurnoverT able lead us to reviseo ur valuationss ignificantlyu pwards.E xperiencea nd
observationo ver the yearsw ith regardt o the overallp lanta nd equipmenth ire industries
in The PlantH ire InvestmentR eportw oulds uggestt hat the top ten companiesa ccount#p#分页标题#e#
for ratherl ess than 50% of the sector'sr evenues.l f we apply a similarc riteriont o the UK
tool hire market,t his suggestsa valuea pproachingf 1.5 billion.W e woulde mphasise,
however,t hat this is an estimate,b asedo n a narrowb and of statisticsl.t is EHN's
intentiont o researcht his marketi n greaterd eptho ver the comingy ear and we hope to
be able to publishm ore substantiael videncei n future.
Page 38
Table l: Gurrent Annual Turnover
(based on interim statements and results where applicable)
Turnover
1 Speedy Hire 210
2 HSS 152
3 HewdenH ireC entres 90
4 Brandon Hire 58
5 Jewson Hire Point 48
6 Hire Station 40
7 A-Plant Tool Hire Shops 34
8= GAP Group 33
8= Hire Centre 33
10 TP Hire 32
TOTAL €730 m
G'"i change from
h-1nge on year
4
Table lA: Historic Annual Turnover
(based on most recent annual accounts where available)
Turnover(fm) l%C
1 Speedy Hire 178.5 I +19
2 HSS 140.7 | -4.0
3 HewdenH ireC entres 90.3 | +7 1
4 Brandon Hire 487 | +23
5 Jewson Hire Point 46.1* | +9.2
6 Hire Station 34.8 | -4.7
7 A-Plant Tool Hire Shops 32.4. | +8.0
8 Hire Centre 32.0. I +6.7
I TP Hire 30.1** l + 4 . 9
10 GAP Group 30.0" | +15
TOTAL f663.6 m
,,4 -
* figure provided by the company
** figurep rovidedb y the companyw hich indicatest hat turnover divides as follows: Hire: L22m,
Sales: €8.1m.
Tablel l: OperatingP rofit
(based on latest annual accounts where available)
* figurep rovidedb y the company
** aftere xceptionaol peratinge xpenseso f 16.6m
Operatins profit (fm) % Chanqe on vear
1 Speedy Hire 24.9 +20.3
2 Hewden Hire Centres 6.4 Not available
3 BrandonH ire 6.1 +35.5
4 GAP Group 4.7* +18.7
5 HSS 4.3* * Loss n prevrouyse ar
6 HireS tation (0.4) Loss n previousv ear
A-Plant Tool Hire Shops Not available N/a
Hire Centre Not available N/a
Jewson Hire Point Not available N/a
TP Hire Not available N/a
Page 39
Table lll: Gross Book Value of Hire Equipment (based on end year figure in most
recent annual accounts, except where indicated)
Gross Book Value (fm) % Ghan
1 Speedy Hire 209.6 +15.3
2 Hewden Hire Centres 83.9 +9.7
3 HSS 7 4.3 -99
4 GAP Group 50.0 +16.3
5 A-Plant Tool Hire Shops 34.5. +1.5
6 BrandonH ire 32.6 +30.9
7 Jewson Hire Point 28.4. +15.4
8 Hire Station 26.0 +13.0
Hire Centre Not available N/a
TP Hire Not available N/a
Note:* Figurep rovidedb y company.
Table lV: Number of outlets (as at December 2005)
Number of outlets +/- Change %c
1 HSS Hire Service Group 554 +10 *19
2 SpeedvH ire 304 +4 + 1 . 3
3 Hewden Hire Centres 205 -15 -68
4 Jewson Hire Point 189 +25 +15.2#p#分页标题#e#
5 TP Hire 159 +4 +2.6
6 BrandonH ire 143 + 1 3 + 1 0 . 0
7 Hire Centre 131 +1 +0.07
8 A-Plant Tool Hire Shops .104 +32 +44.4
9 Hire Station 95 +15 +18.7
10 GAP Group 54 +4 +8.0
Note:. By the end of A-Plant'sc urrentf inancialy ear on 30 April 2006,i t will have 56 standalone
Tool Hire Shopsa nd 57 locationso fferingb oth planta nd tools,p lus 12locationso fferingp lant
only. (Alsot he companyh as locationso fferingS pecialistE quipments uch as PoweredA ccessa nd
Accommodation).
TableV : Numbero f employees( basedo n the most recenta nnuala ccounts
availablee, xceptw herep rovidedb y the company)
Number of emplovees +/- Chanqe % Chanqe
1 Speedy Hire 2,394 +141 +6.3
2 HSS 2,301 -16 -0.7
3 Hewden Hire Centres 1,447 -42 -2.8
4 BrandonH ire 757 +10 1 +15.4
5 GAP Group 625 +37 +6.3
6 Hire Station 550 No chanqe No chanqe
7 A-Plant Tool Hire Shops 450 +50 +12.5
8 Jewson Hire Point 407 +45 +12.4
Hire Centre Not available N/a N/a
TP Hire Not available N/a N/a
Page 40
Remuneration (f) i To
1 Speedy Hire 764,000 | +
2 BrandonH ire 353,000 | +7
3 A-Plant Tool Hire Shops 264,000
259.000
+4
4 HSS w,
5 GAP Group 150,000 | -12
Hewden Hire Centres Not available I N/
Hire Centre Not available I N/
Hire Station Not available I N/
Jewson Hire Point Not available I N/a
TP Hire Not available I N/a
Table Vl: Remuneration of the highest paid director
(based on the most recent annual accounts available)
SPEEDYH IREG ENTREPSL C
Hire activities
Geographicaslp read
Status
Comment
.Qfangeo _ny ear
66.1
12'
qg.z
I
2.8
Tools,p ower,s urveya nd liftinge quipmentc, abins,p umps
NationaUl K, brancheso peningi n Northerna nd Southern
lreland January 2006
Public company
a
Speedy's interim results showed it continues to oulperform most, if not all, of its
competitorsw, ith a 21% increasei n revenuesa nd a 23% rise in operatingp rofits( see
December City News). Steve Corcoran retains his confident stance, with iegard not only
to Speedy'st raditionacl onstructioncu stomersb, ut also in his company'sc apacityt o
open up new avenues for hire products.
The strength of Speedy's national network means that it is able to move resources
between regions so that it can benefit from areas of strong demand; Steve points to the
northw est of England( in particulaLr iverpooal nd Manchestera) nd Scotlanda s being
particularlby uoyanta t present.T he companyi s stitle xpandingit s geographicapl resence
withint he Britishl sles;i ts most recenta cquisitionw as of DelynH ire Centrest aking
Speedy into northW ales,o ne of the few partso f the mainlandw here previouslyi t had no
presence.
Early 2006 will see operations opening on the other side of the lrish Sea in both Belfast#p#分页标题#e#
and Dublin. Steve Corcoran affirms that the company plans to roll out a dozen depots in
Northern and Southern lreland over the next three years. He believes that the capitaf
citieso f each are "extremelyv ibrant"i n constructionte rms. In the South,t here are major
infrastructurep lans to improve transporta cross to the west coast in terms of both road
and light raild evelopmentsT. he outlookf or the lrishe conomyr emainsb uflisha nd Steve
is confidentt hat the company'ss trongr elationshipsw ith lrish contractorso peratingi n the
UK will stand it in good stead in Dublin. He also points out that the scale of Southern
freland'si nfrastructurep lans is such that Britishc ontractorsw ilf be heavifyi nvolved.
Page 4'l
HSS HIRE SERVICE GROUP LTD
Hire activities
Geographical spread
Status
Comment
HEWDEN HIRE CENTRES LTD
Hire activities
Geographical spread
Status
Generalt ool hire,s alesa nd service,t ogetherw ith specialist
activitiess uch as lifting,s afety& surveya nd welding
NationaUl K, lreland,I nternationaFlr anchisees
Private company with venture capital finance
Plant & tools
NationaUl K
Ultimatep arentc ompanyF, inningIn ternational
lnc.,q uotedo n the TorontoS tockE xchange
PaulN oland escribes2 005a s "quitea toughy ear"a s HSS has builto n the improvements
in structurei t startedt o implementin 2004,f ollowingt he completiono f the MBl. The
company now has 45 'Premier Centres' in place; each has an area manager with a sales
team,a nd beneatht his tiera re the largen umbero f HSS satellites tores.I n some areas,
sucha s London,t he companyh as identifiedth e needf or,a nd put in place,a middlet ier
of depots.H SS maintainsa very strongc ustomerb ase with botht he 'whitev an' and the
domesticm arkets;b ecauseo f increasedr entsa nd difficultieso f transport,it s traditional
high streetl ocationsa re a lessa ttractiveo ption;H SS is takinga moref lexiblea pproach
to propertya nd now has an ongoingp rogrammeb y which between5 o/oa ,nd1 0% of its
portfoliow ill be "churned"e ach year.
The concepto f the PremierC entresh as enabledH SS to focuso n its capacity,o fferinga
completep roductp ortfolioa nd wideningi ts rangeb y accommodatingc ompactp lant,
compressorsa nd generatorsa, ll of which meett he requirementso f HSS customers.P aul
Nolans ayst hat the awardo f the threey ear NetworkR ail contracti s a demonstrationo f
the success of the Premier Centre concept. This has also encouraged HSS to extend
opening hours at some Centres to either 18 hours, six days a week or, in some cases, 24
hours,s evend ays a week, becauseo f overnightm aintenancew ork on raila nd other
infrastructure.
Like othersi n the market,P aul Nolanr eportst hat custom is becomingi ncreasingly
account based; he says that HSS is achieving sound organic growth. Revenues rose 8%#p#分页标题#e#
in 2005 and prices have been steady. He expects similar groMh levels in 2006 but voices
concerna t what he describesa s "kamikaze"p ricingb y some competitorsH. e stresses
that HSS is aiminga t customersf or whom refiabilityo f servicea nd producti s critical.
Comment
BrianS herlockc onfirmsth atH ewden'fsi vey earp lani s nowa t thee ndo f it secondy ear
withi tso perationaaln ds alesm anagementet amsi n place.F iveg eneraml anagersh ave
beena ppointeda nd3 3 'RentaCl entrese' stablisheads the 'hubso' f the 'huba nds poke',
witht he resto f Hewden'slo cationsth, e'spokes'i,d entifieda s RentaSl tores2. 006w ill
seef 9m investedin lT systems(w itha n additionaf4l m to follow)T. hen ews ystemw ill
be in pfacet hroughouatl l Hewden's3 60l ocationsb y nextD ecembetrh; isi s a total
packaged, esignedb y US lT companyL awsona, ndc overingb othr entaal ndb acko ffice,
customeras nds uppliers.
Page 42
Hewden'sR entalS toresa re describedb y BrianS herlocka s "in essence,t ool lrire
locationsw itha n enhancedp roducto ffering.T" he changesn ow in placew ill improve
nationacl overageH. e sayst hatt herea re currentlyn o discussionsg oingo n to change
the name to CAT Rental Stores and such a change would only be made, if it was thought
to improvet he company'ss tandingT. he Hewdenb rand,h owever,r emainsv ery strong.
Brianp ointso utt hato nly 17%o f Hewden'se quipmenpt ortfolioin termso f originacl ost is
Caterpillar.
The firstt hreeq uarterso f 2005 saw volumesi ncreasingfo r Hewden'st ool hire products
and some improvemenitn margins.W ith its "total"o ffering,t he companyi s aiminga t the
"professionacl ustomer".B rianS herlocks tatest hat throughout he changesi n Hewden,
there has been a determinationn ot to lose customerf ocusa nd that the companyi s
continuingt o concentrateo n "what it is good at "
Comment
Brandoni s due to issuea tradings tatementin earlyJ anuary,a heado f the publicationo f
its 2005 resultsi n lateF ebruaryF. inanceD irectorC hrisS imsi ndicatesth att he company
is "cautiouslyo ptimistic."
2005w as a yearo f rapide xpansionfo r Brandona s it reached' nationalc' overagea nd
added 32 locationst o its network.T his year's interimr esultss uggestedt hat it might have
suffereds ome 'indigestiona' s a result,b ut that the secondh alfw ould see a strong
recovery. Turnover in the first half was 18% up on the same period of 2004 but operating
profltf ell8% to f2.3m. Like its competitors,B randoni s seeingt he growingt rend towards
nationalc ontracts.A mongstt hose it has securedi s a preferreds uppliera greementw ith
Enterprise Plc.
In 2005 Brandona cquired1 3 new locationsl.n Novembero, n announcingthela testone,
LightH ire,C harlesS kinners tated," Havinge stablisheda nationaln etworkw, e are now#p#分页标题#e#
lookingt o makem oree arnings-enhanciningf illa cquisitions."
BRANDON HIRE PLC
Hire activities
Status
HIRES TATIONL TD
Hire activities
Status
Generalt ool hirea nd liftinge quipment
Public company
General tool hire, lifting and safety equipment
Subsidiaryo f Vp Plc,a publicc ompany
Comment
Fort he pastt woy ears,J ohnS ingletonh asb eenn ursingH ireS tationb ackt o healtha nd
hise ffortsa, ndt hoseo f hism anagementet am,a ren owb eginningto bearf ruit;t he
recenti nterimr esultso f Vp showeda n impressivteu rnarounidn HireS tation'sp ositionI.n
the six monthp eriodt het oolh irerp roducedo peratingp rofitso f f900,000,b efore
exceptionaclo stso f f400,000r elatingto the recentlya cquiredP ivotaGl roup,c ompared
witha losso f f300,000i n the samep eriodo f 2004.
JohnS ingletonb elievesth att he companyh asn owb uiltu p momentuma ndt herei s much
morep rogressto comei n bothg eneratlo olh irea ndi tss pecialisatc tivitieos f liftinga nd
Page 43
safety.T he company'sN ationaCl allC entrei n Manchestenr ow handles2 5% of all its
transactionsa nd its monthlyr evenuesh ave doubledo ver the pasty ear. Hire Station's
largerc ustomersf lnd it preferableto dealw ith a singlep oint.
Hire Stations ays it puts safetya s a top prioritya nd ESS SafetyS ervices( formedb y the
mergero f HireS tation'sS afeforcea nd Pivotala cquiredl astJ uly)h as becomet he biggest
specialisst afetyc ompanyi n the UK and,a ccordingto JohnS ingletoni,s fourt imesl arger
than any competitorL. iftingi s anothers pecialistp roducta rea beinge xpanded
significantlyw, ith a further1 3 locationsb einga ddedt o take that networkt o 22 by the end
of March;i t is plannedt hat liftinge quipmenwt ill be availablefr oma ll HireS tationd epots
by the end of the year.l t willb e organisedo n a 'huba nd spoke'b asisw ith 10 to 12
locationsa s 'hubs'a nd the resta s distributionc entres.
A-PLANT TOOL HIRE SHOPS
Hire activities A wide range of plant and tools
Geographicals pread Nationailn the UK
Status A-Planti s a subsidiaryo f AshteadG roupP lc
Gomment
Followingt he resignationo f RichardD ey as ManagingD irectoro f A-PlantT ool Hire
Shops,A -PlantC EO Sat Dhaiwails currentlya ctinga s MD; he statest hatt ool hirei s
"buoyant with some key product growth areas" such as Lifting and Safety where fast
growingd emandh as ledt he companyt o makes ubstantiailn vestmenat nd wheret he
company expects to build on recent growth.
A-Planth as been very successfuiln securingm ajora ccountsb usinessf or both planta nd
tools and has gaineda numbero f sole and preferreds uppliera greementsw hich are
fikely to have a positive impact on turnover. Amongst contracts secured of late are a 12-
month preferreds uppliera greementw ith Serco,w hich is expectedt o be worth f400,000#p#分页标题#e#
per annum and a five-years ole suppliers trategicp artnershipw ith the BirseG roup,w orth
at least f3m annually.
Sat Dhaiwali ndicatest hat the companyi s now activelyc onsideringa cquisitionsa nd
greenfield site openings to further improve its network; early in 2006 it is opening a
greenfield site with design and build premises in Oxford, which is to be a flagship tool hire
location for that area.
. GAP GROUP LTD
Hire activities Plant and tools
Status Private company owned by the Anderson family
Gomment
Douglas Anderson reports that GAP is still finding the market "very good." Over the past
year GAP has opened four new depots; the company's combined plant and tool
operationsm ean that its locationsa re on a largers calet han traditionatlo ol hire outlets
and the capitalc ost of openingu p each depot is correspondinglyh igher.R ecent
openings have included Plymouth and Exeter so that the company can now claim
'national coverage'. lt has two further openings, in Swansea and close to Tower Bridge,
scheduled for early 2006, and after that two more in Cambridge and Gloucester.
Page 44
The establishmenotf a nationanl etworkh as beenv ery rmportanfto r GAP whichD ouglas
Andersons aysi s becomingin creasinglrye lianto n nationacl ustomersw, itht he larger
constructiognr oupse verm ored eterminedto tie up supplyc hains Largen ationaal nd
regionalc ustomersn ow accountf or 70% of trade;n everthelessh, e pointso ut, GAP's
"local" business is also increasing but at a slower rate. Although headline hire rates are
stable, Douglas points out that customer care packages cost money and business costs
generallya re rising.
JEWSON HIRE POINT
Hire activities Tools & Equipment
Geographical spread National
Status Divisiono f Jewson,a subsidiaryo f GroupeS aint-
Gobain
Comment
No furtheri nformationa vailable
HIRE CENTRE
Hire activities Generalt oolsa nd specialispt ipe & utilitiesto ols
Status A division of Wolseley Plc, a public company
Gomment
No furtheri nformationa vailable
TP HIRE
Hire activities Small plant and tools
Status Division of Travis Perkins Plc, a public company
Comment
No furtheri nformationa vailable
, Source: Speedy Hire
Page 45
AppendixT hree- Contributiono f Constructionto wardsG rossD omestic
Product (World)
Contributiono f Constructionto wardsG rossD omesticP roductb y Country
(expressedin US$ma nd as a percentageo f totalG DP)
Sour ce: Eur omoni tor In ternationawl ww.eur omoni tor.com
Country 2003
US$ millions
2003
% of total
GDP
2006
US$ millions
2006
o/o of total
_ _gpP
6.70
- - - *b50o7o
Algeria 4.485.0 748 _ __!,!9-0,_5
Arqentina 3,121.7 3.36 g,g5g.g#p#分页标题#e#
Australia 25.992.3 5.30 47 .765.3
Azerbaiian 806.6 13.13 2.389 8
Bolivia 217.1 313 163.3
Brazil 45,248.5 10.66 _ ____ 60, ?!7 ,6
Canada 30,7673 5 . 1 6 67,5174
Chile 4,682.1 846 7 ,7224
China 91.290.9 6.90 13 8 , 11 6 . 8
Colombia 551.4 0.77 8,344.7
Ecuador 813.3 394 3,010.4
Eqypt 3,887.4 6.28 2.5240
Hong Kong,
China
6,875.6 4.54 4,7 48.6
lndia 35.679.0 6.59 55.277 4
Indonesia 11.578.2 5.40 18,963.6
lsrael 2,486.3 2.62 6.666 5
Japan 297.511.4 6.60 266.126 7
Jordan 149.8 1.63 582.7 4.58
Kazakhstan 1,840.6 6.34 6.890 4 9.24
Kuwait 697.8 175 2,189.9 230
Malavsia 4.010.8 3.89 4.099.4 281
Mexico 31j46.1 5.76 41.989.6 5.57
Morocco 2.375 .9 5.25 3.060.5 5.46
New Zealand 2,930.3 4.10 4,799.9 4.74
Niqeria 369.9 0.70 1,880.2 1.59
Pakistan 1.899.5 2.91 2.966.9 245
Peru 2,513.4 4.54 4,690.6 573
Philippines 3,343.1 4.23 4,359.6 4.08
Saudi Arabia 16,777.0 9.87 15,735.0 4.31
'SSionuqtahp ore 4,077.4 4.37 4,737.8 3.60
Africa 4,097.2 2.52 5,425.9 2.48
South Korea 37.150.9 7.01 75.907.3 9.80
Taiwan 6.536.2 2.46 5.378.5 1.56
Thailand 1.686.5 1.26 5.628.5 3.12
Tunisia 1 ,295.3 5.17 1.636.9 5.81
Turkmenistan 552.0 5.32 1,723.9 8.90
UnitedA rab
Emirates
5.254.6 7.26 12.802.4 7.27
USA 575 .41.72 5.26 659.436.7 5.09
Venezuela 24.0 6.97 3.600.3 2.24
Vietnam 1.868.0 4.94 3.662.6 6.50
Page 46
Appendix Four - Contribution of Construction towards Gross Domestic
Product (Europe)
Gontribution of Construction towards Gross Domestic Product by Country
(expressed in US$m and as a percentage of total GDP)
Country (Year 2003
unless specified)
US$ millions
(Year 2003 unless
specified)
o/oo l total GDP
2006
us$
millions
2?13959
161924:6
1 3 , 1 8 6B
19,774:3
117, 123.1
9 6 , 1 2 70
19,274 6
9 9 , 4 1 50
3J,89o2
13,844.0
10,418.6
134,571.7
2ooo
% of total
GDP
774
4,86
565
601
591
368
854
6,06
539
467
633
.1?,9_8
4.71
" soi
456
584
866
4,62
6,54
6 . 73
7e8
Western Euro
Austria 19.439.4 8.43
Belgium 14.691.1 486
Denmark 9.147.2 4.29
Finland 8,490 1 5.90
32a
+z)
a6z
453
France 46.711.0
Germany 95.475 9
Greece 13.453.8
Italv 64.546 8
Netherlands 2001
20.667.4 5.86
Nonruav 7.900.5 _ 965
Portuqal 1 2 . 1 2 49 891
Spain 64.894.9 7.86
Sweden 10,955.3 4.40 15.762.2
Switzerland 30.7787 9.96 ?1 ,046:4
1 7 , 5 1 01
13-p10 05
2soos
I J 76:5
?_,?e6,4
__9_,_5_90,:1#p#分页标题#e#
1.055.6
Turkey 9.589.9 3 . 75
United
Kingdom 77 .0691 524
Eastern Eurog)e
Belarus 1 j22 2 682
Bulgaria 832 7 4.15
Croatia 1.407.7 4.70
Czech
Republic 5 . 16 1 7 722
Estonia 473.1 5.77
Hunqary 3.098.6 3.76 4.566.3
Latvia 603.0 6.12 1 ,075.2
Lithuania 1.514.9 8.43 2.079.4 7 .93
Poland 16.461.2 8 . 1 3 17, 291. 4 5.85
Romania 2,549.0 4.77 7.985.0 765
Russia 24.275.6 5.76 49,787. 8 5.83
Slovakia 1,441.8 4.39 3.091.2 634
Ukraine 595.3 1.31 3,873.7 4.56
Data not availablef or Cyprus,G ibraltar,l celand,l reland,L iechtensteinL, uxembourg,
Malta,M onaco,A lbania,B osnia-HezegovinaG, eorgia,M acedoniaM, oldova,S erbiaa nd
Montenegroa nd Slovenia.
Sou r ce: Eur omoni tor In ternationawl ww.eur omoni tor.com
Page 47
AppendixF ive- MarketV alueF orecas-t European
EuropeanC onstructiona nd EngineeringIn dustry
CAG 2006-2011:
Source: Datamonitor
Source: Datamonitor
c!rl!ig.n-l % Growth
492 3 3j0%
3.30%
3.40o/o
3s0%
3.70%
_5*0q,2
526 0
Page 48
Appendix Six - Market Value Forecast - Asia-Pacific
Asia-Pacific Construction and Engineering Industry
CAGR 2006-2011:
Source: Datamonitor
Source: Datamonitor
% Grorarth
i toy"
q q,gi(,
5.50%
s Aaii't,
i,eort"
5 q0"/"
s.g%
t n $ billion --+-"/, Growth
600
.E soo
f coo
300
200
100
0
Page 49
AppendixS even- MarketV alueF orecas-t Global
Global Construction and Engineering Industry
CAGR, 2006-2011:
Source: Datamonitor
Source: Datamonitor
$ billion [ _
1,860.8
l"._qqA;1
2,070.7
2 . 1 7 56
2,284.6
2,395.9
5.80%
t6ot;
* P,!-9"1e,
5.10%
Page 50
endix Ei ht - Speedy Hire Company History
January2 008
. Acquisitioonf AMECL ogisticasn ds upportS ervicefso r f12.sm
Novembe2r 007
' Speedyw insa prestigiouasw ardf ort hep roductioonf itsa nnuarl eport- winning
CorpComms'200a7w ardf or'BestA nnuaRl epor-t quotedc ompanies'.
' Speedyw int heM arketinSg trategoy f theY earA warda t theN ationaBl usinesAs wardsfo r 'Safetyfr omt heG round Up'.
October 2007
' SpeedyH irei s thef irstc ompanyin itss ectort o taked eliveryo f a fleeto f highe nergy
batteryp oweredd eliveryv ehicles.
' Speedyw insP lantH ireC ompanyo f theY eara t theC ontracJto urnaAl wards
' TheG roupi s alsoa wardedB estC ontributioton Healtha ndS afetya ndE nvironmental
lssuesa t the HireA ssociatioonf Europe'As nnuaHl ireA wardso f Excellence.
Septembe2r 007
' Speedya chievesth en umbeor nes poti n TheO bserver'Gs oodC ompanyG uidea s the
NumbeOr neE thicaIln vestmenCth oice.#p#分页标题#e#
August 2007
' Speedya nnouncetsh ec ompletioonf thea cquisitioonf theT oolH ired ivisiono f Hewden
StuartP lcf or t115 milliona transformationdaela lc onsistenwt ithi tss trategyo f growing
theb usinesso rganicallayn dt hrougha cquisition.
July 2007
' Speedya nnouncetsh ea cquisitioonf WaterfordH ireS ervicesL imiteda long-standing,
well-respecteidn,d ependentot ola nde quipmenhti reb usinesws ith3 1 empl-oyees
operatingfr omt wo depotsi n WaterfordC itya nd SouthK ilkennyin SouthE asil relandf,o r
€5.2 million.
' SpeedyH irei sj udgedt o bet heb estc ompanyin the UKf ort hes ociailm pacot f its' safety
fromt heG roundU p'c ampaignbsy winninga topC SRa wardf romB usinessin the
Community.
' SpeedyG eneratorisn vestsC 8m illionin newe quipmentto poweri tsg roqh.
May 2007
' Speedyis theo nlyt oolh irec ompanyto achievea listingin the SundayT imesT op 100f or
CorporateR esponsibility.
' Speedyin vestsin greenedr eliverieasn nouncintgh ea dditiono f thef irste lectricv ehicles
to itsf leet,w hicha ret otallys ilenta nde mitn o CO2.
April 2007
' SpeedyH irel aunchesth et hirdp haseo f itsa ward-winnin'sga fetyf romt heG roundU p'
campaignfo cusingo n preventiona nd controol f dusti n thew orkplace.
Page 51
March 2007
. Speedyis honoureadt theP LCA wardsin associatiowni tht he FinanciaTli mesT. he
Groupw int heB estI nvestoCr ommunicaticoant egoryA.t thes amet ime,S teveC orcoran
is runner-upin the Entrepreneuorf they ear category.
February2 007
. Speedyo pensf irsts tand-alonsea fetyd epot o supporOt lympicG ames.
January 2007
' Speedyin vestsin thef uturew itht hel auncho f theA pprenticeshSipc hemeb asedo n the
ModernA pprenticeshiinp p lant& Maintenance.
Octobe2r 006
. SpeedyL iftingis accreditewd itht he lnvestorsin Peoples tandard.
. SpeedyP oweri s accreditewd itht he Investorisn Peopfes tandard.
' SpeedyL iftinga nnouncetsh ea cquisitioonf LiftingG earH ireL imitedfo rt 13 5 million
Thist akest hen umbeor f depotsa nde mployeeasc rossth eg roupt o over3 50a nd3 800
respectively.
June 2006
. speedya nnouncetsh ati t is nowa membeor f theF TSE2 50.
May 2006
' SpeedyP owera nnouncetsh ea cquisitioonf LCHG eneratorLsi mitedfo ra cash
consideratioonf e 59.0m illion.
. SpeedyS pacei s accreditewd itht he Investorisn Peoples tandard.
' Speedy'Ps_re liminarRye sultss howr evenuein creasebdy 23o/too f254.3m illiona ndp rofit
grew by 25% to 130.7 million.
. LordH unt,M inistefro r Healtha nd Safetyc ommendsS peedyo n its 'safetyf romt he
GroundU p'campaign.
April 2006
' Speedy'Hs and-ArmV ibratioCn ommunicatioCnsa mpaignre ceivesa toph onoufrr om
OPERCt,h el eadingin ternationcael ntreo f excellencfeo r planta nde quipmenstc ience"
March 2006
, o SpeedyH irel aunchesth e secondp haseo f its awardw inning's afetyf romt he GroundU p'#p#分页标题#e#
campaignfo cusingo n Hand-ArmV ibration.
February2 006
' SpeedyH ireP lcl aunchesit sT ools,L iftingS, urveya ndP owerd ivisionisn lrelandw ith
depotsin Belfasat ndD ublin.
. SpeedyS pacea nnouncetsh ea cquisitioonf CaledoniaSna femakefro r a cash
consideratioonf E13.7m illion.
Decembe2r 005
' Speedya nnouncetsh e acquisitioonf Mowlema nd its accommodatioann d surveyf leetf or
f5.1 millionS. peedya lsoe ntersin toa five-yeaer xclusivseu pplya greemenwt ithM owlem
for accommodatioann ds urveye quipment.
Page 52
Novembe2r0 05
. SpeedyH ireP lca nnounceasn othesr eto f strongin terimre sultst.u rnoverrs r "rp2 1 3"/oto
8120m illionw, hileo peratinpgr ofitb eforea mortisatioann di mpairmenint crease2s6 %t o
817.3m illion.
. TheG roupi s alsoh onourewd itht wom orea wardsF irstlyt,h eG rowthS trategoy f the
Yeara warda t theN ationaBl usinesAs wardsT hen,S peedy''sS afetyfr omt heG roundU p'
campaignw insC ampaigonf theY eara t theC onstructioMna rketinAg wards
Octobe2r 005
. SpeedyH ireP lci s namedP lantH ireC ompanyo f theY eara t theC ontracJto urnal
AwardsI.n t hes amem onthth ec ompanayc quireDs elynH ireC entres'4lo cationisn
North Wales.
August 2005
. Speedyc ompletetsh es igningo f a newt 150 milliond ebtf acility
July 2005
. Speedya cquiretsh ei nternapl lanth ireo perationosf MJ GleesonG roupP lca nds ecures
a f6 millionh irea greement.
June 2005
. Speedy'sp reliminarrye sultss howa turnoveirn creaseo f 21%t o e2065 rnillionw, hile
profitb eforeta xi s up 12.4%to f23.8 million
May 2005
. SpeedyH ireP lci s namedH ireC ompanyo f theY earb y the HireA ssociatioonf Europefo r
an unprecedente3drd y eari n a row.A t thes amee vent,J ohnB rownr eceivetsh eH ire
Person of the Year award.
April 2005
. SpeedyH irea nnouncetsh ea cquisitioonf theb usinessa ndc ertaina ssetso f 'TheC abin
CompanyL imited,'aw holly-ownesdu bsidiaroyf BirseG roupf,o r a maximumc ash
consideratioonf 16.25m.
. As announceadt theA GMi n July2 004t,h eB oardo f SpeedyH ireP lcc onfirmtsh e
appointmenotf SteveC orcorana s ChiefE xecutivew ithe ffectf rom4 thA pril2 005.J ohn
BrownS, peedyH ire'sfo undera ndr etiringC hiefE xecutivew, ills tepd ownf romt heB oard
at the AGM in July 2005.
' February 2005
' SpeedyH irea nnouncetsh ea cquisitioonf theb usinessa ndc ertaina ssetso f D.A.DH. ire
ServicesL tdf or a cashc onsideratioonf f0.3m.
. SpeedyH irea lsoa nnouncesit hasd isposedo f in full,t he tradea nd assetso f ToiletH ire
U.K.t o a managemenbtu yi n team.
. SpeedyH ires trengthenists marketle adingp ositionw itht he purchaseo f LloydsB ritish
Hiref orf 3.1m,c ementinSg peedyL ifting'ps ositiona s the Number1 provideor f Lifting
and MaterialHs andlinge quipment.
November2 004
. SpeedyH ireP lc'si nterimfi nanciarle sultss howt urnoveirs f98.9m( 2003e: 79.8ma) nd#p#分页标题#e#
operatingp rofiti ncreasesb y 23.8%.
Page 53
. SpeedyS urveyc ontinuetso developit si ndustrlye adings pecialisotf feringa ndc elebrates
beinga wardedth eI nvestorisn Peoples tandard.
October 2004
. Speedyc ontinueists d ynamicg rowths trategwy itht hea cquisitioonf thei nternahl ire
operationosf SimonsC onstructioLnim ited.
August 2004
. Speedyb uysC oatesR entA ir,i nvestinfg6 65mi n thep urchasew, hicha ddss ixn ew
depotsa ndm eansS peedyb ecometsh em arkelte aderin poweri,n cludincgo mpressed
air,g eneratorasn dl ightingto wers.
. Speedya cquiresM ultia ndt het en-sitef7 .65 milliond ealf urtheer nhanceSs peedy's
positiona s theN o.1i n theU Kt oolh irei ndustrayn de xtendsS peedy'cso veragein
BirminghamG,r eateLr ondonL, eedsL, iverpooaln dM anchester.
. Speedyc elebrateists 2 500the mployeaen dF inanciaDl irectoNr eilO 'Briens ays" Our
culturea nd rewards tructureis firmlyf ocusedo n staffl oyalty- providingg reati ncentives
fora llt o succeedF. ori nstancew, e paidf 7.6 millionin staffb onusesin thef inanciayle ar
2003104a;n averageo f moret hanf 3000p ere mployee."
July 2004
. SpeedyS urveyc elebrategsa ininglS 09 001i n undera year.
. SpeedyH irea nnouncetsh atS teveC orcorawn illt akeo vera s ChiefE xecutivwe ithe ffect
from 1 April 2005.
. The'Safetyfr omt heG roundU p'campaigbny Speedyb eginsin earneswt itha nationwide
investmenint Suredec-k p arto f Speedy'ms ultim illionp oundi nvestmenint healtha nd
safety- andw orka t heighst olutionisn particular
June 2004
. Speedya nnouncesst rongp reliminar2y0 031200fi4n anciarle sultst:u rnoveur p 18%t o
L170.2m illion.
April 2004
. SpeedyH irei s namedH ireA ssociatioEnu rope'Hs ireC ompanyo f theY earf ort he
secondy earr unningS. peedya nd Interserven teri ndustry-leadinagg reementsa,s
Interservme ovest o streamlinaen dc o-ordinatael lo f itsp urchasinfgro ms mallh irea nd
plant providers.
. Speedya ndt he Hand-ArmV ibrationw orkingg roupl auncha newh ealtha nds afety
trainingp acka t Interbuil2d0 04.T heg roupb ringsto gethesr uppliersc,o ntractors,
constructioonr ganisationasn d Speedyin thef irsti ndustry-widweo rkt o tacklet he issueo f
hand-armvi bration.
March 2004
. SpeedyP owerl auncheist sP umpsD ivisionS. peedyP ower'sc ommitmentot innovation
and investmenits demonstratebdy the developmenwt,i th Genseto, f the industry's
leadingr angeo f super-silenceedn, vironmentalflryie ndlyp owerfupl umps.
February 2004
. Speedys ignsa preferreds uppliear greemenwt ithM owlemf or a minimumo f 3 years,
demonstratinigts abilityt o worki n partnershiwp itht he contractotro provided edicated
hired esks ervicesc, onsolidateidn voicesa nd bespokem anagemenrte porting.
. Speedya cquiresP itreavieT oolH irei n Scotland- the deals trengthenSs peedy'se xisting#p#分页标题#e#
operationin Dunfermlinaen dg ivest heb usinesas news trategilco cationin Livingston.
Page 54
. Thea cquisitiofno llowsa busy1 0m onthsfo r Livingstobna sedS peedyS cotlandT hough
lesst hano ney earo ldS peedyS cotlandis alreadyc hangingth ef aceo f thet oolh ire
industriyn Scotlandth roughit sg rowingn etworko f 23 depots
Decembe2r0 03
. SpeedyL iftingc elebrateists f irstb irthdawy itht hea wardo f then ewI SO9 001s tandard,
emphasisintgh ec ompany'cso mmitmentot healtha nds afetya, ndt heo ngoingtr ainingo f
specialiste,x perts taff.
Octobe2r 003
o fl €1.3m illiona cquisitioonf WattsO ptronicssa lesa ndh iren etworkfr oml eadings urvey
equipmenmt anufactureLre icaG eosystemfsir mlyc ementsS peedyS urveya s then umber
ones uryeye quipmenhti rec ompanyin the UK.S peedyS urveyis on trackt o becometh e
numbeor neh irero f specialisstu rveye quipment
Septembe2r0 03
. SpeedyH irem akest hef 2.2m purchaseo f theb usinesas nda ssetso f St VincenPt lant,
fromp rivateloyw nedc onstructioann di ndustriasle rvicesc ompanyC, lugstonG roupT he
purchasep rovideSs peedyw itha nothesr evend epotsin Yorkshiraen dL incolnshire
locatedin BradfordD, oncasteGr, rimsbyH, ull,L incolnS, cunthorpea,n dS heffiel-d a nda n
enhancedn ationaol ffering.
July 2003
. Thea cquisitioonf KingfisheHr irem eansS peedyin creaseists d epotn etworka nd
capabilitieAs. f urthear cquisitionA,s hteadP lantH ire's'BigA ir'D ivisionm, akesS peedy
then umbero neh irec ompanyfo rc ompresseadi ri n the UK.
. SpeedyS pacec ontinuetso expandt,a kingi tsn umbeor f locationtso 14w itha majorf 7m
investmenint theb usinesss,u pplyinpgo rtablea ccommodatioton t heU K construction
industrya ndt he rail,u tilitieas ndf acilitiems anagemenste ctors.
May 2003
. Speedyis namedH ireA ssociatioEnu rope'sH ireC ompanyo f TheY earf or national
multipleo utlets.
April 2003
. SpeedyS cotlandis officialllya unchedw ithJ ohnC ummingas s ManagingD irectoar nd
quicklye stablisheists elfin them arkewt orkingw ithc onstructiobnu, ildings ervicesr,a il
andu tilitiesin ScotlandT.h en umbero f depotsg rowss teadilya ndt he SpeedyS cotland
teamw insc ontractisn cludintgh eS cottishP arliamenatn dt he newE dinburgRh oyal
Infirmary.
February2 003
. Speedys ignsa €,3me nhancedc ontracwt ith Kierc onstructiond,e monstratinSgp eedy's
abilityt o worki n partnershiwp ithc onstructiocno mpanies.
January2 003
. Speedys etso ut its objectiveto growt he sizeo f the businessb y 30 depotsa crosst he UK
in 2003.
October 2002
. Speedyc onsolidateasl lL iftingd epotsa ndf ormsS peedyL iftingL imited.
Page 55
January2 002
. Speedya cquireJse wson'3s7 standalondee potsa nds ubstantialilnyc reasetsh es izeo f
itsd epotn etworke, nsurintgh ats ervicea ndd eliveryc apabilitieasr es econdto none#p#分页标题#e#
wherevetrh e location.
2001
. JohnB rownn amedH ireA ssociatioEnu rope'sH ireP ersono f theY earf ort hes econd
time.
August2 001
. AllenP lcc hangesit sn amet o SpeedyH ireP lca ndb ecomeas puret oolh irec ompany
2000
. SteveC orcoranis namedH ireA ssociatioEnu rope'Hs ireP ersono ft heY ear.
Octobe2r 000
. SpeedyW esternis formedp, rovidinag significanbta sef romw hicht o servicec onstruction
businesseisn Bristolt,h eW esternR egiona ndW alesa ndt o furtheirn vestin newd epots
and equipment.
April 2000
. SpeedyP owerc ommencetsra dings, uccessfulslyu pplyinign ton ewm arketsw, here
Speedyp reviouslhya dl ittlee xposurea,s wella s itse xistingm arkets
January2 000
. Thea cquisitioonf ConstructioIns trumentles adst o SpeedyS urveyb ecominga n
independenstp ecialisbtu sinessT.h ise nablesS peedyto maximisteh e utilisatioonf
surveyr elatedp roductsa ndt o betters ervicet he primaryc lientsfo r thism osts pecialised
equipment.
1 998
' JohnB rown,la tert o becomeS peedyH ireP lc ChiefE xecutiveis, namedH ireA ssociation
Europe'Hs ireP ersono f theY eara ndo utlinesh isv isionfo rt hec ontinuegdr oMho f the
business.
March 1997
. Launcho f SpeedyH ireD irecta, callc entreo peratione stablishetdo providea singlep ort
of callf or contractorws orkingo n a nationabl asis,
May 1996
. Acquisitioonf Midlandbs asedT idyH ire,b oostingc overagein theU K'si ndustrial
heartland.
1 995
. BeskabL tdc hangesit sn amet o SpeedyS pace.
Page 56
December 1995
. Speedy moves into Scotland for the first time, with the purchase of depots from John
Cummings who joins Speedy. Speedy begins to make its presence felt in Scotland,
offerings ervicest o the Scottishc onstructiont,r ansporta nd utilitiesin dustries
September1 994
. The acquisitiono f KendrickH ire's4 1 branchesw as the deal that reallyp ut Speedyo n the
UK hire industry map. The two companies are split to fornr Speedy Northern and Speedy
Southerna nd Speedyi s on the way to providingf ull geographicr eacha crosst he UK
February 1993
. Speedyb uys Hire-A-Toolb, oostingt he numbero f hire centrest o 30, and the wellestablishedte
amj oinst he Speedyg roup.S peedya nnouncest hat the companyw ill
continue to expand through strategic acquisitions
November 1990
. SteveC orcoran,l atert o becomeC hiefO peratingO fficer,l oins the companya s a member
of the sales team.
1 989
. Allen Plc, the parent group for Speedy Hire, was floated on the London Stock Exchange
October 1987
. FirstS peedyd epoto pens in Londone stablishinga base for the companyi n the southa nd
the foundationsfo r SpeedyS outherna re laid.T he now famous Speedyc hevronl ogo was
first introduceda t this branch.
19 83-19 87
. Speedys teadilyo pensa numbero f greenfieldd epots.#p#分页标题#e#
April 1982
. John Brown purchases Speedy Fixings Power Tools Ltd. In addition to the fixing business,
it operated3 hire outletsi n Prescot,M anchestera nd Llandudno.T he depot network
started to grow. lt was here he adopted the Speedy name
April 1977
. John Brown became Managing Director of Livesey Hire in \Mgan, later to become Speedy
Hire Plc. The Speedy vision begins with one depot in Wallgate, \y'Vigan.
Source: Speedy Hire.
Page 57
Appendix Nine - Mergers and Acquisitions
Acquisition 1
LCH Generators Limited (LCH)
Cost f 55m, Depots 6, Employees 190
Gompletion date 15 May 2006
LCH is a leading provider of temporary power for hire in the UK. lt has a proven track
recordo f growth,d rivenb y a combinationo f customerf ocus,c ommitment o service,f leet
investmenta, skilledw orkforcea nd a highlym otivatedm anagement eam. lt operatesa
nationaln etworko f sites,a nd providess ervicest o the off-shorem arket.
Followingth e acquisitionth, reed istinctb usinessu nitsh aveb eenc reatedw ithint he
Speedy Power company:
. Speedy Generators;
. SpeedyC ompressorsa; nd
. Speedy Pumps.
The acquisitionh as acceleratedth e developmenot f Speedy'se xistingp owerg eneration
business,p rovidingo ver 4,000 generatorsa vailablef or hire to servicec onstructiona nd
industriacl ustomersI.n additiont o the existingh ires ervicesin comes tream,t he
acquisitionb ringsa new lineo f revenuei n the form of fuel managements ervices.
LCHw as an already-expandinbgu sinessa, nd SpeedyH ireh as continuedth isg rowth
strategyp osta cquisitionT. he operationailn tegrationp rocessi s now completew ith a
smalln umbero f overlappingd epotsh avingb eenc onsolidatedin tot he company's
national Power network. Speedy Hire has also retained almost all of LCH's highly skilled
workforce,a numbero f whom have chosent o participatein the company'sS AYE
shareholdesr cheme.
Acquisition 2
Lifting Gear Hire Limited (Lifting Gear)
Gost L14m, Depots 34, Employees 340
Completion date 30 October 2006
LiftingG ear Hire is the UK's leadingi ndependenht irero f liftinge quipmentt o the onshore
marketa nd providero f associateds ervices,i ncludingt he repair,m aintenance,
testinga nd inspectiono f liftinge quipment.l t enjoysa strongb rand presencei n the
industriasl ervicesa nd manufacturings ectors.
' LiftingG ear'so perationsa nd customerb ase are highlyc omplementaryto SpeedyH ire's
existings pecialistli ftingb usiness.T he companyh opest hat the integrationw ill delivera n
unrivallede quipmenta nd serviceso ffert o customersa crossa spectrumo f industries,
productr equirementsa nd geographicallo cations.lt also adds new revenues treamst o
the businesso fferi n the form of testinga nd calibrations ervices.
The integrationp rocessw as startedi mmediatelya ftera cquisitiona, nd continuesa pace.#p#分页标题#e#
Progress made to date has been good. Speedy Hire has begun afar-reaching
investmentp rogrammet o help improveL iftingG ear'so peratingp erformancew, hich is
anticipatedto yield returnso n a par with the existingS peedy Liftingb usinessi n due
course.
Source: Speedy Hire.
Page 58
Appendix Ten - Office of Fair Trading Report
Anticipateda cquisitionb y SpeedyH ireP lco f the tool hired ivisiono f
Hewden Stuart Plc
The OFT'sd ecisiono n referenceu nders ection3 3(1)g iveno n 25 July 2007 Fullt exto f
decisionp ublished1 August2 007.
Please note that square brackets indicate figures or text which have been deleted
or replaced with a range at the request of the parties for reasons of commercial
confidentiality.
PARTIES
1. Speedy Hire Plc ('SpeedyH ire')i s a toola nd equipmenth irec ompanyl istedo n the
London Stock Exchange.
2. Hewden Hire Centresi s the tool hireb usinesso f HewdenS tuartP lc,a UK toola nd
planth irec ompany,w hich is itselfa n indirects ubsidiaryo f FinningI nternationaInl c
HewdenH ireC entrest' urnoveri n the UK in the most recentf inanciayl earw as
t89.8 million.
TRANSACTION
3. The partiesa nnouncedo n 14 June 2007a n agreementu nderw hichS peedyH irew ill
acquiret he assetso f HewdenH ireC entresf or t1 15 million.
4. The Officeo f FairT rading's( OFT) statutoryd eadlinef or decidingw hethert o refert he
mergert o the CompetitionC ommissioni s 26 July2 007.
JURISDICTION
5. As a resulto f this transactionS peedyH ire and HewdenH ire Centresw ill ceaset o be
distinctT. he UK turnovero f HewdenH ireC entrese xceeds€ 70 million,s o the
turnovert est in section2 3(1Xb)o f the EnterpriseA ct 2002 (the Act) is satisfiedT. he
OFT thereforeb elievest hat it is or may be the case that arrangementsa re in
progresso r in contemplationw hich,i f carriedi nto effect,w ill resulti n the creationo f
a relevant merger situation.
RELEVANTM ARKET
6. SpeedyH irea nd HewdenH ireC entreso verlapin the supplyo f toola nde quipment
hires ervicesU. nlikes omeo f theirc ompetitortsh, e mergingp artiesa ren ota ctivein
the hireo f heavyp lant.Tl he distinctiobne tween't ools'',e quipmenat'n d' plant'
seemst o be blurreda ndt he classificatioonf hirep roductsv ariesb etween
companieas nd industryc ommentators.
7. Hiredt oolsa nde quipmenat re predominantulys edb y customersin the construction
industryw, itho therc ustomegr roupsin cludingb uildings ervicese ngineersu,t ilities
andt ransporitn dustryo peratorsa,n dD IYe nthusiasts.
t
sucha sc oncretpeu mpinegq uipmenctr,a nese,a rthmovienqgu ipmenlat,r gep owereadc cess
equipmenctr,u shinpgl antr,o adm akinge quipmeannt dt unnellinegq uipment.
Page 59
8. The rangeo f productst ypicallyo fferedf or hireb y SpeedyH ire and HewdenH ire
Centres includes:#p#分页标题#e#
. access equipment
. drillinga nd breakingto ols/equipment
. concretinga nd compactinge quipment
. plumbinga nd pumpingt ools/equipment
. carpentrya nd woodworkingto ols
. lightingw, eldinga nd powere quipment
. heatingd, ryinga nd coolinge quipment
. gardeninga nd landscapingto ols/equipment
. cuttinga nd grindingt ools
. cleaninga nd floorp reparatione quipmenta, nd
. othert ools/equipmenitn, cludings urveyingto ols/equipmenatn d air compressors.
Product Market
9. Differentto olsa nd equipmenat re generallyn ot substitutablfer oma demand-side
perspectivea, s customersw ill hire productst hat meet their specificn eeds.
10. However,d ifferentt oolsa nd equipment ypesa re substitutablefr om a supply-side
perspectiveT. he principala ssetsr equiredf or a tool and equipmenth ire operation
(thati s, premises,s taffa nd stock)a re flexiblea nd thereforei t is relativelye asy for a
hire operator to expand its range of products quickly in response to shifts in
customerd emands.T hird partyr espondentsc onfirmedt his to be the case.
11. For that reason,t he OFT does not consideri t necessaryt o adopta narrowf rameo f
referenceb asedo n each specificp roductt ype.T he appropriatefr ameo f reference
is therefore tool and equipment hire.
Geographic Market
12.T he mergingp artiess ubmitt hatt he toola nd equipmenth ires ectorh as bothn ational
and locafc haracteristicsN, ationalc ompetitionta kes place amongt he largem ultibranchh
ireo perators,e ach of which has a nationwiden etworko f outletsa nd tends
to advertisea t a nationafl evel.
13. In addition,c ustomers,n otablyt he smalfero nes, have accesst o locals uppliersT. he
partiess ubmitt hat smallerc ustomersw ill usuallyo nly be preparedt o travela 15-
minuted rivet ime for tool hire,s uggestinga 1O-miler adiusf or localm arkets( or
three milesw ithint he M25).T his was consistenwt ith the parties'i nternall ocal
market anafysis and with comments by third parties.
14. The impacto f the mergerw ill thereforeb e considereda t both locala nd national( UK)
levels.
Page 60
HORIZONTAILS SUES
Market Shares
15.D ataw as providedb y the partiesf romv ariousp ublics ources,b asedo n various
alternativec ompetitives ets.T he resultingv ariationin shareo f supplye stimates
reflectsin formationg apso n the importanceo f smallerp layers,a nd inconsistencies
in the distinctionbs etweent ools,e quipmenat nd plant.H owever,o n any rneasure
the merging parties are the market leaders.
16.T akingi ntoa ccountt oolsa nd equipmenot fferedf or hireb y any type of company,
bothl ocala nd nationaol peratorst,h e partiesc' ombineds hareo f supplyi s [10-20]
per cent (incrementf lesst han 5] per cent).A n independentr eport( the 'AMA
report'),2w hich limitsi ts analysist o nationalt ool hire specialistsa3n d to a narrower#p#分页标题#e#
rangeo f products,i ndicatest hat the parties's hareo f supplyo n this narrowers cope
is almost3 0 per cent (incremen1t 0 per cent).
17. The partiesi dentifieda smalln umbero f locala reasw here post-mergert herew ould
be limitedn umberso f competitorsp resent.H owever,i n each localityt herew ould
remaina t leastt hreeo thert oola nd equipmenth irec ompaniesN o thirdp arty
raiseda ny type of concernsi n relationt o competitiona t a locall evel
lnVfn ResearchL td- 'ToolH ireS pecialistMs arke-t UK2 006';J une2 006.
In otherw ords,it excludesc ompaniews hicha ren otp redominantalyc tivein toolh ire,s ucha s
constructiocno mpanieasn dp lanth irec ompaniesa,s wella s smalletro olh ireo peratorisn cluding
buildersm' erchants.
Non-Coordi nated Effects
18. SpeedyH irea nd HewdenH ireC entresa re two of the largestn ationatl ool hire
operators, and they both compete for national contracts with major customers.
However,a ftert he mergert herew ill remaina numbero f others ignificannt ational
players,in cludingto ol hires pecialistsc,o mbinedt oola nd planth ireo peratorsa, nd
buildersm' erchantsb usinesses.
19. The AMA reporti ndicatest hat the industryi s facingi ncreasingc ompetitionf rom the
builders'm erchants ector,a nd notest he significantp otentialf or expansionu sing
existingm erchantd istributions tructuresA. lso, accordingt o the AMA report,t he tool
hire sectorh as been growing,w ith the majorc ompaniese xpandingo rganicallya s
well as by acquisition.
20. In relationt o competitiona t a locall evel,t hird partiess ubmittedt hat small playersa re
able to provideg enuinec ompetitionto individuaol utletso peratedb y the national
multiples.
Barriers to Entry
21. Third partiesc onflrmt he parties's ubmissiont hat barrierst o entry are not significant.
This is true in particularf or localh ireo perationsw, hile entry on a nationalb asis
would naturallyr equirem ores ubstantiailn vestmenat nd planningT. hirdp artiess aid
that an existing hire operation can quickly expand the range of tools or equipment
available if there are shifts in demand or margins between the different types, and
the AMA reportn otes continuouse xpansiono f the market.
Page 61
THIRD PARTY VIEWS
22.The OFT receivedc ommentsfr oma numbero f competitoras nd customersn, oneo f
which raiseda ny substantivec ompetitionc oncernsi n relationt o the merger.l n fact,
mostc ommentatorse xplicitlya greedt hat therer emainss ufficientc ompetitiona t
both nationala nd locall evelst o meett he requirementso f the full rangeo f customer
types.
ASSESSMENT
23. Althought he partiesa re both nationalp layers,t heirc ombineds hareso f supplya re
not such as to give riset o competitionc oncerns.T herea re sufficientn ationala nd
local players to provide competitive constraints on the merged entity both for#p#分页标题#e#
national contracts and for local tool and equipment hire needs. Third parties were
unconcerneda boutt he merger.
24. Consequentlyt,h e OFT does not believet hat it is or may be the case that the merger
may be expectedt o resulti n a substantialle sseningo f competitionw ithina market
or marketsi n the UnitedK ingdom.
DECISION
25. This mergerw ill thereforen ot be referredt o the CompetitionC ommissionu nder
section 33(1) of the Act.
Source: Office of Fair Trading
Page 62
AppendixE leven- SpeedyH ireM arketR eport2 007:S ustainedm omentum_-
CatherinSe trattonI,n dependeAntn alyst
Nearlys ix years ago Speedye mergedf rom subsidiarys tatust o becomea fullyl isted
companyo n the LondonS tockE xchangeI.n the yearsi mmediatelyp recedingit s listing
Speedyh ad expandedt o becomet he mainc hallengetro HSS in the tool hirem arketa nd
soon wrested the number one position from the company whose name had become
synonymous with its trade. As the most recent rankings from the Executive Hire News
Top Ten survey( January2 007)i ndicate,S peedyh as continuedt o move aheado f the
competition(.S eed iagrams1 and 2 on page6 4).A tlt he indicationsa re that Speedyi s
not only the market leader in tool hire but it can now claim to be the largest player in the
overallU K planUtool/equipmemnta rketa s its annualr evenueh as now overtakent hat of
Hewden, the long time leader (see table below).
UK revenues Year ended
335.5
282.5 !:1 1?,06
167 2 39 -0,1,06
1 633 31 12 06
31.030 6
89.1 est. 31.12.06
81 5 31 J 2.d"6
77.4 31 05 06
686
6{5-
A major key to Speedy's success is that it has not been content to hire tools to the
sector'se stablishedc ustomerb ase,w hich was originallyl argelyc entredo n the DIY
market and the small tradesmen; the company has looked to expand and develop the
potentialf or the sectorw ithint he wider constructionm arket.T his has been a perceptive
move as the DIY marketi n particularh as declinedi n importancei n recenty ears.T hese
changesi n the marketplaceh ave led to a blurringo f the traditionald istinctionb etween
'planth ire' and 'tool hire'a s non-operatedp lants pecialistsh ave moved intot ool hire and
tool hirersh ave widenedt heir offeringsi n particularw ith compactp lanta nd nonmechanicala
ccessa nd liftinge quipment.D emandf or mini-a nd micro-planth as grown in
response to the trend to develop restricted sites (often brownfield), and the risks
associated with manual handling. This year the Executive Hire News: Top Ten tool hirers
are forecast to generate revenues of over t850 million; it is estimated that these ten
hirers account for some 53% of their market, giving an overall value of some t1 .6 billion.
(See diagrams 1 and 2 on page 64).
99.4
6. Brandon
7. Lavendon#p#分页标题#e#
8. Ainscouqh Crane
10. Hvdrex
Page 63
200i
(estirnalt')
(Companiesl istedi n order,f rom the top of each circlei n clockwised irection)
A naturalc onsequenceo f Speedy'ss uccessfuel xploitationo f generalc onstructiona s a
customerb ase has been the developmenot f specialistp roducta reas.T his has also been
encouragedb y the company'ss erieso f acquisitionso f plant subsidiariesfr om
constructiong roups.T he supplya greementsin variablya ccompanyings uch transactions
have often involvedS peedy providinga wider rangeo f equipment.E arliert his year the
companya nnouncedt he renewalo f an agreementw ith the privatelyo wned Osborne
I
ffi
ilw
$gixr*$y
r-{$s
ffirar"*c{*n
F{s';v<i*.':{rT'r* *tsi
ffi .j**n.*osl ${ire F*rirrt ,;'AF'
il.;t.n i* {it*tion Jfr fu'lir*"lirilri lrrlr{l "'{rru
+tlrini ptxnt"t-o*l f{ire $t}x:r's
T F i-{ir*
Page 64
Groupb y whichi t wills upplyt oolsa nd equipmenta cross
withO sborneo riginatedw itht he saleo f theirC hichester
i tsw holer ange,t he relat ionship
plants ubsidiaryto Speedy
ryryryffiffinfffifffi 70,000
20cr: 2003 2cn4 2c05 2000
i F )
Fiiliii i, $]tli"3.1,i11';
ffi 1*r3r;slri;r!
! *it*v*r t,1rrl.iii,.:
lr*?"r-hr,rrr* irr,;
(Keys tartsf romt het op of the barc harta ndw orksd ownwards)
Overt he pastd ecaden ational/regionsaulp plya greementbse tweenc ontractorasn d
hirersh aveb ecomea n increasinfge atureo f the sectora ndt hisi s sett o remaina s
contractordse manda highs tandardo f serviceto meeth ealtha nds afetyr equirements
andf aceg rowingc oncerna bout hee nvironmentiaml plicationosf t heiri ndustryI.n line
withm anagementrt endsc, ontractorcso ntinueto streamlinteh eirs upplyli ness o that
theyc an be assureda highl evelo f servicea ndc utc osts( fore xamplei,t hasb een
estimatedth ati t costsu p to f 15t o processe achi nvoice)I.n evitabltyh e focusi s on the
smalln umbero f toola nde quipmenhti rersw hoc an providea national/regionsaelr vice
ands upplya wider angeo f machinesm, aintainetdo a highs tandaradn da blet o present
allt he necessaryh ealtha nds afetyq, ualitya nds upplyc hainc redentials.
Speedyh as builto n itsi nitia'ls econdarya'c tivityo f portablea ccommodatiosno that
todayi t is numberth reei n thats egmenot f the marketM. orer ecenyt earsh aves eent he
companye stablishinag portfolioo f specialisht irep roductsw hichb egana ndw ere
nurturedw ithint het oolh ireb usinessv,i z.s urvey,p ower,a ndl iftingS. peedy'sla test
strategicg rowthm ovei s to spliti ts powero perationin tot hrees eparatep roduct
businessesc:o mpressorsp,u mpsa ndg eneratorsE. acho f thesei s nowt o get itso wn
managementet ama nds alesf orcea ndt o builds eparated epotn etworksT. hec ompany
is lookingto expandi tsl argere quipmenrta nge.S peedya lreadyc laimst o havet he#p#分页标题#e#
biggesgt eneratoar ndc ompressoflre eti n the UK andt hisf leete xpansionw illt akei t into
newm arketsa nd intoc loserc ompetitiowni thi nternationapll ayerss ucha s Aggrekoa nd
Atlas Copco.
Page 65
Anothere xampleo f the company'ss pecialisat ctivityi s the recente stablishmenot f a
Speedy Safety depot in East London, well situated to meet the needs of the Olympic
sitesa nd perhaps,t he nexts pecialispt roducta rea for the companyt o expand.S afety
continuest o be an outstandinglyim portantc onsiderationfo r hirera nd contractora like,i t
is fast becomingo ne of the mostc rucialf actorsi n winningb uildingc ontracts.H SE
statisticsin dicateda significanrte ductionin the numbero f deathso n constructions ites in
200512006(5 9 fatalitiesc omparedw ith 69 the year before);n evertheless2 8% of all
workerd eaths lasty earw ere in the constructionin dustry.O f the 59 deaths,2 4 were due
to fallsf rom height,i n spiteo f the Work at Heightsr egulationsT. his legislationh as
promoteda significanut pturni n demandf or botht he non-mechanicaalc cessa nd the
ancillarye quipmen(t harnessese tc.)s uppliedb y Speedya nd otherh irers,a nd for the
powereda ccesss ector.T he importanceo f Health& Safetyi ssuesf or Speedyi s
exemplifiedb y its recentu ndertakingo f a surveye xaminingh ow contractorsw ere
respondingt o the new respirablec rystallines ilicar egulationsT. his resultedi n a
marketingc ampaignw hicha imst o helpS peedy'sc ustomersu nderstanda nd tacklet he
dangers of Dust at Work.
The past year has seen Speedy's first venture outside the UK mainland with the opening
of depots in both Belfast and Dublin. These offer the wider range of Speedy equipment
and should proves pringboardsfo r expansiona crossl reland,w herec onstruction
developmentsa re expectedt o be a majorb eneficiaryo f the 'peaced ividend'.T he
Republico f lrelandi s, of course,a lreadyb ooming,m ainlyi n Dublinb ut also in regional
centress ucha s Galwaya nd Waterfordt;h isJ anuarys aw the launcho f lreland'sN ational
DevefopmenPt lan 2007-2013.C alled' Transforminglr eland- A BetterQ ualityo f Life for
All', this sets out a €54 billioni nvestmentin the lrishe conomici nfrastructurea nd follows
the NDP 2000-2006w hich invested€ 57 billioni n the infrastructureW. ith all the
indicationsth at the futuref or Northernl relandi s much more stable,i ncreasingi nvestment
is also expectedt here.D evelopersw ill be eagert o take advantageo f the 'peace
dividenda' nd therea re alreadyh ighlya mbitiousp rojectsin the pipelineli ket he t3 billion
plant o developt he 'Titanicq' uartero f some 185a creso n the RiverL agan.
Competitive Landscape
Can Speedy sustaini ts success?l ts seeminglyi nexorabler iset o the top of the tool hire
marketw as aided,t o some extent,b y the misfortuneso f severalo f its competitors- in#p#分页标题#e#
particulart he difficultieso f HSS. Just a month beforeS peedy'ss tock marketd ebut,H SS
acquiredU S hirerR entX;t wo monthsl ateri t was facedw ith the downturnr esultingf rom
9111. Perhapsb ecauseo f the problemso n the others ide of the Atlantic,H SS did not fufly
recognise and respond to the changes in the UK tool hire market. Some of those
changes were fuelled by Speedy's strategy of widening that market to embrace
contractingc ompanieso f all sizes,w hile HSS continuedd own its D|Y/smallt radesmen
path. HSS was constrainedb y its propertyp ortfoliow, hich was largelyb ased on a high
streetp resence,w here increasinglyc ongesteda ccess,l imited/nonexistenpta rking
availabilitya nd not infrequentlyh igh rents,a ll addedt o the problems.S ince the
Management Buy-ln at HSS at the end of 2003, these problems have been gradually
addressedw ith the companym akingr adicalc hangesa nd reorganisingit s property
portfolioi nto a 'hub and spoke's tructure.2 006 saw the reversalo f the losseso f recent
years and the numbert wo playeri n the tool hire marketn ow lookst o have establisheda
more robust platform from which it can mount a recovery. The future for Hewden as the
third largest player in UK tool hire remains uncertain; the protracted period during which
the company'st ool hire operationsh ave been 'for sale'will not have improvedt he
confidence of customers or staff; it seems likely that its share of the market will have
declinedb ut untilw e knoww ho, if anyone,w ill buy it, it is difficult o commento n its
prospects or the effect its sale might have, although any sale will almost certainly mark a
furthers ignificantr ationalisatiomn ove in the sector.M eanwhile,a s we pointedo ut in our
Page 66
openingp aragraphH ewdenh as now losti ts overalll eadershipo f the UK hrrel narkett o
Speedy;F inningsf'i rstq uarterr eportf or 2007a lso indicatesth at Hewdens aw a slightf all
in rentalr evenuesin the period.
The saleo f Hewden'sto olh ireo perationsi,f it occurs,w ouldc omeo nlya year aftert he
BrandonAlVolseleHyi reC entersm erger.S o far there is fittlee videnceo f what impactt hat
has had on the overallm arket.T wo otheri mportanpt layers- Vp/HireS tationa nd A-Plant
have recoveredw ell from difficultieso f recenty ears.O veralli t is fairt o assesst he health
of most of Speedy'sm ajorc ompetitorsa s improvinga gainsta favourablee conomic
backgroundS. o, perhapst,i mesc ouldb e a littlem orec hallengingfo r Speedyo n the tool
hiref ront.O n the otherh anda ll the majorp layersc an expectb enefitf romt he continuing
buoyancy of their customer base.
Economic Outlook
Forecastersa re expectingc onstructiono utputt o rises ome 2.7% and the growthr ate to
acceleratef urtheri n 2008 and 2009.T he quarterp ercentagein creasei n interestr atesi n
May,w hich putsr atesa t theirh ighestl evelf or six years,h as not givenr iset o concern,i n#p#分页标题#e#
AprilM ervynK ing,t he Governoro f the Banko f England,in dicatedth at he thought
inflationw as on the turna nd woulds oon begint o fall.H e anticipatedth at therec ouldb e
a sharpd eclinei n the rateo f inflationo vert he nextf ourt o six months.l n Aprilt he
consumerp ricei nflationfi guref ellt o 2.8%f rom 31% in March,w hilet he RetailP rice
fn dexf ell to 4.5%f rom4 .8%i n the previousm onth.D espitet hesee ncouragingd eclines
and the prospecto f fallsi n energyp ricesc ontinuingto reducei nflationi,t is thoughtt hat
the Bank of Englandm ayw isht o raiser atesa furtherq uartero f one per cent this
summer in ordert o ensuret hat inflationi s underc ontrol The Bank'sr eportf or the first
quartero f 2007 warnedt hat inflationw as still 'a mediumt erm risk'b ut affirmedt hat higher
borrowing costs would not hurt growth.
Neverthelessa s we move ever nearer 2012 and the Olympics,c onstructiona ctivityl evels
should remainh ealthy.T he Ernst& Young/ConstructioPn roductsA ssociationA ctivity
Barometer was at its highest level ever in the first quarter of 2007 (the survey began in
2005).T he main contributoryfa ctorsw ere statedt o be 'a strongerp rivates ector'a nd 'a
modestp ick up in governmenftu ndedw ork'.S imilarlyth e Royall nstitutiono f Chartered
Surveyorsf oundt he growthi n the same periodh ad accelerateda t the fastestp ace for
three years and singledo ut privatec ommercialc onstructionto getherw ith schoolsa nd
hospitalsa s the maine nginesf or expansionT. he PurchasingM anagers'I ndexf romt he
CharteredI nstituteo f Purchasinga lso revealeda sharpg rowthi n UK constructionin the
quarter and again found it was at the highest level for three years.
The spending plans of the Government, utility companies and the private sector suggest
that, unlesst here is a significandt ownturni n the economy,c onstructionis set for a
sustainedp eriodo f groMh up untilt he Olympicsi n 2012.T he ConstructionP roducts
Associationi s predictingth at constructiong rowthw ill outpacet hat of the UK economy
over the next three years. lt expects public sector work to pick up but the private sector to
be the main driver.
It is anticipatedt hat the Governmentw ill soon be publishinga PlanningR eformW hite
Paper based on some of the recommendationso f the BarkerR eport.T his advocatedt he
streamliningo f the planningp rocessa nd the introductiono f a new systemt o deal with
major infrastructurep rojects.T he enactmento f such legislationw ould undoubtedlyb e a
further spur to the constructions ector.l t is reportedt hat the governmenti s anxioust o
implementc hangest o planningr egulationsin ordert o facilitatei,n particulart,h e building
of nuclear power stations as concern mounts over supply in the next decade. Last
Novembera reportf rom LogicaC MG concludedt hat the electricitys upply might only be#p#分页标题#e#
Page 67
ablet o meett hree-quarterosf peakd emandb y 2015u nlessm orew as done to
encouraget he buildingo f new powers tationsa nd to extendt he life of existingo nes.
Environmentails suesa re likelyt o increasinglys et the agendaf or the whole construction
industry- worldwidet,h e sectori s estimatedt o be responsiblefo r over half COz
emissionsT. hisy earh ass eent he launcho f the UK GreenB uildingC ouncil;it s founding
membersa re 36 companiesw ith wide-rangingin terestsin constructionT. hey include
BritishL and,H anson,S ir RobertM "Alpinea nd WillmottD ixon.T he Councila imst o
achievea sustainableb uilte nvironmenbt y unitingt he fragmentedin dustryt hrough' a set
of core goals'.
Hirec ompaniesa re takingo n boarde nvironmentacl oncerns.H ewdenh as beguni ts
'GreenB oots'campaignto raisea warenessw ithint he constructionin dustryt hrougha
serieso f initiativesa t nationala nd regionall evel.S peedy'sl atest'green'i nitiativeis the
addition of electric vehicles to its delivery fleet - these are totally silent and emit no COz,
Speedy is the first tool and equipment hirer to make use of electric vehicles for its
deliveries.f t is indicativeo f Speedy'sa bilityt o innovatet hat the companyw as involvedi n
the design processf or the vehiclesd evelopedb y Modec.I nitiallyth e companyh as
ordered four vehicles for use in London but more will be ordered if they prove a success.
Beforet his latestp urchase,S peedyh ad achieveda 14% reductioni n vehicleC Oz
emissions over the past five years.
Overallp rospectsf or the UK hire sectora ppearw ell set in the shorta nd mediumt erm.
Speedy is showing that it is not content to merely follow a fair wind; it continues to open
up new channelsw ith its move into lreland,t he reorganisatioann d expansiono f its power
operationsa nd initiativesli ket he developmenot f the electricd eliveryv ehiclesa nd the
silicad ust campaign.W ith its strategyo f not merelyr eactingt o marketc onditionsb ut
helpingt o shapet he marketi tself,S peedyl ookss et to continuet o be a pacesetterin the
hire industry.
Catherine Stratton
Source: Speedy Hire.
Page 68
AppendixT welve- FinancialS tatementsf or SpeedyH i re
Financiahl ighl ights
Reven ue +32o/o
EBITDA +30%
Operating profit +31%
Revenue (€m)
00 :J
7o Turnover
29.9% 30
Oporatlng profit
pro-amortisatlon (fm)
Earnlngs por sharo
pre-amortisatlon penco
nI l . , l il
:o* ffi
350
300
250
200
150
100
50
0
tffil
H F1r ffi
18 0%
16 0,%
14 0,)6
12 0"1,
10 0,)6
8 0 %
6 09{,
4 0 %
20%
0 0 %
?2.O%
20 0%
1 8 0 % :
160% r
14.0% '
120% ,
'10
0%#p#分页标题#e#
8 0 %
60% r
4 . 0
20% l
00% r
*
2oos 2006
L
*Note: 2003-2004 includes charge for share-related awards based on UK GAAP
EBITDA as
29.9% 29.4%
@W f f i
f f i f f i
W ffi
ww ffi f f i f f i
f f i f f i
wffi Ews
W f f i W
W f f i f f i WW
f f i ' f f i I
W W
W f f i Wffi W M W:WAI WW.
2oos* 2ocg
35.0%
I
30.0% l
2so%l
2OO% l
I
rsox i
10.0% l
I
50% l
0 0 % ,
tT,] ffi
Group operating
Pre-amortisation
15 f ' x '
t4 i1k 14 t , r { , ffiffiffi
ffiffiffi f f i f f i f f i ffiffiffi re:\ll t{*sJlq R}si tj
;:","::;, employed (%)
ffiffi zoog'
F;t
fir.l
,,;
L--* ffi
ffi
margin
(%l,o*,
ffi
r;.r [. :-.1 til L;J
50
i : f f i
Iilv*.E\!l EIS{*Sli
MMI ffiB
Hffit tsffitil
wi:giEtt;lN F.M-rl
2oo3 * 2ooq *
Property, Plant and
Equipment - NBV (tm) .,s!i ,
ffiffiffiffiffi
*
zoo5
Page 69
Consolidatedi ncome statement
For the year ended 31 March 2007
2007
fm
2006
fm
2005
fm
Revenue
Cost of sales
335.5
-118.7
254 3
-81 I
206 5
-58 2
Gross profit
Othero peratingin come
Distributiocno sts
Administrativeex penses
216.8
43.2
-127.7
172 5
01
-23 5
-1125
148 3
02
-22
-96.5
Analysis of operating profit
Operatinpgr ofitb eforea mortisation
Amortisation
50
4.1
38 1
-1 5
306
- 0 6
Operating profit
Loss on disposal of operation
45.9 3 6 6 30
-07
Profit before financing costs
Financiailn come
Financiael xpense
45.9
0.4
-9.9
366
02
-6 1
293
01
- 4 9
Profit before taxation
Taxation
36.4
-9.8
307
-84
2 4 5
- 6 3
Profit for the financial vear 26.6 223 1 8 2
Attributablet o:
Equityh olderso f thep arent
Minorityin terests
26.6 221
02
1 8 2
223 1 8 2
Pence Pence Pence
Earningsp ers hare
- Basic 58.74 50.44 42.78
- Diluted 57.78 50.03 42.55
Dividend per share 1 7 1 4 3 1 2 . 3
Page 70
Consolidated balance sheet
At 31 March 2007
2007
fm
2006
fm
2005
fm
ASSETS
Non-currenat ssets
Intangiblaes sets
Propertyp,l ant& equipment
71.3
295.7
239
241 4
1 0 7
187 I
367 265 3 198 6
Current assets
lnventories
Trade and other receivables
Otherf inanciali nstruments#p#分页标题#e#
Cash
10.9
101.2
0.7
10.3
6 9
7 2 6
6 4
4 8
55 1
1 7
5 9
123.1 8 5 9 6 7 5
Total assets 490.1 351 2 266 1
LIABILITIES
Current liabilities
Borrowings
Trade and other payables
Current income tax
-91.8
-6
-69 5
-67
- 0 3
-47 4
-26
Non-current liabilities
Borrowings
Deferred tax liabilities
-186.5
-34.7
-109 4
-24 3
-88 7
-18 6
-221.2 -133 7 -107.3
Total liabilities -319 -209 9 -157.6
Net assets 171.1 141 3 108.5
EQUITY
Share capital
Sharep remiuma ccount
Merger reserve
Hedgingr eserve
Retainede arnings
2.3
57.8
3.7
0.5
106.6
23
5 1 . 0
3.7
84.1
2 . 1
32.7
3.7
70.0
Totale quity attributablet o equity holderso f
the parent
Minorityin terests
170.9
0.2
141.1
0.2
108.5
-97.8 -76 2 -50.3
Total equity
Page71
171.1 141.3 108.5
Tools Equipment
2007
fm
2006
fm
2005
fm
2007
fm
2006
fm
2005
fm
2007
fm
Analysis of seqmental result grj
(6.6)
Total revenue 175.5 1 5 1. 0 1291 166.6 1 0 7 . 8 80.7
lntra-Groupr evenue (0.8) (0.5) (0.4) (5.8) (4.0) (29 \
Revenue 174.7 150.5 128.7 160.8 103.8 77.8 335.5
Seqmental result before
depreciationa nd amortisation 50.5 45.1 387 56.3 37.0 27.2 106.8
Depreciation Q2.81 (20.9) (18.3) (25.0) ( 16.3) (2 41 (47.8
Amortisation (0.4) (0.6) (0.6) (3.7) (0.9) lJl
Result before corporate costs 27.3 23.6 19.8 27.6 19.8 14.8 54.9
Coroorate costs 9.0
Operatinq profit 45.9
Net financinq costs (e.5
Profit before tax $,!
Taxation te.8)
Profit for the vear 26.6
Segmental analysis (for the year ended 31 March 2007)
TheG roup'sp rimaryre portinfgo rmaits classo f businessa,s theG roup'sm anagemenatn d
internarle portinagr es tructureidn thism annerT. heG roupsa' ctivityis conductesdo lelyw ithinth e
UnitedK ingdoma ndR epubliocf lreland.
?005
fnr
Tools Equipment Total
2005
fm
2007
fm
2006
fm
2005
fm
2007
fm
2006
fm
2005
fm
2007
fm
2006
fm
Analysis of segment net
assets
Seqmentaln on-currenat ssets
Intanqiblea ssets 7.0 7.4 64.3 1 6 . 5 71.3 T5e
Propertyp,l anta nde quipment ',19.4 110.2 156.5 117.8 275.9 2280
126.4 117.6 220.8 134.3 347.2 251 9
Seqmental current assets 66.3 46.9 51.7 11.5 118.0 5 8 4
Seqmentaltotala ssets ',92.7 1645 141.1 272.5 1 4 5 . 8 107.7 465.2 3 1 0 . 3 248.8
Cash and cash equivalents 10.3 6 4 59#p#分页标题#e#
Unallocateads sets 14.6 3 4 5 1 14
Total assets 490.1 351 2 266 1
Seqmental liabilities (46.1) ( 4 1 . 0 ) (39.3) (51.3) (34.6) (28.3) (97.4) (75 6) (67 6)
Borrowings (186.5) ( 1 0 e4 ) (8e0 )
Uhallocatedli abilities (35.1) (24.s) ( 10 )
Total liabilities (31e.0)(20e.e)(1s7.6)
Net assets 171.1 141.3 108.5
Page72
Employees (for the year ended 31 March
The average number of people employed by the Group (rncluding
2007)
Directors)d uringt he year,w as as follows
Number of Employees
2007 2006
Analysis by segment
Tools
Equipment
Central
2,161
1,267
145
3,573
2,026
810
96
2,932
2006
fm
747
09
66
01
823
2006
t000
1.027
764
18
119
1,928
286
255
39
580
The aggregate payroll costs of these employees were as follows
Wages and salaries
Share based payments
Social security costs
Other pension costs
2007
€m
86.1
1 . 7
9.7
0.4
97.9
Directors' rem u neration
Directors' emoluments
Basicr emunerationi,n cludingb enefits
Performan ce-relatedb on u ses
Payments to former Directors
Companyp ensionc ontributionsto personalp ensionp lans
Emoluments of the highest paid director
Basicr emunerationi,n cludingb enefits
Performan ce-relatedb on u ses
Companyp ensionc ontributionsto personalp ensionp lans
2007
€000
914
657
48
95
1,714
311
281
45
637
Allo f the Directorsre' muneratioisn p aidb y SpeedyS upporSt ervicesL imited,
SpeedyH ireP lc.N o chargeis incurrebdy theP arenCt ompany.
a whollyo wned subsidiaryo f
Source: Speedy Hire
Page 73
Gase ends