Speedy Hire warns on profits, shares tumble
By Michele Maatouk
Date: Monday 03 Feb 2025
(Sharecast News) - Tools and equipment rental firm Speedy Hire tumbled on Monday as it warned that full-year profit was set to be lower than expected due to the "challenging start" to its final quarter and ongoing macroeconomic uncertainty.
In an update for the 10 months to the end of January, the company said it achieved year-on-year growth in the quarter to the end of December, with hire revenue for December 5% above the previous year.
However, the positive momentum going into the final quarter has been hit by the "widely-reported economic downturn", it said.
As a result, there has been a slower post December shutdown recovery across the majority of Speedy Hire's customer base. In addition, the delay in CP7 rail works has also had an impact on trading in the final quarter, "but remains a significant opportunity for the group into FY2026".
The company said: "We remain committed to the delivery of our Velocity strategy providing benefits for Speedy for the long term. We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions in response to the current economic climate.
"The group has a promising pipeline of growth opportunities with new and existing customers, and should benefit from increased government spending on infrastructure projects. Nevertheless, with the challenging start to our final quarter and ongoing macroeconomic uncertainty, the board expects lower than anticipated profitability for the full year."
At 0808 GMT, the shares were down 27% at 19.97p.
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10 Lower Thames St,
London EC3R 6EN