Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, said revenue slipped 2.9% to £208.5 million in the six months to September 30, 2023.
Speedy Hire said H1 adjusted profit before tax fell 56% to £5.9 million due to “investment in transformation to support Velocity strategy” and “Kazakhstan joint venture performing behind the record performance in FY23″ and “higher interest rates.”
In its outlook Speedy Hire said: “We have delivered resilient results for the first half of 2023 against a challenging but manageable market backdrop.
“We have also maintained investment in our Velocity Strategy.
“The group has a promising pipeline of opportunities to deliver revenue growth in the second half and beyond and we will continue our strategic investment in growth initiatives including Transformation, Trade and Retail and ESG.
“Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, the business is resilient and well positioned to manage these challenging market conditions.
“As in prior years, the group expects a strong second half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period, including those communicated at year end.
“We expect to see the benefits of our investments in our Velocity strategy including operational efficiency and supply chain optimisation, in the second half and beyond.
“The board remains confident of delivering results for the full year, albeit at the lower end of its expectations.”
Speedy Hire CEO Dan Evans said: “This set of results demonstrates our ability to perform resiliently against challenging but manageable market conditions, by maintaining price and cost discipline whilst investing in and executing on our Velocity Strategy.
“The recent acquisition of Green Power Hire Limited and the launch of Speedy Hydrogen Solutions Limited in joint venture with AFC Energy to deliver market leading clean energy power generation and storage solutions for our customers, further demonstrates our Velocity strategy in action.
“I am pleased to confirm the digital evolution of our partnership with B&Q, launching our online, home delivery tool hire proposition on diy.com and trade-point.co.uk.
“This will then be extended into over 310 B&Q stores nationally for digital hire in-store, in an overall lower cost to serve operating model.
“The group has a promising pipeline of opportunities to deliver revenue growth in the second half and beyond.
“As in prior years, the group expects a second half weighting to its revenues and profits, as the winter programmes commence and new contracts fully mobilise in the period, including those communicated at year end.
“We expect to see the benefits of our investments in our Velocity strategy including operational efficiency and supply chain optimisation, in the second half and beyond.
“Whilst the macroeconomic outlook is uncertain, we remain confident of delivering results, albeit towards the lower end of the board’s expectations.”