Speedy Hire swings to loss amid depot closures
Speedy Hire has slumped into the red as it grapples with a challenging economic backdrop and tax hikes announced in Chancellor Rachel Reeves’ Autumn Budget.
The London-listed firm, an equipment hire specialist, swung to a pre-tax loss of £1.5m in the year ended 31 March, 2025, down from gains of £5.1m the prior 12 months.
On an adjusted basis, earnings before interest, taxation, depreciation and amortisation (EBITDA) also fell 0.3 per cent to £97.1m while its revenue went from £421.5m to £416.6m.
Speedy Hire, which is headquartered in Newton-le-Willows, has been forced to close many of its depots in a move it blames on increases to National Insurance announced by Rachel Reeves last October.
Delays in government spending have also impacted major infrastructure projects, it warned, although the company said it had managed to grow market share in that area.
Speedy Hire revealed on Wednesday that eight depots had been closed over the course of the year, along with an unspecified “reduction in headcount.” Its debt pile also jumped substantially, by £11.8m to £113.1m for the full-year.
Shares fell nearly five per cent as markets opened, while the stock is down more than 12 per cent this year to date.
Speedy Hire looks to manage costs
“We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions through the economic cycle,” chief executive Dan Evans said in a statement, adding: “We are well positioned to capitalise on end market recovery.”
Evans still expects the group to hit full-year expectations as it implements its “Velocity” growth strategy.
“Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our Velocity strategy… which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns,” he said.
“We anticipate seeing the benefit from a promising pipeline of growth opportunities with new and existing customers, alongside increased commitment and clarity on government spending.”
Shareholders in Speedy Hire can expect dividends per share of 2.6p, in line with last year.