Speedy Asset Services Ltd 2009 Annual Report by AnnualReports

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									Annual Report & Accounts 2009




                                TOUGH DECISIONS
                                DECISIVE ACTION
                                ANNUAL REPORT
                                AND ACCOUNTS
                                2009
>TOUGH TIMES, TOUGH MARKETS //
BUT WE REMAIN THE UK’S LEADING
HIRE PROVIDER OF EQUIPMENT,
EXPERTISE AND SUPPORT TO
CONSTRUCTION, INFRASTRUCTURE,
INDUSTRIAL AND RELATED
SECTORS // WE PROVIDE THESE
SERVICES TO UK CUSTOMERS WHO
OPERATE BOTH NATIONALLY AND
INTERNATIONALLY.
                                                                                   Speedy Hire Plc Annual Report and Accounts 2009   01
CONTENTS
The Speedy Spirit                02   Corporate Governance                  34   Company Balance Sheet                               63
Financial Highlights             03   Remuneration Report                   47   Consolidated Cash Flow Statement                    64
Strategic Focus                  04   Audit Committee Report                57   Company Cash Flow Statement                         65
Market Report                    06   Nomination Committee Report           58   Notes to the Financial Statements                   66
Letter from the Chairman         12   Independent Auditors’ Report          59   Five Year Summary                                   93
Operating and Financial Review   14   Consolidated Income Statement         60   Shareholder Information                             94
Operating Board                  27   Statements of Recognised Income and   61   Registered Office and Advisers                        95
Directors                        28   Expense                                    Awards and Accreditations                           96
Directors’ Report                30   Consolidated Balance Sheet            62




  >THE CASE FOR HIRE IS STRONGER
  THAN EVER // HIRE IS CHEAPER
  THAN OWNERSHIP, AS IT IS FREE OF
  CAPITAL,REDuCES SERVICING,
  STORAGE, TRANSPORT AND REPAIR
  COSTS // WITH LEGISLATION
  GETTING MORE ONEROuS, THERE
  ARE INCREASING RISKS IN TERMS
  OF LIABILITY, COMPLIANCE AND
  OBSOLESCENCE THROuGH
  OWNERSHIP // HIRE ALLOWS FOR
  GREATER FLEXIBILITY OF DEMAND
  AND AVAILABILITY.
02   Speedy Hire Plc Annual Report and Accounts 2009


THE SPEEDY SPIRIT




 >IT WILL TAKE SPEEDY SPIRIT TO
 SuCCEED // WE’RE STICKING TO OuR
 PRINCIPLES…
 >CuSTOMER FIRST – ALWAYS
 >ONE TEAM, ONE SPEEDY
 >KEEP IT SIMPLE, DO IT WELL, KEEP
  IT SAFE
 >DRIVEN BY SuCCESS & REWARD
 >TAKE A LEAD,FIND A BETTER WAY
                                                                                                                                Speedy Hire Plc Annual Report and Accounts 2009        03
FINANCIAL HIGHLIGHTS




> OuR RESuLTS REFLECT A DIFFICuLT
YEAR // REVENuE +2.3% //
OPERATING PROFIT * -22.3% //
EBITDA -4.6%
 Revenue > £m                                                                                     Net book value of Property, Plant & Equipment > £m
   H1               FY                                                                             FY
   04/05    98.9                    206.5                                                          04/05                187.9


   05/06       120.0                           254.3                                               05/06                               241.4


   06/07                  154.4                           335.5                                    06/07                                               295.7


   07/08                            209.5                                            465.5         07/08                                                                       372.9


   08/09                               219.9                                              476.1    08/09                                                        323.2




 Operating pro t * > £m                                                                           Group operating margin* > %
   H1               FY                                                                             FY
   04/05    13.7                      30.6                                                          04/05                                              14.8


   05/06       17.3                            38.1                                                 05/06                                                15.0


   06/07                  21.5                             50.0                                     06/07                                                14.9


   07/08                            29.3                                           64.0             07/08                                         13.7


   08/09                              32.8                49.7                                      08/09                       10.4




 EBITDA* > £m                                                                                     EBITDA* > as % of Revenue
   H1               FY                                                                             FY
   04/05    27.3                       61.8                                                         04/05                                                              29.9


   05/06           35.7                           77.0                                              05/06                                                               30.3


   06/07                     44.7                           100.3                                   06/07                                                              29.9


   07/08                             59.9                                             131.6         07/08                                                       28.3


   08/09                                       71.2                               125.6             08/09                                                26.4




 Return on capital employed* > %                                                                  Earnings per share > pence*
   FY                                                                                              FY
    04/05                                                                   17.6                    04/05                         45.15


    05/06                                                                  17.5                     05/06                                      52.86


    06/07                                                                16.9                       06/07                                                       65.00


    07/08                                                         15.2                              07/08                                                                     73.19


    08/09                                          10.9                                             08/09                                48.88



 H1 = First half year FY = Full year * Pre amortisation and exceptional items
04   Speedy Hire Plc Annual Report and Accounts 2009


STRATEGIC FOCuS




     WE’RE FACING TOuGH
     quESTIONS IN TOuGH TIMES //
 WE HAVE NOT SHIRKED FROM OuR
 RESPONSIBILITIES AND REMAIN
 COMMITTED TO OuR LONG-TERM
 STRATEGY. THE OuTCOME WILL BE
 BETTER THAN THE OuTLOOK.”
 STEVE CORCORAN
 CHIEF EXECuTIVE
                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   05




HOW HAS THE MARKET ENVIRONMENT IMPACTED YOuR STRATEGY?                       However, with the continued investment in the country’s infrastructure
                                                                             together with ongoing activity in the regulated markets of power
It hasn’t. Our overall strategy remains the same; as does our vision and
                                                                             systems, water services and transport infrastructure, we are seeing our
ambition. It is the timescale that has altered through the enforced
                                                                             strategy of aligning our business closer to the ‘major construction
retraction brought about by the recession.
                                                                             groups’ proving to be a good one. These are the principal beneficiaries
                                                                             of construction spending in these areas.
In the short-term we have had to apply an interim plan. This will see us
concentrate our resources upon maximising cash flow, minimising
                                                                             Looking to the future we can be confident that, with our business
costs and reducing debt. This will be done whilst never losing sight of
                                                                             having the best geographic coverage, the best invested fleet and the
the fact that it is the customer that pays our wages and, therefore, our
                                                                             broadest product range†, together with our strong balance sheet, we
service standards cannot slip.
                                                                             are well placed to see out the current difficulties and emerge on the
                                                                             other side in an even stronger position.
ARE OVERSEAS EXPANSION AND THE ‘BEYOND HIRE’ MOVE INTO
BRANDED AND ADVISORY SERVICES STILL PART OF YOuR PLANS?                      YOu’VE HAD TO CuT COSTS AGGRESSIVELY THIS YEAR. HOW ARE YOu
Yes, very much so. I am pleased to say that we have made progress in         MAINTAINING SERVICE STANDARDS?
all of these activities. We always stated that our objectives in this area
                                                                             We undertook very careful assessment of our operations before we
were very much about “following our customers” without requiring
                                                                             confirmed where we would make the necessary cuts. Clearly, before
huge investments in infrastructure and fixed cost. Our objective is to
                                                                             the sharp contraction that we witnessed from September 2008 (see Q1
work closely with key clients and identify ways in which we can
                                                                             above), we were still on a strong growth curve. This had presented us
support them in their activities overseas. Progress has been
                                                                             with the opportunity to add several additional sites in most of the
encouraging and we now have several hundred items of equipment
                                                                             major towns and cities of the UK. With the downturn we were able to
on the ground in the Middle East. These assets have been supplied
                                                                             identify where we had multiple outlets that we could converge and
together with Speedy management, who are seconded to our clients
                                                                             operate extended activity from fewer sites.
and tasked to generate savings through improved operational
management of plant and equipment.
                                                                             It is important to note that we still have by far the largest network of
                                                                             any operator in the UK with the largest and best invested fleet.† It will
In respect of Branded and Advisory services, again progress has been
                                                                             always be of paramount importance to us that we maintain our service
made. We have undertaken training programmes on behalf of our
                                                                             standards and this commitment will never be compromised.
customers which have resulted in us undertaking 2,788 hours of
customer training, the equivalent billing of 348.5 days in April and May
                                                                             WHY DO YOu BELIEVE THAT SPEEDY WILL SuRVIVE THE DOWNTuRN
2009. We have also initiated partnerships with selected agents which has
seen us establish a broader base of support to our customers and which       BETTER THAN OTHERS?
now encompasses activities in areas such as vehicle hire, hire of assets     Apart from the differentiators that I have mentioned previously in
outside of our normal activities and the provision of managed services.      respect of the network, the fleet and the range, we have now reduced
We are confident that before the interim results we will have extended       our cost base, restructured our banking and loan facility and we will
this aspect of our activity further still.                                   shortly invite shareholders to invest an additional £100 million (net of
                                                                             expenses) to pay down debt to a level that, by the end of this financial
HOW HAS THE DOWNTuRN AFFECTED DEMAND FOR HIRE? WHAT’S                        year, we believe will be equivalent to around one year’s cash
THE IMMEDIATE OuTLOOK?                                                       generation. We are, therefore, extremely well positioned to see out the
                                                                             recession, commercially, operationally and financially. All of this, of
We identified the risk to trading and set about renegotiating our
                                                                             course, could not have been achieved without the tremendous
banking facility in January 2009. Our facility’s covenants at the time
                                                                             goodwill and support that we receive from our employees who are
were established on EBIT not EBITA/EBITDA. The covenants had
increasing ratchets demanding increasing cover at a time of reducing         undoubtedly the key reason for Speedy’s ongoing success.
activity and, most worryingly of all, they had no allowances for cash
                                                                             STEVE CORCORAN
exceptionals. So as we set about restructuring the Group we became
                                                                             CHIEF EXECuTIVE
increasingly exposed to covenant risk. I am pleased to say that again
                                                                             26 MAY 2009
this has been concluded successfully and we now have a much more
appropriate financing and covenant structure.

The severe contraction that has occured in construction activity
following the collapse of Lehman Brothers in September 2008,
dramatcially changed the outlook for hire. Post-September there has
been a sustained period of stagnation as projects planned to start
were either cancelled, deferred or delayed. Reduced construction
activity will lead to reduced hire demand.




† Based on publicly available information and Speedy analysis.
06   Speedy Hire Plc Annual Report and Accounts 2009




                                                       Almost all commentators, from the Governor of the Bank of England
                                                       downwards, are agreed that the outlook for the UK economy and
                                                       other leading economies is at best ‘uncertain’; for the UK construction
                                                       market there is a degree of certainty in that most forecasters expect
                                                       the downturn to continue well into 2010.


SPEEDY HIRE                                            Until the latter part of the third quarter of 2008 the construction
                                                       market (with the exception of private housing) had enjoyed a
                                                       prolonged period of ‘boom’, bringing considerable demand for
MARKET REPORT                                          equipment and tool hire. Although there had been significant unease
                                                       over the problems manifesting in the banking sector throughout 2008,

2009:                                                  the real effects of the credit crunch were not felt by most hirers until
                                                       last September. High activity levels throughout 2007 and the
                                                       perception that these would continue encouraged hirers to invest

THE uPSIDE                                             heavily in equipment. Figures from ‘The Plant Hire Investment Report
                                                       2007/2008’ indicate that the median annual growth of the largest 75
                                                       equipment/tool fleets was 13.4%; this compared with figures of
TO THE                                                 12.15% in 2006/2007 and 8.4% in 2005/2006. Thus the rate of
                                                       investment was actually accelerating in the period immediately before

DOWNTuRN                                               the downturn began. This has inevitably meant that many hire
                                                       companies have highly geared balance sheets and excess fleet
                                                       capacity.

                                                       In the second half of last year several leading hirers including Speedy
                                                       took action to downsize their operations to capacities more

CATHERINE                                              appropriate to the foreseeable levels of demand. Since its acquisition
                                                       of Hewden’s tool hire operation, Speedy has had the largest depot
                                                       network and been the largest employer in the UK hire sector and, even
STRATTON,                                              after depot closures and job cuts last autumn, it remains so with 4,471
                                                       employees and 399 depots; the last quarter of 2008 saw the

INDEPENDENT                                            announcement by Hewden of the closure or merger of some 22
                                                       outlets, with the loss of 213 jobs, reducing the hirer’s network to some
                                                       80 depots and some 1,500 employees. December 2008 also brought

ANALYST                                                news of depot closures at Ashtead, both in its UK subsidiary A-Plant
                                                       and in the US at Sunbelt. A-Plant closed 40 of its depots over the
                                                       twelve months to January 2009 (to reduce its total to 154) and its head
                                                       count fell by just over 100. The UK’s third largest tool hirer Brandon
                                                       (the Wolseley subsidiary) announced it was cutting 170 jobs last
                                                       November.

                                                       Both Speedy and Hewden have reduced their fleet sizes; in the case
                                                       of the former by some 10% to a gross book value of £514 million at
                                                       31 March 2009 (compared with £570 million a year earlier). At the end of
                                                       2008 the Hewden fleet had a gross book value of £436 million, an 8%
                                                       decline on the previous year and that will fall again this year; Ashtead’s
                                                       third quarter figures to 31 January 2009 indicate that A-Plant’s fleet was
                                                       some 2% larger than in the previous year but this growth will almost
                                                       certainly have been reversed by the end of its financial year. With the
                                                       downsizing of fleets and depot closures has come reorganisation of
                                                       company structures; in the case of Speedy it is implementing its ‘One
                                                       Speedy’ programme to streamline the business, while last autumn
                                                       Hewden reorganised its structure on a regional basis. Lavendon’s UK
                                                       operations have also recently completed an integration programme.

                                                       These radical reorganisation programmes reflect the suddenness and
                                                       depth of the decline in demand as shown in the most recent
                                                       construction output figures.
                                                                                                                    Speedy Hire Plc Annual Report and Accounts 2009   07




Construction output (constant (2000) prices, seasonally adjusted) (£m)
New Work
                                              Public            Private              Infra-            Public       Private         Private                 All
                         Quarter            housing            housing           structure        (excl. infra)   industrial     commercial           new work
2007                             1               675              2,823              1,140               1,650        1,038             3,868            11,194
                                 2               690              2,862              1,254               1,625        1,025             4,045            11,501
                                 3               636              2,876              1,355               1,664          970             4,236            11,737
                                 4               575              2,713              1,319               1,689          964             4,309            11,569
2008                             1               644              2,558              1,420               1,798          938             4,372            11,730
                                 2               633              2,375              1,515               1,858          797             4,184            11,362
                                 3               601              2,241              1,575               1,991          770             4,325            11,503
                                 4*              516              1,958              1,333               2,039          720             3,838            10,404
* Provisional
Repair and Maintenance
                                                                                                                     Public           Private         All repair
                                                                                    Public              Private       non-              non-         and main-
                                                               Quarter            housing              housing     housing           housing           tenance
2007                                                                   1             1,712               2.886        1,501             3,095              9,194
                                                                       2             1,542               3,031        1,431             3,064              9,069
                                                                       3             1,482               2,820        1,446             3,168              8,917
                                                                       4             1,520               3,112        1,425             3,241              9,298
2008                                                                   1             1,617               2,971        1,640             3,171              9,399
                                                                       2             1,666               3,165        1,586             3,198              9,616
                                                                       3             1,611               2,902        1,676             2,996              9,186
                                                                       4*            1,514               3,168        1,460             2,788              8,930
* Provisional
Total All Construction Work
                                                                                  Quarter              Quarter     Quarter           Quarter               Total
                                                                                        1                    2           3                 4            for year
2007                                                                                20,388              20,570      20,653             20,867            82,478
2008                                                                                21,128              20,977      20,689             19,334            82,129
% change                                                                              +3.6                +2.0        +0.2                -7.3              -0.4
Source: Office for National Statistics, Output in the construction industry (published 5 March 2009)
08   Speedy Hire Plc Annual Report and Accounts 2009




     SPEEDY HIRE MARKET REPORT 2009:
     THE uPSIDE TO THE DOWNTuRN
     CONTINuED:

     The most recent quarterly output figures give further evidence to                heavily geared financially, as well as operationally, and this
     the contention of many hirers that they only began to experience a               obviously leaves them vulnerable when revenues decline but,
     decline in demand as they approached the final quarter of 2008.                  provided they have bought wisely and maintained their fleets well,
     Suddenly they were seeing their yards filling up with off-hired plant            they are able to raise cash relatively quickly from selling surplus
     and they had to adjust from the buoyant demand of the past                       plant. Indeed recent months have seen Speedy and other leading
     decade to a sudden drop in demand, the like of which the hire                    companies disposing of equipment through auctions. Undoubtedly
     sector had not seen since the early 1990s.                                       many of their smaller competitors will have also been reducing
                                                                                      their fleets.
     In many ways the hire industry is very different now from
     fifteen/sixteen years ago but the early pattern of the recession has             Can we expect to see a similar pattern of resilience this time? It is
     been similar. The downturn was swift; one major hirer told the                   early days and even those best positioned and qualified to judge
     author that in 1993 ‘one day the yards were empty, the next almost               the overall economy are finding it exceedingly difficult to forecast
     all the plant was back’. From the 1960s onwards plant hire had                   the course of this recession. In its Trade Survey published in May
     come to play an increasingly important role in the construction                  2009, The Construction Products Association said that that ‘the
     industry as contractors realised the value of being able to hire                 construction industry is facing its sharpest decline on record’ and it
     equipment for which they had use for only limited periods.                       foresaw no prospect of improvement over 2009 and 2010. The
     Downturns in construction demand (or the threat of them) made                    Association estimated that output would fall by over 12% in the
     contractors turn further to hire in order to conserve their own                  current year with the private sector shrinking by 20% (with sharp
     capital and this had brought a degree of protection to hirers during             declines in offices and retail building as well as in private housing
     such times. In the early 1990s, however, the combination of the                  repair and maintenance).
     severity of the decline in demand and the fact that construction
     companies had become increasingly reliant on hire to meet their                  The CECA (Civil Engineering Contractors Association) Workload
     plant requirements meant that hirers were more exposed to                        Trends Survey for the first quarter of 2009 showed that civil
     recessionary factors.                                                            engineering order books continued to be in decline and stated that
                                                                                      since the downward trend had first begun in July 2008, each
     Plant hire is highly operationally geared; once revenues decline                 successive quarter had brought progressively weaker results. One
     profits will decline at a faster rate; so the swift drastic surgery              rather flickering glimmer of hope was that the latest quarter had
     undertaken by Speedy was the right response as the imminence                     seen a ‘slight slowdown’ in the rate of decline, which was attributed
     and likely protracted nature of the recession became clear but                   to ‘less negative results’ from Scotland and Wales. Rail was the only
     despite the severe nature of the downturn and its exposure to the                component of the workload to show growth, while the worst
     vulnerable construction industry, plant hire is more resilient than              declines were seen in preliminary works and water sewage orders.
     might be thought. By their nature hire companies tend to be

     Civil Engineering
     Order books compared with a year ago, by size of firm, ranked by number of operatives

                            April ’08          July ’08         Oct ’08           Jan ’09        April ’09
     Number                % balance         % balance       % balance         % balance        Higher %          Same %          Lower %        % balance
     -115                         -17                  -22           -46              -63              14               13              73              -59
     115–299                      +37                  -21           -37              -57               2               30              67              -65
     300–599                      +23                   -7           -10              -60              29                6              65              -36
     600+                         +19                  -14           -13              -18              25               22              54              -29
     Source: CECA Workload Trends Survey First Quarter 2009 (published 15 May 2009)
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   09




As the real downturn in the overall construction market only began        Change in fleet size
in the final quarter of 2008, it is somewhat early to gauge its full                                                        GBV        % change
impact on the results of either construction companies (many of                                                       Hire Fleet      on previous
whom have calendar year accounting periods) or plant hirers. The          Company                                     (£million)             year
tables below are based on the most recent hire results available,         Aggreko                                       1,382.8              +56.5
with the exception of those for Ashtead where we have made                Lavendon                                        544.4              +31.1
estimates based on the company’s latest trading statement.                Speedy                                          514.3               -9.7
                                                                          Hewden                                          436.7               -8.2
Major uK Hire Companies – Recent Results                                  Vp                                              154.0               +9.3
Change in revenues                                                        Figures are not available for Ashtead.
                                                          % Change
                                            Revenue      on previous      While Hewden operates almost exclusively in the UK, the majority
Company                                    (£million)           year      (80%) of Aggreko’s revenues are derived from outside Europe; in the
Ashtead                                     977.0 est     No change       case of Lavendon just over half its revenues were from the UK. In
Aggreko                                        946.6           +36.6*     the nine month period included for Ashtead, its US operation
Speedy                                         476.1            +2.3      accounted for 80% of group revenues. Its UK subsidiary A-Plant saw
Lavendon                                       248.4           +33.5      its revenues fall some 4% to £153.5 million; it was, however, the last
Hewden                                         171.0†          -12.9†     three months of the period which were responsible for the decline
Vp                                             150.9            +1.1      with revenues dropping by 14% to £44.0 million. More recently
                                                                          Ashtead has issued a trading update ahead of the announcement
* In constant currency terms +26.2%.
                                                                          of its full year results in mid-June. These indicate that the final
† Excludes discontinued operations.
                                                                          quarter to 30 April 2009 saw a 24% fall in revenues compared with
                                                                          the same period a year earlier. The company did not disclose
Change in pre-tax profit                                                  whether there was any difference in the levels of decline between
                                            Pre-tax       % Change        the US and the UK but a fall of 24% is not out of line with the
                                        profit/(loss)    on previous      experience of hirers in the UK. Finning – the parent company of
Company                                   (£million)            year      Hewden – issued its first quarter 2009 results in May which
Aggreko                                        191.9            +52.5     indicated that Hewden had seen its revenues fall by nearly 29% in
Speedy                                          33.9‡           -29.5     sterling terms.
Lavendon                                        30.4            +25.6
Vp                                              21.7             +7.4     The assessment of their immediate prospects by most of these
Hewden                                          (0.2)               †     companies is sobering. In its first quarter 2009 Investor Conference
† The loss is stated after a gain of £9.8 million on sale of properties   Call Finning said that it expected the general construction and
  and of £1.1 million on disposal of Hewden’s hoist division which        rental sectors in the UK to remain ‘very weak’ and that Hewden
  made an operating loss of £0.2 million up to the time of its            would continue to reduce its fleet. The May 2009 trading update
  disposal in 2008 and an operating loss of £0.4 million in 2007.         from Ashtead indicated that underlying pre-tax profits for
  Hewden accounts show a profit before tax of £59.7 million in            2008/2009 would be towards the lower end of analysts’ forecasts
  2007; this is after a gain on sale of discontinued operations (i.e.     and went on to warn that the profits for the succeeding year were
  Tool Hire division) of £46.9 million and a gain of property sales of    likely to fall below the board’s previous expectations.
  £1.0 million. Excluding these gains profits after finance charges
  were £11.8 million in 2007 and losses in 2008 were £11.1 million.
‡ Pre exceptional items of £95.3 million and amortisation of £9.2
  million.
10   Speedy Hire Plc Annual Report and Accounts 2009




     SPEEDY HIRE MARKET REPORT 2009:
     THE uPSIDE TO THE DOWNTuRN.
     CONTINuED:

     By contrast, the statement issued in conjunction with specialist hirer        In view of the deteriorating condition of government finances,
     Aggreko’s AGM in April was much more buoyant; trading in 2009 is              recently highlighted in Standard & Poor’s revision of the UK Outlook
     expected to be at similar levels to 2008 on a constant currency basis         from ‘stable’ to ‘deteriorating’, the industry cannot afford to be too
     with the proviso that if the sterling:US dollar rate stays at the levels of   sanguine about the public sector. There are, however, a number of
     mid-April 2009, ‘the reported results would show substantial growth           mega-projects such as the Olympics, the £16 billion Crossrail scheme
     over 2008’. Lavendon, the largest powered access hire company in              and the nuclear de-commissioning and nuclear reactor building
     Europe, reported signs of a slowdown to its AGM. Revenues for the             programmes. What of the private sector? There are now some faint
     first quarter were ahead by 2% in the UK but this included the effect         signs of the beginning of a recovery in the private housing market;
     of a major acquisition in April 2008. The statement went on to                underlying demand and need for new housing is clear but it seems
     say that ‘in recent trading it has become clear that the market               unlikely that we will see any significant upturn in the immediate
     environment has tightened considerably for many smaller customers             future. There are also indications that the commercial property
     in the construction segment’.                                                 market may be at or close to bottom as seasoned property investors
                                                                                   appear to be interested in returning to the market. Both the
     Of course the health of much of the UK’s equipment/tool hire sector           residential and commercial markets will have to contend first with
     is dependent on the state of the wider construction industry. Are             the ‘overhang’ of properties and the restoration of confidence; this
     there any positive signs to assist hirers? One noticeable feature has         will take time.
     been that the larger contractors appear to be better positioned than
     their smaller competitors to deal with current conditions. The CECA           So what can plant hirers do? As outlined above, Speedy and several
     Workload Trends Survey shows this quite clearly with regard to civil          other major companies have taken fairly drastic action to reduce
     engineering companies but all the indications are that it is also true        their operations to a level more commensurate with the shrinking
     of builders. Much of this reflects the predominance of large public           market. Over recent years Speedy and other national hirers have
     contracts. Recent trading and results statements from leading                 focused on securing supply contracts with major contractors. This
     contractors also testify to this; at their respective AGMs, Balfour           should give them a degree of protection in terms of both their
     Beatty and Morgan Sindall were both able to report strong order               volume of work and the price at which it is undertaken. In this regard
     books. The former stated that its performance in the UK building              Speedy has been particularly active, often at the same time acquiring
     sector was ‘steady’, while its UK civil engineering was described as          part or all of the contractor’s plant operations. Last year’s acquisitions
     ‘strong’. Morgan Sindall’s construction division was ‘well positioned         from AMEC and Carillion look well judged in this context.
     with around three-quarters of its workload coming from the public
     sector’ and its Infrastructure Services division had maintained               There are growing cost pressures on companies as the recession
     momentum, securing further major contracts in the first quarter of            continues. There remain construction companies with large plant
     2009. AMEC was also able to report a strong order book of £3.4                holdings; some of them will be reappraising their strategy and may
     billion at its AGM, while Carillion was able to tell its shareholders         decide that the option of hiring plant is more attractive than the cost
     ‘despite challenging market conditions, . . . we remain on track to           of maintaining or renewing a fleet. The process of rationalisation
     deliver materially enhanced earnings in 2009’.                                within the plant sector is likely to take place not just through hirers
                                                                                   acquiring their weaker competitors (which happened during the
                                                                                   recovery of the early 1990s) but also through some construction
                                                                                   companies seeking to dispose of their in-house plant operations to
                                                                                   those hirers who are able to provide them with a high standard of
                                                                                   service across the country. The current economic conditions are likely
                                                                                   to give rise to another wave of outsourcing by commercial and
                                                                                   industrial companies. Commenting on the recent results of MITIE, the
                                                                                   company’s Chief Executive Ruby McGregor-Smith stated
                                                                                   that the company was making ‘strong progress as clients
                                                                                   increase outsourcing in their drive for efficiency at this stage
                                                                                   in the economic cycle.’
                                                                          Speedy Hire Plc Annual Report and Accounts 2009   11




Plant and tool hire is one of the longest-established forms of
‘outsourcing’; this recession should be an opportunity for those hire
companies with strong national networks, providing a wide range of      Catherine Stratton
modern equipment and a professional service to further expand
their customer bases by proving that hire is the most efficient and
                                                                        Catherine Stratton has
effective way for contractors and others to meet their equipment        researched and analysed the
needs. Major contractors, like other commercial enterprises, are
intent on reducing their number of suppliers. Speedy’s
                                                                        plant and tool hire sector for
reorganisation to simplify its company structure into ‘One Speedy’ is   many years and is the author
an example not just of improving the company’s internal efficiency
but of providing a more streamlined service to meet the                 of ‘The Plant Hire Investment
requirements of its customers.                                          Report’ which has been
The onset of this recession marked a swift correction to the            published annually since
construction boom; as companies continue to adjust to much lower        1994. She also writes regularly
demand levels, there will be a period of significant rationalisation
with the strong construction and hire companies taking a growing        for ‘Executive Hire News’.
share of their respective markets, whether it be through acquiring
their weaker brethren or by simply being better able to adjust to and
survive the economic maelstrom in which we have been engulfed.          Her interest in the hire sector
Despite the precipitous decline in current construction demand, the
underlying need for continuing improvement to and expansion of
                                                                        began when she joined the
our infrastructure (whether it be roads, railways, power production,    research department of City
water treatment or housing) remains. Once the economy revives,
construction will again play its key role and those hire companies
                                                                        stockbrokers Greene &
who have used the recession to make their own operations more           Company in 1969. She
efficient (and thereby also to improve those of their customers) will
be best placed to prosper again.                                        became a partner in that firm
                                                                        and a member of the London
                                                                        Stock Exchange in 1975. After
                                                                        Greene’s merger with Grieg
                                                                        Middleton in 1988 she was a
                                                                        director of the latter until
                                                                        1992 when she left the City to
                                                                        set up as an independent
                                                                        researcher and consultant in
                                                                        the hire industry.

                                                                        The Plant Hire Investment
                                                                        Report 2008/2009 will be
                                                                        published in July 2009.

                                                                        www.phir.co.uk
12   Speedy Hire Plc Annual Report and Accounts 2009


LETTER FROM THE CHAIRMAN




     DEAR SHAREHOLDER //
     IT’S BEEN A TOuGH YEAR
 FOR ALL OF uS; OuR SHAREHOLDERS,
 OuR CuSTOMERS AND OuR PEOPLE //
 TOuGH DECISIONS AND DECISIVE
 ACTION HAVE ENSuRED THAT WE
 REMAIN IN GOOD SHAPE TO MEET
 THE CHALLENGES WHICH LIE AHEAD.”
 DAVID WALLIS
 CHAIRMAN
                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   13




OVERVIEW                                                                    FINANCIAL STRATEGY
The caution on the outlook for your business, which I expressed in our      To ensure that we are able to deal with the short and medium-term
Interim report to shareholders, has proved to be well founded. The last     challenges thrown up by the market and simultaneously continue to
few months have been exceptionally difficult and challenging, with a        develop these strategic relationships, the Group has reviewed its
rapid and severe contraction in the level of general construction           financial strategy.
activity. The deterioration of both national and global credit markets
has had a negative impact resulting in reduced activity, confidence         In April 2009, the Board announced that the Group had successfully
and capital availability which has caused the cancellation or deferment     renegotiated terms with all of its banks to establish more appropriate
of construction projects, resulting in a significant weakening in output.   covenants on its facility, albeit at significantly increased interest
We expect this to continue over the medium term. As a consequence,          margins. The revised £300 million facility extends to June 2012 and
swift and decisive action was taken by management to align the cost         incorporates revised covenants which the Board considers more
base of the Company with the lower levels of revenues being                 appropriate for prevailing market conditions.
generated. In addition, capital expenditure was severely curtailed,
surplus assets were disposed of, cash management further                    In addition, in order to strengthen the balance sheet, thereby
strengthened and debt reduced.                                              providing resilience in case of a further downturn in our markets and
                                                                            to deliver on its longer-term strategic objectives, the Board intends to
A review of the Group’s financial performance is set out in the             raise £100 million (net of expenses) of new equity by way of a rights
Operating and Financial Review on page 14. In brief, revenues               issue. Details of this will be contained in a separate prospectus issued
increased by 2.3% to £476.1 million (2008: £465.5 million), adjusted        to our shareholders.
profit before tax* reduced by 29.5% to £33.9 million (2008: £48.1
million), and adjusted earnings per share* reduced by 33.2% to 48.88p       LOOKING FORWARD
(2008: 73.19p). After adjusting for amortisation, impairments and           Speedy is dealing effectively with the short-term challenges which
exceptional items, earnings per share reduced to a loss per share           it faces. Its immediate priorities are fourfold: maximise revenues,
of 107.93 (2008: 47.89).                                                    optimise costs, generate cash and reduce bank debt. The actions taken
                                                                            by management on all four counts have ensured that the business is
The Board is recommending a final dividend of 6.4 pence per share in        well placed to deal with current market conditions. However, it is
respect of the financial year to 31 March 2009, bringing the total for      important not to lose sight of longer-term strategy.
the year to 12.8 pence per share. If approved by shareholders this will
be paid on 25 August 2009 to all shareholders on the register as at 26      Speedy aims to extend key customer relationships through its
June 2009. Although some 35% lower than that declared in the prior          alignment with the major contractors and industrial groups, which
year, the Board believes that this recognises the challenging trading       should enable the business to withstand the current wider
conditions your Company is facing. Future dividend payments will take       construction sector downturn. This may extend to targeted
into account underlying earnings, cash flows and capital investment         acquisitions of customer fleets, carried out several times in the past,
plans and the need to maintain an appropriate level of dividend cover.      and support for customers on an international level. We will also seek
                                                                            to increase market share through natural consolidation as smaller
OPERATIONAL STRATEGY                                                        competitors cease to trade, with the aim of maximising our
The speed and scale of the impact of the turmoil in the financial           competitive advantage and emerge from the current trading
markets have shocked most of us. As a result, we believe the next two       environment in a stronger position.
or more years will prove to be very tough for many sectors of the UK
economy, none more so than the construction sector. A consequence           It has been an exceptionally difficult year for everyone, particularly for
of the difficulties in the construction sector is that the trend towards    our people, who have responded magnificently to the challenges and I
outsourcing of non-core activities is growing.                              would like to express the thanks of the Board and shareholders to each
                                                                            of them.
However, looking further ahead, we are confident that our long-term
aim of developing close, long-term strategic partnerships with major        The Annual General Meeting (“AGM”) will be held at 11 am on
contractors, industrial groups and their respective supply chains (we       21 July 2009 at the Mere Court Hotel & Conference Centre, Knutsford,
currently have exclusive or preferred supplier status with 21 of the top    Cheshire and I look forward to seeing you there. If you have any
25 UK contractors) will enable us to develop our traditional tool and       comments on any aspect of this letter, or indeed any part of the
equipment hire services offering into a broader support services            Annual Report, I would be delighted to hear from you, either by
outsourcing role, encompassing complementary activities such as             writing to me at Chase House, Haydock or by e-mail to
testing, inspection, maintenance, asset management and training. We         david.wallis@speedyhire.com
have also focused strategically on achieving leading market positions
in more resilient sub-sectors of the UK construction industry, which        Yours sincerely
now represent over 70% of our revenues, including infrastructure
development, regulated utilities and petrochemicals.                        DAVID WALLIS
                                                                            CHAIRMAN
* Pre amortisation, impairment and exceptional items                        26 MAY 2009
14   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




 >WE’VE TAKEN SOME TOuGH
 DECISIONS THIS YEAR, FROM
 CLOSING DEPOTS TO LOSING GOOD
 PEOPLE // AS SOON AS WE REALISED
 THE NATuRE OF THE CHALLENGES
 IN OuR MARKETS, WE TOOK
 DECISIVE ACTION TO REMOVE
 COSTS // WE’RE NOT OuT OF THE
 WOODS YET BuT THE CLEAR
 ACTION WE’VE TAKEN WILL KEEP uS
 ON TRACK.
                                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   15




1. INTRODuCTION AND OVERVIEW                                                                  2. SuMMARY FINANCIAL PERFORMANCE
Speedy is a business-to-business support services company. It is the                          The key financial highlights for the year to 31 March 2009 are as
UK’s leading provider of tool and equipment hire. In recent years, the                        follows:
Group has grown its market share, organically and by selective                                   Revenues increased by 2.3% to £476.1 million (2008: £465.5 million)
acquisitions, to approximately 10% of the overall UK hire market –                               Operating profit* reduced by 22.3% to £49.7 million (2008: £64.0
more than double that of its nearest competitor.                                                 million)
                                                                                                 Operating margins* were 10.4% (2008: 13.7%)
The Group provides a broad range of products for hire to the                                     Return on capital* (operating) was 10.9% (2008: 15.2%)
construction market, specialist industries, their supply chains and the                          Profit before tax* reduced by 29.5% to £33.9 million (2008: £48.1
public sector. In addition to its supply of hire services, Speedy’s close                        million)
alignment with its customers and markets has enabled the business to                             Loss before tax of £70.6 million (2008: profit £30.5 million)
develop additional services such as facilities management services,                              The effective tax rate* was 27.6% (2008: 22.5%)
regulatory testing and inspection, maintenance and asset
management and training, thereby creating important new platforms                             * Pre amortisation and exceptional items
for future growth.
                                                                                              Speedy reported modest overall revenue growth in the year ended
Speedy operates a highly flexible, delivery-based business model and                          31 March 2009, with strong growth in the first half of the year offset
is structured into two divisions, Tools and Equipment, trading from a                         by a sharp slowdown in the second half of the year as the general
network of 399 depots throughout the UK and the Republic of Ireland.                          construction market weakened rapidly in response to increasing
                                                                                              turmoil in the financial sector. In order to position the business
The Group has successfully implemented a consistent strategy over                             appropriately for the predicted downturn in overall activity levels,
recent years by developing long-term strategic partnerships with                              decisive early action was taken from July 2008 to maximise the Group’s
major contractors (both national and regional), industrial users and                          free cash generation by implementing major cost reduction initiatives,
their respective supply chains. As at 31 March 2009, Speedy has
    Speedy            Speedy           Speedy        Speedy         Speedy                    exerting tight controls on capital expenditure and driving working
   Northern           Western        Southern       Scotland        Ireland
exclusive or preferred relationships with 21 of the UK’s top 25 major
  74 depots          48 depots       76 depots     30 depots      01 depots                   capital improvement. The result of these actions is that:
contractors. In addition to providing access to more visible long-term
revenue streams, this strategy Division
                                Tool Hire
                                           has afforded a degree of insulation from             between July 2008 and 31 March 2009, 957 employees (17%) have
volatility in the wider construction sector in the last 12 months by                            left the business, 82 depots (17%) have been closed and 470
virtue of the strong market Speedy
  Speedy Hire Direct
                                       positions held by a number of those                      vehicles (15%) returned to their lessors or sold. These actions,
                                      Support                Speedy Training
customers in the infrastructure, energy and regulated utilities sectors,
   01 control centre
                                      Services                                                  together with other cost reduction initiatives, have ensured that
all of which remain relatively robust due to their largely public sector                        cost savings with an annualised benefit in excess of £42 million
derived funding.               Equipment Division                                               were in place for the start of the new financial year;
                                                                                                capital expenditure in the second half of the year at £22 million was
Notwithstanding the success of this strategy, Speedy benefits from a
   Speedy       Speedy     Speedy       Speedy      Speedy                                      approximately 59% down on the level of the first half year spend,
    Power       Pumps      Survey       Lifting      Space
highly diversified customer base, with no single customer accounting
  13 depots    02 depots  16 depots    33 depots   21 depots                                    with a focus on investing only on assets necessary to maintain the
for more than 5% of Group revenues.                                                             operational integrity of the business and essential IT and property
                                                                                                investment, together with judicious support of customers, projects
STRuCTuRE OF BuSINESSES                                                                         and sectors where appropriate. The Group also engaged in a
                                                                                                proactive disposal programme of under utilised and older assets
   Speedy
  Northern
                       Speedy
                       Western
                                   Speedy
                                  Southern
                                                    Speedy
                                                   Scotland
                                                                Speedy
                                                                Ireland
                                                                                  Speedy
                                                                                 N. Ireland
                                                                                                which, together with reduced capital expenditure, has resulted in
 87* depots           49 depots   78 depots        52 depots   04 depots         01 village     the net book value of hireable assets reducing by £51.4 million
                                                                                                (15%) over the second half of the year. Disposal proceeds in the year
                                       Tool Hire Division                                       from asset sales totalled £39.4 million;
                                                                                                the net cash outflow relating to working capital movements in the
 Speedy Hire Direct
                                             Speedy
                                            Support                        Speedy Training
                                                                                                year to 31 March 2009 totalled £12.6 million, a £0.8 million
   Control Centre
                                            Services                                            deterioration on the £11.8 million in the prior year. In the second
                                                                                                half of the year there was a net cash inflow relating to working
                                      Equipment Division
                                                                                                capital of £5.2 million, reflecting closer focus on the management
                                                                                                of trade debtors and inventory; and
   Speedy              Speedy      Speedy           Speedy      Speedy            Speedy
   Power               Pumps       Survey           Lifting      Space          Engineering
                                                                                                net debt at 31 March 2009 was £248.4 million, a reduction of over
  18 depots           06 depots   18 depots        59 depots   18 depots         09 depots      £46.3 million (15.7%) since June 2008, emphasising the Group’s
                                                                                                strong cash generation.
* Including 01 Multi Service Centre
16   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




                                      Debt
                                increasing             Debt
                                   Gearing             increasing
                  Cash               stable            Gearing
                neutral                                increasing
                Gearing                                              39% Current
                 falling                                             growth


 >2008 FINANCIAL >2009 FINANCIAL
      Cash
                                                                     Market share
                                                                     increasing




 STRATEGY //
 generative
    Gearing
     falling
         %
                 STRATEGY //
 INVESTING                          Turnover
                                     growth                                           FOCuSING
 FOR PROFITABLE        Strategy: Investing for profitable growth
                                                                                      ON PAYING
 GROWTH                                                                               DOWN DEBT        Cash
                                                                                                                           Debt
                                                                                                                     increasing
                                                                                                                        Gearing
                                                                                                                          stable
                                                                                                                                            Debt
                                                                                                                                            increasing
                                                                                                                                            Gearing


 WITH A BuSINESS                                                                      RENEGOTIATING
                                                                                                     neutral                                increasing
                                                                                                     Gearing                                              39% Current
                                                                                                      falling                                             growth
                                                                                                                                                          Market share
                                                                                                                                                          increasing

 MODEL THAT                                                                           OuR BANKING
                                                                                           Cash
                                                                                      generative


 CONTAINS THE                                                                         TERMS AND
                                                                                         Gearing
                                                                                          falling
                                                                                             %
                                                                                                                         Turnover

 FLEXIBILITY TO                                                                       ADAPTING TO                         growth

                                                                                                            Strategy: Investing for profitable growth

 LOWER GROuP                          Debt
                                 increasing
                                   Gearing
                                                        Debt
                                                        increasing
                                                                                      CHANGES IN THE
 DEBT WHEN                                                                            MARKET.
                   Cash              stable             Gearing
                neutral                                 increasing
                Gearing                                               Debt
                 falling                                              increasing


 GROWTH RATES
     Cash
                                                                      Market share
                                                                      increasing




 SLOW. %
generative
  Gearing
   falling

                                    Turnover
                                     growth

               2009 Financial Strategy: Focusing on paying down debt
 SPEEDY-O-METER: 2008 FIRST HALF                                                      SPEEDY-O-METER: 2009 SECOND HALF

                                      Debt                                                                                 Debt
                                 increasing            Debt                                                           increasing             Debt
                                                       increasing                                                       Gearing              increasing
                                   Gearing                                                              Cash
                   Cash              stable            Gearing                                                            stable             Gearing
                neutral                                                                              neutral                                 increasing
                                                       increasing
                Gearing                                                                              Gearing                                               Debt
                                                                      Debt                            falling
                 falling                                              increasing                                                                           increasing
                                                                      Market share                                                                         Market share
                                                                      increasing                                                                           increasing

      Cash                                                                                Cash
 generative                                                                          generative
   Gearing                                                                             Gearing
    falling
                                         %                                              falling
                                                                                                                              %
                                    Turnover                                                                             Turnover
                                     growth                                                                               growth

               2008 Financial Strategy: Investing for pro table growth                              2009 Financial Strategy: Focusing on paying down debt


                                                                                                                           Debt
                                                                                                                      increasing            Debt
                                                                                                           Speedy Hire Plc Annual Report and Accounts 2009   17




Speedy completed two small scale but important acquisitions of               ONE YEAR SHARE PRICE RECORD COMPARED TO FTSE 250
customer fleets in the year ended 31 March 2009. In May 2008, the            PRICE IN PENCE
Group acquired the business and assets of Carillion Accommodation            Speedy Hire share price for the past year (Price in pence)

Services for a consideration of £12.6 million. As part of the acquisition,   900
Speedy entered into a five year strategic partnering agreement with          800
Carillion’s UK and Irish businesses under which Speedy moved from
being “a preferred”, to “the preferred” supplier to Carillion. In August     700
2008, the Group acquired for a cash consideration of £0.7 million the        600
business and assets of Apollo Hire Centres, the internal hire business of
Connaught plc, one of the UK’s leading service providers to the social       500
housing, public sector and compliance markets. As part of the                400
acquisition, Connaught entered into a three year preferred supplier
agreement with Speedy with a two year extension option.                      300

                                                                             200
Both of the above acquisitions were rapidly integrated into Speedy’s
existing operations and represent a continuation of the Group’s              100
strategy of using so called ‘in house’ fleet acquisitions to grow new        0
customers and new markets and increase the breadth and depth of                     Mar            June                 Sept           Dec              Mar
relationships with existing customers.                                              2008           2008                 2008           2008             2009

                                                                             I Speedy
In addition, the Group acquired the remaining minority interest in           I FTSE 250
Speedy Asset Leasing Limited in April 2008 for £1.3 million.
                                                                             FIVE YEAR SHARE PRICE RECORD COMPARED TO FTSE 250
3. SHARES, EARNINGS AND DIVIDEND
                                                                             PRICE IN PENCE
                                                                             Five year record (Price in pence)
Earnings per share, adjusted for amortisation of intangibles and
exceptional items, decreased by 33.2% to 48.88 pence (2008: 73.19            1400
pence). A final dividend of 6.4 pence per share is recommended, giving
                                                                             1200
a total (if approved) of 12.8 pence per share for the year (2008: 19.8
pence). The proposed final dividend (if approved) leaves the overall         1000
dividend 3.8 times covered (calculated as adjusted earnings per share
                                                                             800
divided by dividend). The final dividend will be paid to shareholders on
25 August 2009, to all shareholders on the register as at the close of       600
business on 26 June 2009.
                                                                             400

In the year ended 31 March 2009, the Group reported pre-tax                  200
exceptional items totalling £95.3 million. £21.0 million of this amount
                                                                             0
relates to restructuring and integration costs principally relating to the
                                                                                    Mar        Mar               Mar           Mar         Mar           Mar
reduction of the Group’s operating cost and fixed asset base. In                    2004       2005              2006          2007        2008          2009
                                                                             I Speedy
addition, the Group incurred £4.6 million of exceptional financial costs
                                                                             I FTSE 250
principally comprising bank fees relating to its recent bank facility
renegotiation. The balance relates to impairment of non-current
intangible and property, plant & equipment of £60.9 million and £8.8
                                                                             4. OPERATIONAL HIGHLIGHTS
million respectively. Of the total exceptional items, the cash cost is
anticipated to be £17.9 million, of which circa £12.0 million had been       Notwithstanding the potential for the cost reduction initiatives
incurred prior to 31 March 2009. The tax impact of these exceptional         referred to above to cause distraction to the business, Speedy has
items is likely to lead to a cash inflow of approximately £10 million in     been careful to ensure that appropriate focus has remained on
the year ending 31 March 2010.                                               winning new business and protecting revenue streams with existing
                                                                             customers. Recent contract wins and renewals include:

                                                                                 Olympic Park – Construction Site Solutions (‘‘CSS’’), the consortium
                                                                                 that includes Speedy, BSS, Hewden and Lavendon, has been
                                                                                 selected as the Olympic Development Authority’s first choice
                                                                                 partner for the 2012 Olympic Park. Under the arrangements to be
                                                                                 put in place, Speedy will, as a member of the CSS consortium,
                                                                                 provide hire fleet together with additional services, for example,
                                                                                 safety and training. It is anticipated that the contractual
                                                                                 arrangements formalising the relationship between the consortium
                                                                                 members and the provision of services by the consortium to the
18   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




 >THIS IS A TIME TO CONSOLIDATE //
 THE DOWNTuRN IS AN
 OPPORTuNITY TO INTRODuCE
 EFFICIENCIES ACROSS THE
 BuSINESS  THIS WILL BECOME
 A PLATFORM FOR GROWTH //
 ONE SPEEDY = ONE SOLuTION
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   19




  Olympic Delivery Authority will be concluded within the next two           Attainment of ISO 9001 accreditation to complement existing
  months.                                                                    quality systems accreditation in power, lifting and survey.
  Environment Agency – the award of a four year preferred supplier           The establishment of specialist centres to support customers in their
  contract.                                                                  specialist requirements, for example, light plant, access and fencing,
  SembCorp – the renewal of the Group’s site based services                  together with the initiation of further specialisations in utilities,
  agreement at SembCorp’s Wilton facility, at which Huntsman, SABIC,         interiors/ fit-out and air-conditioning which are underway.
  INVISTA, Artenius and Dow all have operations.                             Continued further penetration of utilities, facilities management
  The renewal of many existing awards (for example, Interserve,              and social housing repair markets to complement our existing
  Morgan Sindall, and May Gurney).                                           strong presence in contracting and M&E markets.
                                                                             Continued development of our training, apprenticeship and prison
Some of the Group’s operational highlights for the year to 31 March          workshop programmes.
2009 include:
                                                                           EquIPMENT
  Year on year revenue growth of 15.9% with the Group’s top 20             The operational highlights of the equipment hire division in the year to
  customers – which now account for approximately 24% of Group             31 March 2009 include:
  revenues. This growth reflects:
  – The increasing strength and depth of Speedy’s relationships with         Revenue £238.9 million (2008: £208.9 million); EBITA £39.1 million
     such customers.                                                         (2008: £40.0 million) (pre-impairment and exceptional items).
  – As the general construction market has weakened, the                     Consolidation of sales management across the business to facilitate
     polarisation of activity towards a smaller number of much larger        cross-selling and streamline resourcing.
     public sector and infrastructure projects, in many cases                Launch of the Group’s communications offering to include 3G
     undertaken under long-term framework and partnering                     mobile site-communications and extension of the safety offer which
     agreements, which inevitably favour our larger customers.               has complemented the existing offer in industrial and
  Increased penetration of a number of industrial and other non-             petrochemical markets.
  construction markets – which now account for approximately 35%             Development of a new regulatory test and inspection business
  of Group revenues, including the securing of a 5 year framework            which will be rolled out nationwide.
  agreement to support ExxonMobil at its Fawley facility.                    Extension of the Group’s accommodation offering into facilities
  The introduction of a significant number of product innovations            management incorporating the provision of fully serviced
  targeting increased energy efficiency and reduced carbon                   temporary office accommodation.
  emissions, such as our ‘Envirocabin’ temporary site accommodation          The Group’s new specialist rail business extending the reach of its
  system which reduces carbon footprint by over 50% and                      services to both Network Rail and with the rail operations of existing
  significantly reduces water consumption compared to standard site          Speedy clients.
  accommodation systems.                                                     Further penetration of industrial and petrochemical markets with
  Launch of the Hand Arm Vibration (HAV) awareness initiative under          new on-site facilities awarded and several existing contracts
  Speedy’s award winning ‘Safety from the Ground Up’ campaign                renewed/extended.
  which is used to communicate new products, legislation and
  operator awareness in respect of changes in safe working practice.       The operational priorities for the hire division for the coming year
  The successful trial of a fleet of new generation of electric flat-bed   include:
  delivery vehicles as part of a strategic initiative with Modec.
  Completion of the first phase of the Group’s new Shared Service            Further penetration of growth markets including infrastructure
  Centre (SSC) as part of Speedy’s drive to enhance both                     construction, public sector and industrial services.
  administrative efficiency and the quality of Management                    The continued development of the temporary on-site depot service
  Information (MI) reporting both internally and to customers.               for major projects.
  Continuing the roll-out of Speedy’s new Group-wide integrated IT           Consolidation of the 10 operating businesses into a single trading
  platform, the final phase of which is on target to be completed by         entity to enable customers to trade from one account across the UK.
  December 2009, which will provide increased visibility of asset status     The alignment of the sales force to market sectors to enable us to
  and enable the business to derive further operational efficiencies.        develop a deeper level of understanding of the Group’s clients’ needs.
                                                                             Continued investment in service improvement initiatives and
TOOLS                                                                        customer facing management information systems.
The operational highlights of the tool hire division in the year to          Development of the MSC (Multi Service Centre) and superstore
31 March 2009 include:                                                       formats.
                                                                             Expansion of the Group’s facilities management, regulatory test and
  Revenue £237.2 million (2008: £256.6 million); EBITA £20.5 million         inspection and asset management services.
  (2008: £34.8 million) (pre-impairment and exceptional items).              Expansion of our services to support key clients in their overseas
  Realignment of the management structure to 4 regional operations           activities.
  (from 6) to create a more responsive and streamlined business.
  Establishment of a projects team to co-ordinate the sales and
  operational efforts on major construction projects.
20   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




 >WE’RE MOVING THE FOCuS OF
 OuR BuSINESS AWAY FROM
 PRODuCTS AND TERRITORIES AND
 TOWARDS CuSTOMERS AND
 MARKETS // WE’LL GO WHEREVER
 OuR CuSTOMERS GO AND PROVIDE
 THEM WITH THE SERVICES AND
 SuPPORT THEY NEED.
                                                                                                           Speedy Hire Plc Annual Report and Accounts 2009   21




5. SPEEDY’S MARKET                                                               Training for our customers in relation to the skills needed for their
OVERVIEW
                                                                                 employees to perform tasks using our tools and equipment safely
The UK hire market is valued at approximately €8.3 billion (Source:              and efficiently.
European Equipment Rental Industry 2008 Report). Driven by growth
in outsourcing and regulatory pressures, the trend towards hire rather         Geographically, our market is expanding beyond the UK. In 2006, the
than ownership continues. Contractors and other operators manage               Group began operating in the Republic of Ireland.
their costs by outsourcing their fleet activities which at the same time
enables them to benefit from the emphasis on health and safety and             In January 2009, and following the establishment of the strategic
quality assurance by the major providers in the UK hire market and to          partnering agreement with Carillion in May 2008, Speedy placed an
seek efficiencies from consolidation of their supply chains. The               implant team in the in-house fleet operations of Al Futtaim Carillion,
experience of Speedy’s senior management team during the last                  Carillion’s longstanding joint venture in the Middle East and North
recession in the early 1990s was that capital constraints caused               Africa. The implant team is working with Carillion locally to identify and
customers to accelerate this process and we believe that similar               implement efficiency improvements to its equipment operations
patterns are already emerging at the onset of the current recession.           across the region.

                                                                               MARKET OuTLOOK
Speedy’s national network, range of products and award-winning
commitment to safety standards differentiate it from many of its               Whilst the longer term prospects for the Group are positive, current
competitors. These dynamics are increasing demand for more modern              conditions in construction markets remain difficult.
fleet, fully compliant with health and safety regulations and,
increasingly, with a focus on energy efficiency and carbon emission            Major contractors have benefited from strong spending by
reduction. Speedy has invested consistently in these areas over many           Government, particularly in education, health, utilities and transport
years and is, therefore, well-placed to benefit from such changes.             infrastructure related sub-sectors, with these activities now accounting
                                                                               for between 70% and 90% of major contractors’ order books. However,
NEW MARKETS
                                                                               the wider construction market, in particular contractors exposed to the
Whilst Speedy’s principal market remains the construction sector in its        private sector, private house building and consumer spending,
widest sense, the Group continues to extend its position to a broader          continues to find conditions difficult.
range of industrial and other non-construction sectors.
                                                                               Having anticipated this situation in 2008 and advised shareholders of
Notwithstanding that Speedy has increased its revenues from its key            the increasing likelihood of a severe contraction in activity going
construction clients by £142 million in the last 3 years, building and         forward, we undertook prompt and decisive actions to right-size our
construction sector revenues as a proportion of Group revenues have            operating base. As a result we believe that we are well placed to trade
reduced from 80% to 65% over the same period.                                  through market conditions which continue to prove challenging and
                                                                               which we believe will not reach a trough until the autumn of 2009. In
The Group’s Equipment businesses continue to provide Speedy with               management’s opinion we do not expect construction market growth
a platform to penetrate additional areas of the market. We are                 until 2010. However, our market leading position, strong brand and
increasingly active in industrial markets, where we provide site-based         growing relationship across a diverse customer base position the
service support at large scale facilities such as steelworks and               Group well to benefit from consolidation in the market.
petrochemical plants.
                                                                               There is ample opportunity to grow our leading, but relatively small,
The Group’s businesses continue to see opportunities for expansion and         market share, particularly through close alignment with, and the ability
cross-selling in areas of activity closely related to the core hire offering   to support, the beneficiaries of Government and regulated industry
and which enhance the relationship with our larger clients, for example:       spending.

   The Group’s facilities management services increasingly take on             In the short-term we will continue to reduce capital outflow, manage
   greater complexity and, when combined with the other services we            down costs and reduce bank debt through strong cash generation.
   are providing, add value from the client’s perspective. We now offer
   services including the management of all customer equipment                 6. CAPITAL STRuCTuRE AND TREASuRY
   requirements via consolidated order-desks irrespective of whether           CAPITAL STRATEGY
   Speedy is the equipment provider and the provision of a wider               Speedy’s long-term funding is provided through a combination of
   range of site logistics services such as serviced offices and               shareholder funds and bank debt. At 31 March 2009, shareholder
   temporary on-site hire and training facilities.                             funds totalled £167.5 million and net debt outstanding was £248.4
   Regulatory testing and inspection services and repairs of customers’        million, resulting in gearing of 148.3% (2008: 106.5%). 68% of the
   own equipment utilising the existing infrastructure and systems of          Group’s gross capital employed (shareholders’ funds plus net debt) is
   the Group.                                                                  represented by hire fleet assets.
   The management and maintenance on an outsourced basis
   (including most recently in the rail sector), of customers’ owned           Despite the challenging trading conditions over the last 12 months,
   asset fleet on the Group’s systems.                                         the decisive action taken by management has ensured that cash
                                                                               continues to be generated. This includes the realisation of £42 million
22   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




 >IT’S AT TIMES LIKE THIS THAT
 THE SPEEDY CuLTuRE REALLY
 SHINES THROuGH // WE’RE PROuD
 OF THE WAY OuR PEOPLE HAVE
 RESPONDED TO uNCERTAIN TIMES
 // THEIR COMMITMENT AND CAN-
 DO ATTITuDE ARE THE quALITIES
 WE NEED TO RIDE OuT THE
 DOWNTuRN.
                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   23




of annualised cost saving benefit and significantly reduced capital          terms for an amended £300 million facility to June 2012. The amended
expenditure, which in the second half of the year ended 31 March             facility, in addition to providing for prudent levels of headroom,
2009 was at a level of approximately 59% of the expenditure made in          includes quarterly interest, fixed charge, leverage and cash flow cover
the first six months of the year.                                            tests which are more appropriate to current market conditions. The
                                                                             amended facility also provides flexibility for Speedy to set dividends
HEDGING                                                                      and bonus payments and manage capital expenditure in line with
Speedy’s policy is to hedge a portion of its debt against the risk of        business needs.
interest rate movements. We aim to have between 40% and 70% of our
debt covered by interest rate risk management instruments. As at             In consideration of the amendments referred to above, the interest
31 March 2009, Speedy had a number of instruments covering £140              margin above LIBOR under the amended facility ranges from 2% to 4%
million of the Group’s debt, with maturity dates of between September        depending on the ratio of the Group’s net debt to EBITDA (less net
2009 and July 2011.                                                          capital expenditure). Accordingly, the Group is incentivised to manage
                                                                             down its net debt position.
CASH GENERATION
Speedy is a cash generative business, with operational cash flow             Following the first covenant test at the end of June 2009 the Group
typically able to support organic growth of approximately 10%. In the        anticipates that the margin payable would be at 3%. In order to secure
event of a market downturn, the business is able rapidly to redirect         the above amendments, a fee of 1.5% was paid to the banks on 31
free cash generation to the reduction of debt. This feature of the           March 2009.
business model is supported by two distinct elements of Speedy’s
supply chain strategy:                                                       The above factors, combined with the retention to June 2012 of the
                                                                             term of the existing facility with the same partnership banks, we
  Whilst retaining competitive terms with suppliers due to its scale,        believe represent a positive outcome for Speedy.
  capital expenditure is structured so as to be subject to short forward
  order requirements with no minimum volume thresholds.                      7. OuR STRATEGY
  Speedy has ensured sustained investment over several years in the          Speedy’s strategy continues to be driven by strong relationships with
  latest, and therefore fully regulatory compliant, hire fleet. Whilst the   customers. Our overall vision is to see Speedy become a world class
  average fleet age of UK tool and equipment companies is 3.1 years,         service provider with the expertise and reach to support our
  over 60% of Speedy’s fleet is less than 3 years old. Accordingly,          customers on a consistent basis wherever they do business. In order
  Speedy enjoys a further competitive advantage in that its hire fleet       for us to reach ‘preferred’ or ‘strategic partner’ status, our customers
  is more durable and sustainable in the event of a prolonged                demand that we provide quality, consistency and added value to their
  downturn and has more flexibility to allow its hire fleet to age than      businesses. Our investment in fleet, our unrivalled operational network
  competitors without impacting the operational integrity of its             in the UK and our expanding range of services are ensuring we are well
  business and service levels to customers.                                  placed to meet these requirements.

Speedy’s cash flow, expressed as a ratio of EBITDA (pre-exceptional          The key means by which Speedy seeks to achieve this goal are
items) to revenues, remained strong in the year ended 31 March 2009          as follows:
at 26.4% (2008: 28.3%) and operating cash flow was resilient at £98.1
million (2008: £102.3 million).                                                To retain strong customer relationships
                                                                               Why: By understanding our customers we have been able to
RETuRN ON CAPITAL                                                              identify: new products and services to meet their needs; new
Return on capital (based on pre-exceptional EBITA) totalled 10.9% in           markets where these products are utilised; and expand
the year ended 31 March 2009. This compares to 15.2% in the prior              geographically with their support.
year period. The principal reason for this decline relates to a 22.4%
decline in EBITA to £49.7 million. Additionally, although year-end             To operate the most modern and comprehensive fleet in the
capital employed totalled £415.9 million, a £79.8 million reduction            industry
over the position at the beginning of the year, the average capital            Why: The best fleet is less prone to breakdown, is compliant with
employed in the year to 31 March 2009 remained above the average               current legislation and a younger fleet gives us more flexibility.
for the prior year period.
                                                                               To have an effective national network offering a full range of
BANK FuNDING                                                                   products and services
In June 2007, the Group put in place a £325 million, five year bank            Why: Our national network ensures our customers have better
facility with a group of seven relationship banks which expires in June        access to more products and services wherever they work,
2012. In light of the volatility in trading conditions, Speedy announced       improving their productivity by reducing their downtime.
in its January 2009 trading update that it had commenced discussions
with its banking partners to establish more appropriate covenants
under its facility. As announced on 1 April 2009, following a detailed
review by the banks of the Group’s business, operational model,
financial projections and cash flow forecasts, all seven banks agreed
24   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




 To increase our product and service ranges                                  To maintain product expertise
 Why: The continuing development of the specialist areas has                 Why: To ensure that our customers can have confidence in our
 allowed us to broaden our offer in those areas where we detect              product knowledge and can therefore trust us to source and service
 customer opportunities. It enables our customers to obtain more             their hire requirements competitively and professionally with
 high-quality services from fewer suppliers, while increasing cross-         equipment suitable to their project.
 selling opportunities, thus improving operational flexibility and
 strengthening our client relationships.                                     To invest in marketing
                                                                             Why: To develop our understanding of the markets in which we
 To be a leader in service innovation                                        operate and the trends that we see in those markets from a
 Why: The ability to influence innovation and change increases the           customer, supplier or legislative perspective. By understanding our
 trust of our clients thereby improving our strong client relationships.     customers and their markets better we identify new products and
 We have continued to drive innovation in our industry and are               services to add to our offering. We can then position and promote
 constantly striving to improve our products and services. When our          our brand effectively.
 customers need a solution we want them to think of us first.
                                                                             To employ a large direct sales force
                                                                             Why: We understand the value of having face-to-face contact with
                                                                             our customers, to understand their needs, service them better and
     It won’t take contracts of                                              provide us with the flexibility to respond to changing demand.

     Olympian proportions to                                                 To be an industry consolidator
                                                                             Why: We see further consolidation opportunities in select areas in
     ensure we succeed . . .                                                 the industry as both likely and desirable, particularly in relation to
                                                                             customer fleets and areas of our equipment business. This
     Fortunately, we’ve                                                      consolidation will have a positive impact on the supply chain, health
                                                                             and safety and quality improvements.
     already won one.
                                                                             To maintain financial strength
     OLYMPIC DELIVERY AuTHORITY                                              Why: To ensure that Speedy can continue to invest in the resources
     Speedy as part of the Construction Site Solutions (“CSS”)               necessary to support the ambitions of its customer base.
     consortium came first in a tendering process with the
     Olympic Delivery Authority (“ODA”) to provide rental                  8. OuR VALuES
     equipment, building supplies and training to firms working
                                                                           At Speedy, we believe that our sucess has been based on sticking to
     on the 2012 Olympic and Paralympic Games site in
                                                                           simple principles. We call these the Speedy Spirit:
     Stratford, East London.
                                                                             Customer First - Always.
     Coming first in the tender process has enabled us to select
     the location of our facility within the Park (one of Europe’s
                                                                             One Team, One Speedy.
     largest construction and engineering projects). Speedy will
     operate from the North site, supplying the whole park with
                                                                             Keep it Simple, Do it Well, Keep it Safe.
     our extensive product and services portfolio. The facility is
     due to be fully operational by early July 2009.
                                                                             Driven by Success & Reward.
     The bid was structured to ensure that the overall
                                                                             Take a Lead, Find a Better Way.
     requirements of the ODA were recognised, not just in the
     provision of quality hire fleet at good commercial terms
                                                                           These principles underpin our ‘enterprise’ culture. They have motivated
     but also by concentrating on their wider objectives e.g.
                                                                           our people and helped integrate the businesses we have acquired.
     sustainability, safety, training and legacy. A number of
                                                                           In turn this has helped to sustain our growth.
     aspects of the Speedy consortium bid were singled out by
     the ODA team, including the use of sophisticated logistics
                                                                           This approach preserves our solid foundations for future growth as we
     planning to minimise traffic movement on and into the
                                                                           expand into new markets.
     site, the use of emission-free electric delivery vehicles, our
     apprenticeship programme and training academy, access
     to the latest and most advanced fleet and the provision of
     site-level health and safety training for operatives.

     The scale, complexity and importance of this project will
     bode well for us with every major project we approach in
     the future.
                                                                                                  Speedy Hire Plc Annual Report and Accounts 2009   25




                                                                       Our Corporate Responsibility approach continues to evolve as the
                                                                       Group evolves. Commitments that the Group has always held to our
   A subsidiary of Scottish                                            people, our communities and our award winning approach to Health
                                                                       and Safety remain undiminished.
   and Southern Energy,
                                                                       We have placed Corporate Responsibility at the centre of our business,
   Southern Electric                                                   providing added value to our customers, our people and our
                                                                       communities – all of which are clearly linked to business priorities.
   Contracting saw that                                                During the current tough market conditions this has not changed.

   Speedy had the power to                                             Our approach is simple – how can we deliver more from less for our
   make things happen.                                                 customers, continue to invest in and develop our people and add
                                                                       value to our communities. In engaging with our stakeholders we are
    SOuTHERN ELECTRIC CONTRACTING                                      always looking to share learning, improve our performance and
   Southern Electric Contracting (“SEC”), one of the country’s         implement best practice.
   largest mechanical and electrical contractors, has signed a
   £6 million sole supplier agreement with Speedy, building            For more comprehensive coverage of our approach to Corporate
   on a successful five-year relationship.                             Responsibility please visit www.speedyhire.plc.uk where more
                                                                       information can be found and our latest Corporate Responsibility
   The £306 million turnover company is a division of the              Report can be downloaded.
   Scottish and Southern Energy Group and provides specialist
   M&E services across a broad range of sectors including              Speedy is a member of Business in the Community and FTSE4Good.
   education, health, manufacturing, housing and defence.
                                                                       10. GOVERNANCE AND RISK MANAGEMENT
   It operates from 65 local offices across the country and
   Speedy will provide nationwide support via its 399 depots,          In the year ended 31 March 2009, the Company complied with the
   supplying a range of tools and equipment including                  provisions set out in the Combined Code and maintained high
   generators, site accommodation and powered access.                  standards of Governance. At the same time we continued to monitor
                                                                       and evaluate all areas of financial and operational risk. Our risk
   Health and Safety is a key priority for SEC, and the firm has       management is independently evaluated.
   a strong culture of striving for zero accidents. Speedy’s
   Health and Safety credentials therefore played an                   Environmental and social risks are monitored and evaluated through
   important role in securing the deal.
                                                                       our Corporate Responsibility Working Group. Key Performance
   The two-year contract represents Speedy’s evolving role as          Indicators are set on a three year rolling basis and reported on in our
   an integrated supply chain partner, providing efficient             Corporate Responsibility Report and on our website.
   solutions for complex hire requirements as well as valuable
   management information.                                             11. OuR PEOPLE
                                                                       Guiding Principle – To attract, retain, train and develop the best
   The deal also continues Speedy’s expansion beyond its               employees and equip them with the skills and support to reach their
   traditional construction client base.                               full potential and attain maximum job satisfaction.
   Richard Moores, group purchasing manager at SEC, said:              This has been a tough year and we are aware that, as we have reduced
   “Over the past five years, we have been impressed with              our cost base to reflect the wider economic downturn, we have seen
   Speedy’s national coverage, commitment to health and
                                                                       good people leave the business. However, as a business, Speedy has
   safety, product range and availability.
                                                                       never shied away from taking difficult decisions and this was the only
   This agreement will provide our sites with consistent high          responsible course of action to protect the future of the majority of our
   standards in equipment supply.”                                     employees in the more challenged economic environment.

                                                                       Our people are our business and we continue to provide the vision and
                                                                       support to reward their efforts. Within the Group People Plan ‘What
                                                                       Good Looks Like’ remains our key training programme, providing clarity
9. DOING IT RIGHT  DOING IT RESPONSIBLY  ADDING VALuE
                                                                       on ‘what a good job looks like’ and then equipping our people through
At Speedy we are committed to the Corporate Responsibility agenda.     training and development to achieve this standard and well beyond.
Since taking a more structured approach to the whole area of           As further assistance for our people in their wider wellbeing we have
Corporate Responsibility 4 years ago, we have implemented a            also introduced this year an Employee Assistance Programme (EAP), a
continuous improvement policy towards achieving our vision to be:      confidential advice line for employees to assist them across a range of
                                                                       issues including managing money, staying healthy, and both family
“The best company to work for, to do business with, to hire from and   and workplace issues. Just launched we will assess its impact over the
to invest in”.                                                         coming months.
26   Speedy Hire Plc Annual Report and Accounts 2009


OPERATING AND FINANCIAL REVIEW




More information on our work with our people can be found in our          14. OuR COMMuNITIES
Corporate Responsibility Report.
                                                                          Guiding Principle – To be a positive influence in the communities in
                                                                          which we operate, work closely with our community partners and
12. HEALTH AND SAFETY
                                                                          engage our employees.
Guiding Principle – To engender a commitment to quality and safety
in every aspect of our business and promote Health and Safety at          Through our charities committee Speedy continue to support our
site level through our ‘Safety from the Ground up’ communication          communities locally, through small donations and support ‘in kind’,
process.                                                                  nationally through partnerships with charities such as the Lighthouse
                                                                          Club and CRASH, and internationally through Habitat for Humanity,
Health and Safety is central to the Speedy brand. Managed through         where for the first time this year we sent an exclusively Speedy team to
our Safety, Health, Environment and Quality (SHEQ) Team we continue       support Habitat’s work in Ghana.
to prioritise site safety through our on-site toolbox talks and ongoing
communication process on major industry issues such as working at         We remain committed to our prisoner rehabilitation project providing
height regulations, hand arm vibration (HAV), dust, noise and manual      training opportunities for 4 HMP Prisons and were also delighted this
handling.                                                                 year to sponsor a Prison Art Competition in conjunction with the
                                                                          Co-operative Group.
Internally our main key performance indicator is our accident lost time
frequency rate and the constant reduction in this rate over previous      Our community investment this year was £350,000.
years has been both an excellent reflection on our safety record and
helped reduce a hidden cost to our operations with fewer people away      More information is available in our Corporate Responsibility Report.
from work through injury or illness.
                                                                          15. FOCuS FOR THE FuTuRE
More information on our multiple award winning ‘Safety from the
                                                                          It has been an exceptionally tough year but our business model has
Ground Up’ programme and wider Health and Safety performance can
                                                                          proved very resilient and we have also taken the hard decisions that
be found in our Corporate Responsibility Report.
                                                                          the severely challenging market conditions have required to protect
                                                                          the business and its future profitability.
13. ENVIRONMENT AND SuSTAINABILITY
Guiding Principle – Minimising wherever possible our impact on the        We will use these difficult trading times to improve further our business
environment and promoting good environmental practices with our           model seeking to differentiate our performance, by getting closer to our
stakeholders.                                                             customers and providing the services and solutions-based approach
                                                                          that we feel continues to provide significant added value to them.
Sustainable growth is a key driver for the Group. We believe hire to be
intrinsically a sustainable industry which optimises the use of goods     The Group continues to invest and evolve. Our core business offering
and services, in turn reducing the environmental impacts of our           has been augmented with more service based solutions, increasing our
customers operations, reducing waste and maximising the principles        alignment with our customers. Regular dialogue with our customers
of recycling and reuse.                                                   continues to inform this process and shape our approach to key industry
                                                                          issues. Regular dialogue with our suppliers continues to meet these
Speedy works closely with our customers, our suppliers, and our           requirements, raise the bar on product performance and keep the Group
people, including our internal Carbon Champions, in addressing what       at the leading edge of product development.
is a major issue for all businesses. Although we currently fall outside
the criteria for the Government’s Carbon Reduction Commitment we          We will continue to build on this increasing customer intimacy and
are fully aware of the need to reduce our carbon emissions and            continue to build on our health and safety and environmental
support our customers to do likewise.                                     performance. In turn this will enable us to support our customers in
                                                                          achieving new levels of performance and new sustainability standards
New ‘greener’ products, especially in relation to temporary               for construction sites, meeting and exceeding customer expectations
accommodation and power generation, are already part of our offering,     wherever we operate.
and increasingly we are supporting our customers in establishing best
practice at site level based on a Low Carbon – Low Cost approach. The     STEVE CORCORAN                          JUSTIN READ
current economic conditions, if anything, emphasise the cost and          CHIEF EXECuTIVE                         GROuP FINANCE DIRECTOR
efficiency benefits which can be derived from adopting such practices.
More information is again available in our Corporate Responsibility       MIKE McGRATH                            CLAUDIO VERITIERO
Report, including a case study of our work with the Olympic Delivery      COMMERCIAL DIRECTOR                     CHIEF OPERATING OFFICER
Authority in relation to 2012 London Olympics site.
                                                                          PATRICK RAWNSLEY
                                                                          COMPANY SECRETARY

                                                                          26 MAY 2009
                                                                                                    Speedy Hire Plc Annual Report and Accounts 2009   27
OPERATING BOARD




01
GREG WOOD
                            02
                            DAVID GRAHAM
                                                         03
                                                         IAN SCAPENS
                                                                                        04
                                                                                        MARTIN KNOTT
                                                                                                                       05
                                                                                                                       ANDY CARTER
MANAGING DIRECTOR,          MANAGING DIRECTOR,           FINANCE DIRECTOR,              MANAGING DIRECTOR,             MANAGING DIRECTOR,
NATIONAL ACCOuNTS           SPEEDY ASSET SERVICES        SPEEDY ASSET SERVICES          BuSINESS & CuSTOMER            SPEEDY ASSET SERVICES
AND HIRE DIRECT             TOOLS                      Aged 35, Ian joined            EXCELLENCE                     EquIPMENT
Aged 52, Greg joined        Aged 50, David joined        Speedy in 2005 as              Aged 49, Marton rejoined       Aged 43, Andy joined
Speedy in June 2003 as      Speedy in 2004 as Group      Business Development           Speedy in 2004 as              Speedy in December 1999
National Accounts           Sales and Marketing          Director (for acquisitions).   Operations Director of         to form Speedy Power. For
Director. Greg has 32       Director and Managing        Following the acquisition      our Tool Hire division and     the previous ten years
years’ experience in the    Director of Speedy Direct.   of Hewden Tools in 2007,       was appointed Managing         Andy worked for Rentair
tool hire industry          In July 2006 he was          Ian moved to the role of       Director in April 2005.        Plc, firstly as a Regional
previously owning his       appointed Managing           Integration Director and       Martin has worked in the       Manager and then as Sales
own company, Instant        Director of Speedy           subsequently became            hire industry for over 30      and Marketing Director.
Tool Hire. In September     London & South East.         Finance Director for the       years and was one of the       Prior to this he was
2006 Greg took on the       Previously David worked      Engineering businesses         first Speedy Depot             London region sales
additional role of          for SGB Youngman in          within the Equipment           Managers. He worked for        representative for Vp
Managing Director for       various roles including      Division. Before joining       HSS in various operational     PLC and Business
Speedy Hire Direct          Regional Manager for         Speedy, Ian worked as a        roles and was appointed        Development Manager
following the success and   London, General Manager      Corporate Finance              to the HSS Group Board in      for Hertz Equipment
growth of National          of Retail Operations and     Adviser for Andersen and       1995, spending seven           Rental. Andy was
Accounts and the close      latterly Sales and           Deloitte.                      years as UK Operations         appointed Managing
association with the Hire   Marketing Director. David                                   Director. Martin was           Director (Equipment) in
Direct function.            was appointed Managing                                      appointed to Managing          November 2008.
                            Director (Tools) in                                         Director of Business &
                            November 2008.                                              Customer Excellence in
                                                                                        November 2008.
28     Speedy Hire Plc Annual Report and Accounts 2009


DIRECTORS




01                            02                         03                  04                        05                        06

It will come as no surprise that progress in terms of Board effectiveness    James Morley joined the Board on 2 April 2009 as a Non-Executive
has, this year, been muted. My aspirations have had to take account of       Director and chairs the Audit Committee. James is a Chartered
unprecedented circumstances, which have necessitated different               Accountant with 25 years’ experience as a board member at both listed
priorities. Nevertheless, I believe that a key objective for the year,       and private companies. He is currently a Non-Executive Director at
outlined in this report a year ago, was to ensure that the new members       Clarkson plc, Costain Group plc, The Innovation Group plc and WS
of the Board settled into their roles. This has been achieved, with each     Atkins plc. James brings a wealth of experience which will contribute
making a significant contribution to the debate and gives me comfort         to Board debate and we are all looking forward to working with him.
that we have the appropriate skills in the Boardroom.
                                                                             The Board structure is therefore once again complete, with an
Once again, our internal evaluation used a quantitive system and we          Executive team of four, complemented with four Non-Executive
aim to build on and develop the areas identified for improvement,            Directors following David Galloway’s retirement and myself as
following the external evaluation carried out three years ago.               Chairman. There is an impressive range of skills and experience in the
                                                                             Boardroom, which gives me confidence that we will manage through
The areas addressed include:                                                 the difficult times which still lie ahead of us and ultimately deliver our
                                                                             long-term objectives.
     The effectiveness of the Board in the testing and development of
     strategy including an evaluation of the Company’s resources and         Finally, I would like to thank our Company Secretary, Patrick Rawnsley,
     advisers.                                                               for his help and wise counsel over the past two years and wish him
     An examination of the Board’s governance and processes, including       every success as he moves on to an exciting new role in the business
     its structure and the skills and experiences of its members, together   heading up Branded & Advisory Services. I welcome Suzana
     with Board relationships. This also includes an evaluation of the       Koncarevic, who will replace Patrick as our Company Secretary on 22
     Board committees, risk management and resource planning.                July 2009. Suzana has joined us from United Utilities Group Plc.
     An evaluation of the meetings themselves to ensure that there is
     appropriate reporting of key information, full and open debate,         An effective, well-functioning Board is an essential element of a
     proper resolution of issues and that an appropriate balance is struck   successful business and the input and support of my colleagues is
     between strategic and operational matters.                              central to that. As always, it is an honour to chair it.
     An examination of the effectiveness of the communication of the
     decisions of the Board, in terms of the strategy which has been set     DAVID WALLIS
     and the safeguarding of the ethics and core values of the business.     CHAIRMAN
     The effectiveness of the Board in securing the long-term interests of   26 MAY 2009
     the business in the interests of its shareholders, employees and
     wider stakeholder group.

Our score was 76%, compared to 81% last year, which was
unsurprising given the many new issues to be dealt with.

There has been no change to the composition of the Board over the
course of the financial year, with the exception of Neil O’Brien, who
stepped down as Group Finance Director on 1 April 2008. David
Galloway will retire on 31 May 2009, having served eight years on the
Board. David has chaired the Audit Committee throughout that time
and, in my view, has proved to be exemplary, both as a Non-Executive
Director and Chair of the Audit Committee. Always giving freely of his
time, through spending time in the accounting and IT functions, he
has influenced and helped to shape the financial structure and
controls of the business, through a period of significant growth and
has had huge input to the strategic debate. The Board is immensely
grateful for his contribution and we all wish him well for the future.
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009     29




                                                                                                                                   Audit Committee:
                                                                                                                                   James Morley (Chair), Ishbel
                                                                                                                                   Macpherson, Peter Atkinson,
                                                                                                                                   Michael Averill, David Galloway
                                                                                                                                   Nomination Committee: David
                                                                                                                                   Wallis (Chair), David Galloway,
                                                                                                                                   Ishbel Macpherson,
                                                                                                                                   Peter Atkinson, James Morley,
                                                                                                                                   Michael Averill
                                                                                                                                   Remuneration Committee:
                                                                                                                                   Ishbel Macpherson (Chair),
                                                                                                                                   James Morley, Peter Atkinson,
                                                                                                                                   Michael Averill, David Galloway

07                       08                        09                       10                      11


01Wallis joined the Board in June 2000 and was appointed as
David
      DAVID WILLIAM WALLIS
      NON-EXECuTIVE CHAIRMAN                                                06 Rawnsley, aged 44, joined the Company in January 2007.
                                                                                  PATRICK JAMES RAWNSLEY
                                                                                  COMPANY SECRETARY
                                                                            Patrick
Chairman in February 2001. He is also Chairman of Directorbank Group        Patrick was formerly the Company Secretary of Reg Vardy plc and prior
Limited and has previously held the position of Chairman or Non-            to that was a partner at Eversheds LLP.
Executive Director in a number of public and private companies. His
executive career included nine years as Group Managing Director of
Merchant Retail Group plc.                                                  07Macpherson, aged 48, joined the Board following the AGM in
                                                                            Ishbel
                                                                                  ISHBEL JEAN STEWART MACPHERSON
                                                                                  NON-EXECuTIVE DIRECTOR – SENIOR INDEPENDENT DIRECTOR

                                                                            2007. Ishbel is an investment banker of over 20 years’ standing who has
02Corcoran, aged 48, was appointed Chief Executive of Speedy Hire
Steve
       STEVEN JAMES CORCORAN
       CHIEF EXECuTIVE                                                      specialised in UK mid-market corporate finance. Ishbel was Head of UK
                                                                            Emerging Companies Corporate Finance at Dresdner Kleinwort
Plc in April 2005 and has over 25 years’ experience in the hire industry.   Wasserstein from 1999 to 2005 and is presently a Non-Executive Director
Having joined the Company in 1987 when the business had 13 outlets,         of MITIE Group plc, GAME Group plc, Hydrogen Group plc and Dignity
he has been progressively promoted “through the ranks”. Steve was           plc. Ishbel is also the Senior Independent Director.
appointed to the role of Chief Operating Officer in April 2001 and to his
present role 4 years later.
                                                                            08Morley, aged 60, joined the Board on 2 April 2009 and became
                                                                            James
                                                                                  JAMES MORLEY
                                                                                  NON-EXECuTIVE DIRECTOR

03Read, aged 48, joined the Board in April 2008. Prior to joining
Justin
       JUSTIN RICHARD READ
       GROuP FINANCE DIRECTOR                                               chair of the Audit Committee on 8 May 2009. He is a Chartered
                                                                            Accountant with some 25 years of experience as a board member at
Speedy, he worked for 13 years at Hanson PLC, the international building    both listed and private companies. Most recently, James was Chief
materials company. At the time of leaving Hanson, he held the dual roles    Operating Officer of Primary Insurance Group. He currently holds Non-
of Managing Director, Hanson Continental Europe and Head of Corporate       Executive Directorships at Clarkson plc, Costain Group plc, The
Development. Previously he held a number of other senior roles within       Innovation Group plc and WS Atkins plc. Between 1994 and 2008 James
Hanson, including Deputy Finance Director, Head of Risk Management          was also a Non-Executive Director of the Bankers Investment Trust.
and Treasury, and Group Treasurer. He had also been responsible for
Hanson’s corporate communications and investor relations.
                                                                            09Atkinson, aged 52, joined the Board in June 2005. Peter is
                                                                            Peter
                                                                                  PETER DUNCAN ATKINSON
                                                                                  NON-EXECuTIVE DIRECTOR

04 Veritiero, aged 35, joined the Board in 2007 having been
Claudio
       CLAUDIO VERITIERO
       CHIEF OPERATING OFFICER                                              currently Chief Executive of Macfarlane Group plc, a position which he
                                                                            has held since October 2003. Prior to this he held a number of senior
employed by Speedy since 2004. Previous roles within the Group              positions within Brambles Industries plc, GKN plc, SC Johnson Wax and
include Group Business Development Director with responsibility for         Procter & Gamble.
acquisitions and strategic development and Managing Director of
Speedy Lifting. Prior to joining Speedy, he worked for eight years with
the Investment Banking arm of Rothschild where he was involved in a         10 Averill, aged 58, held the position of Group Chief Executive of
                                                                                  MICHAEL CHARLES EDWARD AVERILL
                                                                                  NON-EXECuTIVE DIRECTOR
                                                                            Michael
lead advisory role on a broad range of mergers and acquisitions, fund-
raisings and strategic consultancy.                                         Shanks Group plc for 13 years until September 2007. He is a Non-
                                                                            Executive Director of Care UK plc and chairman of both Enviroco
                                                                            Limited and JBM International Limited. He has also been a director of
05McGrath, aged 42, became Commercial Director in March 2006,
Mike
                         G
       MICHAEL ANDREW McGRATH
       COMMERCIAL DIRECTOR                                                  the Waste and Resources Action Programme (WRAP) for nearly 9 years.

having served as Company Secretary on a part-time basis since 2001.
He is responsible for strategic projects across the Group, including
                                                                            11 Galloway, aged 63, joined the Board in April 2001 and will step
                                                                            David
                                                                                  DAVID ALLISTAIR GALLOWAY
                                                                                  NON-EXECuTIVE DIRECTOR

developing strategic partnering arrangements with the Group’s largest
                                                                            down on 31 May 2009. He stepped down as Chair of the Audit
customers. Mike was formerly a partner at Pinsent Masons, the Group’s
                                                                            Committee on 8 May 2009. He has extensive experience of support
solicitors, and has advised Speedy in relation to the majority of its
                                                                            services and hire and leasing businesses and was a Director of RAC plc.
acquisitions over the last 16 years.
                                                                            He is currently Non-Executive Chairman of Accident Exchange plc and
                                                                            a Non-Executive Director of May Gurney Integrated Services plc.
30   Speedy Hire Plc Annual Report and Accounts 2009


DIRECTORS’ REPORT




The Directors present their report and the audited consolidated                  BuY-BACK OF SHARES
accounts for the year ended 31 March 2009.
                                                                                 At the AGM held on 15 July 2008, a special resolution was passed
                                                                                 to authorise the Company to make purchases on the London Stock
REVIEW OF THE BuSINESS AND FuTuRE DEVELOPMENTS
                                                                                 Exchange of up to 10% of its ordinary shares. As at 26 May 2009, no
A review of the progress made by the Group during the year, together             shares had been purchased under this authority. Shareholders will
with the business review that is required to be disclosed pursuant to            be requested to renew this authority at the forthcoming AGM in
the Companies Act 1985 (Operating and Financial Review and                       July 2009.
Directors Report) Regulations 2005, are contained within this report,
the Chairman’s statement on pages 12 and 13, and the Operating and               EMPLOYMENT OF DISABLED PERSONS
Financial Review on pages 14 to 26 which should be read as part of
                                                                                 The Group recognises its responsibilities towards disabled persons and
this report.
                                                                                 gives full and fair consideration to applicants in positions suited to
                                                                                 their own particular abilities where appropriate openings exist. Where
RESuLTS AND DIVIDENDS
                                                                                 employees become disabled in the course of their employment, every
The consolidated loss after taxation for the year was £54.6 million              effort is made to provide them with continuing employment.
(2008: profit £24.4 million). This is after a taxation credit of £16.0 million
(2008: charge £6.1 million) representing an effective rate of 27.6%              EquAL OPPORTuNITIES
(2008: 22.5%) pre exceptional items. An interim dividend of 6.4 pence
                                                                                 In the recruitment of employees and their subsequent career
per share was paid during the year. The Directors propose that a final
                                                                                 development, individuals are considered having regard to their
dividend of 6.4 pence per share be paid, making a total dividend
                                                                                 aptitudes and abilities irrespective of race, sex, marital status, age,
distribution for the year of 12.8 pence per share (2008: 19.8 pence).
                                                                                 religion or disability.
POST-BALANCE SHEET EVENTS
                                                                                 EMPLOYEE INVOLVEMENT
There have been no significant events since the balance sheet date
                                                                                 The Group aims to achieve a shared commitment from all employees
which would have a material effect on the financial statements.
                                                                                 to the success of the businesses in which they are employed. The
                                                                                 Board believes in the financial effectiveness of incentive bonuses. It is
ISSuE OF SHARES
                                                                                 the Group’s policy that every employee should be in some form of
On 19 June 2008, the Company issued 51,158 ordinary shares of                    incentive scheme as soon as possible after joining the Group. Details of
5 pence each to the vendors of Waterford Hire Services Limited as                such incentive schemes, including annual bonus arrangements for
deferred consideration under the terms of the acquisition announced              Executive Directors and senior executives, are summarised in the
on 30 July 2007.                                                                 Remuneration Committee’s report on page 47.

                                                                                 PAYMENTS TO SuPPLIERS
                                                                                 It is the Group’s policy to make suppliers aware of the terms and
                                                                                 conditions upon which the Group will trade with them and to abide by
                                                                                 those terms. Codes or standards on payment practice are followed
                                                                                 where appropriate. The Group had 87 days of purchases outstanding
                                                                                 at the end of the financial year (Company: 41 days).

                                                                                 FINANCIAL INSTRuMENTS
                                                                                 The Group holds and uses financial instruments to finance its
                                                                                 operations and manage its interest rate and liquidity risks. Full details
                                                                                 of the Group’s arrangements are contained in note 17 of the financial
                                                                                 statements.
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   31




GOING CONCERN                                                                The Group’s business activities, together with the factors likely to affect
                                                                             its future development, performance and position are set out in the
After making enquiries, the Directors have a reasonable expectation
                                                                             Operating and Financial Review on pages 14 to 26.
that the Company and Group have adequate resources to continue to
operate for the foreseeable future. Accordingly, they continue to adopt
                                                                             POLITICAL AND CHARITABLE DONATIONS
the going concern basis in preparing the Annual Report and financial
statements.                                                                  The Group made charitable donations amounting to £76,000 (2008:
                                                                             £68,000) during the year. Company charitable donations were £63,000
As highlighted in Note 17 to the financial statements the Group meets        (2008: £21,000). In accordance with the policy of the Group, no political
its day to day working capital requirements through operating cash           donations were made during the year.
flows, with borrowings in place to fund the acquisition of hire fleet. The
ability of the Group to continue as a going concern is reliant upon the      SuBSTANTIAL SHAREHOLDERS
continued availability of the Group’s loan facilities. Following             As at 26 May 2009, the Company had been notified, in accordance with
discussions with the Group’s banks and a detailed review by the banks        the Disclosure and Transparency Rules, of the following holders of
and their advisers of the Group’s business, operational plan, and            shares with 3% or more of the total voting rights in the issued share
financial projections an amended £300 million committed facility             capital of the Company:
extending to June 2012 was agreed on 31 March 2009. Based on these
projections, and taking account of possible changes in trading
performance, the Group expects to be able to operate within the terms
of its facility agreement. The Group had £40 million of undrawn
committed facilities and £11 million of cash at 31 March 2009.


                                                                                                                                            Percentage of
Name                                                                                                                                         voting rights
Schroder Investment Management                                                                                                                     18.50%
Barclays PLC and its subsidiaries                                                                                                                   6.69%
AXA SA and its subsidiaries                                                                                                                         6.43%
Credit Suisse Asset Management Limited                                                                                                              5.94%
Black Rock Inc.                                                                                                                                     4.47%
Legal & General Group Plc                                                                                                                           4.13%
Oberbank                                                                                                                                            3.77%
32   Speedy Hire Plc Annual Report and Accounts 2009


DIRECTORS’ REPORT




DIRECTORS                                                                   The Group and Parent Company financial statements are required by
                                                                            law and IFRSs as adopted by the EU to present fairly the financial
The Directors who served during the year and the interests of Directors
                                                                            position of the Group and the Parent Company and the performance
in the share capital of the Company are set out on pages 29 and 53.
                                                                            for that period; the Companies Act 1985 provides in relation to such
                                                                            financial statements that references in the relevant part of that Act to
David Wallis, Mike McGrath and Steve Corcoran are retiring by rotation
                                                                            financial statements giving a true and fair view are references to their
at the AGM and are offering themselves for re-election. James Morley,
                                                                            achieving a fair presentation.
having been appointed since the date of the last AGM, offers himself
for election in accordance with the Company’s Articles of Association.
                                                                            In preparing each of the Group and Parent Company financial
                                                                            statements, the Directors are required to:
The remaining Non-Executive members of the Board have undertaken a
review of the Chairman’s performance and are satisfied that David Wallis
                                                                              select suitable accounting policies and then apply them
performs to the very highest standard as Chairman and that his wide
                                                                              consistently;
experience of business and finance continue to be of great value to the
                                                                              make judgements and estimates that are reasonable and prudent;
Board and the Company. The Board believes that David has played a vital
                                                                              state whether they have been prepared in accordance with IFRSs as
role in overseeing the growth of the Company and has been responsible
                                                                              adopted by the EU; and
for the strengthening and development of the Board into the strong and
                                                                              prepare the financial statements on the going concern basis unless
effective team it is today. David remains an important sounding board
                                                                              it is inappropriate to presume that the Group and the Parent
for the executive team, providing trust and support whilst upholding
                                                                              Company will continue in business.
high standards of governance through constructive challenge of
strategy and operational developments. The commitment and
                                                                            The Directors are responsible for keeping proper accounting records
enthusiasm he brings to the role of Chairman is undiminished and the
                                                                            that disclose with reasonable accuracy at any time the financial
remaining members of the Board unanimously support his re-election.
                                                                            position of the Group and Parent Company and enable them to ensure
                                                                            that these financial statements comply with the Companies Act 1985.
The Board approved the appointment to the Board of James Morley on
                                                                            They have a general responsibility for taking such steps as are
2 April 2009 who has succeeded David Galloway as Chair of the Audit
                                                                            reasonably open to them to safeguard the assets of the Group and to
Committee from 8 May 2009.
                                                                            prevent and detect fraud and other irregularities.
Neil O’Brien retired from the Board on 31 May 2008.
                                                                            Under applicable laws and regulations, the Directors are also responsible
                                                                            for preparing a Directors’ Report, Directors’ Remuneration Report and
No Director had any interest, either during or at the end of the year, in   the Corporate Governance statement that comply with that law and
any disclosable contracts or arrangements, other than a contract of         those regulations.
service, with the Company or any subsidiary company. No Director had
any interest in the shares of any subsidiary company during the year.       The Directors are responsible for the maintenance and integrity of the
                                                                            corporate and financial information included on the Company’s website.
DISCLOSuRE OF INFORMATION TO AuDITORS                                       Legislation in the UK governing the preparation and dissemination of
                                                                            financial statements may differ from legislation in other jurisdictions.
The Directors who held office at the date of approval of this Directors’
Report confirm that, so far as they are each aware, there is no relevant
                                                                            STATEMENT OF DIRECTORS’ RESONSIBILITIES PuRSuANT TO
audit information of which the Company’s auditors are unaware and
each Director has taken all the steps that he ought to have taken as a      DISCLOSuRE AND TRANSPARENCY RuLES 4.1.12
Director to make himself aware of any relevant audit information and        The Directors confirm that, to the best of their knowledge:
to establish that the Company’s auditors are aware of that information.
                                                                            (i) The financial statements, prepared in accordance with applicable
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE                       set of accounting standards, give a true and fair view of the assets,
ANNuAL REPORT AND THE FINANCIAL STATEMENTS                                       liabilities, financial position and profit or loss of the Company and
                                                                                 the undertakings included in the consolidation taken as a whole;
The Directors are responsible for preparing the Annual Report and the
                                                                                 and
Group and Parent Company financial statements in accordance with
                                                                            (ii) The Directors Report, Chairman’s letter and Operating and Financial
applicable law and regulations.
                                                                                 Review, include a fair review of the development and performance
                                                                                 of the business and the position of the Company and the
Company law requires the Directors to prepare Group and Parent
                                                                                 undertakings included in the consolidation taken as a whole,
Company financial statements for each financial year. Under that law
                                                                                 together with a description of the principal risks and uncertainties
they are required to prepare the Group financial statements in
                                                                                 that they face.
accordance with IFRSs as adopted by the EU and have elected to
prepare the Parent Company financial statements on the same basis.
                                                                            The names and functions of the Directors of the Company are set out
                                                                            on pages 28 and 29 of the Annual Report.
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   33




AuDITORS                                                                   Each Director must also stand for re-election at the third AGM
                                                                           following their last election or re-election. If the number of Directors
KPMG Audit Plc were reappointed at the AGM of the Company held on
                                                                           standing for re-election is less than one-third of the current Board
15 July 2008 and their appointment expires at the conclusion of this
                                                                           (which excludes any Directors appointed by the Board who are
year’s AGM. KPMG Audit Plc offer themselves, and are recommended by
                                                                           standing for election for the first time) then additional Directors must
the Board, for reappointment under the provisions of Section 489 of the
                                                                           also stand for re-election in order that at least one-third is standing.
Companies Act 2006.
                                                                           ARTICLES OF ASSOCIATION
TAKEOVER DIRECTIVE INFORMATION                                             The Company’s articles of association may be amended by special
Where not provided elsewhere in this report, the additional information    resolution of the Company’s shareholders.
required for shareholders as a result of the implementation of the
Takeover Directive into English law is set out below.                      DIRECTORS’ POWERS
                                                                           At the AGM to be held on 21 July 2009, shareholders will be asked to
SHARE CAPITAL                                                              renew the Directors’ power to allot shares and buy back shares in the
As at 31 March 2009, the Company’s share capital comprised a single        Company and to renew the disapplication of pre-emption rights.
class of ordinary shares of 5 pence each. As at 31 March 2009 the
authorised share capital of the Company was £3,000,000 comprising          CHANGE OF CONTROL  SIGNIFICANT AGREEMENTS
60,000,000 ordinary shares of 5 pence each, and the issued share           There are no significant agreements to which the Company is a party
capital was £2,548,105 comprising 50,962,100 ordinary shares of 5          that may take effect, alter or terminate upon a change of control
pence each. There are no special rights or obligations attaching to the    following a takeover bid other than in relation to (i) employee share
ordinary shares.                                                           schemes and (ii) the Company’s borrowings, which would become
                                                                           repayable on a takeover being completed.
RESTRICTIONS ON SHARE TRANSFERS
The Company’s articles of association provide that the Company may         Shares in the Company are held in the Speedy Hire Employee Benefits
refuse to transfer shares in the following customary circumstances:        Trust for the purpose of satisfying awards made under the Company’s
                                                                           Performance Plan and Co-Investment Plan. Unless otherwise directed by
  where the share is not a fully paid share;                               the Company, the Trustees of the Trust abstain from voting on any shares
  where the share transfer has not been duly stamped with the              held in the Trust in respect of which the beneficial interest has not vested
  correct amount of stamp duty;                                            in any beneficiary. In relation to shares held in the Trust where the
  where the transfer is in favour of more than four joint transferees;     beneficial interest has vested in a beneficiary, the beneficiary can direct
  where the share is a certificated share and is not accompanied by        the Trustees how to vote.
  the relevant share certificate(s) and such other evidence as the
                                                                           COMPENSATION FOR LOSS OF OFFICE
  Board may reasonably require to prove the title of the transferor; or    There are no agreements between the Company and its Directors or
  in certain circumstances where the shareholder in question has been      employees providing for compensation for loss office or employment
  issued with a notice under section 793 of the Companies Act 2006.        (whether through resignation, purported redundancy or otherwise)
                                                                           that occurs because of a takeover bid.
These restrictions are in addition to any which are applicable to all UK
listed companies imposed by law or regulation.
                                                                           DIRECTORS’ INDEMNITIES
SHARES WITH SPECIAL RIGHTS                                                 As permitted by the Companies Act 2006, the Company has indemnified
There are no shares in the Company with special rights with regard to      each of the Directors who held office during the year and the Directors
control of the Company.                                                    who have been appointed since the end of the financial year.

RESTRICTIONS ON VOTING RIGHTS                                              ANNuAL GENERAL MEETING
The notice of the AGM specifies deadlines for exercising voting rights     The Company’s AGM will be held at Mere Court Hotel and Conference
and appointing a proxy or proxies to vote in relation to resolutions to    Centre, Warrington Road, Mere, Knutsford, Cheshire, WA16 0RW at
be passed at the AGM. All proxy votes are counted and the numbers          11 am on Tuesday 21 July 2009. A formal notice of meeting, an
for, against or withheld in relation to each resolution are announced at   explanatory circular and a form of proxy have each been sent
the AGM and published on the Company’s website after the meeting.          separately to shareholders.
AGREEMENTS WHICH MAY RESuLT IN RESTRICTIONS ON SHARE TRANSFERS
                                                                           By order of the Board
The Company is not aware of any agreements between shareholders
which may result in restrictions on the transfer of securities and/or on
voting rights.                                                             PATRICK RAWNSLEY
                                                                           COMPANY SECRETARY
                                                                           26 MAY 2009
APPOINTMENT AND REPLACEMENT OF DIRECTORS
The Company’s articles of association provide that all Directors must
stand for election at the first AGM after having been appointed by
the Board.
34    Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




HIGHLIGHTS                                                                brief exception of the note made in the Annual Report 2008, which
                                                                          explains that subsequent to the end of the year, and prior to the
   Continued full compliance with Combined Code
                                                                          appointment of Michael Averill on 1 May 2008, the Board was for one
   Risk management input from Marsh
                                                                          month non-compliant in terms of balance between Executive and
   Ongoing review of the effectiveness of the Board’s operation
                                                                          Non-Executive Directors. This was attributable to the Group’s desire to
   Combined Code Compliance Statement, including terms of
                                                                          keep the services of Neil O’Brien to ensure a period of orderly
   reference of the Board and each Committee, available on the
                                                                          handover to the incoming Group Finance Director, Justin Read. The
   Company’s website
                                                                          Board believes the benefit of retaining Neil O’Brien’s services
   After the end of the financial year, appointment of James Morley as
                                                                          outweighed this short period of non-compliance under the Code.
   a Non-Executive Director on 2 April 2009 and with effect from
                                                                          Since the appointment of Michael Averill and the retirement of Neil
   8 May 2009 appointment of James Morley as Chair of the Audit
                                                                          O’Brien, the Company is once again fully compliant.
   Committee
   After the end of the financial year, retirement of David Galloway as
                                                                          DIRECTORS
   Non- Executive Director on 31 May 2009
                                                                          THE BOARD
The Board is committed to maintaining high standards of Corporate         The Board normally meets at least ten times per annum for scheduled
Governance. The Board first reported its compliance with the new          Board meetings including a two day off-site meeting solely to discuss
Combined Code in 2004 and since then has continued in its efforts to      strategy. In the year ended 31 March 2009, the Board met 9 times due
develop further its approach to corporate governance and the              to one meeting falling just before the year end. The Board also meets
effective management of risk in the context of a rapidly growing          as required on an ad hoc basis to deal with urgent business, including
business.                                                                 the consideration and approval of transactions. The table below lists
                                                                          the number of Board Meetings, Board Committee Meetings and
Accordingly, the following paragraphs together with the flow diagram      Directors’ attendance during the year.
on page 35 explain how the Company has applied the principles of
good governance and the code of best practice set out in the current      The Board has approved a schedule of matters reserved for decision by
edition of the Combined Code.                                             it. This schedule, which forms part of a Combined Code Compliance
                                                                          Statement formally adopted by the Board, is available for inspection at
Throughout the year ended 31 March 2009, the Company has been in          the Company’s registered office and on the Company’s website.
compliance with the provisions set out in the Combined Code with the

                                                                                                         Audit Remuneration          Nomination
                                                                                       Plc Board     Committee   Committee           Committee
David Wallis                                                                                    9               3*              –               1
David Galloway (to retire on 31 May 2009)                                                       9               3               2               1
Steve Corcoran                                                                                  9               2*              –               1
Neil O’Brien (resigned 31 May 2008)                                                             3               –               –               –
Peter Atkinson                                                                                  9               3               2               1
Mike McGrath                                                                                    9               –               –               –
Ishbel Macpherson                                                                               9               3               2               1
Claudio Veritiero                                                                               9               –               –               –
Justin Read (appointed 1 April 2008)                                                            9               3*              –               –
Michael Averill (appointed 1 May 2008)                                                          8               3               2               1

* by invitation


James Morley joined on 2 April 2009 and accordingly attended no meetings during the year.
                                                                                                           Speedy Hire Plc Annual Report and Accounts 2009   35
CORPORATE GOVERNANCE




                                                                           Corporate governance structure


The Combined Code Compliance Statement was last revised on               CORPORATE GOVERNANCE STRuCTuRE
22 May 2008. The matters reserved for specific approval by the Board
can be subdivided into a number of key areas including but not                                     Committees
limited to:

  Financial reporting (including the approval of interim and final              Audit             Remuneration           Nomination
  financial statements, interim management statements and
  dividends).
  The Group’s finance, banking and capital structure arrangements.
  Group strategy and transactions.                                                                                                         External
  Stock Exchange/Listing Authority matters (including the issue of                                                                        evaluation
                                                                                                   Group Board
                                                                                                                                          of projects
  shares, the approval of circulars and communications to the market).                                                                   (consultants)
  Approval of the policies and framework in relation to remuneration
  across the Group (following appropriate recommendations from the
  Remuneration Committee).                                                            Executive Management Team                  Strategic Projects Group
  Approval of the Group’s risk management and control framework                                                                 • Executive Management Team
                                                                                  •     Chief Executive
  (following appropriate recommendations from the Audit                           •     Finance Director                        • Project Team
  Committee).                                                                     •     Chief Operating Officer                   e.g.
  The constitution of the Board itself, including its various                     •     Commercial Director                     • Business processes/IT
                                                                                  •     Divisional heads                        • Sales/customers
  Committees, and succession planning (following appropriate                      •     Group sales/marketing                   • HR/people
  recommendations from the Nomination Committee).                                       Director of Environment,                • Asset management
                                                                                        Safety and Health                       • Property
  Approving the Group’s policies in relation to, inter alia, the
  environment, Health & Safety and Corporate Responsibility.
                                                                                                                      Project teams drive through
                                                                                   Operating businesses               projects into the businesses
Matters requiring Board and Committee approval are generally the                    (see separate structure
                                                                                 diagram in the OFR, page 15)
subject of a proposal by the Executive Directors submitted to the
Board, together with supporting information, as part of the Board or
Committee papers circulated prior to the relevant meeting. The
implementation of matters approved by the Board, particularly in         The posts of Chairman and Chief Executive are held by David Wallis
relation to matters such as significant acquisitions or other material   and Steve Corcoran respectively. In addition to the Chairman, the
projects, sometimes includes the establishment of a sub-committee        Board includes four independent Non-Executive Directors, Ishbel
comprising at least one Non-Executive Director.                            Risk management process
                                                                         Macpherson, Peter Atkinson, Michael Averill and James Morley (from
                                                                         2 April 2009) (David Galloway is also a Non-Executive Director until his
                                                                                                       regular reporting
                                                                         resignation with effect from 31 May 2009). Together they bring a
                                                                         strong and independent Non-Executive element to the Board. The
                                                                         Senior Independent Director is Ishbel Macpherson.
                                                                                      risk working Group

                                                                                                                    Morley Management team
                                                                         The Audit Committee is chaired by James executivewho replaced David
                                                                                  • identify and evaluate
                                                                                     risksMay 2009. Its other members are sponsor Macpherson,
                                                                         Galloway on 8                            • Board Ishbel for each
                                                                                  • develop and monitor             identified area of risk
                                                                         Peter Atkinson and Michael Averill. In accordance with the Smith
                                                                                     action plans                 • liaison with line management
                                                                         Guidance • on Audit Committees, the Chairman, David Wallis, is not a
                                                                                     line management
                                                                                     responsibility
                                                                         member of the Audit Committee.
                                                                                                                                  Quarterly review
                                                                                                                                   of risk register
                                                                                                                                     and trends in
                                                                                                                                    changes in risk
                                                                                                  independent evaluation
                                                                                                         (Marsh)

                                                                                                                                              Group Board
                                                                                                 • evaluation of risk
                                                                             independent         • review of risk
                                                                             review                 management plans
                                                                                                 • review of progress                       audit committee
                                                                                                    against plans
                                                                                                                                            oversee process



                                                                                                                        annual reporting

                                                                                         Keep it simple,
                                                                                         do it well!
36   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




The Remuneration Committee is chaired by Ishbel Macpherson. Its              CHAIRMAN AND CHIEF EXECuTIVE
other members are Peter Atkinson, Michael Averill and James Morley.          A statement as to the division of the responsibilities of the Chairman
                                                                             and Chief Executive is included in the Combined Code Compliance
The Nomination Committee comprises the four Non-Executive                    Statement formally adopted by the Board referred to above. The
Directors and the Chairman, and is chaired by David Wallis.                  Board considers that the Chairman on his appointment met the
                                                                             independence criteria set out in paragraph A.3.1 of the Combined
The Chairman and other Non-Executive Directors meet at least twice a         Code. It is the policy of the Board that the Chief Executive should not
year without the Executive Directors present. In addition, the Chairman      go on to become Chairman.
regularly briefs the other Non-Executive Directors on relevant
developments regarding the Company and Group as necessary. The               BOARD BALANCE AND INDEPENDENCE
Senior Independent Director, Ishbel Macpherson, and the other Non-           Currently there are, in addition to the Chairman, four Non-Executive
Executive Directors meet at least annually without the Chairman              Directors on the Board out of a total of nine Directors (David Galloway
present to appraise the Chairman’s performance as part of the overall        is also a Non-Executive Director until his resignation with effect from
Board annual appraisal process.                                              31 May 2009) and their respective experience, details of which are set
                                                                             out on page 29, clearly indicates that they are of sufficient calibre and
The minutes of all meetings of the Board and each Committee are              number for their views to carry appropriate weight in the Board’s
taken by the Company Secretary. In addition to constituting a record of      decisions. The Senior Independent Director, Ishbel Macpherson, is
decisions taken, the minutes reflect questions raised by the Directors       available to shareholders if they have concerns which contact through
relating to the Company’s businesses and, in particular, issues raised       the normal channels of Chief Executive and Chairman or Group
from the monthly reports included in the Board or Committee papers           Finance Director fail to resolve or for which such contact is
circulated prior to the relevant meeting. Any unresolved concerns are        inappropriate.
recorded in the minutes.
                                                                             The Board considers that all of the Non-Executive Directors are
On resignation, concerns (if any) raised by an outgoing Non-Executive        independent, on the basis of the criteria specified in paragraph A.3.1 of
Director are circulated by the Chairman to the remaining members of          the Combined Code and generally, and are free from any business or
the Board.                                                                   other relationship which could materially interfere with the exercise of
                                                                             their independent judgement.
Appropriate Directors’ and Officers’ insurance cover is arranged and
maintained via the Company’s insurance brokers, Marsh, and its terms         Four members of the Board are also Non-Executive Directors of
are reviewed annually.                                                       companies which are customers of or suppliers to the Group. David
                                                                             Galloway is a Non-Executive Director of May Gurney Integrated
The Companies Act 2006 allows Directors of public companies to               Services plc, a customer of the Group. Ishbel Macpherson is a Non-
authorise conflicts and potential conflicts of interest of Directors where   Executive Director of MITIE Group plc, which is both a customer, of and
the Articles of Association contain a provision to that effect. At the       a supplier to the Group. David Wallis is Non-Executive Chairman of
2008 AGM, shareholders approved amendments to the Articles of                Directorbank Group Ltd, which is a supplier to the Group. James
Association giving the Board authority to authorise matters which may        Morley (who was appointed after the end of the financial year) is a
result in the Directors breaching their duty to avoid a conflict of          Non-Executive Director of Costain Group plc and W S Atkins plc which
interest. Directors who have an interest in matters under discussion at      are both customers of the Group.
a Board meeting must declare that interest and abstain from voting.
Only Directors who have no interest in the matter being considered           The Group’s trading with each of these companies is conducted
are able to approve a conflict of interest and, in taking that decision      entirely on arm’s length terms and in the ordinary and normal course
the Directors must act in a way they consider, in good faith, would be       of the Group’s business. Additionally, the Board considers that, in each
most likely to promote the success of the Company. The Directors are         case, the sums involved are de minimus. These potential conflicts of
able to impose limits or conditions when giving authorisation if they        interest have been approved by the Board in accordance with previous
feel this is appropriate. Any conflicts considered by the Board and any      Board procedures and also under the new procedures established
authorisations given will be recorded in the Board minutes and in the        under the Companies Act 2006. In order to ensure that there can be no
register of conflicts which will be reviewed annually by the Board. The      possible suggestion of a conflict of interest, it has been resolved by the
Board considers that its procedures to approve conflicts of interest and     Board that, in the event that the Board should ever be required to
potential conflicts of interest are operating effectively.                   discuss or make decisions in relation to the Group’s relationships with
                                                                             these companies, the affected Directors would not take part in, or
                                                                             receive any material information in relation to those discussions. None
                                                                             of these Directors has been involved in any commercial negotiations
                                                                             between the Group and the other companies.
                                                                                                      Speedy Hire Plc Annual Report and Accounts 2009   37




APPOINTMENTS TO THE BOARD                                                  The Company makes available a business coach to help Executive
The Board has established a Nomination Committee. Its terms of             Directors with their overall development as business leaders.
reference are also included in the Combined Code Compliance
Statement referred to above. The Committee meets formally as               All the Non-Executive Directors have, during the course of the year,
necessary, but at least once a year and met once during this financial     attended briefings and seminars relevant to their role, including
year. The principal functions of the Nomination Committee are to           updates on best practice in audit and remuneration issues and
consider and review the structure and composition of the Board and         economic affairs in general, as well as bringing knowledge and
membership of Board Committees. It also considers candidates for           information gathered from their other business interests.
Board nomination at both Plc and operating level, including job
description, re-election to the Board for those candidates retiring by     The Chairman and the Company Secretary meet on a regular basis to
rotation and succession planning generally. A specification for the role   discuss corporate governance and other issues including, inter alia,
of Chairman, including anticipated time commitment, is included as         information flows, induction and training programmes for Directors
part of the written statement of division of responsibilities between      and operational management.
Chairman and Chief Executive which was revised and updated in May
2008. Details of the Chairman’s other material commitments are set         Procedures are in place to enable Directors to take independent
out on page 29 and are disclosed to the Board in advance and               professional advice, if necessary, at the Company’s expense, in the
included in a register of the same maintained by the Company               furtherance of their duties. The procedure to enable such advice to be
Secretary.                                                                 obtained is included in the Company’s Combined Code Compliance
                                                                           Statement.
The terms and conditions of appointment of all the Non-Executive
Directors, including those of the Chairman, are available for inspection   All Directors have access to the advice and services of the Company
at the Company’s registered office during normal business hours. Each      Secretary, whose role is to ensure that all procedures are followed and
letter of appointment specifies the anticipated level of time              that applicable rules and regulations are complied with. The removal
commitment including, where relevant, additional responsibilities          of the Company Secretary is a matter specifically reserved for decision
derived from involvement with the Audit, Remuneration or                   by the Board.
Nomination Committees. Details of other material commitments are
disclosed to the Board and a register of the same maintained by the        PERFORMANCE EVALuATION
Company Secretary.                                                         The Chairman appraises all Board members annually. This takes the
                                                                           form of a review of the degree of success in achieving objectives set for
None of the Directors is a Non-Executive Director or Chairman of a         the year and agreeing areas for improvement going forward. During
FTSE 100 company.                                                          the financial year ended 31 March 2006, the Chairman and Company
                                                                           Secretary had engaged the services of specialist performance
A more detailed summary of the work of the Nomination Committee            consultants, Lintstock, to carry out a detailed independent review of
during the year is contained in the separate report of the Committee       the Board’s processes and procedures, and in the past two years the
on page 58.                                                                Chairman has undertaken an internal review of the Board’s processes
                                                                           and procedures. The results of the exercise carried out this past year
INFORMATION AND PROFESSIONAL DEVELOPMENT                                   are referred to in the Directors’ section on page 28.
Before each scheduled Board meeting, all Directors receive
appropriate information regarding the Group comprising a financial
report and briefings from senior executives. The Chief Executive also
briefs Directors on results, key issues and strategy. During Board
Meetings, the Non-Executives regularly make further enquiries of the
Executive Directors and seek further information which is provided
either at the relevant meeting or subsequently.

A monthly information pack is compiled on market data, including
information and activity in relation to competitors and the
construction industry generally. This information is drawn from a
number of respected sources and provides a current, constantly
updated summary of trends in the Group’s market.

The Board offers appropriate training to any Director whose
appointment to the Board is the first appointment of that Director to
the Board of a listed company. The Board also recognises the
importance of ongoing training and education, particularly regarding
new laws and regulations which relate to or affect the Group. Such
training and education is obtained by the Directors individually
through the Company or through other companies of which they
are Directors.
38   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




RE-ELECTION                                                                  PROCEDuRE
Under the Company’s Articles of Association, all Directors are subject to    The Board has constituted a Remuneration Committee which met two
election by shareholders at the first AGM following appointment and all      times during the year. Its terms of reference are included in the
Directors are subject to retirement by rotation provisions requiring re-     Combined Code Compliance Statement and are fully compatible with
election at intervals of no more than three years. Sufficient biographical   the provisions of paragraph B.2.1 of the Combined Code. The
details of all the Directors, including those subject to election or re-     Remuneration Committee consists of the Non-Executive Directors,
election, are included in this Report in order to enable shareholders to     excluding the Chairman, who are independent of management and
take an informed decision on any re-election resolution. The letters of      free from any business or other relationship which could materially
appointment of each of the Non-Executive Directors and the Chairman          interfere with the exercise of their independent judgement. The Chief
confirm that appointments are for specified terms and that                   Executive regularly attends by invitation but is not present for
reappointment is not automatic. Peter Atkinson commenced a second            discussions relating to his own remuneration. The Remuneration
three year term in June 2008. Ishbel Macpherson and Michael Averill          Committee has appointed HNBS to advise it in relation to the design of
commenced their first three year terms in July 2007 and May 2008             appropriate Executive remuneration structures. HNBS have no other
respectively. James Morley commenced his first three year term on            connection with the Company.
2 April 2009. The appointment of the Chairman has been renewed for a
further one year term to 31 March 2010.                                      The responsibilities of the Remuneration Committee include setting
                                                                             remuneration policy, ensuring that remuneration (including pension
DIRECTORS’ REMuNERATION                                                      rights and compensation payments) and the terms of service of the
THE LEVEL AND MAKE-uP OF REMuNERATION                                        Executive Directors, the Chairman and the tier of operating
The performance-related elements of the remuneration of the                  management immediately below Board level are appropriate and that
Executive Directors form a significant proportion of their total             they are fairly rewarded for the contribution which they make to the
remuneration packages. The performance-related elements of the               Group’s overall performance. It is also responsible for the allocation of
schemes in which the Executive Directors are entitled to participate are     shares under long-term incentive arrangements approved by
set out in more detail in the Remuneration report. The Remuneration          shareholders and in accordance with agreed criteria. In addition, it
Committee, with the advice of Hewitt New Bridge Street (“HNBS”),             monitors current best practice in remuneration and related issues.
reviews on a regular basis the Company’s remuneration policy
including the design of performance-related remuneration schemes.            The Remuneration of Non-Executive Directors is dealt with by a
Such performance-related elements have been designed with a view             Committee of the Board specifically established for this purpose
to aligning the interests of the Executive Directors with those of           comprising the Chief Executive, the Group Finance Director, the
shareholders and to incentivise performance at the highest level. The        Commercial Director and the Chief Operating Officer without the
Board’s policy is that no executive share options should be offered at a     presence of the Non-Executive Directors. The Remuneration of the
discount save as permitted by the Listing Rules.                             Non-Executive Directors is the subject of regular benchmarking
                                                                             reviews usually carried out every two years with the assistance of
Levels of remuneration payable to Non-Executive Directors are                HNBS. The last such benchmarking exercise was carried out in
regularly benchmarked, with the assistance of external advisers,             February 2007. No such benchmarking exercise was necessary this
against companies of a similar size. The levels of remuneration also         year as there were no salary increases.
reflect the time, commitment and responsibilities of each role
including, where relevant, Chairmanship of Board Committees. It is the       The Board’s policy is that all new long-term incentive schemes (as
policy of the Board that remuneration for Non-Executive Directors            defined in the Listing Rules) and significant changes to existing
should not include share options. No current Executive Director serves       schemes should be specifically approved by shareholders, while
as a Non-Executive Director elsewhere.                                       recognising that the Remuneration Committee must have appropriate
                                                                             flexibility to alter the operation of these arrangements to reflect
On a regular basis, the Remuneration Committee, with the assistance          changing circumstances. In addition, as part of the Company’s
of HNBS, reviews the compensation commitments the Executive                  commitment to transparency as regards its remuneration policy and
Directors’ service contracts would entail in the event of early              maintaining a continuous dialogue with shareholders, the Chair of the
termination. The Committee also from time to time considers the              Remuneration Committee, Ishbel Macpherson, has held discussions
advantages of liquidated damages clauses in service contracts. In any        with shareholders to take soundings on the key features of the
event, the Committee’s policy remains that compensation for                  proposed changes to the Executive Directors’ incentive arrangements.
termination of the service contract of an Executive Director would not
be paid in the case of removal for misconduct and that a robust line
should be taken as regards departing Directors’ obligations to
mitigate loss.

The service contracts of all Executive Directors provide for termination
by the Company on one year’s notice.
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   39




ACCOuNTABILITY AND AuDIT                                                   A more detailed description of the work of the Audit Committee
                                                                           during the year is contained in the separate report of the Committee
FINANCIAL REPORTING
                                                                           on page 57.
The Directors’ Report and Auditors’ Report appear on pages 30 to 33
and 59 respectively and comply with the provisions of paragraphs
                                                                           RELATIONS WITH SHAREHOLDERS
C.1.1 and C.1.2 of the Combined Code.
                                                                           DIALOGuE WITH INSTITuTIONAL SHAREHOLDERS
INTERNAL CONTROL                                                           The Chairman routinely attends brokers’ and analysts’ presentations in
The Board is responsible for the Company’s schemes of internal control     relation to the Company’s interim and full year results. The Chairman,
and reviewing the effectiveness of such systems.                           with assistance from the Company’s brokers, collates feedback from
                                                                           such presentations and reports the findings to the next meeting of the
The Board, via the Audit Committee, conducts a review, at least            Board. The Chairman also maintains a regular dialogue with major
annually, of the Group’s systems of internal control. Such review          shareholders in relation to, inter alia, strategy and corporate
examines all material controls, including financial, operational and       governance issues. The Senior Independent Director, Ishbel
compliance controls and risk management systems, and accords with          Macpherson, is available to attend meetings with major shareholders
the recommendations contained in the Turnbull Guidance. A formal           in order to understand their issues and concerns should the normal
report is prepared by KPMG Audit Plc (“KPMG”) highlighting matters         communication channels with the Chairman and Chief Executive be
identified in the course of its statutory audit work and reviewed by the   ineffective or inappropriate.
Audit Committee in the presence of KPMG, the Chief Executive, the
Group Finance Director and the head of the Group’s Internal Audit          CONSTRuCTIVE uSE OF THE AGM
function. The Committee also considers formal reports prepared and         The Company’s AGM procedures indicate, as a matter of course, the
presented by the Internal Audit function. The findings and                 level of proxies lodged on each resolution and the balance for and
recommendations of the Committee are then reported to the Board            against each resolution and votes withheld after it has been dealt with
for detailed consideration.                                                on a show of hands. It is also the Company’s policy to propose a
                                                                           separate resolution at the AGM on each substantive separate issue,
AuDIT COMMITTEE AND AuDITORS                                               including in relation to the Report and Accounts and the Directors’
The terms of reference of the Audit Committee are set out in full in the   Remuneration Report.
Combined Code Compliance Statement. Such terms of reference are
compatible with the provisions of paragraph C.3 of the Combined            All Committee Chairs are available at the AGM.
Code. The Board is satisfied that the Chair of the Audit Committee,
James Morley, has appropriate recent and relevant financial                The Company’s standard procedure is to ensure that the notice of AGM
experience.                                                                and related papers are sent to shareholders at least 20 working days
                                                                           before the meeting in compliance with paragraph D.2.4 of the
In addition to its work in relation to the Group’s systems of internal     Combined Code.
control set out above, the Committee is also responsible for reviewing
the integrity of the Company’s accounts, including the annual and          RESPONSIBLE INVESTMENT DISCLOSuRE GuIDELINES
interim results, and recommending their approval to the Board. The         Environmental, social and governance risks are considered by the
Committee’s work also includes reviewing the adequacy of the Group’s       Board as part of the ongoing process of risk assessment. The impact of
“whistle-blowing” procedures.                                              risk is evaluated not only in financial terms but also according to their
                                                                           effects on employees, operational efficiency and stakeholder relations.
The Committee meets on a regular basis with the external auditors and      For further details regarding the steps which the Board takes through
internal audit function, without the Executive Directors being present     the risk management process in managing and mitigating risk, please
as appropriate, to review and discuss issues arising from internal and     see page 40.
external audits and to agree the scope and planning of future work.
                                                                           Paragraphs 10 to 14 of the Operating and Financial Review outline the
The effectiveness of the Group’s internal audit function is one of the     Company’s approach to risk, corporate responsibility and
matters reviewed in conjunction with KPMG.                                 sustainability. For more detail concerning the opportunity for
                                                                           stakeholders, which the Board sees in sustainable growth through
The Audit Committee has primary responsibility for making a                sound corporate responsibility, please refer to the Speedy Corporate
recommendation on the appointment, reappointment and removal of            Responsibility Report which is due to be published in July 2009. This
the external auditors. The policy of the Audit Committee is to ensure      report refers to the KPI targets (running through to 31 March 2010)
auditor objectivity and independence is safeguarded at all times.          which have been established for monitoring progress against the
Specifically, non-audit services, including taxation and consultancy       Group’s environmental, community and workplace strategies, together
advice and due diligence in relation to significant acquisitions, are      with an evaluation of performance from previous financial years.
routinely put out to tender to other external accounting firms. During
the year the Company used two such additional firms. Accordingly, the
Audit Committee considers that the Company’s auditors are
independent.
40   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




PRINCIPAL RISKS & uNCERTAINTIES
The Board is fully committed to identifying, evaluating and managing significant risks facing the Group and has developed a set of processes that
enable it to do so. The Board maintains a register listing the strategic, financial and operational risks potentially affecting the Group. These
include, but are not limited to, the macro-market and economic conditions in which the Group operates, competitor activities, gearing,
regulation and current business projects, including those risks associated with acquisitions. Risks are prioritised according to their expected
likelihood of occurring and impact if they were to occur. Impact is evaluated not only in terms of possible financial impact on the Group – loss of
income/additional expenditure – but also according to their effects on employees, operational efficiency and stakeholder relations.

From the list of risks compiled, ten risk issues have been identified, the successful management of which is seen as key to the Group’s ability to
achieve its corporate goals. An Executive Board Director has been assigned to take responsibility for the management of each of these risk issues.
Overall responsibility for the risk management process rests at Board level with the Group Finance Director. The Board reviews and evaluates the
risks of the Group on a half-yearly basis, which ensures that as new risks emerge in connection with projects or general market developments,
appropriate actions can be discussed, agreed and taken in a flexible manner. Marsh, the Group’s external risk adviser, has continued to provide
independent advice and input to the Group as risks are identified, prioritised and managed.

This table below summaries the small group of risks that were identified as key, together with a short description of monitoring/mitigation.

Risk
number       Risk                             Risk description                                   Mitigation
1            Reduction in market              A downturn in construction/industrial activity,    The Group continually monitors and
                                              or a decline in the desirability of hiring tools   assesses market capacity by reference to a
                                              and equipment to fulfil such activity, may         number of external sources, together
                                              decrease the demand for hiring tools and           with internal data which reports
                                              equipment or reduce the prices that the            customer, product and geographical
                                              Group can charge for its services.                 demand. It operates a flexible model that
                                                                                                 can react to prevailing market conditions.
2            Inability to obtain              If the Group is unable to obtain sufficient        The Group has committed bank facilities
             capital                          capital in the future, it may be required to       which are reviewed in comparison
                                              reduce or delay capital expenditure, resulting     to capital requirements on a regular
                                              in the ageing of the fleet. This could             basis. Potential sources of finance
                                              disadvantage the Group relative to its             are assessed on a regular basis.
                                              competitors and may adversely impact its
                                              ability to command acceptable levels               The Group has a long standing relationship
                                              of pricing.                                        with its banking syndicate and manages
                                                                                                 its capital requirement through
                                                                                                 maintaining a short lead time for
                                                                                                 purchasing equipment and other
                                                                                                 expenses.
3            Operating & financial            The Group’s operating and financial flexibility    The Group performs regular financial
             restrictions resulting           is restricted by its level of indebtedness         forecasts covering both short and longer-
             from existing debt               and financial covenants, which in the longer       term projections. The forecasts are
             facilities                       term could materially adversely affect its         intended to provide the Group with
                                              business, financial position or ability to         early warning of potential capital
                                              pay dividends.                                     constraints, or potential breaches of
                                                                                                 financial covenants. The Group can then
                                                                                                 take appropriate action.
                                                                                            Speedy Hire Plc Annual Report and Accounts 2009   41




Risk
number   Risk                Risk description                                         Mitigation
4        Project             In situations where there is a lack of                   The Group operates a ‘project board’ which
         implementation      coordination of key strategic projects this              reviews the status and progress of each of the
                             may lead to the Group operating in an                    key initiatives. Each major project maintains its
                             inefficient manner and, therefore, having                own risk register and implementation plan, the
                             an adverse effect on the profitability and/or            size and scope of which varies depending on
                             financial state of the Group.                            the complexity of the particular project.

                                                                                      The Board receives regular progress reports on
                                                                                      project developments as part of Board meeting
                                                                                      agendas.
5        Business            Due to the size and nature of the Group,                 The Group is implementing the ‘One Speedy’
         co-ordination       the coordination of individual and collective            initiative, which has as one of its primary
                             business and management strategies can                   principles, the simplification and harmonisation
                             be an inherent problem, which may impact                 of Group processes. The intention is to align and
                             upon the Group’s financial position and/or               integrate the Speedy businesses to customers
                             profitability.                                           and markets.
6        Interruption or     Any interruptions to the Group’s IT systems              Responsibility for the integrity of the Group’s IT
         failure of IT and   could have a material adverse effect on the              systems rests with the IT Director. Back-up and
         related systems     Group’s business, communication, capabilities,           recovery procedures are in place for key systems.
                             management of projects and overall financial             Changes to Group systems are considered
                             performance.                                             as part of wider change management
                                                                                      programmes, and implemented in phases
                             The Group is currently in the process of                 wherever possible.
                             consolidating its back office function into a new
                             shared service centre (“SSC”). There is a risk of        A Project Director has been appointed to oversee
                             disruption to the business as a result of this change.   the SSC implementation and is following the
                                                                                      Group’s project implementation methodology
                                                                                      outlined above. A project board is in place to
                                                                                      co-ordinate the transfer of existing functions
                                                                                      and processes into the new structure.
7        Increase in         The equipment rental industry is extremely               The Group monitors its competitive position
         competition         competitive and highly fragmented.                       closely, with a view to ensuring that it is able to
                             Many of the markets in which the Group operates          offer its customers the best solution to their
                             are served by numerous competitors, ranging              requirements. Capital expenditure requirements
                             from national equipment rental companies to              are assessed as part of the budgeting process, and
                             regional independents.                                   throughout the year via regular forecasts. Day-to-
                                                                                      day capital expenditure requirements are
                             Some of the Group’s principal competition may            assessed on a needs basis, with limited long-term
                             have greater financial resources, be more                future ordering commitments.
                             geographically diversified, have greater brand
                             recognition in certain market sectors and may              The Group monitors the performance of its
                             be better able to withstand adverse market                 major accounts against market forecasts and
                             conditions within the industry. The Group is               individual expectations with a view to ensuring
                             generally able to compete on the basis of                  that the opportunities for the Group are
                             quality and breadth of service, expertise, reliability,    maximised.
                             and the price, size, mix and attractiveness of its
                             tool and equipment fleet. These factors are
                             significantly affected by the level of the Group’s capital
                             expenditure. If the Group is required to reduce or delay
                             capital expenditure for any reason, any resultant ageing
                             of the hire fleet may place the Group at a disadvantage
                             to its competitors and may adversely impact its ability to
                             command acceptable levels of pricing.
42   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




Risk
number       Risk                             Risk description                                  Mitigation
8            Failure/insolvency               Whilst no single customer accounts for more       Credit control processes are in place to
             of major customer                than 5% of revenue in the event of the loss of    monitor the potential for credit defaults
                                              a major customer, the revenue generated by        and exposures. This is reported on a
                                              the Group could be reduced with a                 regular basis to the executive
                                              corresponding impact on the Group’s               management team, and where
                                              market position.                                  necessary, issues are escalated to resolve
                                                                                                payment issues as soon as practicable.
                                                                                                Visibility of exposures to individual
                                                                                                customer groups is improving through
                                                                                                the implementation of the new business
                                                                                                information and credit management
                                                                                                systems.

                                                                                                The Group does not maintain credit
                                                                                                insurance since nearly all of its debt
                                                                                                exposure is with UK-based customers, and
                                                                                                management of the risk of debt default is
                                                                                                managed as part of the day-to-day
                                                                                                operations of the business.
9            Failure/insolvency               Availability of supplier credit is an important   The Group undertakes regular reviews
             of major supplier                aspect of the Group’s continued operation         and discussions with suppliers to
                                              and financial performance. Any reduction          understand potential changes in the
                                              in the availability of supplier credit could      marketplace. Reviews are also held with
                                              adversely impact the Group.                       key credit insurers to ensure that they
                                                                                                have an up-to-date view of the Group’s
                                                                                                financial position, allowing supplier credit
                                                                                                to be available if necessary.
10           Government spending              Government expenditure is important               The Group assesses changes in
             cut-back                         across the wider construction industry in the     Government spending as part of its
                                              UK. Any reduction in Government expenditure       wider market analysis. The impact
                                              could adversely impact the Group.                 on the Group of reduction in expenditure
                                                                                                is assessed as part of the ongoing
                                                                                                financial and operational budgeting and
                                                                                                forecasting process.
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   43




CORPORATE GOVERNANCE SuMMARY
In June 2006 the Financial Reporting Council published a revised version of the Combined Code on Corporate Governance (“the Code”). For
financial years commencing on or after 1 November 2006, a listed company is required to state in its annual financial report whether it complies
with the Code. The Company confirms that throughout the year ended 31 March 2009, the Company has remained fully compliant.

The Code comprises a set of main principles which cover the general themes of Directors’ remuneration, financial reporting, internal control and
communication with shareholders. Each main principle is expanded by a set of supporting principles as well as detailed provisions.

This Corporate Governance report and the Directors’ Remuneration Report on pages 47 to 56 contain a detailed explanation of how Speedy
applied the main and supporting principles of the Code. For ease of reference, a summary of Speedy compliance with the Code’s provisions is
included here with cross-references to the relevant pages of the Company’s Corporate Governance Report, Remuneration Report, other sections
of the Annual Report and the Notice of Meeting in respect of the 2009 AGM.

                                                                                                             Combined
Directors                                                                                                 Code provision        Comment               Page
The Board meets sufficiently regularly to discharge its duties effectively. There is a formal schedule                A.1.1     Compliant          34 to 38
of matters specifically reserved for its decision. The Corporate Governance Report includes a
statement of how the Board operates and which issues are delegated to management.
The 2009 Annual Report identifies the Chairman, the Chief Executive, the Senior Independent Director                  A.1.2     Compliant       29 and 34
and the Chairs and members of the Audit, Remuneration and Nomination Committees. The number
of meetings of the Board and the Committees and individual attendance by Directors is provided.
In 2009, the Chairman met the Non-Executive Directors without the Executive Directors present and                     A.1.3     Compliant                  36
the Non-Executive Directors met without the Chairman and Executive Directors present at least once.
Where Directors have concerns about the running of the Company or a proposed action which                             A.1.4     Compliant                  36
cannot be resolved, they ensure that their concerns are recorded in the Board minutes.
The Company arranges comprehensive Directors’ and Officers’ liability insurance cover.                                A.1.5     Compliant                  36
The roles of the Chairman and Chief Executive are not exercised by the same individual. The                           A.2.1     Compliant                  36
division of responsibilities between the Chairman and Chief Executive is set out in the Combined
Code Compliance Statement available on the Company’s website.
On appointment, the Chairman met the independence criteria set out in A.3.1 of the Code and the                       A.2.2     Compliant                  36
Chief Executive will not go on to be the Chairman of the same company.
The Board considers all of its Non-Executive Directors to be independent.                                             A.3.1     Compliant                  36
There are, in addition to the Chairman, four independent Non-Executive Directors (out of a total                      A.3.2     Compliant                  36
of nine Directors).
The Board has appointed Ishbel Macpherson as Senior Independent Director. Ishbel Macpherson is                        A.3.3     Compliant       35 and 36
available to shareholders if they have concerns which have not been resolved through the normal
channels of communication or for which such contact is inappropriate.
The Nomination Committee, comprising the Chairman and the four other Non-Executive Directors                          A.4.1     Compliant       34 and 37
meets as necessary and at least once a year. The Chairman of the Company chairs the Nomination
Committee. The Nomination Committee’s terms of reference are set out in the Combined Code
Compliance Statement available on the Company’s website.
The Nomination Committee’s principal functions are to review the structure, size and composition                      A.4.2     Compliant                  37
of the Board, the membership of Board Committees and succession planning.
The Chairman is not Chairman of another FTSE 100 company. The chairman discloses to the Board                         A.4.3     Compliant                  37
any changes to his other significant commitments as they arise.
The Chairman and other Non-Executive Directors each have a letter of appointment for specified                        A.4.4     Compliant       37 and 52
terms of three years or less containing reciprocal notice provisions of six months (in the case of the
Chairman) and three months in the case of Ishbel Macpherson, David Galloway, Peter Atkinson,
and Michael Averill.
The letters of appointment of the Chairman and the other Non-Executive Directors will be available                    A.4.4     Compliant        Notice of
for inspection at the 2009 AGM.                                                                                                                      AGM
44   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




                                                                                                                Combined
Directors                                                                                                    Code provision   Comment          Page
The letters of appointment of the Non-Executive Directors state that they should exercise such                        A.4.4   Compliant          37
powers and perform such duties as are appropriate to the role. The Non-Executive Directors
undertake that they will have sufficient time to meet what is expected of them. Details of other
material commitments are disclosed and a register of the same maintained by the Company Secretary.
None of the Directors is a Non-Executive Director or Chairman of a FTSE 100 company.                                  A.4.5   Compliant          37
The work of the Nomination Committee and the process used in relation to Board appointments                           A.4.6   Compliant 37-39 and 58
is described in the Corporate Governance and Nomination Committee Reports.
The process for inducting new Directors to the Board and details of ongoing training is described                     A.5.1   Compliant          37
in the Corporate Governance Report.
A procedure is in place so that Directors are able, if required, to seek independent professional                     A.5.2   Compliant          37
advice at the Company’s expense in connection with their duties. This is set out in the Combined Code
Compliance Statement available on the Company’s website.
All Directors have direct access to the advice and services of the Company Secretary. The                             A.5.3   Compliant          37
Company Secretary has responsibility for ensuring that Board procedures are followed. The
appointment and removal of the Company Secretary is a matter reserved for the Board as a whole.
The Corporate Governance Report contains a description of how performance evaluation of the Board,                    A.6.1   Compliant          37
its Committees and the individual Directors was conducted in the year ended 31 March 2009. The Non-
Executive Directors, led by the Senior Independent Director, reviewed the performance of the Chairman.
All Directors are subject to election by shareholders at the first opportunity after their appointment                A.7.1   Compliant          38
and a minimum of one-third of Directors must retire at each AGM. The Notice of Meeting for the 2009                                        Notice of
AGM contains sufficient biographical details to enable shareholders to take an informed decision in                                            AGM
relation to those Directors seeking election or re-election.
David Wallis has served on the Board for more than six years. David Wallis’s proposed re-election                     A.7.2   Compliant          32
has been subject to review and takes into account the need for progressive refreshing of the Board.
Directors’ remuneration
Performance-related elements of the remuneration of Executive Directors form a significant                            B.1.1   Compliant          47
proportion of the total remuneration and are designed to align their interests with those of
shareholders and to give the Directors keen incentives to perform at the highest levels.
The Remuneration Committee followed the provisions of Schedule A to the Code in designing                             B.1.1   Compliant          48
the share plans approved by shareholders at the 2004 AGM.
The Company does not offer executive share options at a discount save as permitted by the                             B.1.2   Compliant          38
Listing Rules.
The Board sets levels of remuneration for Non-Executive Directors which reflect the time commitment                   B.1.3   Compliant          38
and responsibilities of the role. Non-Executive Directors are not awarded share options.
None of the Executive Directors served as a Non-Executive Director elsewhere.                                         B.1.4   Compliant          38
The Remuneration Committee has carefully considered what compensation commitments                                     B.1.5   Compliant          51
(including pension contributions and all other elements) the Directors’ terms of appointment
would entail in the event of termination and this is explained in the Directors’ Remuneration Report.
Notice or contract periods for all Executive Directors are set at one year. Justin Read’s service contract            B.1.6   Compliant   38 and 51
contained a longer notice period but this expired on 1 April 2009.
The Remuneration Committee comprises all the independent Non-Executive Directors excluding the                        B.2.1   Compliant          38
Chairman. A description of the role of the Remuneration Committee and the authority delegated to it
by the Board is included in the Directors’ Remuneration Report. The Remuneration Committee’s terms
of reference are contained in the Combined Code Compliance Statement available on the
Company’s website.
The Directors’ Remuneration Report includes a statement on whether the remuneration                                   B.2.1   Compliant   38 and 48
consultants appointed by the Remuneration Committee have any other connection with the Company.
The Board has delegated responsibility to the Remuneration Committee for setting remuneration for                     B.2.2   Compliant          38
all Executive Directors and the Chairman. The Committee also recommends and monitors the level and
structure of remuneration for senior management.
                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   45




                                                                                                            Combined
Directors remuneration                                                                                   Code provision        Comment               Page
The Non-Executive Directors’ fees, excluding those of the Chairman, are determined by a                              B.2.3     Compliant                  38
Committee comprising the Chief Executive, the Group Finance Director, the Commercial Director,
and the Chief Operating Officer without the Non-Executive Directors present.
Shareholders are invited specifically to approve all new long-term incentive schemes and significant                 B.2.4     Compliant             38
changes to existing schemes.                                                                                                                   Notice of
                                                                                                                                             EGM (2009)

Accountability and audit
The Directors explain their responsibility for preparing the Accounts and there is a statement by the                C.1.1     Compliant                  32
auditors on their reporting responsibilities.
The Directors report that the business is a going concern.                                                           C.1.2     Compliant                  31
The Board conducted a review of the effectiveness of the Group’s system of internal controls in                      C.2.1     Compliant                  39
2009. The review covered all material controls, including financial, operational and compliance controls
and risk management systems.
The Audit Committee, comprising the independent Non-Executive Directors excluding the Chairman,                      C.3.1     Compliant       39 and 57
meets at least three times a year and met on three occasions during the year ended 31 March 2009.
David Galloway and James Morley respectively former and current Chair of the Audit Committee,
have recent and relevant financial experience.
The main role and responsibilities of the Audit Committee are set out in its terms of reference,                     C.3.3     Compliant                  57
details of which are included in the Combined Code Compliance Statement available on the Company’s
website, and these include all the requirements set out in the Code.
The terms of reference of the Audit Committee have recently been reviewed and are available on                       C.3.3     Compliant       39 and 57
the Company’s website. The responsibilities of the Audit Committee are described in the
Corporate Governance Report and separate report of the Audit Committee.
The Audit Committee has reviewed arrangements by which employees of the Company may, in                              C.3.4     Compliant                  39
confidence, raise concerns about possible improprieties in matters of financial reporting or other
matters. Arrangements are in place for the proportionate and independent investigation of such
matters and for appropriate follow-up action.
The Audit Committee monitors and reviews the effectiveness of internal audit activities.                             C.3.5     Compliant                  39
The Audit Committee has primary responsibility for making recommendations on the appointment,                        C.3.6     Compliant                  39
reappointment and removal of the external auditors.
A statement on how auditor objectivity and independence is safeguarded is included in the                            C.3.7     Compliant                  39
Corporate Governance Report.
Relations with shareholders
The Chairman ensures that the views of major shareholders are communicated to the Board as a                         D.1.1     Compliant                  39
whole. Non-Executive Directors are offered the opportunity to meet major shareholders and the
Senior Independent Director is available to meet with shareholders to listen to their views in
order to develop a balanced understanding of the issues and concerns of the major shareholders.
The Corporate Governance Report sets out the steps taken by the Board to ensure that Directors                       D.1.2     Compliant                  39
develop an understanding of the views of major shareholders about the Company.
46   Speedy Hire Plc Annual Report and Accounts 2009


CORPORATE GOVERNANCE




                                                                                                            Combined
Constructive use of the AGM                                                                              Code provision   Comment         Page
It is the policy of the Company to propose a separate resolution at its AGM on each substantially                 D.2.1   Compliant   Notice of
separate issue and there will be a resolution to receive the Annual Report and Accounts for 2009.                                         AGM
For each resolution proxy appointment forms provide shareholders with the option to direct their                  D.2.1   Compliant   Notice of
proxy to vote either for or against the resolution or to withhold their vote. The proxy form makes                                        AGM
it clear that a “vote withheld” is not a vote in law and will not be counted in the calculation of the                                 Form of
proportion of the votes for and against the resolution.                                                                                  proxy
It is the policy of the Company to ensure all valid proxy appointments received are properly                      D.2.2   Compliant   Notice of
recorded and counted.                                                                                                                     AGM
It is the policy of the Company to ensure that for each resolution, after a vote has been taken, unless           D.2.2   Compliant   33 and 39
a poll is taken, to give at the meeting and then make available on its website details of the number of (i)
shares in respect of which proxy appointments have been made; (ii) votes for and against the
resolution; and (iii) shares regarding which votes were withheld.
The Chairs of the Audit, Remuneration and Nomination Committees will be available to answer                       D.2.3   Compliant         39
questions at the 2009 AGM and all Directors will attend.
The Notice of Meeting for the 2009 AGM was sent to shareholders at least 20 working days before                   D.2.4   Compliant         39
the meeting.
                                                                                                      Speedy Hire Plc Annual Report and Accounts 2009   47
REMuNERATION REPORT




                                                                           As a result, the Committee has conducted a review of the Company’s
                                                                           executive pay practices, with a particular focus on the structure of
                                                                           performance-related pay. The main changes to incentive pay practices
                                                                           that are intended to be made following this review are as follows:

                                                                             Mindful of the need to ensure that the interests of Executive
                                                                             Directors are fully aligned to the long-term interests of shareholders,
                                                                             no annual bonus opportunity will be offered to the Executive
                                                                             Directors in the forthcoming year (provided that the changes to the
                                                                             long-term incentive policy set out below are made). This, together
ISHBEL MACPHERSON                                                            with the fact that the Executive Directors waived any entitlement
NON-EXECuTIVE DIRECTOR                                                       under their personal objectives to any bonus for the year ended
                                                                             31 March 2009, will result in no awards being made under the
Dear Shareholder                                                             Company’s Co-Investment Plan (“CIP“) – which requires the
                                                                             investment of bonus – in either 2009 or 2010.
The Remuneration Committee (the “Committee”) is responsible for              A “one-off” award over, in aggregate, up to 10,621,349 shares will be
formulating Speedy’s remuneration policy as it applies to senior             made under the Performance Plan this year to the top 30 executives
executives. A core aim of this policy is to ensure that pay practices at     in the Group, which will vest three years later subject to continued
Speedy remain appropriate for both the Company and its                       employment and the satisfaction of a primarily relative Total
shareholders.                                                                Shareholder Return (“TSR“) based performance condition (the
                                                                             Performance Plan awards made last year were subject to both
Our policy continues to be based upon our wish to attract and retain         Earnings Per Share (“EPS“) and TSR targets as explained later in this
the best talent to deliver Speedy’s strategy and to drive shareholder        report). The rationale for this higher TSR-focused grant is to ensure
value within a framework of good corporate governance.                       that rewards (if any) ultimately delivered to the Executive Directors
                                                                             in connection with this award, which is to be made at a crucial stage
The key principles of this policy are:                                       in the Company’s development, are commensurate with the
                                                                             market’s view of how successful the Company has been in (i)
  Between lower quartile and median salaries, but with the potential         generating and appropriately utilising cash and (ii) delivering
  to earn upper quartile rewards for exceptional performance.                against its other strategic objectives.
  Performance-related pay for all employees – every employee should
  be in some form of incentive scheme as soon as practicable after         While the primary focus of the Committee’s review has been on the
  joining the Group.                                                       structure of performance-related pay, consideration has also been
  Encouraging share ownership. Executive Directors have share              given to the base salary levels of the Executive Directors. The
  ownership guidelines. The entire senior executive team is eligible to    Committee has come to the view that no increases in these base salary
  participate in the Company’s long-term incentive schemes. Every          levels should be made this year, with the next review due in April 2010.
  employee in the Group has the opportunity to become a
  shareholder in the Company under our all-employee SAYE Schemes.          Formal shareholder approval will be sought at the Extraordinary
                                                                           General Meeting (“EGM”) of the Company to be held on 24 June 2009
The Committee believes that it is incumbent upon it to ensure that the     to an amendment to the rules of the Performance Plan relating to the
remuneration policy as it applies to these senior executives is            individual participation limits so as to allow the proposed one-off
effectively delivered in a manner that takes full account of the           grants under the Performance Plan to be made. Details of these
Company’s specific and developing circumstances. This has proved a         changes are set out in the Notice of the EGM. The Committee is firmly
particular challenge for the Committee this year, against a backdrop of    of the belief that these changes are entirely in the interests of
unprecedented economic turmoil.                                            shareholders.

                                                                           I am keen to encourage an ongoing dialogue with shareholders.
                                                                           Accordingly, please feel free to contact me, either by writing to me at
                                                                           the Company’s head office or by e-mail at ishbel.macpherson@
                                                                           speedyhire.com if you would like to discuss any matters arising from
                                                                           this report, the matters to be tabled at the EGM or remuneration issues
                                                                           generally.

                                                                           ISHBEL MACPHERSON
                                                                           CHAIR OF THE REMuNERATION COMMITTEE
                                                                           26 MAY 2009
48   Speedy Hire Plc Annual Report and Accounts 2009


REMuNERATION REPORT




This report has been prepared by the Remuneration Committee                 COMPLIANCE WITH THE BEST PRACTICE PROVISIONS
(“Committee”) of Speedy Hire Plc and approved by the Board of
                                                                            Reflecting the Board’s commitment to maintaining high standards of
Speedy Hire Plc. The report complies with the UK Directors’
                                                                            Corporate Governance, the Committee has complied during the year
Remuneration Report Regulations 2002 and, in compliance with such
                                                                            with Schedule A of the Combined Code (provisions on the design of
Regulations, a separate resolution approving this report is being put to
                                                                            performance-related remuneration).
shareholders at this year’s AGM.
                                                                            REMuNERATION POLICY
Information relating to the emoluments and pension contributions of
the Directors on pages 52 to 53 and Executive Directors’ interests in the   When setting its policy on senior executive remuneration, the
Company’s Performance Plan, CIP and UK SAYE Scheme on pages 54 to           Committee’s main aims are to attract, retain and motivate people of
55 has been audited.                                                        the highest calibre and experience needed to shape and execute the
                                                                            Company’s strategy and to deliver shareholder value in the context of
REMuNERATION COMMITTEE                                                      a competitive employment market. To support this, the long-term
                                                                            general policy of the Committee is for basic salaries of Executive
The Committee is responsible for recommending to the Board the
                                                                            Directors to be between the lower quartile and median but for overall
remuneration and the other terms and conditions of employment of
                                                                            remuneration, by virtue of awards made under the incentive plans
the Executive Directors and the Chairman. It also provides advice to
                                                                            described later in this report, to have the potential to be in the upper
the Chief Executive on major policy issues affecting the remuneration
                                                                            quartile for exceptional performance.
of executives at a senior level below the Board.
                                                                            When applying this policy, the Committee exercises its discretion
The members of the Committee during the year were the Company’s
                                                                            appropriately and consistently. In recent years such discretion has
independent Non-Executive Directors, David Galloway (who will retire
                                                                            been used sparingly and, where used, has been explained fully to
from the Board with effect from 31 May 2009), Peter Atkinson, Michael
                                                                            shareholders.
Averill and Ishbel Macpherson. Ishbel Macpherson is the Chair of the
Committee. James Morley joined the Committee following his
                                                                            When setting the Executive Directors’ pay, the Committee attempts to:
appointment to the Board on 2 April 2009.
                                                                              Ensure that it encourages optimum performance by Directors and
The Committee has appointed HNBS, an external consultancy which
                                                                              fairly recognises the contribution of individual Directors to Speedy’s
has wide experience of executive remuneration in UK listed
                                                                              Hire’s success, whilst also encouraging a team approach which will
companies, to advise in developing its remuneration policy,
                                                                              work towards achieving the Company’s long-term strategic
particularly in relation to performance-related pay, and in
                                                                              objectives.
benchmarking the remuneration of senior executives. HNBS has no
                                                                              Link reward to individual Directors’ performance and Group
other connection with the Company.
                                                                              performance so that the interests of the Directors are fully aligned
                                                                              with Speedy’s shareholders.
The Committee has also sought advice on a regular basis from the
                                                                              Ensure that it maintains a package of pay and benefits that is
Company’s solicitors, Pinsent Masons LLP, in connection with the terms
                                                                              competitive (but not excessive) when compared to packages
of service contracts for Executive Directors and other members of
                                                                              available within other similar companies operating in similar
senior management and in relation to the operation of the
                                                                              markets.
Performance Plan, CIP and SAYE Schemes described later in this report.
                                                                              Be mindful of the link between the pay of Directors and others in
                                                                              the Group.
In addition, input was received by the Committee during the year from
the Chief Executive and the Company Secretary. However, no
                                                                            To meet these objectives, a significant proportion of the Executive
individual is present for discussions directly relating to his own
                                                                            Directors’ and senior executives’ pay is performance-linked.
remuneration.
                                                                            Executive Directors’ remuneration generally consists of the following
There is no restriction on the Committee which prevents it from taking
                                                                            elements although, as alluded to in the table below (in italicised text)
into account performance on environmental, social and governance
                                                                            and as explained in more detail in this report, the Committee is
issues. The Committee notes with approval the continued effort being
                                                                            proposing to adopt some one-off changes to the general policy in the
made by the Company in motivating responsible behaviour in relation
                                                                            forthcoming year to take account of the current specific circumstances:
to these issues by encouraging reduced energy consumption and
providing incentives to choose more efficient Company vehicles. In
addition, the Committee ensures that the Company’s pay policies do
not encourage inappropriate operational risk-taking.

The terms of reference of the Committee are included as part of the
Company’s Combined Code Compliance Statement, which can be
viewed on the Company’s website: www.speedyhire.plc.uk.
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   49




                                Purpose                          Delivery                                  Detailed policy
Basic Salary                    – Reflect the value of the       – Cash                                    – Normally reviewed annually on or
                                  individual, his or her role,
                                  skills and experience          – Monthly                                   around 1 April and benchmarked
                                                                 – Pensionable                               against comparable companies
                                                                                                           – However, no increases were made in
                                                                                                             April 2009. Next review in April 2010
Annual bonus                    – Incentivise delivery of        – Annual payment (subject to              – Payments based on Group
                                  specific Group, divisional       performance)                              performance and project based KPIs
                                  and personal annual goals      – Cash up to 50% of salary,               – Bonus potential of up to120% of salary
                                – Deferred share element           rest in shares (but all can             – Any bonus above 50% of salary paid
                                  provides retention and           be invested in shares)                    in shares (Executive Directors can
                                  alignment with                 – Performance-related                       choose to take all of bonus in shares),
                                  shareholders                   – Non-pensionable                           linked to CIP
                                                                                                           – However, it is currently proposed that no
                                                                                                             annual bonus will be operated this year
Long-term incentives            – Encourage long-term value      – In shares                               Performance Plan
                                  creation                       – Annual awards                           – Normal maximum award 100% of
                                – Encourage co-investment        – Shares may be released                    salary, with EPS and TSR targets
                                – Align executives’ interests      after 3 years                           – However, for 2009, it is intended
                                  with those of shareholders     – Performance-related                       that one-off awards over specified
                                – Retention                      – Non-pensionable                           numbers of shares will be primarily based
                                                                                                             on comparative TSR performance with
                                                                                                             an underpin
                                                                                                           CIP
                                                                                                           – Matching shares, based on investment
                                                                                                             of bonus, up to 2:1
                                                                                                           – Vesting based on real EPS growth
                                                                                                           – However, it is currently proposed that no
                                                                                                             awards will be made this year or next
Benefits                        – To provide competitive         – Ongoing                                 – Car allowance, medical insurance and
                                  post-retirement benefits                                                   life assurance
Pension                         – To provide competitive         – Ongoing                                 – 10%–20% of basic salary depending
                                  benefits                       – Payable on retirement                     on length of service
                                – Retention
Share ownership guidelines      – To align the interests of      – Ongoing                                 – Must build a shareholding of 100%
                                  Executive Directors with                                                   of salary
                                  shareholders

BASIC SALARY                                                                 Executive Directors’ salaries will remain at the following levels for the
Basic salaries are set annually by the Committee, taking into account a      forthcoming year: Steve Corcoran – £340,000; Mike McGrath –
number of factors including (i) that part of the Group’s assets under the    £220,000; Claudio Veritiero – £203,000; Justin Read – £250,000. These
individual’s control, (ii) past performance of the individual and (iii)      salaries will next be reviewed in April 2010.
comparative information from independent sources, including HNBS,
on the rates of salary in selected groups of comparable companies. In        ANNuAL BONuS
selecting comparator companies to benchmark base salaries, the               The Committee‘s general policy is that every employee in the Group is
Committee reviews practice in both (i) companies which operate               brought within some form of annual incentive scheme as soon as
within the same broad business space as Speedy and with which                possible after joining the Group.
Speedy competes for key talent and (ii) companies of a similar size to
Speedy measured by turnover, market capitalisation and geographic            For the Company’s Group-wide annual bonus plan, at the start of each
operations.                                                                  financial year, each subsidiary company in the Group is set a number of
                                                                             challenging financial targets relating to key operational metrics.
For the current year, taking into account the challenging environment        Examples of metrics previously used include profit performance,
in which the Company finds itself, the Committee has decided not to          capital efficiency, debtor control, margin improvement, ongoing
apply any increase to the Executive Directors’ salaries. Therefore, the      employee and customer satisfaction and return on capital.
50   Speedy Hire Plc Annual Report and Accounts 2009


REMuNERATION REPORT




Bonuses paid to Executive Directors and senior management based at              No re-testing is permitted.
head office (which are not pensionable) have historically been set on a
similar basis to the subsidiaries.                                            b) CIP
                                                                              The key features of the CIP, as operated last year, are as follows:
Last year, the bonus for Executive Directors was capped at 120% of
salary. Targets were linked to Group financial performance (including           Executive Directors were required to defer any annual bonus over
Earnings Before Tax and Amortisation (“EBTA”)) (35% of the total bonus          50% of basic salary, which was used to acquire Speedy shares and
opportunity), cash flow generation (10%), working capital                       could defer the rest (likewise used to acquire Speedy shares) at the
management (20%), EPS (10%) and specific project-based KPIs (25%).              Executive Director’s option.
                                                                                Deferral is for three years.
Notwithstanding the fact that certain specific KPIs were met for the            Matching shares were awarded by the Committee which vest at the
year ended 31 March 2009, the Executive Directors have waived any               end of the three year deferral period if pre-determined performance
bonus entitlement for that year and, therefore, no bonus will be                criteria are satisfied. The maximum matching, which was only
payable.                                                                        awarded for exceptional performance, could be on a 2:1, or 200%,
                                                                                basis, by reference to the gross amount of bonus deferred.
As stated above, the Committee has reviewed the Executive Directors’            Performance targets were based on EPS growth over the deferral
incentive pay policy, which includes the annual bonus. An output of the         period. To obtain maximum matching, EPS growth is required to
review is that, provided the proposed changes to the Company’s                  be greater than CPI plus 12.5% per annum, calculated on a
long-term incentive policy described elsewhere in the report are made,          compound basis. No awards vest if EPS growth is less than CPI
no annual bonus opportunity will be offered to Executive Directors (nor         plus 7.5% per annum, also calculated on a compound basis (with
to around 26 other senior managers) in the forthcoming year.                    straight-line vesting in between).
                                                                                No re-testing is permitted.
Non-Executive Directors do not receive a bonus.
                                                                              TSR and EPS were used as the performance measures for these plans
LONG-TERM INCENTIVES                                                          as they were, at the time of grant, considered the most appropriate
In line with the overall remuneration policy of the Committee, the            measures of Speedy’s long-term performance. The Committee will
objectives of the Company’s share-based long-term incentive                   ensure that appropriate independent verification is sought as to the
arrangements (which were approved by shareholders in 2004) are:               extent to which these performance conditions are satisfied.

  To support the Company’s strong performance culture and provide             c) Proposed policy for the forthcoming year
  exceptional rewards for exceptional performance.                            CIP
  To provide a competitive total compensation package.                        As no annual bonus was paid for performance last year, there will be
  To link rewards to Group performance so that the interests of               no deferral of bonus into shares. Therefore, no corresponding award
  executives are fully aligned with Speedy’s shareholders.                    will be made in the forthcoming year under the CIP.
  To create an expectation of ownership on the part of executives in
  accordance with shareholding guidelines established by the                  PERFORMANCE PLAN
  Committee, requiring Executive Directors to hold shares in the              As stated above, the Committee has reviewed the Executive Directors’
  Company of a value equivalent to not less than 100% of basic salary.        incentive pay policy, encompassing a review of long-term incentive
                                                                              provision. An output of this review is that it is intended that “one-off“
The two main share-based long-term incentive plans operated for               Performance Plan awards will be made in the forthcoming year which
senior Executives are (i) the Performance Plan and (ii) the CIP.              will be structured differently from the operation of the Performance
                                                                              Plan as set out above. More particularly, it is proposed that awards will
a) Performance Plan                                                           be made to Executive Directors and other senior executives over a set
The key features of the Performance Plan, as operated last year, are as       number of shares whose value may exceed the normal 100% of salary
follows:                                                                      individual limit, with vesting of these awards subject to the same
                                                                              relative TSR-based performance condition that was applied to 50% of
  Annual awards were made to executives that may vest at the end of           Performance Plan awards granted last year. 20% of each award will vest
  a three year performance period.                                            if Speedy ranks at the median compared to the FTSE 250 (excluding
  Maximum annual awards up to 100% of basic salary could be made.             investment trusts) measured over the three year performance period,
  50% of the award was based on comparative TSR against the FTSE 250          with full vesting at the upper quartile (and straight-line vesting
  (excluding investment trusts). 20% of this portion of the award will vest   between these points). An underpin will also apply to this primary TSR
  at median, with straight-line vesting to upper quartile performance at      measure, under which the Committee may reduce the number of
  which point this portion of the award will vest in full. The balance of     shares that provisionally vest by reference to performance against the
  the award was based on EPS growth targets. 20% of this portion of the       relative TSR condition if this performance is not considered to be truly
  award will vest for the achievement of a threshold level of EPS growth,     representative of the Company’s underlying performance over the
  being at least Consumer Prices Index (“CPI“) plus 7.5% per annum,           relevant period. When considering the Company’s underlying
  calculated on a compound basis, with the entire portion of this award       performance, the Committee will take account of performance against
  vesting if EPS growth is at least CPI plus 15% per annum, also on a         a range of targets including operating cash flow, profit against targets,
  compound basis (with straight-line vesting in between).                     working capital management and share price progression.
                                                                                                              Speedy Hire Plc Annual Report and Accounts 2009        51




Formal shareholder approval will be required for amendments to the         TOTAL SHAREHOLDER RETuRN
                                                                            Total shareholder return
individual participation limit contained in the rules of the Performance
Plan so as to allow these grants to be made. This approval will be          500
sought at the EGM convened for 24 June 2009.                                450

The Committee is also considering the possibility of structuring future     400
Performance Plan awards (including the one-off awards referred to           350
above) in a potentially more tax efficient manner for participants.
                                                                            300
Benefits under the Performance Plan and the CIP are non-pensionable.        250

In the event that shareholders do not approve the awards referred to        200
above at the EGM on 24 June 2009, the Committee will consult with           150
shareholders about alternative remuneration proposals.
                                                                            100
BENEFITS IN KIND                                                            50
The Group operates a policy whereby Executive Directors and senior
management are offered a car or cash alternative, as appropriate,           0
health insurance and life cover and pension contributions (further                 Mar             Mar              Mar            Mar            Mar            Mar
                                                                                   2004            2005             2006           2007           2008           2009
details of which are set out below).
                                                                           Source: Thomson Financial

                                                                           I Speedy
The Group does not operate a defined benefit pension scheme and            This graph shows the value, by 31 March 2008, of £100 invested in Speedy Hire Plc
                                                                           on 31 March 2003 compared with the value of £100 invested in the FTSE 250
                                                                           I FTSE 250 investment trusts) Index. The other points are the values at intervening
has no plans to introduce such a scheme.                                   (excluding
                                                                           financial year-ends.
SHARE OWNERSHIP GuIDELINES                                                            shows Hire Plc
                                                                           This graphSpeedythe value, by 31 March 2009, (excluding investment trusts) Index
                                                                                                              FTSE 250 of £100 invested in Speedy Hire Plc on
Executive Directors are expected to build a shareholding equivalent to     31 March 2004 compared with the value of £100 invested in the FTSE 250 Index (excluding
100% of their basic salaries. The Committee expects this to be achieved    investment trusts). The other points are the values at intervening financial year ends.
over a reasonable timeframe and may be achieved through the
retention of shares acquired through the vesting of share awards.
                                                                           SERVICE CONTRACTS

TOTAL SHAREHOLDER RETuRN
                                                                           It is the Committee’s general policy that the service contracts of
                                                                           Executive Directors (none of which are for a fixed term) should provide
The accompanying graph shows Speedy’s performance, measured by             for termination of employment by giving 12 months’ notice or by
TSR, compared with the performance of the FTSE 250 Index (excluding        making a payment of an amount equal to 12 months’ basic salary and
investment trusts), also measured by TSR. The graph illustrates the        pension contributions in lieu of notice together with any accrued bonus
movement of Speedy’s TSR, assuming dividends are reinvested on the         entitlement. It is also the Committee’s general policy that no Executive
ex dividend date, against that of the FTSE 250 Index (excluding            Director should be entitled to a notice period or payment on
investment trusts) for the five year period to 31 March 2009. The FTSE     termination of employment in excess of these levels. In determining
250 Index (excluding investment trusts) has been used as it provides       amounts payable on termination, the Committee also considers, where
consistency with the performance measurement of the Group’s                it is able to do so, appropriate adjustments to take into account
executive share incentive plans.                                           accelerated receipt and the Executive Director’s duty to mitigate his loss.

                                                                           As reported last year, the provision in Justin Read’s service contract
                                                                           which provided him with an enhanced notice period (in the event of
                                                                           change in control of Speedy in the first year of his employment)
                                                                           expired on 1 April 2009. His notice period is now 12 months.

                                                                           The service contracts of Steve Corcoran, Mike McGrath, Claudio Veritiero
                                                                           and Justin Read contain express provisions relating to their duty to
                                                                           mitigate their loss and for accelerated receipt in the event of termination.

                                                                           Subject to the above, no Executive Director has the benefit of
                                                                           provisions in his service contract for the payment of pre-determined
                                                                           compensation in the event of termination of employment.
52   Speedy Hire Plc Annual Report and Accounts 2009


REMuNERATION REPORT




The execution dates of the service contracts of the Executive Directors         Non-Executive Directors’ remuneration levels are unchanged from those
are set out below:                                                              paid last year. Non-Executive Directors receive an annual fee and are
                                                                                reimbursed expenses incurred in attending meetings. They do not
                                                               Contract date    receive any performance-related bonuses, pension contributions, share
S J Corcoran                                                  7 January 2002    awards or other forms of benefit.
N C O’Brien*                                                 15 January 2002
M A McGrath                                                   10 March 2006     The Chairman and Non-Executive Directors do not have contracts of
C Veritiero                                                      16 July 2007   service but their terms are set out in letters of appointment. David
J Read                                                           1 April 2008   Galloway will retire as a Non-Executive Director on 31 May 2009. Peter
                                                                                Atkinson commenced a second three year term on 1 June 2008. Ishbel
* Neil O’Brien stepped down as Group Finance Director on 1 April 2008           Macpherson and Michael Averill commenced their first three year terms
  and ceased to be a Director of the Company on 31 May 2008.                    in July 2007 and May 2008 respectively. James Morley joined on
                                                                                2 April 2009 commencing his first three year term. Appointments are
ARRANGEMENTS RELATING TO JOHN BROWN                                             subject to earlier termination by six months’ notice on either side in the
                                                                                case of David Wallis and three months’ notice on either side in the case of
Former Chief Executive John Brown played an integral role for 27 years          each of David Galloway, Peter Atkinson, Ishbel Macpherson, Michael
in the building of our business.                                                Averill and James Morley. The letters of appointment, copies of which are
                                                                                available for inspection at the Company’s registered office during normal
To ensure Speedy retained access to John’s wealth of experience, and as         business hours, specify an anticipated time commitment of 50 days per
reported in previous years, it was agreed to engage him for three years         annum in relation to David Wallis, 21 days per annum in the case of Ishbel
from 1 October 2005 as a consultant. John undertook an ambassadorial            Macpherson, David Galloway and James Morley and 19 days per annum
role with both our major customers and suppliers, in relation to many of        in the case of Peter Atkinson and Michael Averill.
whom John forged the original relationship with Speedy. He also
remained available in an advisory capacity to the Executive Directors,
                                                                                EMOLuMENTS OF THE DIRECTORS
supporting special project work up to a maximum of 30 days per year.
                                                                                The emoluments of the Directors of Speedy were as follows:
The Committee, after careful consideration of the value of these
arrangements in protecting and enhancing shareholder value, agreed              AGGREGATE EMOLuMENTS AuDITED
at that time that John should receive a consultancy fee for the                                                                    2009             2008
provision of such services of £30,000 per annum.                                                                                   £000             £000
                                                                                Salaries and fees                                 1,320            1,075
This arrangement ended in October 2008.                                         Benefits                                             43               33
                                                                                Annual performance-related bonuses                    –              749
NON-EXECuTIVE DIRECTORS                                                         Pension contributions                               154              130
The remuneration of the Non-Executive Directors is set by the Executive         Total                                             1,517            1,987
Directors. The policy of the Board is that the remuneration of the Non-
Executive Directors should be consistent with the levels of remuneration        A payment of £18,000 was also made to the widow of a former
paid by companies of a similar size and has due regard to their expected        Director (2008: £18,000).
time commitment and responsibility in performing their duties. The
levels of Non-Executive Director remuneration are the subject of a              Benefits include a car allowance, medical insurance and life assurance.
benchmarking exercise, carried out with the assistance of HNBS, typically
at least every two years. No such benchmarking exercise was necessary           None of the Executive Directors serves as a Non-Executive Director
this year as there were no salary increases and therefore the continuing        elsewhere.
PAYMENTS TO EXECuTIVE DIRECTORS AuDITED
Base salaries for Executive Directors and remuneration levels for Non-Executive Directors were not increased.
                                                                                                                                          Pension
                                                           Salaries and fees                                                            contributions
                                                                                                  Total            Total
                                                  Salary        Benefits        Bonus             2009             2008            2009             2008
                                                   £000           £000           £000             £000             £000            £000             £000
S J Corcoran                                        340              12             –              352              638              68               65
M A McGrath                                         220              10             –              230              415              26               23
C Veritiero                                         203                9            –              212              115‡             29                9
J R Read                                            250              10             –              260                –              25                –
N C O’Brien*                                          40               2            –               42              427               6               33

Former Executive Directors
J E Brown†                                            15              –                 –           15               30               –                –
Total                                              1,068             43                 –        1,111            1,625             154              130
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   53




* Neil O’Brien stepped down as Group Finance Director on 1 April              DIRECTORS’ INTERESTS IN SHARES AND OPTIONS AuDITED
  2008 and ceased to be a Director of the Company on 31 May 2008,
                                                                              INTERESTS IN SHARES
  following a handover period to Justin Read who was appointed as
                                                                              The interests of the Directors of Speedy Hire Plc in the issued share
  Group Financial Director with effect from 1 April 2008. The terms of
                                                                              capital of Speedy Hire Plc at the beginning and end of the year or date
  Neil O’Brien’s termination were in accordance with the rights and
                                                                              of appointment where appropriate are shown below:
  obligations set out in his service contract and in line with the rules of
  the incentive arrangements in which he participated.
                                                                                                                      Speedy Hire Plc Ordinary shares
† Received consultancy fees of £15,000 in 2008/09 year (half year).
                                                                                                                      31 March 2009 1 April 2008
‡ Part year as an Executive Director.
                                                                                                                           Number           Number
PENSIONS                                                                      S J Corcoran                                    274,786            202,348
The Committee reviews the pension arrangements for the Executive              M A McGrath                                      43,499             23,076
Directors to ensure that the benefits provided are consistent with            C Veritiero                                      24,943              5,464
those provided by other similar companies and take account of                 D W Wallis                                       50,000             50,000
changes in relevant legislation.                                              D A Galloway                                     22,000             22,000
                                                                              P D Atkinson                                      4,280              4,280
The Company does not offer a defined benefit pension scheme.                  I J S Macpherson                                 21,694              4,016
Instead, it makes contributions to an approved pension scheme of the          J R Read                                         22,800                  –
Executive Director’s choice.                                                  M C E Averill                                     5,000                  –

Pensions contributions range between 10% and 20% of basic salary              James Morley was appointed as a Non-Executive Director of the
depending on length of service.                                               Company on 2 April 2009.

The amount of pension contributions made in respect of each                   Any ordinary shares required to satisfy awards under the Performance
Executive Director is set out above.                                          Plan and CIP are provided by the Speedy Hire Employee Benefits Trust
                                                                              (“EBT”). As a potential beneficiary under the EBT, each Executive
Save as set out above, there are no other pension arrangements for the        Director is deemed to be interested in all the shares held by the EBT
Executive Directors.                                                          which, at 31 March 2009, amounted to 281,673 Speedy Hire Plc
                                                                              ordinary shares (2008: 383,366).
INDIVIDuAL EMOLuMENTS OF NON-EXECuTIVE DIRECTORS AuDITED
The fees of the Non-Executive Directors are set out below:                    There have been no changes in the interests of the Directors in the
                                                                              share capital of Speedy Hire Plc since 31 March 2009.
                                                  2009             2008
                                                  £’000            £’000      DIRECTORS’ INTERESTS IN SHARE OPTIONS
                                                                              The options under the SAYE Scheme were granted for nil
D W Wallis                                          105              100
                                                                              consideration.
D A Galloway (will resign on 31 May 2009)            41               38
P D Atkinson                                         34               33
                                                                              The market price of Speedy ordinary shares at 31 March 2009 was 126
I J S Macpherson                                     41               23†
                                                                              pence and the range during the year was 39 pence to 804 pence
M C E Averill (appointed 1 May 2008)                 31†               –
                                                                              per share.
Total                                               252              194
                                                                              Awards in respect of the Performance Plan and the CIP were granted
† Part year.                                                                  for nil consideration. The price of an ordinary share on 1 July 2008,
                                                                              when the Performance Plan and CIP awards were made, was 538
James Morley was appointed as a Non-Executive Director of the                 pence. The exercise price for the Performance Plan awards and
Company on 2 April 2009.                                                      Matching Share awards under the CIP is an aggregate £1 for all the
                                                                              award shares.
54   Speedy Hire Plc Annual Report and Accounts 2009


REMuNERATION REPORT




Details of the Executive Directors’ interests in the UK SAYE Scheme, Performance Plan and CIP are as follows:

                                                                     Options/
                                                        Options/       awards     Options/                                Share price
                                                          awards    exercised/      awards                                 on date of
                                   Interests at          granted        vested       lapsed   Interests at     Exercise     exercise/   Expected date
                                        1 April        during the   during the   during the     31 March          price      vesting      from which
                                          2008               year         year         year         20091, 8     pence         pence       exercisable
S J Corcoran
Save As You Earn 2007                    1,426                 –             –                     1,426           673                  Feb–July 2011
Performance Plan 20052, 3               40,260                 –      (14,292)     (25,968)            –            nil          551       June 2008
Performance Plan 20064                  33,646                 –             –            –       33,646            nil                    June 2009
Performance Plan 20074                  26,133                 –             –            –       26,133            nil                    June 2010
Performance Plan 20085                       –            49,351             –            –       49,351            nil                    June 2011
Co-Investment Plan 20053                20,542                 –      (20,542)            –            –            nil          551       June 2008
Co-Investment Plan 20064                45,876                 –             –            –       45,876            nil                    June 2009
Co-Investment Plan 20074                21,936                 –             –            –       21,936            nil                    June 2010
Co-Investment Plan 20085                     –            92,966             –            –       92,966            nil                    June 2011
                                      189,819            142,317      (34,834)     (25,968)      271,334
M A McGrath
Save As You Earn 20066                   1,102                 –            –       (1,102)            –           857                  Feb–July 2010
Performance Plan 20064                  21,870                 –            –             –       21,870            nil                    June 2009
Performance Plan 20074                  16,885                 –            –             –       16,885            nil                    June 2010
Performance Plan 20085                       –            31,933            –             –       31,933            nil                    June 2011
Co-Investment Plan 20064                44,728                 –            –             –       44,728            nil                    June 2009
Co-Investment Plan 20074                30,998                 –            –             –       30,998            nil                    June 2010
Co-Investment Plan 20085                     –            69,888            –             –       69,888            nil                    June 2011
                                      115,583            101,821            –       (1,102)      216,302
C Veritiero
Save As You Earn 2005                    1,498                 –             –           –         1,498           624                  Feb-July 2009
Performance Plan 20085                       –            27,941             –           –        27,941            nil                    June 2011
Co-Investment Plan 20053                 4,996                 –       (4,996)           –             –            nil          551       June 2008
Co-Investment Plan 20064                 4,586                 –             –           –         4,586            nil                    June 2009
Co-Investment Plan 20074                 7,446                 –             –           –         7,446            nil                    June 2010
Co-Investment Plan 20085                     –            56,576             –           –        56,576            nil                    June 2011
                                        18,526            84,517       (4,996)           –        98,047
J R Read
Performance Plan 20085                        –           36,288            –            –        36,288            nil                     June 2011
Co-Investment Plan 20085                      –           77,288            –            –        77,288            nil                     June 2011
                                              –          113,576            –            –       113,576
N C O’Brien
Performance Plan 20052, 3               27,450                 –       (9,744)     (17,706)             –           nil          551        June 2008
Performance Plan 20064, 7               22,992                 –             –     (22,992)             –           nil                     June 2009
Performance Plan 20074, 7               17,690                 –             –     (17,690)             –           nil                     June 2010
Co-Investment Plan 20053                20,820                 –      (20,820)            –             –           nil          551        June 2008
Co-Investment Plan 20064 , 7            22,938                 –             –     (22,938)             –           nil                     June 2009
Co-Investment Plan 20074, 7             15,168                 –             –     (15,168)             –           nil                     June 2010
                                      127,058                  –      (30,564)     (96,494)             –
                                      450,986            442,231      (70,394)    (123,564)      699,259
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   55




1
    Or date of cessation as a Director of the Company, if earlier.
2
    The number of shares that vested during the year under the 2005 Performance Plan award includes additional shares awarded as dividend
    equivalents in accordance with the Plan rules. See table on page 56.
3
    The 2005 awards under the Performance Plan and CIP were granted on 14 July 2005 and the share price on the date of grant was 732 pence.
    The awards vested on 19 June 2008 and were exercised on 26 June 2008. The 2005 Performance Plan awards were subject to a TSR
    performance condition, measuring the TSR of Speedy against the TSR of companies within the FTSE 250 index (excluding investment trusts)
    over the performance period, with 20% of the award vesting at median and straight-line vesting to upper quartile performance, at which point
    awards would vest in full. In addition, awards under the Performance Plan were subject to an underpin, requiring growth in EPS over the
    performance period to be at least equal to the CPI plus 2% per annum on a compound basis for any award to vest. 2005 awards under the
    Performance Plan vested as to 35.5%. The 2005 awards under the CIP were subject to an EPS performance condition over the performance
    period, requiring growth in EPS to exceed growth in the CPI over the performance period, with maximum vesting of matching shares, if EPS
    growth exceeded CPI growth by 12.5% per annum on a compound basis. No awards would vest if EPS growth were less than CPI growth plus
    7.5% per annum on a compound basis over the performance period, with straight-line vesting in between the two limits. 2005 awards under
    the CIP vested in full.
4
    The 2006 and 2007 Performance Plan and CIP awards were subject to the same performance conditions as described in Note 3 above.
5
    The 2008 Performance Plan and CIP awards were subject to the performance conditions as described on page 50 above.
6
    The Save As You Earn options lapsed following the closure of the associated savings contract.
7
    Neil O’Brien’s 2006 and 2007 Performance Plan and CIP awards lapsed on his resignation from the Company on 31 May 2008.
8
    Where permitted by the rules of the relevant plan or scheme, the Committee may propose to make appropriate adjustments to subsisting
    options and awards to reflect the effect of the rights issue. Any such adjustments will not be made until after the rights issue has been effected
    and will be subject to confirmation by the Company’s auditors and, as appropriate, to approval of HMRC and consent of the trustee of the EBT.
56    Speedy Hire Plc Annual Report and Accounts 2009


REMuNERATION REPORT




AWARDS EXERCISED DuRING THE YEAR                                            LONG-TERM SERVICE AWARDS
The aggregate gains made by Directors on exercise of the 2005
                                                                            Consistent with the Speedy approach of recognising the contribution
Performance Plan and CIP awards in the year were as follows:
                                                                            of its employees at all levels in the business, the Group operates a
                                              No. of      Total gain
                                                                            long-term service award scheme under which employees serving 10,
                                             shares1             (£)
                                                                            20 and 25 years receive a range of additional benefits, including
S J Corcoran                                                                additional days of annual holiday entitlement (including the
Performance Plan                                        15,258    85,903    employee’s birthday for reaching 20 years’ service). Employees serving
Co-Investment Plan                                      20,542   115,651    20 years receive an additional £1,000 in basic salary and those serving
                                                        35,800   201,554    25 years a further increase of £1,000 and an award of shares in the
C Veritiero                                                                 Company to the value of £1,000. Members of the 20 and 25 year clubs
Co-Investment Plan                                       4,996    28,127    attend an annual luncheon hosted by the Chief Executive.
N C O’Brien
                                                                            These benefits are popular amongst employees and Speedy believes
Performance Plan                                        10,402    58,563
                                                                            that they fulfil a business need by encouraging and rewarding the
Co-Investment Plan                                      20,820   117,217
                                                                            loyalty and motivation of long-serving employees and by rewarding
                                                        31,222   175,780    those employees with higher levels of experience.
1
    Includes dividend shares in respect of S J Corcoran’s Performance       Approved by the Remuneration Committee and Board of Speedy Hire
    Plan award (966 shares) and N C O’Brien’s Performance Plan award        Plc on 26 May 2009.
    (658 shares).
                                                                            ISHBEL MACPHERSON
SAYE SCHEME                                                                 CHAIR OF THE REMuNERATION COMMITTEE
Options may be granted over shares in Speedy under the Speedy               26 MAY 2009
Sharesave Scheme (the “SAYE Scheme”), in which all eligible
employees are entitled to participate. At the end of a three year period,
employees have the right, if they choose, to use funds accumulated
under the savings contract linked to the SAYE Scheme, to purchase
shares in Speedy at up to a 20% discount to the price of Speedy’s
shares at the date employees are invited to join the Scheme. No
performance targets are attached to options granted under this
Scheme. Executive Directors are entitled to participate.

The Committee is keen to encourage ownership of Speedy’s shares by
employees at all levels in the Group and grants under the SAYE
Scheme have been made on a regular, normally annual, basis. In
November 2007 the Committee established an Irish Revenue
approved Irish Sharesave Scheme to enable Irish employees of the
Group to participate in a comparable tax-favoured manner to their
English counterparts for which shareholder approval was obtained at
the 2008 AGM.
                                                    Speedy Hire Plc Annual Report and Accounts 2009   57
AuDIT COMMITTEE REPORT




                         The Audit Committee comprised Peter Atkinson, Ishbel Macpherson,
                         Michael Averill and David Galloway until his retirement from the
                         Committee and James Morley from 8 May 2009, all of whom are
                         independent. The Chairman, Chief Executive, and Finance Director
                         were in attendance, as were the external and internal auditors. During
                         the year the Committee met 3 times. In addition, the external auditors
                         met privately with the Audit Committee members.

                         James Morley has joined the Committee with effect from 8 May 2009
                         and has succeeded David Galloway as Chair. James Morley is a
JAMES MORLEY             Chartered Accountant with over 25 years’ experience as a board
NON-EXECuTIVE DIRECTOR   member of both listed and private companies.

                         The Committee’s principal responsibilities are to:

                           Monitor the integrity of the Group’s financial statements and formal
                           announcements relating to the Group’s performance.
                           Monitor the effectiveness of the external process including the
                           appointment, cost and independence of the auditors.
                           Review the effectiveness of internal controls and the internal audit
                           function.
                           Approve the appointment of the Head of Internal audit.
                           Review the Board process for reviewing and managing significant
                           risk in the business.

                         The full terms of reference, which are in compliance with Paragraph C3
                         of the Combined Code, are reviewed annually and were most recently
                         amended on 22 May 2008.

                         During the year the Committee reviewed:

                           The Group’s interim and final accounts together with the external
                           auditors’ detailed reports.
                           The Board’s process for identifying and managing risk.
                           The appropriateness of the Group’s accounting policies.
                           The policy for tendering of non-audit advice.
                           The external audit plans and associated cost.
                           The independence of the external auditors.
                           Post-project reports on the integration of acquisitions.
                           Internal audit plans, reports and resourcing levels.
                           A report from the Company’s external provider of security advice
                           and fraud prevention services.

                         Trading statements and press releases on acquisitions were also
                         reviewed by the Board.

                         JAMES MORLEY
                         CHAIR OF THE AuDIT COMMITTEE
                         26 MAY 2009
58   Speedy Hire Plc Annual Report and Accounts 2009


NOMINATION COMMITTEE REPORT




                                                       The Nomination Committee comprised David Galloway, Ishbel
                                                       Macpherson, Peter Atkinson, James Morley, Michael Averill and David
                                                       Wallis as Chair of the Committee.

                                                       The terms of reference of the Nomination Committee set out its
                                                       responsibilities. These include inter alia:

                                                         reviewing the size and composition of the Board and membership
                                                         of Board Committees;
                                                         ensuring that succession planning is in place;
DAVID WALLIS                                             making recommendations to the Board on the appointment of
NON-EXECuTIVE CHAIRMAN                                   Executive and Non-Executive Directors at both Plc and operating
                                                         level, including job description; and
                                                         the reappointment of Directors following their retirement by
                                                         rotation.

                                                       During the course of the year, the Committee met three times. The
                                                       main business of the year was to ensure the appointment of a suitable
                                                       replacement for Chair of the Audit Committee, as David Galloway, its
                                                       Chair for the last eight years, was due to retire. An appropriate brief for
                                                       the appointment was prepared and a shortlist of search firms
                                                       discussed. As Chairman of the Board, I did not participate in this
                                                       discussion because of a potential conflict of interest. The Senior
                                                       Independent Director eventually appointed Hanson Green, a
                                                       member of the Directorbank Group, which is chaired by David Wallis.
                                                       The Nomination Committee was presented with an excellent choice
                                                       of candidates, finally appointing James Morley as Chair of the
                                                       Audit Committee.

                                                       The Chairman’s report on the functioning of the Board on page 28
                                                       outlines many of the issues discussed by the Nomination Committee
                                                       during the course of the year. Succession planning will remain as a key
                                                       agenda item during the course of the current financial year.

                                                       As the Company has developed an effective HR function and HR
                                                       strategy, there is increasing communication and interaction with the
                                                       Committee, particularly with regard to succession planning. In a
                                                       growing business, it is essential that its rising stars are identified early
                                                       and given a career path to ensure that they maximise their potential.
                                                       This also ensures that the Committee internally has the largest possible
                                                       pool of talented individuals from which to choose, as well as the
                                                       option of recruiting externally.

                                                       DAVID WALLIS
                                                       CHAIR OF THE NOMINATION COMMITTEE
                                                       26 MAY 2009
                                                                                                      Speedy Hire Plc Annual Report and Accounts 2009   59
INDEPENDENT AuDITORS’ REPORT TO THE MEMBERS OF SPEEDY HIRE PLC




We have audited the Group and Parent Company financial statements          We read the other information contained in the Annual Report and
(the ‘’financial statements’’) of Speedy Hire Plc for the year ended       consider whether it is consistent with the audited financial statements.
31 March 2009 which comprise the Consolidated Income Statement,            We consider the implications for our report if we become aware of any
the Consolidated and Parent Company Balance Sheet, the                     apparent misstatements or material inconsistencies with the financial
Consolidated and Company Cash Flow Statement, the Consolidated             statements. Our responsibilities do not extend to any other
and Company Statement of Recognised Income and Expense, and the            information.
related notes. These financial statements have been prepared under
the accounting policies set out therein. We have also audited the          BASIS OF AuDIT OPINION
information in the Directors’ Remuneration Report that is described as     We conducted our audit in accordance with International Standards on
having been audited.                                                       Auditing (UK and Ireland) issued by the Auditing Practices Board. An
                                                                           audit includes examination, on a test basis, of evidence relevant to the
This report is made solely to the Company’s members, as a body, in         amounts and disclosures in the financial statements and the part of
accordance with section 235 of the Companies Act 1985. Our audit           the Directors’ Remuneration Report to be audited. It also includes an
work has been undertaken so that we might state to the Company’s           assessment of the significant estimates and judgments made by the
members those matters we are required to state to them in an               Directors in the preparation of the financial statements, and of
auditor’s report and for no other purpose. To the fullest extent           whether the accounting policies are appropriate to the Group’s and
permitted by law, we do not accept or assume responsibility to anyone      Company’s circumstances, consistently applied and adequately
other than the Company and the Company’s members as a body, for            disclosed.
our audit work, for this report, or for the opinions we have formed.
                                                                           We planned and performed our audit so as to obtain all the
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AuDITORS                      information and explanations which we considered necessary in order
The Directors’ responsibilities for preparing the Annual Report, the       to provide us with sufficient evidence to give reasonable assurance
Directors’ Remuneration Report and the financial statements in             that the financial statements and the part of the Directors’
accordance with applicable law and International Financial Reporting       Remuneration Report to be audited are free from material
Standards (IFRSs) as adopted by the EU are set out in the Statement of     misstatement, whether caused by fraud or other irregularity or error. In
Directors’ Responsibilities on page 32.                                    forming our opinion we also evaluated the overall adequacy of the
                                                                           presentation of information in the financial statements and the part of
Our responsibility is to audit the financial statements and the part of    the Directors’ Remuneration Report to be audited.
the Directors’ Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements and International               OPINION
Standards on Auditing (UK and Ireland).                                    In our opinion:
                                                                              the Group financial statements give a true and fair view, in
We report to you our opinion as to whether the financial statements           accordance with IFRSs as adopted by the EU, of the state of the
give a true and fair view and whether the financial statements and the        Group’s and the Parent Company’s affairs as at 31 March 2009 and of
part of the Directors’ Remuneration Report to be audited have been            its loss for the year then ended;
properly prepared in accordance with the Companies Act 1985 and, as           the Parent Company financial statements give a true and fair view,
regards the Group financial statements, Article 4 of the IAS Regulation.      in accordance with IFRSs as adopted by the EU, as applied in
We also report to you whether in our opinion the information given in         accordance with the provisions of the Companies Act 1985, of the
the Directors’ Report is consistent with the financial statements. The        state of the Parent Company’s affairs as at 31 March 2009;
information given in the Directors’ Report includes that information          the financial statements and the part of the Directors’ Remuneration
presented in the Operating and Financial Review that is cross referred        Report to be audited have been properly prepared in accordance
from the Review of the business and future developments section of            with the Companies Act 1985 and, as regards the Group financial
the Directors’ Report.                                                        statements, Article 4 of the IAS Regulation; and
                                                                              the information given in the Directors’ Report is consistent with the
In addition we report to you if, in our opinion, the Company has not          financial statements.
kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if information   KPMG AUDIT PLC
specified by law regarding Directors’ remuneration and other               CHARTERED ACCOuNTANTS
transactions is not disclosed.                                             REGISTERED AuDITOR
                                                                           26 MAY 2009
We review whether the Corporate Governance Statement reflects the
Company’s compliance with the nine provisions of the 2006 Combined
Code specified for our review by the Listing Rules of the Financial
Services Authority, and we report if it does not. We are not required to
consider whether the Board’s statements on internal control cover all
risks and controls, or form an opinion on the effectiveness of the
Group’s corporate governance procedures or its risk and control
procedures.
60   Speedy Hire Plc Annual Report and Accounts 2009


CONSOLIDATED INCOME STATEMENT for the year ended 31 March 2009




                                                                  Before                                   Before
                                                              exceptional    Exceptional               exceptional    Exceptional
                                                                   items          items       Total         items          items      Total
                                                                    2009           2009       2009           2008           2008      2008
                                                       Note           £m             £m        £m              £m             £m       £m
Revenue                                                  2          476.1              –      476.1          465.5             –      465.5
Cost of sales                                                      (188.1)             –     (188.1)        (167.1)            –     (167.1)
Gross profit                                                         288.0              –      288.0          298.4              –     298.4
Distribution costs                                                  (50.5)             –      (50.5)         (49.8)             –     (49.8)
Administrative expenses                                            (197.0)         (90.7)    (287.7)        (191.8)         (10.0)   (201.8)

Analysis of operating profit
Operating profit before amortisation
and exceptional items                                               49.7               –       49.7           64.0              –     64.0
Amortisation                                                        (9.2)              –       (9.2)          (7.2)             –     (7.2)
Impairment of intangible assets                          3             –           (60.9)     (60.9)             –              –        –
Impairment of property, plant and equipment              3             –            (8.8)      (8.8)             –              –        –
Exceptional restructuring costs                          3             –           (21.0)     (21.0)             –              –
Exceptional integration costs                            3             –               –          –              –          (10.0)    (10.0)

Operating (loss)/profit                                    4          40.5          (90.7)     (50.2)          56.8          (10.0)     46.8
Financial income                                          7           0.2              –        0.2            0.9              –       0.9
Financial expense                                       3,7         (16.0)          (4.6)     (20.6)         (16.8)          (0.4)    (17.2)
(Loss)/profit before taxation                                        24.7           (95.3)     (70.6)          40.9          (10.4)    30.5
Taxation                                                3,8         (7.0)           23.0       16.0           (9.2)           3.1     (6.1)
(Loss)/profit for the financial year                                  17.7           (72.3)     (54.6)          31.7           (7.3)    24.4
Attributable to:
Equity holders of the parent                                                                  (54.6)                                  23.3
Minority interests                                                                                –                                    1.1
                                                                                              (54.6)                                  24.4
                                                                                             Pence                                   Pence
Earnings per share
– Basic                                                  9                                  (107.93)                                 47.89
– Diluted                                                9                                  (107.93)                                 47.49
Dividend per share                                                                             12.8                                   19.8
                                                              Speedy Hire Plc Annual Report and Accounts 2009   61
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE for the year ended 31 March 2009




                                                                                2009                        2008
                                                                                 £m                          £m
Cash flow hedges: losses taken to equity (net of tax)                             (5.3)                          (1.2)
Net loss recognised directly in equity (net of tax)                              (5.3)                          (1.2)

(Loss)/profit for the financial year                                              (54.6)                          24.4
Total recognised income and expense for the financial year                       (59.9)                          23.2
Attributable to:
Equity holders of the parent                                                    (59.9)                          22.1
Minority interests                                                                  –                            1.1
                                                                                (59.9)                          23.2




COMPANY STATEMENT OF RECOGNISED INCOME AND EXPENSE for the year ended 31 March 2009

                                                                                2009                        2008
                                                                                 £m                          £m
Cash flow hedges: losses taken to equity (net of tax)                             (5.3)                          (1.2)
Net loss recognised directly in equity (net of tax)                              (5.3)                          (1.2)

(Loss)/profit for the financial year                                              (10.8)                          13.4
Total recognised income and expense for the financial year                       (16.1)                          12.2
62   Speedy Hire Plc Annual Report and Accounts 2009


CONSOLIDATED BALANCE SHEET at 31 March 2009




                                                                                                                2009                  2008
                                                                                          Note                   £m                    £m
ASSETS
Non-current asset
Intangible assets                                                                           11                   71.2                128.9
Property, plant and equipment                                                               12                  323.2                372.9
                                                                                                                394.4                501.8
Current assets
Inventories                                                                                 14                   12.2                 16.2
Trade and other receivables                                                                 15                  104.4                143.6
Tax receivable                                                                                                    6.9                    –
Cash                                                                                                             11.0                  4.4
                                                                                                                134.5                164.2
Total assets                                                                                                    528.9                666.0
LIABILITIES
Current liabilities
Borrowings                                                                                  18                   (0.2)                    –
Trade & other payables                                                                      16                  (64.1)               (120.0)
Other financial liabilities                                                                  17                   (5.7)                 (0.5)
Provisions                                                                                  19                   (4.1)                 (1.0)
Current income tax                                                                                                  –                  (5.9)
                                                                                                                (74.1)               (127.4)
Non-current liabilities
Borrowings                                                                                  18                 (259.2)               (260.0)
Provisions                                                                                  19                   (3.8)                 (1.2)
Deferred tax liabilities                                                                    20                  (24.3)                (37.3)
                                                                                                               (287.3)               (298.5)
Total liabilities                                                                                              (361.4)               (425.9)
Net assets                                                                                                      167.5                240.1
EquITY
Share capital                                                                               21                    2.5                  2.5
Share premium account                                                                       22                  111.0                111.0
Merger reserve                                                                              22                    3.7                  3.7
Hedging reserve                                                                             22                   (6.0)                (0.7)
Retained earnings                                                                           22                   56.3                122.3
Total equity attributable to equity holders of the parent                                                       167.5                238.8
Minority interests                                                                          22                      –                  1.3
Total equity                                                                                                    167.5                240.1

The financial statements on pages 60 to 92 were approved by the Board of Directors on 26 May 2009 and were signed on its behalf by:

STEVE CORCORAN                                JUSTIN READ
DIRECTOR                                      DIRECTOR
                                                                                                  Speedy Hire Plc Annual Report and Accounts 2009   63
COMPANY BALANCE SHEET at 31 March 2009




                                                                                                                    2009                        2008
                                                                                          Note                       £m                          £m
ASSETS
Non-current assets
Investments                                                                                 13                       94.3                       111.7
Deferred tax asset                                                                          20                        0.1                         0.2
                                                                                                                     94.4                       111.9
Current assets
Trade and other receivables                                                                 15                     322.6                        337.6
Tax receivable                                                                                                       0.9                          1.3
Cash                                                                                                                 0.1                            –
                                                                                                                   323.6                        338.9
Total assets                                                                                                       418.0                        450.8
LIABILITIES
Current liabilities
Bank borrowings                                                                             18                       (7.6)                      (14.0)
Trade & other payables                                                                      16                      (17.1)                      (20.0)
Other financial liabilities                                                                  17                       (5.7)                       (0.5)
                                                                                                                    (30.4)                      (34.5)
Non-current liabilities
Borrowings                                                                                  18                    (258.6)                      (260.0)
Total liabilities                                                                                                 (289.0)                      (294.5)
Net assets                                                                                                         129.0                        156.3
EquITY
Share capital                                                                               21                       2.5                          2.5
Share premium account                                                                       22                     111.0                        111.0
Merger reserve                                                                              22                       8.6                          8.6
Hedging reserve                                                                             22                      (6.0)                        (0.7)
Retained earnings                                                                           22                      12.9                         34.9
Total equity                                                                                                       129.0                        156.3

The financial statements on pages 60 to 92 were approved by the Board of Directors on 26 May 2009 and were signed on its behalf by:

STEVE CORCORAN                        JUSTIN READ
DIRECTOR                              DIRECTOR
64   Speedy Hire Plc Annual Report and Accounts 2009


CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 March 2009




                                                                    2009      2008
                                                                     £m        £m
Cash flow from operating activities
(Loss)/profit before tax                                             (70.6)    30.5
Adjustments for:
    Movement in provisions                                            5.7        –
    Financial income                                                 (0.2)    (0.9)
    Financial expense                                                20.6     17.2
    Exceptional impairment of intangible assets                      60.9        –
    Exceptional impairment of property, plant and equipment           8.8        –
    Amortisation                                                      9.2      7.2
    Depreciation                                                     75.9     67.6
    Loss/(profit) on disposal of property, plant and equipment         1.6     (9.7)
    Equity-settled share-based payments                              (1.2)     2.2
                                                                    110.7    114.1
Decrease/(increase) in inventories                                    4.0     (3.1)
Decrease/(increase) in trade and other receivables                   39.2    (27.6)
(Decrease)/increase in trade and other payables                     (55.8)    18.9
Cash generated from operations                                       98.1    102.3
Interest received                                                     0.2      0.9
Interest paid                                                       (21.4)   (15.5)
Income tax paid                                                      (9.8)    (4.7)
Net cash flow from operating activities                               67.1     83.0
Cash flow from investing activities
Acquisition of businesses                                           (14.6)   (137.4)
Purchase of property, plant and equipment                           (75.1)   (104.1)
Disposal of property, plant and equipment                            39.4      34.4
Net cash flow from investing activities                              (50.3)   (207.1)
Net cash flow before financing activities                              16.8    (124.1)
Cash flow from financing activities
Proceeds from shares issued                                             –     56.2
Share issue costs                                                       –     (2.8)
Finance lease payments                                               (0.2)       –
Proceeds from new loans                                                 –     73.5
Dividends paid                                                      (10.0)    (8.7)
Net cash flow from financing activities                               (10.2)   118.2
Increase/(decrease) in cash                                           6.6     (5.9)
Cash at the start of the financial year                                4.4     10.3
Cash at the end of the financial year                                 11.0       4.4
                                                               Speedy Hire Plc Annual Report and Accounts 2009   65
COMPANY CASH FLOW STATEMENT for the year ended 31 March 2009




                                                                                 2009                        2008
                                                                                  £m                          £m
Cash flow from operating activities
(Loss)/profit before tax                                                          (10.8)                          11.5
Adjustments for:
    Dividends received                                                           (13.8)                      (17.4)
    Financial income                                                             (14.3)                      (17.0)
    Financial expense                                                             20.7                        21.8
    Impairment of non-current investments                                         18.7                           –
    Equity-settled share-based payments                                           (1.2)                        2.2
                                                                                  (0.7)                        1.1
Decrease/(increase) in trade and other receivables                                15.0                      (151.5)
(Decrease)/increase in trade and other payables                                   (3.5)                        3.2
Cash generated from operations                                                    10.8                      (147.2)
Interest received                                                                 14.3                        17.0
Interest paid                                                                    (21.5)                      (20.5)
Tax received                                                                       0.4                         3.6
Net cash flow from operating activities                                             4.0                      (147.1)
Cash flow from investing activities
Acquisition of minority interest                                                  (1.3)                             –
Investment in shares                                                                 –                           (5.0)
Dividends received                                                                13.8                           17.4
                                                                                  12.5                           12.4
Net cash flow before financing activities                                           16.5                      (134.7)
Cash flow from financing activities
Proceeds from shares issued                                                          –                           56.2
Share issue costs                                                                    –                           (2.8)
Proceeds from new loans                                                              –                           86.4
Repayment of borrowings                                                           (6.4)                             –
Dividends paid                                                                   (10.0)                          (8.7)
Net cash flow from financing activities                                            (16.4)                      131.1
Increase/(decrease) in cash                                                        0.1                           (3.6)
Cash at the start of the financial year                                               –                            3.6
Cash at the end of the financial year                                               0.1                              –
66   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




1    ACCOuNTING POLICIES
     Speedy Hire Plc is a company incorporated in the United Kingdom. The consolidated financial statements of the Company for the year ended
     31 March 2009 comprise the Company and its subsidiaries (together referred to as the “Group”). The consolidated and Parent Company
     financial statements were approved by the Board of Directors on 26 May 2009.

     STATEMENT OF COMPLIANCE
     Both the Group and Parent Company financial statements have been prepared and approved by the Directors in accordance with
     International Financial Reporting Standards as adopted by the European Union (“IFRS”). On publishing the Parent Company financial
     statements here together with the Group financial statements, the Company is taking advantage of the exemption in s230(4) of the
     Companies Act 1985 not to present its individual income statement and related notes that form part of the approved financial statements.

     BASIS OF PREPARATION
     The financial statements are prepared on the historical cost basis except that derivative financial instruments are held at fair value. The
     accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.

     GOING CONCERN
     As detailed on page 31, the Directors continue to adopt the going concern basis in preparing the Annual Report and financial statements.

     BASIS OF CONSOLIDATION
     Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the
     financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in
     the consolidated financial statements from the date that control commences until the date that control ceases.

     Intra-Group balances, and any unrealised gains and losses or income and expenses arising from intra-Group transactions, are eliminated in
     preparing the consolidated financial statements.

     ACCOuNTING STANDARDS NOT YET EFFECTIVE
     These consolidated and Company financial statements have been prepared in accordance with IFRS and related IFRIC interpretations in issue
     that have been endorsed by the European Commission and are effective as at 31 March 2009.

     The International Accounting Standards Board (“IASB”) has introduced a number of accounting standards which have been adopted by the
     European Commission, and are available for early adoption. However, the Group has not applied these in the financial statements for the year
     ended 31 March 2009. The relevant standards and interpretations that will impact the Group are as follows:

     –   IFRS 8 “Operating Segments” is effective for accounting periods commencing on or after 1 January 2009. The Group has decided not to
         adopt the standard in the financial statements for the year ended 31 March 2009. The application of IFRS 8 in 2009 would not have
         affected the balance sheet or income statement as the standard is concerned only with disclosure. The Group and Parent Company plan
         to adopt it in the financial statements for the year ended 31 March 2010.

     REVENuE
     Revenue is measured at the fair value of consideration received or receivable, net of returns, trade discounts and volume rebates.

     Revenue is recognised in the income statement on a straight-line basis over the period of the hire. Revenue from the sale of goods is
     recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. Transfers of risks
     and rewards are consistent across all hire contracts. Transfer occurs when the product is received at the customer’s location.

     DEPRECIATION
     Depreciation of property, plant and equipment is charged to the income statement so as to write off the cost of the assets over the estimated
     useful lives after taking account of estimated residual values. Residual values are reassessed annually. Land is not depreciated. Hire equipment
     assets are depreciated so as to write them down to their residual value over their normal working lives which range from three to fifteen years
     depending on the category of the asset. Losses and disposals of such assets are accounted for on a FIFO basis.

     The principal rates and methods of depreciation used are as follows:

         HIRE EquIPMENT
         Tools and general equipment                                              –   between three and seven years straight-line
         Surveying equipment                                                      –   five years straight-line
         Power equipment                                                          –   between five and ten years straight-line
         Accommodation and storage units                                          –   between eight and fifteen years straight-line

         NON-HIRE ASSETS
         Freehold buildings, and long leasehold improvements                      – over the shorter of the lease period and 50 years straight-line
         Short leasehold property improvements                                    – over the period of the lease
         Fixtures and fittings and office equipment (excluding IT)                   – 25%–45% per annum reducing balance
         IT equipment and software                                                – between three and five years straight-line, or over the period of
                                                                                    software licence (if shorter)
         Motor vehicles                                                           – 25% per annum reducing balance
                                                                                                        Speedy Hire Plc Annual Report and Accounts 2009   67




1   ACCOuNTING POLICIES continued
    START-uP EXPENSES AND LEASE INCENTIVES
    Legal and start–up expenses incurred in respect of new hire depots are written off as incurred.

    Premiums paid or incentives received (including rent-free periods extending beyond a depot’s opening date) on the acquisition of trading
    locations are written off over the period of the lease.

    LEASES
    Leases in which the Group assumes substantially all of the risks and rewards of ownership are classified as finance leases. These assets are
    included in the balance sheet at the lower of the fair value or present value of minimum lease payments at inception and are depreciated
    accordingly. The capital element of the corresponding financing commitments is included in the balance sheet.

    Lease payments in respect of finance leases are apportioned between the finance charge and the reduction of the outstanding liability. The
    finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance
    of the liability.

    Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease
    incentives received are recognised in the income statement as an integral part of the total lease expense.

    FINANCING INCOME AND COSTS
    Financing costs comprise interest payable on borrowings, and gains and losses on financial instruments that are recognised in the income
    statement (see below).

    Interest income is recognised in the income statement as it accrues, using the effective interest rate.

    Interest payable on borrowings includes a charge in respect of attributable transaction costs, which are recognised in the income statement
    over the period of the borrowings on an effective interest basis. The interest expense component of finance lease payments is recognised in
    the income statement using the lease’s implicit interest rate.

    INCOME TAX
    Income tax is recognised in the income statement except to the extent it relates to items recognised directly in equity, in which case it is
    recognised in equity. Income tax comprises current and deferred tax.

    Current tax is the expected tax payable on the taxable income for the year, using tax rates substantively enacted at the balance sheet date, and
    any adjustment to tax payable in respect of previous years.

    Deferred tax is recognised using the balance sheet liability method, providing for temporary differences between the carrying amounts of
    assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not
    provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities affecting neither accounting nor taxable
    profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
    amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities,
    using tax rates enacted or substantively enacted at the balance sheet date.

    A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can
    be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
    tax benefit will be realised.

    SEGMENT REPORTING
    A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment) or in providing
    products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different
    from those of other segments.

    The Group primarily analyses its activities based on class of business. Its operational activities are principally undertaken within the UK and
    Republic of Ireland, and accordingly the Group’s operating activities are derived from only one geographical segment.

    PROPERTY, PLANT AND EquIPMENT
    Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment. The cost of self-constructed assets
    includes the cost of materials, direct labour, and an appropriate proportion of directly attributable overheads.

    When parts of an item of property, plant and equipment have different useful economic lives, those components are accounted for as separate
    items of property, plant and equipment.
68   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




1    ACCOuNTING POLICIES continued
     INTANGIBLE ASSETS
     As part of its transaction to IFRS, the Group elected to restate only those business combinations that occurred on or after 1 April 2004. In
     respect of acquisitions prior to 1 April 2004, goodwill represents the amount recognised under the Group’s previous accounting framework,
     UK GAAP.

         Goodwill
         All business combinations are accounted for by applying the purchase method. In respect of acquisitions since 1 April 2004, goodwill
         represents the difference between the cost of acquisition and the fair value of the identifiable assets, liabilities and contingent liabilities
         acquired.

         Goodwill is stated at cost less any accumulated impairment losses, and is included as an intangible asset. It is allocated to cash-
         generating units and is tested annually for impairment. Gains and losses on the disposal of an entity include the carrying amount of
         goodwill relating to the entity sold.

         Other intangible assets
         Intangible assets other than goodwill that are acquired by the Group are stated at cost less accumulated amortisation and impairment
         losses (note 11).

         Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.

         Amortisation
         Amortisation is charged to the income statement on a straight-line basis over the estimated useful economic lives of identified intangible
         assets. Intangible assets excluding goodwill are amortised from the date that they are available for use. For a number of its acquisitions,
         the Group has identified intangible assets in respect of sole supply contracts, customer lists, brands and non-compete agreements. The
         values of these intangibles are recognised as part of the identifiable assets, liabilities and contingent liabilities acquired. The useful lives
         are estimated as follows:

         Sole supply contracts                –   over the unexpired period of the contracts, up to five years
         Customer lists                       –   over the period of the agreement, up to ten years
         Brand                                –   over the period of use in the business, up to four years
         Non-compete agreements               –   over the period of the agreement

     IMPAIRMENTS
     The carrying amounts of the Group’s non-financial assets, other than inventory and deferred tax, are reviewed at each reporting date to
     determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

     An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of an asset is
     the greater of its value in use and its fair value less costs to sell. In assessing the value in use, the estimated future cash flows of the identified
     cash-generating units are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
     value of money and the risks specific to the asset.

     A cash-generating unit is the smallest identifiable asset group that generates cash flows that are largely independent from the other assets
     and groups. Impairment losses are recognised in the income statement.

     Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated
     to the units and then to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis.

     An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are
     assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has
     been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
     carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
     impairment loss had been recognised.

     OWN SHARES HELD BY EMPLOYEE BENEFITS TRuST
     Transactions of the Company-sponsored Employee Benefits Trust are treated as being those of the Company and are therefore reflected in
     the Parent Company and Group financial statements. In particular, the Trust’s purchases of shares in the Company are debited directly to
     equity.
                                                                                                          Speedy Hire Plc Annual Report and Accounts 2009   69




1   ACCOuNTING POLICIES continued
    INVENTORIES
    Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where appropriate, overheads that
    have been incurred in bringing the inventory to its present location and condition. Net realisable value is the estimated selling price in the
    ordinary course of business, less the estimated costs of completion and selling expenses.
    DERIVATIVE FINANCIAL INSTRuMENTS
    The Group uses derivative financial instruments to hedge its exposure to interest rate risks arising from financing activities. In accordance with
    its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes; however, derivatives that do not
    qualify for hedge accounting are accounted for as trading instruments and the movement in fair value is recognised in the income statement.

    Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss when incurred. Subsequent to
    initial recognition, changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognised directly in
    equity to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognised in profit or loss.

    If the hedging instrument expires, no longer meets the criteria for hedge accounting, is sold, is terminated or is exercised, then hedge
    accounting is discontinued prospectively. The cumulative gain or loss previously recognised in equity remains there until the forecast
    transaction occurs. When the hedged item is a non-financial asset, the amount recognised in equity is transferred to the carrying amount of
    the asset when it is recognised. In other cases the amount recognised in equity is transferred to profit or loss in the same period that the
    hedged items affects profit or loss.

    INTRA-GROuP FINANCIAL INSTRuMENTS
    Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its Group, the
    Company considers these to be insurance arrangements and accounts for them as such. In this respect the Company treats the guarantee
    contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the
    guarantee.

    TRADE AND OTHER RECEIVABLES
    Trade and other receivables are stated at their nominal amount less impairment losses.

    CASH AND CASH EquIVALENTS
    Cash and cash equivalents comprise cash balances and overnight deposits.

    INTEREST-BEARING BORROWINGS
    Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-
    bearing borrowings are stated at amortised cost, with any difference between cost and redemption value being recognised in the income
    statement over the period of the borrowings on an effective interest basis.

    TRANSLATION OF FOREIGN CuRRENCIES
    Transactions in foreign currencies are initially recorded at the rate of exchange prevailing at the transaction date. Monetary assets and
    liabilities denominated in foreign currencies are re-translated at the rates of exchange ruling at the balance sheet date. Exchange gains and
    losses arising on settlement or retranslation of monetary assets and liabilities are included in the income statement.

    Assets and liabilities of overseas subsidiaries are translated at the rate of exchange ruling at the balance sheet date. The results of overseas
    subsidiary undertakings are translated into sterling at the average rates of exchange during the period. Exchange differences resulting from
    the translation of the results and balances of overseas subsidiary undertakings are charged or credited directly to the foreign currency
    translation reserve. Such translation differences become recognised in the income statement in the period in which the subsidiary
    undertaking is disposed.

    EMPLOYEE BENEFITS
        Pension schemes
        The Group offers a stakeholder pension arrangement to employees and in addition makes contributions to personal pension schemes for
        certain employees. Obligations for contributions to these defined contribution pension plans are recognised as an expense in the income
        statement as incurred.

        Share-based payment transactions
        The Group operates a number of schemes which allow certain employees to acquire shares in the Company, including the Performance
        Plan, the Co-investment Plan, and the all employee Sharesave Schemes. The fair value of options granted is recognised as an employee
        expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the
        employees become unconditionally entitled to the options. The fair value of the options granted is measured, using an appropriate option
        pricing model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense
        is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to total shareholder return not
        achieving the threshold for vesting.
70   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




1    ACCOuNTING POLICIES continued
     PROVISIONS
     A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, the
     obligation can be measured reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the
     effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
     assessments of the time value of money and, where appropriate, the risks specific to the liability.

     EXCEPTIONAL ITEMS
     Exceptional items are those material items which, by virtue of their size or incidence, are presented separately in the income statement to
     enable a full understanding of the Group’s financial performance. Transactions which may give rise to exceptional items include the
     restructuring of business activities.

     SIGNIFICANT JuDGEMENTS AND ESTIMATES
     The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that
     affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated
     assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the
     results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from
     other sources. Actual results may differ from these estimates.

     The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
     in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects
     both current and future periods.

     In relation to the Group’s property, plant and equipment (note 12), useful economic lives and residual values of assets have been established
     using historical experience and an assessment of the nature of the assets involved. Assets are assessed on an ongoing basis to determine
     whether circumstances exist that could lead to potential impairment of the carrying value of such assets.

     The Group has a number of properties which are leased but no longer occupied. The future cost of these ongoing lease obligations is provided
     for by way of an onerous property contract provision (see note 19). In determining the level of provision required, the Group assesses the
     likelihood of mitigating future lease costs as a result of break clauses in leases, or the lkelihood of sub-letting the property to third parties. In
     doing so, the Group obtains external professional advice where the amounts involved are material.

     Goodwill is reviewed annually to assess the requirement for impairment. Other intangible assets are assessed on an ongoing basis to
     determine whether circumstances exist that could lead to the conclusion that the carrying value of such assets is not supportable. Impairment
     testing on goodwill is carried out in accordance with the analyses described in note 11. Such calculations require judgement relating to the
     appropriate discount factors and long-term growth prevalent in particular markets as well as short-term business performance. The Directors
     draw upon experience as well as external resources in making these judgements.

     In the year to 31 March 2009, an impairment review was undertaken in respect of intangible assets and property, plant and equipment, using
     the basis and key assumptions set out in note 11.

     The charge for share-based payment is calculated in accordance with the analysis described in note 23. The option valuation models used
     require subjective assumptions to be made including the future volatility of the Company’s share price, expected dividend yields, risk-free
     interest rates and expected staff turnover. The Directors draw upon a variety of external sources to aid in the determination of the appropriate
     data to use in such calculations.

     Upon acquisition of a business, its identifiable assets and liabilities are assessed to determine their fair value. The values attributed to assets
     and liabilities as part of this process are, where appropriate, based on market values identified for equivalent assets, together with
     management’s experience and assessments. Where possible, for example in respect of the acquisition of hire assets, comparison is made to the
     carrying value of assets of a similar condition and age in the existing business.
                                                                                                     Speedy Hire Plc Annual Report and Accounts 2009   71




2   SEGMENTAL ANALYSIS
    The Group’s primary segmental reporting format is class of business, as the Group’s management and internal reporting are structured in this
    manner. The Group’s activity is conducted principally within the United Kingdom and Republic of Ireland.

                                                                     Tools                      Equipment                                 Total
                                                            2009             2008           2009         2008                   2009               2008
                                                             £m               £m             £m           £m                     £m                 £m
    Analysis of segmental result
    Total revenue                                           240.1            257.8         247.7             217.3             487.8               475.1
    Intra-group revenue                                      (2.9)            (1.2)         (8.8)             (8.4)            (11.7)               (9.6)
    Revenue                                                 237.2            256.6         238.9             208.9             476.1               465.5
    Segmental result before depreciation,
       amortisation and exceptional items                    53.2             67.8           74.4              69.9            127.6               137.7
    Impairment of intangible assets                         (43.2)               –          (17.7)                –            (60.9)                  –
    Impairment of property, plant and equipment                 –                –           (8.8)                –             (8.8)                  –
    Exceptional restructuring provision                     (13.0)               –           (4.6)                –            (17.6)                  –
    Exceptional integration costs                               –            (10.0)             –                 –                –               (10.0)
    Depreciation                                            (32.7)           (33.0)         (35.3)            (29.9)           (68.0)              (62.9)
    Amortisation                                             (3.9)            (2.0)          (5.3)             (5.2)            (9.2)               (7.2)
    Result before corporate costs                           (39.6)            22.8            2.7             34.8              (36.9)                 57.6
    Corporate costs (including exceptional costs
       of £3.4 million (2008: nil))                                                                                             (13.3)             (10.8)
    Operating (loss)/profit                                                                                                      (50.2)              46.8
    Net financing costs                                                                                                          (20.4)             (16.3)
    (Loss)/profit before tax                                                                                                     (70.6)                 30.5
    Taxation                                                                                                                     16.0                  (6.1)
    (Loss)/profit for the financial year                                                                                          (54.6)                 24.4

                                                                     Tools                      Equipment                                 Total
                                                            2009             2008           2009         2008                   2009               2008
                                                             £m               £m             £m           £m                     £m                 £m
    Analysis of segment net assets
    Segmental non-current assets
       Intangible assets                                     27.8             61.7          43.4              67.2              71.2               128.9
       Property, plant and equipment                        155.5            175.5         167.3             169.3             322.8               344.8
                                                            183.3            237.2         210.7             236.5             394.0               473.7
    Segmental current assets                                 71.1             82.7          40.5              94.7             111.6               177.4
    Segmental total assets                                  254.4            319.9         251.2             331.2             505.6               651.1
    Cash                                                                                                                         11.0                   4.4
    Unallocated assets                                                                                                           12.3                  10.5
    Total assets                                                                                                               528.9               666.0
    Segmental liabilities                                   (45.3)           (91.0)         (42.7)            (55.1)            (88.0)            (146.1)
    Borrowings                                                                                                                 (258.6)            (260.0)
    Unallocated liabilities                                                                                                     (14.8)             (19.8)
    Total liabilities                                                                                                          (361.4)            (425.9)
    Net assets                                                                                                                 167.5               240.1
72   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




2    SEGMENTAL ANALYSIS continued
                                                                        Tools                        Equipment                            Total
                                                                2009            2008             2009         2008               2009             2008
                                                                 £m              £m               £m           £m                 £m               £m
     Analysis of capital expenditure
     Intangible assets                                            8.9            62.6             3.5              2.2            12.4             64.8
     Property, plant and equipment                               24.7           118.2            37.4             37.9            62.1            156.1
     Segmental capital expenditure                               33.6           180.8            40.9             40.1            74.5            220.9
     Unallocated capital expenditure                                                                                              13.9             13.4
     Total capital expenditure                                                                                                    88.4            234.3

     Intra-group transactions are undertaken on an arm’s length basis. Corporate costs comprise the costs of operating the head office of Speedy
     Hire Plc and also certain central activities. These are not directly related to the activities of the segments.

     The financing of the Group’s activities is undertaken at head office level and consequently net financing costs cannot be analysed
     segmentally. The unallocated net assets comprise principally computer and information systems, working capital balances held by the
     Support Services function and liabilities relating to dividends and taxation and are not directly attributable to the activities of the segments.

3    EXCEPTIONAL ITEMS
     2009
         Impairment of non–current assets
         A provision of £60.9 million has been made against the Group’s goodwill and intangible assets following a review of their carrying values
         as part of the annual impairment testing process. Deterioration in the markets in which the Group operates, notably the construction
         markets, has resulted in the Group revising its assumptions regarding future activity levels. This has resulted in revised forecasts of cash
         flows arising in cash-generating units. An impairment loss has been calculated on a value in use basis and consists of a £48.0 million write-
         down in goodwill and £12.9 million write-down of other acquired intangibles. Further information on the impairment testing process is
         contained in note 11.

         In addition, an impairment loss has been identified in respect of the carrying value of tangible assets in respect of the Accommodation
         business, and accordingly £8.8 million has been written off the carrying value during the year.

         Exceptional restructuring costs
         As part of the Group’s cost reduction programme, a number of initiatives were undertaken to reduce the Group’s operating structure to a
         more appropriate level in light of the changes in market conditions. The main elements of cost incurred as part of these processes include
         provisions for onerous lease obligations on depot closures (£5.3 million) together with provisions against the carrying value of related
         fixtures & fittings and leasehold improvements (£0.5 million), redundancy costs (£4.0 million), losses incurred on the one-off disposal of
         surplus hire fleet assets (£7.1 million), re-organisation of back-office structures and the ongoing creation of a central shared-service facility
         (£0.8 million). In addition, costs of £1.9 million were incurred arising from the acquisition and integration of the Amec LSS and Carillion
         Asset Management businesses (relating primarily to redundancy, relocation and asset reorganisation costs).

         Other exceptional items
         During the year, the Group negotiated amendments to its bank facility to establish more appropriate financial covenants. As part of this
         process, £1.4 million of costs were incurred in respect of various advisers working for either the Group or the bank syndicate (included
         within operating expenses), and fees amounting to £4.6 million (included within financing costs) were paid to the bank syndicate.

         The resulting tax credit arising in relation to exceptional items amounts to £23.0 million, of which £16.8 million relates to current tax and
         £6.2 million relates to deferred tax.

     2008
     Exceptional integration costs relate to the costs associated with the integration of the Hewden Tools acquisition. On 1 August 2007, the Group
     acquired the trade and assets of the tool hire operation of Hewden Stuart Plc. The costs incurred related to a provision for lease costs associated
     with properties made vacant by the relocation of the business into the other depots within the tool network (£2.9 million), write-off of related
     fixtures and fittings in the closed depots (£1.3 million), re-branding and sales and marketing costs (£1.5 million), costs associated with the
     transitional services arrangements (£1.2 million), consultancy and other one-off costs associated with the integration (£3.1 million). In addition,
     £0.4 million of exceptional bank facility fees were incurred.

     The resulting tax credit arising from the costs associated with the integration and acquisition amounted to £3.1 million.
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   73




4   OPERATING LOSS/PROFIT
    Operating (loss)/profit is stated after charging/(crediting):
                                                                                                                         2009                        2008
                                                                                                                          £m                          £m
    Amortisation of intangible assets                                                                                      9.2                            7.2
    Depreciation:
        – of owned property, plant and equipment                                                                          75.8                           67.6
        – of property, plant and equipment held under finance lease                                                         0.1                              –
    Loss/(profit) on disposal of property, plant and equipment                                                              1.6                           (9.7)
    Operating lease rentals
        – of plant and equipment                                                                                           2.3                            1.2
        – of land and buildings                                                                                           15.1                           12.8
        – of vehicles                                                                                                     14.5                           12.8
    Auditors’ remuneration
        – audit of these financial statements                                                                               0.1                            0.1
        – amounts receivable by auditors in respect of:
            – audit of financial statements of subsidiaries pursuant to legislation                                         0.2                            0.2
            – services relating to consultancy advice provided in connection with acquisitions                               –                            1.0
            – other non-audit services                                                                                     0.6                              –
            – other services relating to taxation                                                                          0.1                            0.2

    The (loss)/profit on disposal of hire equipment is included within (loss)/profit before financing as it results from the routine disposal of tools and
    equipment and is no more than required adjustments to depreciation previously charged.

5   EMPLOYEES
    The average number of people employed by the Group (including Directors) during the year was as follows:
                                                                                                                           Number of employees
                                                                                                                         2009                2008
    Tools                                                                                                               3,085                        2,856
    Equipment                                                                                                           1,596                        1,452
    Central                                                                                                               428                          384
                                                                                                                        5,109                        4,692

    At 31 March 2009, the number of people employed by the Group (including Directors) was 4,471 (2008: 5,177).

    The aggregate payroll costs of these employees were as follows:
                                                                                                                         2009                        2008
                                                                                                                          £m                          £m
    Wages and salaries                                                                                                  129.3                        150.8
    Share-based payments                                                                                                    –                          2.5
    Social security costs                                                                                                12.4                         11.6
    Other pension costs                                                                                                   0.6                          0.6
                                                                                                                        142.3                        165.5

    The Company does not have any employees.
74   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




6    DIRECTORS’ REMuNERATION
                                                                                                                     2009                    2008
                                                                                                                     £000                    £000
     Directors’ emoluments
     Basic remuneration, including benefits                                                                           1,348                   1,077
     Performance-related bonuses                                                                                         –                     749
     Payments to former Directors                                                                                       33                      48
     Company pension contributions to personal pension plans                                                           154                     130
                                                                                                                     1,535                   2,004
     Emolument of the highest paid Director
     Basic remuneration, including benefits                                                                            352                        335
     Performance-related bonuses                                                                                        –                        303
     Company pension contributions to personal pension plans                                                           68                         65
                                                                                                                      420                        703

     Further analysis of Directors’ remuneration can be found in the Remuneration Report on pages 47 to 56.

     All of the Directors’ remuneration is paid by Speedy Support Services Limited, a wholly owned subsidiary of Speedy Hire Plc. No charge is
     incurred by the Parent Company.

7    FINANCIAL INCOME AND EXPENSE
                                                                                                                     2009                    2008
                                                                                                                      £m                      £m
     Financial income
     Bank interest received                                                                                            0.2                       0.2
     Other interest received                                                                                             –                       0.7
                                                                                                                       0.2                       0.9
     Financial expense
     Interest on bank loans and overdrafts                                                                           (15.0)                  (16.1)
     Hedge interest payable                                                                                           (0.3)                      –
     Amortisation of issue costs                                                                                      (0.5)                   (0.5)
     Exceptional amortisation of issue costs                                                                             –                    (0.4)
     Exceptional amortisation of bank fees                                                                            (4.6)                      –
     Other finance costs                                                                                               (0.2)                   (0.2)
                                                                                                                     (20.6)                  (17.2)
     Net financial expense                                                                                            (20.4)                  (16.3)
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   75




8   TAXATION
                                                                                                                            2009                       2008
                                                                                                                             £m                         £m
    Current tax
    UK corporation tax at 28% (2008: 30%)                                                                                    (5.1)                          4.2
    Adjustment in respect of prior years                                                                                      2.3                           0.4
    Total current tax                                                                                                        (2.8)                          4.6
    Deferred tax
    UK deferred tax at 28% (2008: 28%)                                                                                       (9.2)                          2.8
    Adjustment in respect of prior years                                                                                     (4.0)                         (1.3)
    Total deferred tax                                                                                                      (13.2)                          1.5
    Total tax (credit)/expense                                                                                              (16.0)                          6.1

    The tax credit for the year is lower than the standard rate of corporation tax in the UK and is explained as follows:

                                                                                                                            2009                       2008
                                                                                                                             £m                         £m
    (Loss)/profit before tax                                                                                                 (70.6)                         30.5
    Tax (credit)/charge at 28% (2008: 30%)                                                                                  (19.8)                          9.2
    Expenses not deductible for tax purposes                                                                                  2.5                           1.8
    Non-taxable income                                                                                                       (0.6)                         (0.9)
    Impact of change in UK corporation tax rate to 28% on deferred tax                                                          –                          (2.6)
    Share-based payments                                                                                                      0.4                          (0.5)
    Impairment of goodwill arising on consolidation                                                                           3.2                             –
    Adjustment to tax in respect of prior years                                                                              (1.7)                         (0.9)
    Tax (credit)/charge for the year                                                                                        (16.0)                          6.1
    Tax recognised directly in equity (note 20)
    Deferred tax charge                                                                                                       0.2                           1.1


9   EARNINGS PER SHARE
    Basic earnings per share is based on the loss after income tax attributable to equity holders of the Parent of £54.6 million (2008: profit £23.3
    million) and the weighted average number of 5 pence ordinary shares in issue during the year of 50,619,978 (2008: 48,764,167).

    The weighted average number of ordinary shares used for the diluted earnings per share is calculated as follows:

                                                                               2009                                                 2008
                                                                          Weighted                                             Weighted
                                                                           average          Earnings                            average            Earnings
                                                                         number of               per                          number of                 per
                                                           Earnings         shares             share         Earnings            shares               share
                                                                £m          million           pence               £m             million             pence
    Basic earnings                                             (54.6)           50.6         (107.93)             23.3               48.8              47.89
    Share options                                                  –               –               –                 –                0.3              (0.07)
    Employee share scheme                                          –               –               –                 –                0.1              (0.33)
    Diluted earnings                                           (54.6)           50.6         (107.93)             23.3               49.2              47.49

    The table below reconciles basic earnings per share to earnings per share pre-amortisation and exceptional items:
                                                                                                                   2009                                2008
                                                                                                                  pence                               pence
    Basic earnings per share                                                                                             (107.93)                      47.89
    Intangible amortisation charge after tax per share                                                                     14.13                       10.31
    Exceptional items after tax per share                                                                                 142.68                       14.99
    Basic earnings per share pre-amortisation and exceptional items                                                       48.88                        73.19
76   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




10 DIVIDENDS
     The aggregate amount of dividend comprises:
                                                                                                                     2009                   2008
                                                                                                                      £m                     £m
     2008 final – 13.4pps (2007: 11.5pps) on 50.7 million shares (2007: 48.2 million)                                  6.8                     5.5
     2009 interim – 6.4pps (2008: 6.4pps) on 50.7 million shares (2008: 50.4 million)                                 3.2                     3.2
     Aggregate amount of dividends paid in the financial year                                                         10.0                     8.7

     Subsequent to the end of the year, the Directors proposed a final dividend of 6.4 pence (2008: 13.4 pence) per share, bringing the total amount
     payable in respect of the 2009 year (if approved) to 12.8 pence (2008: 19.8 pence).

     The Employee Benefits Trust established to hold shares for the Performance Plan and Co-Investment Plan has waived its right to the interim and
     final proposed dividends. At 31 March 2009, the trust held 281,673 5p ordinary shares (2008: 383,366).

11 INTANGIBLE FIXED ASSETS
                                                                           Customer Non-compete                          Supply
                                                           Goodwill             lists agreements            Brand    agreements             Total
                                                               £m                £m          £m                £m           £m               £m
     Cost
     At 1 April 2007                                            48.1            18.5             –             3.8            9.0            79.4
     Additions through business combinations                    41.2            13.0           4.6             0.3            5.7            64.8
     At 31 March 2008                                           89.3            31.5           4.6             4.1           14.7          144.2
     Additions through business combinations                     4.2             4.7           0.3               –            3.2           12.4
     At 31 March 2009                                           93.5            36.2           4.9             4.1           17.9          156.6
     Amortisation
     At 1 April 2007                                             1.2              1.6            –             0.7            4.6             8.1
     Charged in year                                               –              2.7          0.8             2.2            1.5             7.2
     At 31 March 2008                                            1.2              4.3          0.8             2.9            6.1            15.3
     Charged in year                                               –              4.0          1.2             0.6            3.4             9.2
     Impairment (note 3)                                        48.0              7.1          1.0               –            4.8            60.9
     At 31 March 2009                                           49.2            15.4           3.0             3.5           14.3            85.4
     Net book value
     At 31 March 2009                                           44.3            20.8           1.9            0.6             3.6           71.2
     At 31 March 2008                                           88.1            27.2           3.8             1.2            8.6          128.9
     At 31 March 2007                                           46.9            16.9             –             3.1            4.4            71.3

     All goodwill has arisen from business combinations. On transition to IFRS, the balance of goodwill as measured under UK GAAP was allocated
     to cash-generating units (CGUs). These are independent sources of income streams, and represent the lowest level within the Group at which
     the associated goodwill is monitored for management purposes. The Group’s reportable business segments, Tools and Equipment, are the
     CGUs assessed for impairment testing.
                                                                                                       Speedy Hire Plc Annual Report and Accounts 2009   77




11 INTANGIBLE FIXED ASSETS continued
   Goodwill arising on business combinations after 1 April 2004 has been allocated to the CGUs that are expected to benefit from that business
   combination.

   The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.

   The recoverable amounts of the goodwill and intangible assets allocated to CGUs are determined by value in use calculations. These
   calculations use cash flow projections based on five-year financial forecasts approved by management. The key assumptions for these forecasts
   are those regarding revenue growth, net margin and the level of capital expenditure required to support trading, which management
   estimates based on past experience adjusted for current market trends and expectations of future changes in the market. To prepare value in
   use calculations, the Group uses cash flow projections for a fifteen year period, based on the 2009–10 budget and subsequent four years’
   business plans. Cash flows beyond this period are extrapolated at an estimated average long-term nominal growth rate which has been
   estimated at 2.5% (2008: 5.0%) being an estimate of inflation, and discounted back to present value, using the Group’s pre-tax discount rate.
   The discount rate assumptions use an estimate of the Group’s weighted average cost of capital. The pre-tax discount rate used to discount cash
   flow forecasts is 13.9% (2008: 9.4%). The pre-tax discount rate has been adjusted for Company and market specific risks which the Directors
   consider to be consistent across both CGUs.

   Deterioration in the markets in which the Group operates, notably the construction markets, has resulted in the Group revising its expectations
   about the level of activity which will be sustainable in the long term. An impairment loss has been calculated on a value in use basis and
   consists of a £48.0 million write-down in goodwill and £12.9 million write-down of other acquired intangibles. Following this there is no
   difference between the carrying amount and the recoverable amount of the goodwill and intangibles balances at the balance sheet date. £14.8
   million of the remaining goodwill net book value relates to the Tools division, and £29.5 million to the Equipment division. Of the total goodwill
   value, £1.5 million relates to 2009 acquisitions, £10.4 million to 2008 acquisitions, £25.0 million to 2007 acquisitions, and £7.4 million in respect
   of acquisitions in prior years.

   Impairment calculations are sensitive to changes in key assumptions of revenue growth and discount rate. An increase of 1% in the discount
   rate, with all other assumptions held constant, would give rise to an additional impairment charge of £5.4 million in Tools and £4.0 million in
   Equipment. A decrease of 1% in the forecast revenue growth, with all the other assumptions held constant, would give rise to an additional
   impairment charge of £5.3 million in Tools and £2.4 million in Equipment.
78   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




12 PROPERTY, PLANT AND EquIPMENT
                                                                                                                Fixtures,
                                                                 Land and                    Hire            fittings and
                                                                 buildings             equipment           motor vehicles                   Total
                                                                       £m                     £m                      £m                     £m
     Cost
     At 1 April 2007                                                  20.4                  438.3                    28.6                  487.3
     Additions                                                         4.0                   85.9                    14.2                  104.1
     Arising on acquisition of businesses                              0.7                   91.4                    14.7                  106.8
     Disposals                                                        (0.3)                 (45.8)                   (7.7)                 (53.8)
     At 31 March 2008                                                 24.8                   569.8                   49.8                   644.4
     Additions                                                         5.2                    59.7                   10.2                    75.1
     Arising on acquisition of businesses                                –                     0.9                      –                     0.9
     Disposals                                                        (2.0)                 (116.1)                  (1.7)                 (119.8)
     At 31 March 2009                                                 28.0                  514.3                    58.3                  600.6
     Depreciation
     At 1 April 2007                                                    9.3                 167.9                    14.4                  191.6
     Charged in year                                                    3.2                  60.7                     3.7                   67.6
     Arising on acquisition of businesses                               0.2                  34.0                     7.2                   41.4
     Disposals                                                         (0.1)                (27.0)                   (2.0)                 (29.1)
     At 31 March 2008                                                 12.6                  235.6                    23.3                  271.5
     Charged in year                                                   2.8                   63.5                     9.6                   75.9
     Impairment (note 3)                                                 –                    8.8                       –                    8.8
     Disposals                                                        (0.4)                 (77.0)                   (1.4)                 (78.8)
     At 31 March 2009                                                 15.0                  230.9                    31.5                  277.4
     Net book value
     At 31 March 2009                                                 13.0                  283.4                    26.8                  323.2
     At 31 March 2008                                                 12.2                  334.2                    26.5                  372.9
     At 31 March 2007                                                 11.1                  270.4                    14.2                  295.7

     The net book value of land and buildings comprises:
                                                                                                                    2009                    2008
                                                                                                                     £m                      £m
     Freehold properties                                                                                              0.4                     2.2
     Long leasehold properties                                                                                        0.7                     0.4
     Short leasehold properties                                                                                      11.9                     9.6
                                                                                                                     13.0                    12.2

     An impairment review has been completed during the year using the basis set out in note 11.

     An increase of 1% in the discount rate, with all other assumptions held constant, would give rise to an additional impairment provision
     against hire equipment of £2.7 million. A decrease of 1% in the forecast revenue growth, with all the other assumptions held constant, would
     give rise to an additional impairment charge of £3.9 million.
                                                                                                     Speedy Hire Plc Annual Report and Accounts 2009   79




13 INVESTMENTS
                                                                                  Investments in
                                                                                      subsidiary                    Other
                                                                                    undertakings              investments                          Total
                                                                                             £m                       £m                            £m
  Cost
  At 1 April 2007                                                                          106.7                         0.1                       106.8
  Additions                                                                                  5.0                           –                         5.0
  At 31 March 2008                                                                         111.7                         0.1                       111.8
  Additions                                                                                  1.3                           –                         1.3
  At 31 March 2009                                                                         113.0                         0.1                       113.1
  Provisions
  At 1 April 2007 and 31 March 2008                                                          (0.1)                         –                        (0.1)
  Impairment                                                                                (18.7)                         –                       (18.7)
  At 31 March 2009                                                                          (18.8)                         –                       (18.8)
  Net book value
  At 31 March 2009                                                                          94.2                         0.1                           94.3
  At 31 March 2008                                                                         111.6                         0.1                       111.7
  At 31 March 2007                                                                         106.6                         0.1                       106.7

  Following the impairment testing performed in accordance with IAS 36 (see note 11), the Company’s carrying value of investments in
  subsidiary undertakings has been reviewed and an impairment made against certain values accordingly.

  In accordance with s251 of the Companies Act 1985, the Company’s principal subsidiary undertakings are as follows:

                                                                                                                                             Ordinary
                                                                                                                  Principal               share capital
                                                                                                                   activity                       held
  Speedy Hire Centres (Northern) Limited                                                                    Hire services                         100%
  Speedy Hire Centres (Southern) Limited                                                                    Hire services                         100%
  Speedy Hire Centres (Western) Limited                                                                     Hire services                         100%
  Speedy Hire Centres Limited                                                                               Hire services                         100%
  Speedy Hire (Scotland) Limited                                                                            Hire services                         100%
  Speedy Hire (Ireland) Limited*                                                                            Hire services                         100%
  Waterford Hire Services Limited                                                                           Hire services                         100%
  Speedy Hire Direct Limited*                                                                               Hire services                         100%
  Speedy Lifting Limited                                                                                    Hire services                         100%
  Speedy LGH Limited                                                                                        Hire services                         100%
  Speedy Space Limited                                                                                      Hire services                         100%
  Speedy Power Limited                                                                                      Hire services                         100%
  Speedy LCH Generators Limited                                                                             Hire services                         100%
  Speedy Pumps Limited                                                                                      Hire services                         100%
  Speedy Survey Limited                                                                                     Hire services                         100%
  Speedy Engineering Services Limited                                                                       Hire services                         100%
  Speedy Support Services Limited                                                            Provision of Group services                          100%
  Speedy Transport Limited                                                                   Provision of Group services                          100%
  Allen Investments Limited                                                                      Property management                              100%
  Speedy Asset Leasing Limited                                                                          Leasing services                          100%

  * Indirect holding via a 100% subsidiary undertaking.

  The Company holds voting rights in each subsidiary undertaking in the same proportion to its holdings in the ordinary share capital of the
  respective subsidiaries. All subsidiary undertakings, with the exception of Speedy Hire (Ireland) Limited and Waterford Hire Services Limited, are
  incorporated and operate in the United Kingdom. Speedy Hire (Ireland) Limited and Waterford Hire Services Limited are incorporated and
  operate in the Republic of Ireland.
80   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




14 INVENTORIES
                                                                                                                                    Group
                                                                                                                        2009                  2008
                                                                                                                         £m                    £m
     Finished goods and goods for resale                                                                                 12.2                 16.2


15 TRADE AND OTHER RECEIVABLES
                                                                                   Group                                          Company
                                                                        2009                    2008                    2009                  2008
                                                                         £m                      £m                      £m                    £m
     Trade receivables                                                  98.8                    128.4                       –                  0.1
     Amounts owed by Group undertakings                                    –                        –                   317.5                332.3
     Other receivables                                                   0.7                      8.5                     3.3                  0.3
     Prepayments and accrued income                                      4.9                      6.7                     1.8                  4.9
                                                                       104.4                    143.6                   322.6                337.6


16 TRADE AND OTHER PAYABLES
                                                                                   Group                                          Company
                                                                        2009                    2008                    2009                  2008
                                                                         £m                      £m                      £m                    £m
     Trade payables                                                     36.8                     63.4                     0.7                  0.1
     Amounts owed to Group undertakings                                    –                        –                    13.8                 13.3
     Other payables                                                      8.0                     11.4                       –                    –
     Accruals                                                           19.3                     45.2                     2.6                  6.6
                                                                        64.1                    120.0                    17.1                 20.0


17 FINANCIAL INSTRuMENTS
     The Group holds and uses financial instruments to finance its operations and to manage its interest rate and liquidity risks. The Group
     primarily finances its operations using share capital, retained profits and borrowings.

     The Group does not engage in trading or speculative activities using derivative financial instruments. A Group offset arrangement exists for
     cash balances to take advantage of the most rewarding short-term investment opportunities.

     FAIR VALuE OF FINANCIAL ASSETS AND LIABILITIES
     The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:

                                                                                   2009                                             2008
                                                                    Carrying                      Fair               Carrying                  Fair
                                                                     amount                     value                amount                  value
                                                                         £m                       £m                      £m                   £m
     Trade and other receivables                                        99.5                     99.5                    136.9                136.9
     Cash                                                               11.0                     11.0                      4.4                  4.4
     Secured bank borrowings                                          (258.6)                  (258.6)                  (260.0)              (260.0)
     Finance lease liabilities                                          (0.8)                    (0.8)                       –                    –
     Interest rate swaps, caps and collars, used for hedging            (5.7)                    (5.7)                    (0.5)                (0.5)
     Trade and other payables                                          (64.1)                   (64.1)                  (120.0)              (120.0)
                                                                      (218.7)                  (218.7)                  (239.2)              (239.2)
     Unrecognised gain/(loss)                                                                       –                                             –
                                                                                                         Speedy Hire Plc Annual Report and Accounts 2009   81




17 FINANCIAL INSTRuMENTS continued
   BASIS FOR DETERMINING FAIR VALuES
   The following summarises the principal methods and assumptions used in estimating the fair value of financial instruments reflected in the
   table above:

   (a) Derivatives
   Broker quotes are used for all interest rate swaps, caps and collars.

   (b) Interest-bearing loans and borrowings
   Fair value is calculated based on discounted expected future principal and interest cash flows.

   (c) Trade and other receivables/payables
   For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other
   receivables/payables are discounted to determine the fair value.

   The main risks arising from the Group’s financial instruments are credit, interest rate, foreign currency, and liquidity risk. The Board reviews and
   agrees the policies for managing each of these risks on an annual basis.

   CREDIT RISK
   Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
   and arises principally from the Group’s receivables from customers.

   The exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain
   amount.

   At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the
   carrying amount of each financial asset, including derivative financial instruments, in the balance sheet. No individual customer accounts for
   more than 5% of the Group’s sales transactions, and the Group’s exposure to outstanding indebtedness follows this profile. No collateral is held
   as security in respect of amounts outstanding; however, in a number of instances, deposits are held against the value of hire equipment
   provided. The extent of deposit taken is assessed on a case-by-case basis, and is not considered significant in comparison to the overall
   amounts receivable from customers.

   Transactions involving derivative financial instruments are undertaken with counterparties within the syndicate of banks which provide the
   Group’s term loan revolving credit facility. Given their high credit ratings, management does not expect any counterparty to fail to meet its
   obligations. The Group establishes an allowance for impairment that is based on historical experience of dealing with customers within the same
   risk profile. The maximum exposure to credit risk is represented by the carrying amount of each financial asset recorded in the balance sheet.

   There are £52.2 million (2008: £53.8 million) of trade receivables that are past due at the balance sheet date that have not been provided
   against. There is no indication as at 31 March 2009 that debtors will not meet their payment obligations in respect of trade receivables
   recognised in the balance sheet that are past due and unprovided. The ageing of trade receivables (net of impairment provision) at the year
   end was as follows:

                                                                                                                           2009                        2008
   Group                                                                                                                    £m                          £m
   Not past due                                                                                                             46.6                           74.6
   Past due 0–30 days                                                                                                       23.4                           25.1
   Past due 31–120 days                                                                                                     18.5                           24.9
   More than 120 days past due                                                                                              10.3                            3.8
                                                                                                                            98.8                       128.4

   The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
                                                                                                                           2009                        2008
   Group                                                                                                                    £m                          £m
   At 1 April                                                                                                               10.0                            2.6
   Impairment loss charged to the income statement                                                                           9.4                            5.3
   Arising on acquisition                                                                                                      –                            4.9
   Written off in the year                                                                                                  (10.0)                          (2.8)
   At 31 March                                                                                                               9.4                           10.0
82   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




17 FINANCIAL INSTRuMENTS continued
     LIquIDITY RISK
     Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to
     managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
     normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

     The Group uses both short and long-term cash forecasts to assist in monitoring cash flow requirements. Typically, the Group uses short-term
     forecasting to ensure that it has sufficient cash on demand to meet operational expenses and to service financing obligations for a period of
     12 weeks. Longer-term forecasts are performed on a regular basis to assess compliance with bank covenants on existing facilities, ensuring
     that activities can be managed within reason to ensure covenant breaches are avoided. The Group maintains the following lines of credit:

     The term and revolving loan facility was originally entered into in June 2007, and was amended and restated in June 2008 and March 2009.
     The current facility is sub-divided into:

     (i) An ‘A Facility’ of £90 million, which is repayable in varying quarterly instalments commencing in September 2009, with the final repayment
         in June 2012; and

     (ii) A ‘B Facility’ of £210 million repayable on the fifth anniversary of the issue date, which reduces by £20 million over the course of the year
          to March 2010.

     Of these facilities, £40 million remained unutilised at the balance sheet date comprising £35 million of the revolving credit facility and £5
     million of the overdraft facility. The total B Facility is for £210 million, but is reduced to the extent that ancilliary facilities are provided. The
     Group has secured an overdraft facility, provided by Barclays Bank PLC, which secures by cross-guarantees and debentures, the bank deposits
     and overdrafts of the Parent and certain subsidiary companies up to a maximum overdraft of £5 million.

     The revolving credit facility is secured by a fixed and floating charge over all the assets of the Group.

     The Group monitors available facilities against forward requirements on a regular basis and where necessary, obtains additional sources of
     financing to provide the Group with the appropriate level of headroom against the required borrowing. The Group has obtained additional
     bank and equity funding in recent years as the business has grown, and maintains close contact with its syndicate of banks.

     MARKET RISK
     Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or the
     value of its holdings of financial instruments. Generally, the Group seeks to apply hedge accounting in order to manage volatility in profit.

         Currency risk
     The Group is exposed to currency risk on the translation of the results of its subsidiaries which are resident in the Republic of Ireland, Speedy
     Hire (Ireland) Limited and Waterford Hire Services Limited. It is the Group’s policy to review the net investment in both companies on a regular
     basis, and to hedge against potential exposures to movements in foreign currency where considered appropriate. At 31 March 2009, the total
     shareholders’ equity of Speedy Hire (Ireland) Limited had net liabilities of £3.6 million (2008: £1.5 million) and Waterford Hire Services Limited
     had net assets of £1.5 million (2008: £1.5 million) and no hedging instruments are in place to cover potential movements in foreign currency.

         Interest rate risk
     The Group is exposed to a risk of a change in cash flows due to changes in interest rates as a result of its use of variable rate borrowings.
     The Group’s policy is to review regularly the terms of its borrowing facilities, and to assess and manage the long-term borrowing commitment
     accordingly, and to put in place interest rate hedges to reduce the Group’s exposure to significant fluctuations in interest rates. The Group
     adopts a policy of ensuring that between 40% and 70% of its borrowings are covered by some sort of interest rate hedge. The principal
     derivative financial instruments used by the Group are interest rate swaps, caps and collars. The notional contract amount and the related fair
     value of the Group’s financial instruments can be analysed as follows:
                                                                        2009                       2009                   2008                    2008
                                                                          Fair                 Notional                     Fair              Notional
                                                                        value                   amount                    value                amount
     Group and Company                                                    £m                         £m                     £m                     £m
     Designated as cash flow hedges
     Fixed interest rate swaps                                             (2.6)                   50.0                      (0.1)                    45.0
     Interest rate collars                                                 (2.5)                   70.0                      (0.4)                    82.0
     Interest rate caps                                                    (0.6)                   20.0                         –                     25.0
                                                                           (5.7)                  140.0                      (0.5)                   152.0
                                                                                                     Speedy Hire Plc Annual Report and Accounts 2009   83




17 FINANCIAL INSTRuMENTS continued
   Future cash flows associated with the above instruments are dependent upon movements in LIBOR over the contractual period. Interest is
   paid or received under the instruments on a quarterly or monthly basis, depending on the individual instrument, referenced to the relevant
   prevailing UK LIBOR rates.

   The weighted average interest rate of the fixed interest rate hedge is 5.026% (2008: 5.251%) and the instruments are for a weighted average
   period of 23 months (2008: 21 months). The maximum contractual period is 27 months.

   Collar instruments bear interest rates between 4.300% and 6.500% (2008: between 4.010% and 6.500%), for a weighted average period of
   13 months (2008: 23 months). The maximum contractual period is 21 months.

   Capped rate instruments bear a weighted average maximum interest rate of 6.245% (2008: 5.845%) for a weighted average period of 22
   months (2008: 22 months). The maximum contractual period is 27 months.

   SENSITIVITY ANALYSIS
   In managing interest rate and currency risk the Group aims to reduce the impact of short-term fluctuation on the Group’s earnings. Over the
   longer term, however, permanent changes in foreign exchange and interest rates would have an impact on consolidated earnings.

   At 31 March 2009 it is estimated that a general increase of one percentage point in interest rates would decrease the Group’s profit before tax
   by approximately £2.1 million. Interest rate swaps, caps and collars have been included in this calculation.

   CAPITAL MANAGEMENT
   The Group requires capital for, amongst other things, purchasing hire equipment to replace the existing asset base that has reached the end
   of its useful life, and for growth, including growth by establishing new rental locations, completing acquisitions and refinancing existing debts
   in the longer term. The Group defines Gross Capital as net debt (cash less borrowings) plus shareholders’ funds, and seeks to ensure an
   acceptable return on Gross Capital. The Group has obtained additional bank borrowings and equity in recent years as the business has grown.
   The Board seeks to maintain a balance between debt and equity funding such that it maintains a sound capital position relevant for the
   prevailing economic environment.

   The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
   development of the business. The Board of Directors monitors both the demographic spread of shareholders in order to ensure that the most
   attractive mix of capital growth and income return is made available to investors.

   The Group encourages participation in ownership of Speedy Hire Plc shares by employees at all levels within the Group, and has developed
   this objective through the introduction of Long Term Incentive Plans and Save As You Earn Schemes.

   There were no changes in the Group’s approach to Capital Management during the year. Neither the Company nor any of its subsidiaries are
   subject to externally imposed capital requirements.
84   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




18 BORROWINGS
     The Group’s bank overdrafts are secured by cross guarantees and debentures given by Group companies in favour of Barclays Bank PLC. The
     bank loans are secured by a fixed and floating charge over all the assets of the Group. The majority profile of the borrowings is as follows:
                                                                                 Group                                        Company
                                                                     2009                     2008                    2009                     2008
                                                                       £m                      £m                       £m                      £m
     Current borrowings
     – finance leases                                                       0.2                       –                        –                        –
     – bank overdraft                                                        –                       –                      7.6                        –
     – term loan                                                             –                       –                        –                     14.0
                                                                           0.2                       –                      7.6                     14.0
     Non-current borrowings
     Maturing between two and five years
     – finance leases                                                      0.6                        –                       –                        –
     – term loan                                                         90.0                    100.0                    90.0                    100.0
     – revolving credit facility                                        170.0                    161.8                   170.0                    161.8
     – unamortised issue costs                                           (1.4)                    (1.8)                   (1.4)                    (1.8)
     Total non-current borrowings                                       259.2                    260.0                   258.6                    260.0
     Total borrowings                                                   259.4                    260.0                   266.2                    274.0
     Less: cash at bank and in hand                                     (11.0)                    (4.4)                   (0.1)                       –
     Net debt                                                           248.4                    255.6                   266.1                    274.0

     The Group agreed revised terms for its loan facilities on 31 March 2009, resulting in changes to the total facility available, repayment schedule,
     and margin applied to borrowings. The revised facilities comprise a £90 million term loan, and a £210 million revolving credit facility, both of
     which expire in June 2012. An ancillary £5 million overdraft facility has been made available, which reduces the revolving credit facility by a
     corresponding amount.

     The term loan facility reduces by £20 million in the year to March 2010, £40 million in the year to March 2011, and £30 million in the year to
     March 2012. The revolving credit facility reduces by £20 million in the year to March 2010.

     The revolving credit facility can be drawn for various periods specified by the Company, up to the maturity date, with interest being calculated
     for the drawn period by reference to the London Inter Bank Offer Rate applicable to the period drawn, plus a margin which during the year
     ranged from 67.5 to 400 basis points. The effective interest rate applicable to cash deposits during the year was 3.50%. The effective interest
     rates on bank overdraft and term loans & revolving credit facilities were 3.79% and 5.04% respectively.

19 PROVISIONS
                                                                                                                                               Onerous
                                                                                                                                              property
                                                                                                                                              contracts
     Group                                                                                                                                          £m
     At 1 April 2007                                                                                                                                   –
     Created in the year                                                                                                                             2.9
     Provision utilised in the year                                                                                                                 (0.7)
     At 31 March 2008                                                                                                                                2.2
     Created in the year                                                                                                                             7.6
     Provision utilised in the year                                                                                                                 (1.7)
     Unwinding of discount                                                                                                                          (0.2)
     At 31 March 2009                                                                                                                                7.9

     The key assumption underlying the calculation of the provision relates to the assumed sublet period. The provision is calculated based on a
     gross liability to the earlier of 3 years and the sublet, or break clause, and includes estimated dilapidations at current market rates. The total
     liability is discounted at the Group’s risk-adjusted pre-tax discount rate of 13.9%. If leases on properties which are forecast to be exited in 2012
     are not exited until 2013, the increase required in the discounted provision would amount to £0.4 million, after taking account of leases that
     expire during the additional year.
                                                                                                   Speedy Hire Plc Annual Report and Accounts 2009   85




20 DEFERRED TAX
                                        Property,
                                       plant and                 Intangible       Share-based
                                      equipment                      assets         payments                 Other items                         Total
  Group                                       £m                        £m                £m                          £m                          £m
  At 1 April 2007                            30.7                       7.1                (2.3)                      (0.8)                          34.7
  Recognised in income                        3.0                      (1.6)                0.5                       (0.4)                           1.5
  Recognised in equity                          –                         –                 1.1                          –                            1.1
  At 31 March 2008                            33.7                      5.5                (0.7)                      (1.2)                       37.3
  Recognised in income                       (11.2)                    (2.1)                0.5                       (0.4)                      (13.2)
  Recognised in equity                           –                        –                 0.2                          –                         0.2
  At 31 March 2009                           22.5                      3.4                    –                       (1.6)                          24.3

  The Group has capital losses carried forward at 31 March 2009 amounting to approximately £4.3 million (2008: £4.0 million). No deferred tax
  asset has been recognised in respect of these losses.

                                                                                                             Other items                         Total
  Company                                                                                                             £m                          £m
  At 1 April 2007                                                                                                        –                              –
  Recognised in income                                                                                                (0.2)                          (0.2)
  At 31 March 2008                                                                                                    (0.2)                          (0.2)
  Recognised in income                                                                                                 0.1                            0.1
  At 31 March 2009                                                                                                    (0.1)                          (0.1)


21 SHARE CAPITAL
                                                                                                                     2009                        2008
                                                                                                                      £m                          £m
  Authorised
  60 million (2008: 60 million) ordinary shares of 5p each                                                             3.0                            3.0
  Allotted, called up and fully paid
  50.9 million (2008: 50.8 million) ordinary shares of 5p each                                                         2.5                            2.5

  An Employee Benefits Trust was established in 2004 (the “Trust”). The Trust holds shares issued by the Company in connection with the
  Performance Plan and Co-investment Plan. During the year the Company allotted nil (2008: nil) shares to the Trust; 106,693 shares were
  transferred to employees during the year (2008: 250,422). At 31 March 2009, the Trust held 281,673 (2008: 383,366) shares.

  The movement in issued share capital was as follows:
                                                                                                                 Number
                                                                                                                  million                             £m
  At 1 April 2007                                                                                                     46.0                            2.3
  Employee Benefits Trust allotments                                                                                    0.4                              –
  Placing of ordinary shares                                                                                           4.4                            0.2
  At 31 March 2008                                                                                                    50.8                            2.5
  Employee Benefits Trust allotments                                                                                    0.1                              –
  At 31 March 2009                                                                                                    50.9                            2.5
86   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




22 RECONCILIATION OF MOVEMENT IN EquITY
     CONSOLIDATED EquITY
                                              Share        Share   Merger    Hedging     Retained                Minority     Total
                                             capital    premium    reserve    reserve    earnings    Subtotal    interest    equity
                                                £m           £m        £m         £m          £m         £m           £m       £m
     At 1 April 2007                       2.3              57.8       3.7        0.5       106.6       170.9         0.2    171.1
     Profit for the year                      –                 –         –          –        23.3        23.3         1.1     24.4
     Losses on cash flow hedges               –                 –         –       (1.2)          –        (1.2)          –     (1.2)
     Dividends                               –                 –         –          –        (8.7)       (8.7)                (8.7)
     Cost of share-based payments            –                 –         –          –         2.2         2.2           –      2.2
     Tax on items taken directly to equity   –                 –         –          –        (1.1)       (1.1)          –     (1.1)
     Issue of ordinary shares              0.2              53.2         –          –           –        53.4           –     53.4
     At 31 March 2008                      2.5             111.0       3.7       (0.7)      122.3       238.8         1.3    240.1
     Loss for the year                       –                 –         –          –       (54.6)      (54.6)          –    (54.6)
     Losses on cash flow hedges               –                 –         –       (5.3)          –        (5.3)          –     (5.3)
     Dividends                               –                 –         –          –       (10.0)      (10.0)          –    (10.0)
     Cost of share-based payments            –                 –         –          –        (1.2)       (1.2)          –     (1.2)
     Tax on items taken directly to equity   –                 –         –          –        (0.2)       (0.2)          –     (0.2)
     Purchase of minority interest           –                 –         –          –           –           –        (1.3)    (1.3)
     At 31 March 2009                             2.5      111.0      3.7        (6.0)       56.3      167.5            –    167.5

     COMPANY EquITY
                                                                    Share       Share     Merger     Hedging     Retained     Total
                                                                   capital   premium      reserve     reserve    earnings    equity
                                                                      £m          £m          £m          £m          £m       £m
     At 1 April 2007                                                   2.3       57.8         8.6         0.5        28.0      97.2
     Profit for the year                                                  –          –           –           –        13.4      13.4
     Dividends                                                           –          –           –           –        (8.7)     (8.7)
     Losses on cash flow hedges                                           –          –           –        (1.2)          –      (1.2)
     Cost of share-based payments                                        –          –           –           –         2.2       2.2
     Issue of ordinary shares                                          0.2       53.2           –           –           –      53.4
     At 31 March 2008                                                  2.5      111.0         8.6        (0.7)       34.9    156.3
     Loss for the year                                                   –          –           –           –       (10.8)   (10.8)
     Dividends                                                           –          –           –           –       (10.0)   (10.0)
     Losses on cash flow hedges                                           –          –           –        (5.3)          –     (5.3)
     Cost of share-based payments                                        –          –           –           –        (1.2)    (1.2)
     At 31 March 2009                                                 2.5       111.0         8.6        (6.0)       12.9    129.0
                                                                                                  Speedy Hire Plc Annual Report and Accounts 2009   87




23 SHARE OPTIONS
  At 31 March 2009 options over 1,610,332 shares (2008: 1,457,100 shares) were outstanding under employee share schemes. The Group
  operates a number of share incentive schemes, which are described in the Remuneration Report on pages 50 to 56.

  During the year 145,865 (2008: 718,562) options were exercised by employees comprising 93,013 (2008: 247,304) nil cost options in respect of
  the Co-Investment and Performance Share Plans and 52,852 (2008: 471,258) at 383 pence in respect of the Sharesave schemes.

  At 31 March 2009 options to acquire 328,755 (2008: 797,372) Speedy Hire Plc shares were outstanding under the Speedy Hire Sharesave
  Schemes. These options are exercisable by employees of the Group at prices between 624 and 940 pence (2008: 383 pence and 940 pence) at
  dates between 1 February 2009 and 31 July 2011 (2008: 1 February 2008 and 31 July 2011).

  At 31 March 2009 options to acquire 1,281,577 shares (2008: 659,728) were outstanding under the Performance and Co-Investment Plans.
  These options were exercisable at effectively nil cost between June 2008 and June 2010.

  The number and weighted average exercise price (“WAEP”) of share options under all the share option schemes are as follows:

                                                                  2009                                             2008
                                                                 WAEP                   2009                      WAEP                        2008
                                                                 pence                number                      pence                     number
  Options outstanding at 1 April                                   378              1,457,100                        311                   1,524,663
  Granted                                                            –                842,901                        605                     912,136
  Exercised                                                        139               (145,865)                       252                    (718,562)
  Lapsed                                                           547               (543,804)                       749                    (261,137)
  Options outstanding at 31 March                                  145              1,610,332                        445                   1,457,100
  Options exercisable at 31 March                                  624                 97,339                        383                      52,852

  Options outstanding at 31 March 2009 have weighted average remaining contractual lives as follows:
                                                                                                                   2009                         2008
                                                                                                                   years                        years
  Exercisable at nil pence                                                                                            1.8                           1.3
  Exercisable at 383 pence                                                                                              –                           0.1
  Exercisable at 624 pence                                                                                              –                           0.8
  Exercisable at 673 pence                                                                                            1.8                           2.8
  Exercisable at 857 pence                                                                                            0.8                           1.8
  Exercisable at 940 pence                                                                                            1.4                           2.4
88   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




23 SHARE OPTIONS continued
     The fair value of services received in return for share options granted and shares awarded is measured by reference to the fair value of those
     instruments. The pricing models and inputs used for the outstanding options (on a weighted average basis where appropriate) are as follows:

                                                                              Speedy Hire Sharesave Schemes
                                              December          September               December            December                    December
                                                  2007               2007                     2006              2005                        2004
     Pricing model used                        Stochastic        Stochastic              Stochastic             Stochastic          Black–Scholes
     Fair value at issue                            246p              366p                    441p                   331p                    203p
     Share price at issue                           838p             1164p                   1071p                   780p                    479p
     Exercise price                                 673p              940p                    857p                   624p                    383p
     Share price volatility                        25.5%             22.9%                   22.9%                  25.0%                   26.1%
     Option life                               3.25 years        3.25 years                 3 years                3 years                 3 years
     Expected dividend yield                       2.14%             1.46%                   1.25%                  1.58%                   2.01%
     Risk-free interest rate                       4.45%             5.27%                   5.14%                  4.20%                        –

                                                                                                  Co-Investment Plan
                                                                       July                    July                   July                    July
                                                                      2008                    2007                   2006                    2005
     Pricing model used                                          Stochastic              Stochastic             Stochastic              Stochastic
     Fair value at issue                                              534p                   1223p                   888p                    696p
     Share price at issue                                             534p                   1223p                   888p                    732p
     Exercise price                                                     Nil                     Nil                    Nil                     Nil
     Share price volatility                                               –                       –                      –                       –
     Option life                                                    3 years                 3 years                3 years                 3 years
     Expected dividend yield                                          3.7%                   1.39%                  1.61%                   1.68%
     Risk-free interest rate                                          5.2%                    5.8%                   4.2%                    4.1%

                                                                                               Performance Share Plan
                                                                       July                    July                  July                     July
                                                                      2008                    2007                  2006                     2005
     Pricing model used                                          Stochastic              Stochastic             Stochastic              Stochastic
     Fair value at issue                                              339p                    687p                   426p                    436p
     Share price at issue                                             534p                   1223p                   888p                    732p
     Exercise price                                                     Nil                     Nil                    Nil                     Nil
     Share price volatility                                          29.3%                   23.6%                  22.4%                   24.7%
     Option life                                                    3 years                 3 years                3 years                 3 years
     Expected dividend yield                                         3.71%                   1.39%                  1.61%                   1.68%
     Risk-free interest rate                                          5.2%                    5.8%                   4.2%                    4.1%
                                                                                                           Speedy Hire Plc Annual Report and Accounts 2009   89




24 ACquISITIONS
  All acquisitions in the current and prior year have been accounted for under the acquisition method of accounting. An assessment has been
  made of the fair value to the Group of the assets and liabilities acquired on all acquisitions.

  The Group acquired the trade and assets of the Carillion Accommodation Services (“CAS”) business from Carillion Plc in May 2008, for a total
  consideration of £12.6 million, comprising cash and acquisition costs. CAS hires and sells portable and modular accommodation, servicing
  both the Carillion group’s internal accommodation requirements and those of a number of external customers. CAS’s accommodation
  business operates from three UK depots and has 23 employees, all of whom transferred to Speedy as part of the transaction. CAS has been
  integrated within Speedy’s Accommodation Division, which specialises in the hire of accommodation and storage units.

  The Group also acquired the trade and assets of Apollo Hire Centres from Connaught Plc in August 2008 for a consideration of £0.7 million.

  The initial fair values of the assets and liabilities acquired in total from the two acquisitions are as follows:

                                                                                        Book value at                   Fair value
                                                                                          acquisition                 adjustment                    Fair value
                                                                                                  £m                           £m                          £m
  Intangible assets                                                                                   –                        8.2                            8.2
  Hire equipment assets                                                                             0.9                          –                            0.9
                                                                                                    0.9                        8.2                            9.1
  Goodwill capitalised                                                                                                                                        4.2
  Total consideration                                                                                                                                        13.3
  Satisfied by:
  – cash consideration                                                                                                                                       12.7
  – costs of acquisition                                                                                                                                      0.6
                                                                                                                                                             13.3

  The customer list intangible has been valued using the ‘excess earnings’ method, and is based on income forecast to be generated over the
  next ten years. The valuation assumes that the customer attrition rate will be 10% per annum, based on management estimates and historical
  rates recorded by the Company. Capital asset charges have been applied using risk-adjusted weighted average costs of capital in respect of
  fixed assets, working capital and the workforce. Other assumptions used in the valuation include an assumed growth in income from
  customers of 2.5% per annum. The customer list intangible is being amortised over five years, which is considered to be the period over which
  the majority of the benefits are expected to arise. The non-compete intangible has been valued using the incremental income method.

  In addition, the Group acquired the remaining minority interest in Speedy Asset Leasing Limited in April 2008 for a cash consideration
  of £1.3 million.

  During 2007–8, the Group acquired the trade and certain assets of the Hewden Hire Centres business from Hewden Stuart Plc and the Amec
  Logistics and Support Services (“LSS”) from Amec Plc. The 31 March 2008 balance sheet has been restated to accommodate adjustments to
  fair values in respect of the acquired assets. These adjustments arose from the estimation and finalisation of determining the fair value of the
  hire fleet, taking into account changes in the value of the acquired fleet which were lost at the time of the acquisition. As a result of these
  adjustments, the carrying value of tangible assets has decreased by £1.9 million compared to the values adopted in the March 2008 financial
  statements. An equal and opposite adjustment has been made to goodwill.

  Goodwill has been recognised on the acquisitions as a result of their operational effectiveness in their marketplaces.
90   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




24 ACquISITIONS continued
     Acquisitions completed in the prior year were as follows:

     HEWDEN TOOLS
     The Group acquired the trade and assets of the Hewden Tools business from Hewden Stuart Plc on 1 August 2007, for a total consideration of
     £118.0 million, comprising entirely of cash and acquisition costs. The Hewden Tools business was a national network of 188 depots, with
     approximately 1,200 employees.

     The provisional fair values of the assets and liabilities acquired were as follows:

                                                                 Book value at       Accounting policy             Fair value
                                                                   acquisition             alignment             adjustment                 Fair value
                                                                           £m                     £m                      £m                       £m
     Intangible assets                                                        –                      –                   19.8                    19.8
     Hire equipment assets                                                 32.8                   17.9                   (2.3)                   48.4
     Other property, plant and equipment                                    7.9                      –                   (0.5)                    7.4
     Inventory                                                              1.9                      –                    0.3                     2.2
     Trade and other receivables                                           17.4                      –                   (3.6)                   13.8
     Trade and other payables                                              (9.4)                     –                      –                    (9.4)
                                                                           50.6                   17.9                   13.7                    82.2
     Goodwill capitalised                                                                                                                        35.8
     Total consideration                                                                                                                        118.0
     Satisfied by:
     – cash consideration                                                                                                                       115.0
     – costs of acquisition                                                                                                                       3.0
                                                                                                                                                118.0

     The accounting policy alignment relates to the adjustment of fixed asset lives and residual values to bring the basis into line with the Group’s
     own accounting policy.

     An independent valuation to identify and determine the value of any intangible assets was performed following the acquisition. Separable
     intangible assets were identified in respect of the business’s customer list (£13.0 million) non-complete agreements (£4.6 million) and the use
     of the Hewden brand for the five-month period to 31 December 2007 (£0.3 million).

     The customer list intangible was valued using the “excess earnings” method, based on income forecast to be generated over the next ten
     years. The valuation assumed a customer attrition rate of 12.4% per annum, based on management estimates and historical rates recorded by
     the Company. Capital asset charges were applied using risk-adjusted weighted average costs of capital in respect of fixed assets, working
     capital and the workforce. Other assumptions used in the valuation included an assumed growth in income from customers of 2.1% per
     annum. The customer list intangible is being amortised over ten years, which is considered to be the period over which the majority of the
     benefits are expected to arise. The non-compete intangible was valued using the incremental income method, based on estimated income
     saved by virtue of the non-compete agreement over the contractual period of three years. The brand intangible was valued using the “relief-
     from-royalty” method, using a royalty rate of 1% of income for the period of ownership. The intangible was amortised in full during the year
     to 31 March 2008 as use of the trade name ceased in December 2007.

     The Group completed a further three acquisitions during the prior year. The Group acquired the trade and certain assets of Network Plant
     Limited for a total consideration of £2.0 million in April 2007.

     The Group acquired the entire share capital of Waterford Hire Services Limited, a company registered in the Republic of Ireland, in July 2007.
     The company is a long-standing, well-respected tool and equipment hire business, with two outlets in Waterford and Kilkenny in the Republic
     of Ireland. Total consideration was a maximum of €6.5 million, comprising €5.2 million in cash and acquisition costs, together with a maximum
     of 74,587 shares in Speedy Hire Plc.

     In February 2008 the Group acquired the trade and certain assets of Amec Logistics and Support Services (“LSS”) for a total consideration
     including fees of £12.7 million. As part of the transaction, AMEC’s Industrial division entered into a four year exclusive supply agreement with
     Speedy to provide for hire a wide range of equipment in a variety of industrial related sectors. A preferred supplier agreement was also
     established for other UK AMEC divisions.
                                                                                                            Speedy Hire Plc Annual Report and Accounts 2009   91




24 ACquISITIONS continued
   The initial fair values of the assets and liabilities acquired in total from the three acquisitions were as follows:

                                                                                         Book value at                  Fair value
                                                                                           acquisition                adjustment                     Fair value
                                                                                                   £m                          £m                           £m
   Intangible assets                                                                                   –                        5.7                            5.7
   Hire equipment assets                                                                             9.1                        0.4                            9.5
   Trade and other receivables                                                                       1.2                          –                            1.2
   Trade and other payables                                                                         (0.6)                         –                           (0.6)
                                                                                                    9.7                         6.1                           15.8
   Goodwill capitalised                                                                                                                                        4.2
   Total consideration                                                                                                                                        20.0
   Satisfied by:
   – cash consideration                                                                                                                                       18.4
   – shares in Speedy Hire Plc                                                                                                                                 0.4
   – costs of acquisition                                                                                                                                      1.2
                                                                                                                                                              20.0

   Intangible assets were identified in respect of the supply contract related to the Amec LSS acquisition. The contract was for a period of four
   years and the intangible is being amortised over the life of the contract.

   The fair value adjustments relate to the recognition of the supply contract intangible and the revaluation of certain property, plant and
   equipment which was sold shortly after acquisition.

   Goodwill has been recognised on the acquisitions as a result of their operational effectiveness in their marketplaces.

25 CONTINGENT LIABILITIES
   The Group has given warranties (including taxation warranties and indemnities) to the purchasers of five businesses disposed of over the
   last ten years. These warranties and indemnities expire at various dates up to twelve years from the date of disposal.

   The Group has given guarantees with a value of up to £0.3 million (2008: £0.3 million) in respect of ongoing contractual commitments.

26 COMMITMENTS
   The Group had contracted capital commitments amounting to £0.3 million (2008: £4.5 million) at the end of the financial year for which no
   provision has been made.

   The total of future minimum lease payments under non-cancellable operating leases are as follows:

                                                                            Land and buildings                                             Other
                                                                         2009                  2008                           2009                        2008
                                                                          £m                    £m                             £m                          £m
   Total future minimum lease payments
   – not later than one year                                             19.1                      18.7                        12.6                           11.8
   – later than one year and not later than five years                    54.2                      48.6                        12.5                            8.8
   – later than five years                                                49.0                      50.0                         0.1                              –
                                                                        122.3                     117.3                        25.2                           20.6
92   Speedy Hire Plc Annual Report and Accounts 2009


NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2009




27 ANALYSIS OF CONSOLIDATED NET DEBT
                                                                           At              Non-cash                                          At
                                                                 1 April 2008             movement              Cash flow          31 March 2009
                                                                          £m                    £m                    £m                    £m
     Cash at bank and in hand                                             4.4                     –                    6.6                   11.0
     Borrowings                                                        (260.0)                  0.4                    0.2                 (259.4)
                                                                       (255.6)                  0.4                    6.8                 (248.4)


28 POST BALANCE SHEET EVENTS
     DIVIDENDS
     The Directors have proposed a dividend of 6.4 pence per share as a final dividend in respect of the year ended 31 March 2009. No charge in
     respect of the proposed dividend has been made in the income statement for the year, and there were no tax consequences. The total
     amount payable if the dividend is approved at the AGM is as follows:
                                                                                                                     2009                  2008
                                                                                                                      £m                     £m
     6.4 pps (2008: 13.4 pps) on 50.9 million (2008: 50.8 million) ordinary shares                                     3.2                    6.8


29 RELATED PARTY DISCLOSuRES
     KEY MANAGEMENT REMuNERATION
     The Group’s key management personnel are the Executive and Non-Executive Directors as identified in the Remuneration Report on page 47.

     In addition to their salaries, the Group also provides non-cash benefits to Executive Directors, and contributes to approved pension schemes
     on their behalf. Executive Directors also participate in the Group’s share option schemes.

     Non-Executive Directors receive a fee for their services to the Speedy Hire Plc Board.

     Full details of key management personnel compensation and interests in the share capital of the Company as at 31 March 2009 are given in
     the Remuneration Report on pages 47 to 56.

     COMPANY
     The Company has entered into transactions with its subsidiary undertakings primarily in respect of the provision of finance, and the provision
     of share options to subsidiary employees.

     Recharges are made to subsidiary undertakings for Group loans based on funding provided at an interest rate linked to the prevailing base
     rate. No recharges are made in respect of balances due to or from otherwise dormant subsidiaries. The cost of providing employees of
     subsidiary companies with share options is recharged to the relevant company based on the accounting charge suffered by the Company in
     respect of those options.

     The amount outstanding from subsidiary undertakings to the Company at 31 March 2009 totalled £317.5 million (2008: £332.3 million).
     Amounts owed to subsidiary undertakings by the Company at 31 March 2009 totalled £13.8 million (2008: £13.3 million).

     The Company has had no expense in respect of bad or doubtful debts of subsidiary undertakings in the year (2008: £nil).
                                                                                Speedy Hire Plc Annual Report and Accounts 2009   93
FIVE YEAR SuMMARY




CONSOLIDATED INCOME STATEMENT
                                                             2009      2008             2007               2006               2005
                                                              £m        £m               £m                 £m                 £m
Revenue                                                      476.1     465.5            335.5              254.3              206.5
Cost of sales                                               (188.1)   (167.1)          (118.7)             (81.8)             (58.2)
Gross profit                                                  288.0     298.4            216.8              172.5              148.3
Other operating income                                           –         –                –                0.1                0.2
Distribution costs                                           (50.5)    (49.8)           (43.2)             (23.5)             (22.0)
Administrative expenses                                     (287.7)   (201.8)          (127.7)            (112.5)             (96.5)
Analysis of operating profit
Operating profit before amortisation and exceptional items     49.7      64.0             50.0               38.1                  30.6
Exceptional items                                            (90.7)    (10.0)               –                  –                     –
Amortisation                                                  (9.2)     (7.2)            (4.1)              (1.5)                 (0.6)
Operating (loss)/profit                                       (50.2)     46.8             45.9               36.6                  30.0
Loss on disposal of operation                                    –         –                –                  –                  (0.7)
Net financial expense                                         (20.4)    (16.3)            (9.5)              (5.9)                 (4.8)
(Loss)/profit before taxation                                 (70.6)    30.5              36.4               30.7                  24.5
Taxation                                                      16.0     (6.1)             (9.8)              (8.4)                 (6.3)
(Loss)/profit for the financial year                           (54.6)    24.4              26.6               22.3                  18.2


CONSOLIDATED BALANCE SHEET
                                                             2009      2008             2007               2006               2005
                                                              £m        £m               £m                 £m                 £m
ASSETS
Non-current assets
Intangible assets                                            71.2     128.9              71.3               23.9               10.7
Property, plant and equipment                               323.2     372.9             295.7              241.4              187.9
                                                            394.4     501.8             367.0              265.3              198.6
Current assets
Inventories                                                  12.2      16.2              10.9                6.9                   4.8
Trade and other receivables                                 104.4     143.6             101.2               72.6                  55.1
Tax receivable                                                6.9         –                 –                  –                     –
Other financial assets                                           –         –               0.7                  –                     –
Assets classified as held for sale                               –         –                 –                  –                   1.7
Cash                                                         11.0       4.4              10.3                6.4                   5.9
                                                            134.5     164.2             123.1               85.9                  67.5
Total assets                                                528.9     666.0             490.1              351.2              266.1
LIABILITIES
Current liabilities
Borrowings                                                    (0.2)        –                 –                 –               (0.3)
Trade and other payables                                     (64.1)   (120.0)            (91.8)            (69.5)             (47.7)
Other financial liabilities                                    (5.7)     (0.5)                –                 –                  –
Provisions                                                    (4.1)     (1.0)                –                 –                  –
Current income tax                                               –      (5.9)             (6.0)             (6.7)              (2.6)
                                                             (74.1)   (127.4)            (97.8)            (76.2)             (50.3)
Non-current liabilities
Borrowings                                                  (259.2)   (260.0)          (186.5)            (109.4)             (88.7)
Provisions                                                    (3.8)     (1.2)               –                  –                  –
Deferred tax liabilities                                     (24.3)    (37.3)           (34.7)             (24.3)             (18.6)
                                                            (287.3)   (298.5)          (221.2)            (133.7)            (107.3)
Total liabilities                                           (361.4)   (425.9)          (319.0)            (209.9)            (157.6)
Net assets                                                  167.5     240.1             171.1              141.3              108.5
94   Speedy Hire Plc Annual Report and Accounts 2009


SHAREHOLDER INFORMATION




ANNuAL GENERAL MEETING                                                       ELECTRONIC COMMuNICATIONS
The AGM will be held on Tuesday 21 July 2009 at 11 am at Mere Court          Speedy offers shareholders the opportunity to receive electronic
Hotel and Conference Centre, Warrington Road, Mere, Knutsford,               notification of the Company’s latest press releases via e-mail. To take
Cheshire WA16 0RW.                                                           advantage of this service you will need to register online. To register,
                                                                             log on to www.speedyhire.plc.uk, click on the investors section of the
Shareholders will be asked to approve the Directors’ remuneration            website and register for news.
report, the election of James Morley to the Board and the re-election
of David Wallis, Mike McGrath and Steve Corcoran.                            ENquIRIES ON SHAREHOLDINGS
                                                                             Any administrative enquiries relating to shareholdings in Speedy such
Other resolutions will include proposals to renew, for a further year, the   as dividend payment instructions or a change of address should be
Directors’ general authority to allot shares in the Company, to allot a      notified direct to the registrar (details on page 95). Your
limited number of shares for cash on a non-pre-emptive basis, and to         correspondence should state Speedy Hire Plc and the registered name
buy back its own shares and resolutions to amend the articles of             and address of the shareholder. For further details of the shareholder
association and to approve certain matters relating to share incentive       services offered by our registrars, visit www.shareview.co.uk.
plans.
                                                                             CONTACT DETAILS
SHARE PRICE INFORMATION/PERFORMANCE
                                                                             We are happy to answer queries from current and potential
The latest share price information is available at                           shareholders. Similarly, please let us know if you wish to receive past,
www.speedyhire.plc.uk. By selecting our shares under the investor            present or future copies of our Annual Report and Accounts. Please
information section, shareholders can check the value of their               contact us by phone, e-mail, fax or via the website.
shareholding online or review share charts illustrating annual share
price performance trends.                                                    Speedy Hire Plc                          e-mail
                                                                             Chase House                              plc.admin@speedyhire.com
Shareholders can also download copies of our Annual Report and               16 The Parks                             Telephone
Accounts and Interim Accounts.                                               Newton-le-Willows                        01942 720000
                                                                             Merseyside                               Facsimile
Shareholders within the UK can also use Teletext and the FT Cityline         WA12 0JQ                                  01942 402870
service (telephone 0906 843 0000 – please note, this is charged at           United Kingdom
premium rate).


a) Shareholders analysed by number of shares held (at 26 May 2009)

                                                             Total number             Percentage of            Total number            Percentage of
Balance ranges                                                 of holdings                  holders                of shares           issued capital
1–1,000                                                              1,236                  56.33%                   569,382                   1.12%
1,001–5,000                                                            600                  27.35%                 1,364,828                   2.68%
5,001–10,000                                                            88                   4.01%                   626,119                   1.23%
10,001–50,000                                                          155                   7.06%                 3,877,101                   7.61%
50,001–100,000                                                          43                   1.96%                 3,086,332                   6.06%
100,001–500,000                                                         53                   2.42%                11,657,319                 22.87%
500,001–1,000,000                                                       10                   0.46%                 7,838,967                 15.38%
1,000,001 and above                                                      9                   0.41%                21,942,052                 43.05%
Total                                                                2,194                 100.00%                50,962,100                100.00%

b) Shareholders analysed by type of holding (at 26 May 2009)
                                                          Number of                     Percentage                Number of                 Number
Holder                                                       holdings                   of holdings                   shares                of shares
          +
Directors                                                           9                        0.36%                   469,002                    0.92%
Private individuals                                             1,457                       66.41%                 3,888,668                    7.63%
Nominee accounts                                                  662                       30.17%                46,045,613                  90.35%
Institutions & investment companies                                48                        2.19%                   390,056                    0.77%
Other organisations                                                19                        0.87%                   168,761                    0.33%
Total                                                           2,194                      100.00%                50,962,100                100.00%

+
Figure includes David Galloway who has resigned with effect from 31 May 2009.
                                                                                Speedy Hire Plc Annual Report and Accounts 2009   95
REGISTERED OFFICE AND ADVISERS




REGISTERED OFFICE           FINANCIAL ADVISERS         AuDITORS                             PuBLIC RELATIONS  FINANCIAL
Speedy Hire Plc             NM Rothschild & Sons       KPMG Audit Plc                      Hudson Sandler
Chase House                 Limited                    St James Square                     29 Cloth Fair
16 The Parks                82 King Street             Manchester                          London
Newton-le-Willows           Manchester                 M2 6DS                              EC1A 7NN
Merseyside                  M2 4WQ
WA12 0JQ                                               BANKERS                              PuBLIC RELATIONS  TRADE
                            STOCKBROKERS               Barclays Bank PLC                   Citypress
Telephone 01942 720000      KBC Peel Hunt Ltd          No. 1 Marsden Street                2nd Floor
Facsimile 01942 402870      111 Old Broad Street       Manchester                          Bank House
e-mail                      London                     M2 1HW                              Faulkner Street
plc.admin@speedyhire.com    EC2N 1PH                                                       Manchester
Website                                                The Royal Bank of Scotland plc      M1 4EH
www.speedyhire.plc.uk       Oriel Securities Limited   Corporate Banking
                            125 Wood Street            1 Spinningfields Square              REGISTRARS AND TRANSFER OFFICE
Registered number: 927680   London                     Manchester                          Equiniti Limited
                            EC2V 7AN                   M3 3AP                              Aspect House
                                                                                           Spencer Road
                            SOLICITORS                                                     Lancing
                            Pinsent Masons LLP                                             West Sussex
                            1 Park Row                                                     BN 99 6DA
                            Leeds
                            LS1 5AB                                                         INSuRANCE BROKERS
                                                                                           Marsh uK Limited
                                                                                           1 City Road East
                                                                                           Manchester
                                                                                           M15 4PN
96   Speedy Hire Plc Annual Report and Accounts 2009


AWARDS AND ACCREDITATIONS




2009                                                                        National Business Awards – Highly Commended: The HSE Health &
                                                                            Safety Award
Business in the Community – Reaccreditation of “Big Tick Award” for
Responsible Marketing
                                                                            National Business Awards – Highly Commended: Customer Focus
British Safety Council – International Safety Award
                                                                            Hire Association of Europe –“Awards of Excellence” – Unsung Hero
Hire Association Europe – Catalogue of the Year
                                                                            Hire Association of Europe –“Awards of Excellence” – Best Contribution
                                                                            to Health and Safety
2008
Hire Association Europe – Hire Company of the Year (over five outlets)      PLC Awards – Best Investor Communications Strategy 2006

Hire Association Europe – Best Contribution to Environmental Issues         See our website www.speedyhire.plc.uk for awards prior to 2006

BSIF Safety Awards – Service Excellence                                     ACCREDITATIONS
                                                                            ISO 9001
National Business Awards – Finalist: Business of the Year
                                                                            Speedy Hire Direct, Speedy Compressors, Speedy Pumps, Speedy
Institute of Directors – North West Director of the Year (Steve Corcoran)   Engineering, Speedy Generators, Speedy Lifting and Speedy Survey

European Rental Association – European Rental Person of the Year            ISO 14001
(Steve Corcoran)                                                            Speedy Compressors, Speedy Pumps, Speedy Engineering, Speedy
                                                                            Generators and Speedy Survey
Business in the Community – Reaccreditation of “Big Tick Award” for
Responsible Marketing                                                       ISO 18001
                                                                            Speedy Engineering, Speedy Generators and Speedy Survey
Business in the Community – Silver ranking in the Top 100 Companies
Corporate Responsibility (CR) Index 2008                                    All Speedy equipment businesses have Investors in People
                                                                            accreditation
2007
                                                                            INDuSTRY SuPPLIER ACCREDITATIONS
CorpComms Awards – Annual Report 2007
                                                                            Link-up – rail supplier qualification & verification scheme
National Business Awards – Winner Marketing Strategy of
the Year                                                                    UVDB – utilities pre-qualification scheme

Business in the Community –                                                 F-Pal – oil and gas industry pre-qualification scheme
“Big Tick Award” for Responsible Marketing
                                                                            Constructionline – UK register of pre-qualified construction services
Hire Association Europe – Best Contribution to Health and Safety
and/or Environmental Issues                                                 PROFESSIONAL BODY & TRADE ASSOCIATION MEMBERSHIP
                                                                            HAE: Hire Association of Europe
Contract Journal – Plant Hire Company of the Year
                                                                            PASMA: Prefabricated Access Suppliers & Manufacturers Association
The Observer’s Good Company Guide – Number One Ethical
Investment Choice                                                           LEEA: Lifting Equipment Engineers Association
PLC Awards – Best Investor Communications Strategy 2007                     OPERC: Off-Highway Plant and Equipment Research Centre
Contract Journal, Construction Industry Awards – Plant Hire Company         European Rental Association
of the Year 2007
                                                                            British Safety Council
Business in the Community – Silver ranking in the Top 100 Companies
Corporate Responsibility (CR) Index 2007                                    Confederation of British Industry (Steve Corcoran member of
                                                                            Construction Council)
2006
OPERC Award – In recognition of our contribution to HAV                     FTSE4Good

Construction Marketing Awards – Best Use of Research in a Campaign          Business in the Community

B2B Marketing Awards – Best Customer Relationship Campaign                  Lighthouse Club

B2B Marketing Awards – Best Use of Market Research                          HAE’s Safe-HIRE
USEFUL INFORMATION




FINANCIAL CALENDAR

Preliminary announcement of 2009 results and final dividend                                                                    27 May 2009

Annual Report posted                                                                                                           20 June 2009

Ex dividend date                                                                                                               24 June 2009

Dividend record date                                                                                                           26 June 2009

Annual General Meeting                                                                                                          21 July 2009

Payment of 2009 final dividend                                                                                               25 August 2009

Announcement of 2009 interim results                                                                                        November 2009

2009 year end                                                                                                                31 March 2010




WEBSITES

You can find further investor information about Speedy, including electronic copies of the Annual Report and Corporate Responsibility Report,
at the Group’s corporate website:

www.speedyhire.plc.uk



Information about Speedy’s products and services can be found at our trade website:

www.speedyhire.com




Merchant in collaboration with Ammunition
Printed and typeset by Jones & Palmer Limited
NEXT
RESULTS
NOVEMBER
2009




Speedy Hire Plc
Chase House
16 The Parks
Newton-le-Willows
Merseyside
WA12 0JQ
Tel 01942 720000
Fax 01942 402870
e-mail plc.admin@speedyhire.com
www.speedyhire.plc.uk
Registered Number 927680

								
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