Speedy Hire revenue falls 5% to £420m

Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, said its total group revenue fell 5% to £420 million for the year to March 31, 2024, “impacted by underperformance from our regional base, the reduction in wholesale fuel prices and the performance of our seasonal products, which were affected by the warmer winter period.”

In a trading update, Speedy Hire said: “The group has performed resiliently in the year against a challenging market backdrop and wider macroeconomic uncertainty …

“The cost inflation and softer demand faced across much of the construction sector mean that revenues from our regional customers closed 6% down year-on-year, although these stabilised in the last quarter of the year and in FY2025 trading to date.

“Revenues from our national customers whilst declining in the last quarter had continued to trade positively year-on-year.

Despite the challenging trading environment through FY2024, the group has secured additional annual turnover in excess of £40m across multi-year contracts with new and existing customers which, whilst slow to mobilise and only providing marginal benefit in FY2024, give confidence for growth in FY2025 and beyond.

“This new business has been secured with continued pricing discipline and demonstrates the attractiveness of Speedy’s customer offering.

Our Kazakhstan joint venture, following a record year last year, returned to a more normalised performance in FY2024 due to the timing of various projects.

The momentum from securing major opportunities and progressing operational efficiencies, positions the group well to benefit from the anticipated recovery of the wider macroeconomic environment during the second half of FY2025.

As a result, while the group expects to report results for the year towards the lower end of the board’s expectations, it is encouraged by the commercial progress in the business and the outlook for FY2025 given the recent contract wins.

The group has remained highly focused on working capital management and expects to deliver free cash flow in excess of £20m, with net debt reducing by year-end to c.£102m, within our target leverage range.”