Speedy
Hire Plc
("Speedy", "the
Company" or "the Group")
3 February 2025
Trading
Update
Speedy, the UK's leading tools and
equipment hire services company, operating across the construction,
infrastructure and industrial markets, provides the following
trading update for the ten months to 31 January 2025.
Trading performance
The business achieved promising year
on year growth in the quarter to 31 December 2024, with hire
revenue for December 5% ahead on prior year. The positive momentum
going into our final quarter has, however, been negatively impacted
by the widely reported economic downturn. This has resulted in a
slower post December shutdown recovery across the majority of our
customer base. Further, the delay in CP7 rail works has also had an
impact on trading in the final quarter but remains a significant
opportunity for the Group into FY2026.
During the third quarter we
continued to develop our Trade & Retail proposition, securing
new major trading relationships, although it is taking longer to
achieve the expected levels of hire revenue which we now anticipate
achieving during first quarter FY2026.
We have completed the mobilisation
of our contract with Amey which is trading in line with our
expectations.
Our joint venture in Kazakhstan has
experienced a significant downturn in performance due to the early
shutdown of major contracts. We anticipate this having an ongoing
impact into FY2026, however, there are significant opportunities
which give confidence for future growth.
Net Debt1 at 31 January
2025 is expected to be c.£123m (January 2024: £113m). This is the
result of previously reported investment in Capex during the first
half in support of new contract wins. Working capital continues to
be a key focus area and consistent with prior years we anticipate
strong cash inflows in the last two months of the financial year.
The increased level of net debt will result in a higher than
expected interest charge for FY2025.
Outlook
We remain committed to the delivery
of our Velocity strategy providing benefits for Speedy for the long
term. We are focused on what we can control, and we will continue
to manage our cost base and balance our investment decisions in
response to the current economic climate.
The Group has a promising pipeline
of growth opportunities with new and existing customers, and should
benefit from increased government spending on infrastructure
projects. Nevertheless, with the challenging start to our final
quarter and ongoing macroeconomic uncertainty, the Board expects
lower than anticipated profitability for the full year.
Enquiries:
Speedy Hire
Plc
Tel: 01942 720 000
Dan Evans, Chief Executive
Paul Rayner, Chief Financial
Officer
Teneo
Tel:
020 7427 5494
Olivia Peters
Giles Kenrick
Notes:
1 pre IFRS16 basis
Inside Information: This
announcement contains inside information for the purposes of
article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of domestic law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via
Regulatory Information Service, this inside information is now
considered to be in the public domain.
Forward looking statements: The
information in this release is based on management information.
This report includes statements that are forward looking in nature.
Forward looking statements involve known and unknown risks,
assumptions, uncertainties and other factors which may cause the
actual results, performance or achievements of the Group to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Except as required by the Listing Rules and applicable
law, the Company undertakes no obligation to update, revise or
change any forward looking statements to reflect events or
developments occurring after the date of this report.
Notes to Editors: Founded in
1977, Speedy Hire is the UK's leading provider of tools and
equipment hire services to a wide range of customers in the
construction, infrastructure, industrial, and support services
markets, as well as to local trade, and retail. The Group provides
complementary support services through the provision of training,
asset management and compliance services. Speedy is certified
nationally to ISO50001, ISO9001, ISO14001, ISO17020*, ISO27001 and
ISO45001. The Group operates from 144 Service Centres and on-site
locations across the UK and Ireland and through a joint venture in
Kazakhstan. *Lloyds British National Contracts
only.