Shares Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, fell about 3% after it published an update on the group’s business and trading performance for the half year ended September 30, 2024.

“The group’s trading performance in the first half has been satisfactory against a backdrop of challenging market conditions in some of the group’s end markets,” said Speedy.

“We remain positive about the future of these markets and also look forward to ongoing government support for major infrastructure projects.

“Hire revenue for the first half is consistent with H1 FY2024, although lower margin Services revenue is 5% down, impacted by a decline in fuel revenues caused by a fall in wholesale fuel prices. This was partially offset by growth in Lloyds British testing services. As a result, Group revenue is marginally down compared to H1 FY2024.

“The group has continued to invest in the business to deliver on its growth strategy and as part of our five-year Velocity transformation programme. The pipeline of new opportunities continues to grow and we expect further contract wins in the second half to benefit revenues in FY2026.

“The joint venture in Kazakhstan has performed below expectations in the period, due to some delays in major project opportunities, which we expect to be a matter of timing.

“Net debt at the half year increased to c.£112m, the result of forward buying of Hire fleet assets to support growth with key customers including the already announced contract wins. This has resulted in a higher interest cost in the first half.

“The business has made good progress mobilising new contracts, in particular Amey announced in June this year, and expects these to deliver significant growth in the second half. As a result, the board anticipates the group meeting its full year expectations.”