Speedy Hire has said it expects to report full-year results in line with expectations despite a tougher trading environment that has seen it accelerate depot closures.
In a trading update for the year to 31 March 2025, the tools and equipment provider said hire revenue edged up compared with the previous year.
However, growth in its trade and retail division was slower than forecast, contributing to lower-than-expected income in the final quarter.
Higher average debt levels led to increased interest costs, mainly due to fleet investment for contract delivery, Speedy told the London Stock Exchange in a statement this morning (16 April).
In response to increased employment taxes announced in the Autumn Budget, Speedy accelerated depot closures and restructured support functions.
The changes are expected to deliver £3.5m in annual savings and will be reported as non-underlying items in the 2024/25 accounts.
The company said it is seeking to expand its trade and retail customer base in 2025/26, while pointing to a strong pipeline of work, particularly in infrastructure.
The government’s continued backing for large-scale transport and energy projects remained a key opportunity, Speedy said.
It added that recent contract wins, including several multi-year deals, had strengthened its position in the rail sector despite delays to Network Rail’s Control Period 7.
Net debt stood at around £113m at year-end, following positive cash inflows of about £10m in the final two months.
Following the year end, the group completed a refinancing process. It replaced a £180m asset-based lending facility, due to expire in July 2026, with £225m of new borrowing.
This comprises a £150m revolving credit facility with a three-year maturity and extension options, and a £75m private placement loan maturing in seven years.
Speedy’s final results for 2024/25 are due to be published on 18 June.
It posted turnover of £421.5m and a pre-tax profit of £5.1m for the year to 31 March 2024.
The firm also announced this week that it has become the first UK & Ireland hire company to implement a PAS2080 third-party-verified carbon management system.
“The verification validates the company’s ongoing investment in transparent, accurate, and accountable carbon management – and supports the delivery of its wider environmental, social, and governance (ESG) goals,” Speedy Hire said.
Source: Speedy Hire stock exchange announcement