Annual Report and Accounts 2012 - Speedy Hire plc

Our performance
International
Asset Services
“ Our ultimate vision for the
international business is to
support our customers on
any major project anywhere
in the world.“
Mike McGrath
Managing Director, International Asset Services
We help our customers manage risk on major international
projects and contracts by delivering the highest safety and quality
standards, often in challenging environments, and by tracking and
controlling assets through our in-house management information
and control systems. We also work with our customers to help them
make more efficient and effective use of assets. On major contracts,
we will implant experienced teams in our customers’ operations to
work in partnership with their management teams to apply our
expertise and innovation in driving measurable efficiency savings.
Strategy
Our ultimate vision is to be able to support our customers on any
major project, anywhere in the world. By following our existing
customers into new markets, we can then reach out to new
customers who will benefit from our services.
We have implemented the first phase of our strategy by investing in
our first hub in the Middle East, where there is a high concentration
of our existing customers engaged on key projects in the oil and
gas, infrastructure and industrial sectors.
Priorities for FY2013
Our first priority is to remain focused on delivering the targets and
KPIs in our contracts with strategic customers, including Carillion
and Costain, and to extend our reach to support their businesses as
they win projects across the wider region. Our second priority is to
sign further, long-term strategic service agreements with a select
group of both existing and new customers with leading positions
in our chosen markets.
Our markets
We are focusing on two key markets: oil and gas and
Government-backed infrastructure and industrial projects.
The oil and gas market is global and Speedy has a long track
record of supporting customers on projects from Europe to
East Asia. Our first hub in the Middle East not only provides
greater access to the oil and gas industry in the region, but
also provides a base from which we can extend our range of
services to oil and gas projects in Central and East Asia.
Built on
developing
customer
relationships
What we do
We support our customers in delivering major
international projects and facilities management
contracts by providing a managed site support
service, which combines our core expertise in
equipment hire with asset management, site
infrastructure and logistics services.
Business review 27
The infrastructure and industrial sector is more focused on the
Middle East region and evidence suggests that the recent political
issues in a number of countries are causing governments in the
region to accelerate long-term plans to invest in infrastructure as
they seek to address structural shortages in water, power and
transport and push on with social programmes with new hospitals,
schools and universities. Furthermore, governments across the
region are pursuing a strategy of industrial diversification with
major investment programmes underway.
How we performed
Our focus this year has been to extend our support for existing
customers such as Carillion and Costain, with whom we already
have long-term exclusive framework agreements, and to broaden
our customer base by developing relationships with major local
players in our chosen markets.
During the year we have extended our support of Carillion to
include a number of infrastructure projects in Oman, including
the expansion of Muscat International Airport, and are currently
mobilising equipment to support Carillion’s first major project in
Qatar, the £395m Msheireb project for the Qatar Foundation for
Education in Doha. In addition, we have increased our level of
support to Costain on Das Island, Abu Dhabi’s main offshore
gas hub.
During the second half of the year, the business saw a significant
increase in activity levels on major oil and gas projects, a trend
which we anticipate continuing in the year ahead. Highlights include
supporting our first major refinery shutdown in the region at ENOC’s
Jebel Ali plant in the UAE and providing specialist compressed air
packages for use in pipeline projects across the region to Baker
Hughes, Schlumberger, Halliburton and Crest Energy. Turnover
in our second full year of trading was £11.1m (FY2011: £8.4m),
with the business moving into operating profit in the second half
as the benefits of its operational gearing started to show through.
A healthy pipeline of visible opportunities provides us with
optimism for continued growth in FY2013.
Speedy Hire Plc Annual Report and Accounts 2012
Business review