Speedy Hire鈥檚 biggest shareholder, Toscafund, which has 19.4% of the company, wants chairman Jan 脜strand replaced. Its frustration with Speedy has grown as the current board has resisted its suggestions of a merger with HSS, in which Toscafund also holds 18.1%.
In a new circular to shareholders ahead of a 9th September general meeting, Speedy鈥檚 board says that the company鈥檚 recovery is on track and a merger with HSS was not in the best interests of [most] shareholders.
Speedy鈥檚 circular states: 鈥淭oscafund first asked the board to consider a combination with HSS in January 2015. Following the board鈥檚 decision not to pursue a combination with HSS at that time, Toscafund again actively promoted merger talks between Speedy and HSS in July 2015 and actively supported engagement between the two companies. Following Speedy鈥檚 decision not to pursue a combination with HSS in December 2015, HSS made contact with Speedy in March 2016 to once again discuss a possible combination.
鈥淒iscussions with HSS were terminated in June 2016 after the board had concluded, following a detailed analysis of the information available and a considered review of its strategic options, that to pursue a combination would not be in the best interest of shareholders as a whole.鈥�
It adds: 鈥淭he decision by the board to terminate discussions with HSS in June 2016 was taken to protect the financial recovery of the company.鈥�
Speedy鈥檚 circular to shareholders concludes: 鈥淭he recovery plan, which has been developed and implemented by Jan 脜strand and Russell Down, has stabilised the business, which is now showing signs of revenue growth.
鈥淭his has been achieved through the strengthening of senior management, improving customer service and relationships, significant improvements in management information systems, setting out clear financial KPIs and driving these through the business. Encouragingly, the business has retained a number of major framework contracts since 31st March 2016.聽 In addition, overheads have been reduced significantly over the last twelve months.
鈥淎s a further illustration of progress, the group confirmed on 26th August 2016 the disposal of its large mechanical plant fleet for a total consideration of 拢14.4m in cash. The sale will further strengthen the group鈥檚 financial position with the proceeds being used to pay down debt.鈥�
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