Speedy Hire confident despite profit slump

19th Jun 2024 07:58

(Sharecast News) - Speedy Hire posted a slide in full-year profits on Wednesday, hit by higher costs and macroeconomic uncertainty, but struck a more optimistic note for the current year.

The London-listed firm, a provider of tools, specialist equipment and services, saw revenues fall 4.3% in the year to 31 March.

Revenues from its national customer base - which accounts for 53% of group sales - nudged up 0.2%. But that was offset by a 6% decline in revenues from regional customers. Trade and retail revenue, meanwhile, was flat year-on-year.

Adjusted pre-tax profits slumped 52.1% to £14.7m, while pre-tax profits tumbled 183% to £5.1m.

Speedy Hire attributed the slide in adjusted profits to high operational gearing, increased interest costs and a normalised performance at its Kazakhstan joint venture, following a prior record year.

The firm struck a more upbeat tone looking forward, however.

It said current trading was marginally ahead of last year, while operational efficiencies and supply chain optimisation were expected to deliver further benefits.

It continued: "The group expects a second half weighting to its revenues and profits as we mobilise the significant contracts won in the 2024 full year.

"Contract wins and extensions, alongside key sector opportunities, give us confidence for the 2025 full year."

Dan Evans, chief executive, said: "Speedy delivery a resilient financial performance, making positive strategic progress over the year, despite the challenging macroeconomic environment.

"The new financial year has started well, with performance in line with board expectations, and I am pleased that since the year end, we have also secured further contract wins and renewals with key customers."

As at 10.30 BST, shares in Speedy Hire were up 3% at 29.49p.