Speedy Hire FY results seen towards lower end of expectations

10th Apr 2024 07:44

(Sharecast News) - Tools and equipment hire firm Speedy Hire said on Wednesday that full-year results were set to be towards the lower end of its expectations as cost inflation and softer demand dented revenues.

In an update for the year to the end of March, the company said total group revenue was down around 5% on the same period a year earlier to £420m. Speedy Hire said this was a "resilient" performance against a challenging market backdrop and wider macroeconomic uncertainty.

Revenues took a hit from underperformance from its regional base, the reduction in wholesale fuel prices and the performance of its seasonal products, which were affected by the warmer winter period.

The group said cost inflation and softer demand across much of the construction sector meant revenues from regional customers closed 6% lower year-on-year, although these stabilised in the last quarter of the year and in FY2025 trading to date.

Meanwhile, revenues from national customers declined in the last quarter.

As a result, it now expects to report results for the year towards the lower end of the board's expectations.

However, Speedy struck a more upbeat note on the outlook for FY25. It noted that it has secured additional annual turnover in excess of £40m across multi-year contracts with new and existing customers. While this will only provide marginal benefit in the current financial year, Speedy said it gives it confidence for growth in FY2025 and beyond.

"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," it said.

At 0955 BST, the shares were down 4.1% at 24.30p.