Industry firm Speedy Hire has sold its large mechanical plant fleet for £14.4 million to Ardent Hire Solutions.

The deal features excavators, dumpers and ride on rollers of three tonnes or greater. In addition, the agreement includes a five-rear re-hire agreement, with an option to extend for a further two years, for large plant assets.

Speedy recently revealed it made a pre-tax loss of £57.6 million in the year to 31 March 2016. While recovery plans are underway, major shareholder Toscafund Asset Management has called for Executive Chairman Jan Astrand to resign and be replaced by Director David Shearer.


The company said net cash proceeds from the transaction would be used to help alleviate over £100m of debt.

As of 31 July 2016, the business had assets with a gross book value of £15.5m. Unaudited financial information for the 12 months ended 31 July 2016, shows the fleet generated revenues of approximately £3.2m and EBITDA of approximately £1.9m.

Russell Down, Chief Executive of Speedy, said: "I am pleased that we have been able to conclude this agreement which both guarantees continuity of supply to our customers and will enhance our return on capital. The disposal is consistent with our strategy of focusing on core operations and further strengthening the Group's balance sheet."

(LM/CD)