Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, published an update on the group’s trading performance for the year ended March 31, 2025, and details of a refinancing of its banking facilities.

“In response to the Autumn Budget increases in employment taxes, the group has accelerated several planned depot closures and restructured various support roles within the business,” said Speedy Hire.

“The savings of both these actions are expected to be in the region of £3.5m p.a. The cost of the initiatives taken will be presented within non-underlying items in FY2025.”

The firm said it has refinanced its borrowings, replacing its existing £180 million asset based lending facility, which was due to expire in July 2026. Its new debt facilities of £225 million comprise a £150 million revolving credit facility (RCF) and a £75 million private placement term loan.

The company said in its update: “The group has performed robustly in the period against a challenging market backdrop and the board expects to report results for FY2025 in line with its expectations.

“Hire revenue was marginally up on FY2024, having been impacted by wider economic conditions and slower than anticipated growth in Trade & Retail. This latter point led to the group experiencing slightly lower than expected hire revenue in the final quarter but there is growing traction in that revenue stream and the Group is in discussions to broaden that customer base in FY2026.

“The Government’s support both in the short and longer term for major infrastructure programmes remains a significant opportunity for the group into FY2026 and beyond. The rail sector continues to be impacted by the widely reported delays in CP7 but the group is well placed to benefit as this recovers. During the last quarter, we have secured several new, multi-year, contracts and we maintain a promising pipeline.  

“Lloyds British, our Testing, Inspection and Certification business, has performed well in the year, achieving both revenue and profit growth. Our Kazakhstan joint venture traded in line with our revised expectations.

“As a result of higher average net debt during the year, interest costs are slightly higher than previously anticipated, driven primarily by investment in the core and specialist hire fleet needed to satisfy new contract wins.

“In response to the Autumn Budget increases in employment taxes, the Group has accelerated several planned depot closures and restructured various support roles within the business. The savings of both these actions are expected to be in the region of £3.5m p.a. The cost of the initiatives taken will be presented within non-underlying items in FY2025.

“The group remains positive about its pipeline of opportunities and the actions we have taken give confidence into the new financial year.”