Speedy Hire profits fall as government puts off rail improvements
The equipment rental business posted adjusted pre-tax profits of £8.7million in the year ending March, compared to £14.7million in the previous 12 months.
Speedy Hire said the economic environment had remained 'challenging' over the past year owing to delays in government spending on major infrastructure projects.
These include Network Rail's plan to invest £45.4billion on improving the UK's railway infrastructure between 2024 and 2029.
Hire-related revenues also increased by just £1.4million to £255million, which the firm blamed on its trade and retail segment expanding at a slower-than-anticipated pace.
Earnings were somewhat impacted by the early shutdown of contracts in Kazakhstan, where it operates a joint venture.
Speedy Hire's overall turnover slipped by 1.2 per cent to £416.6million, due to lower wholesale fuel prices driving its total service sales down by 2.8 per cent to £158million.
However, the Merseyside-based company continues to invest in its 'velocity' growth strategy, with £57.5million going towards its hire fleet during the year to support recent contract gains.
As part of the strategy, Speedy Hire has also closed eight depots and made some staff redundant in response to the government's hikes in National Insurance contributions and the National Living Wage.
Dan Evans, chief executive of Speedy Hire, said: '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. We are well-positioned to capitalise on end-market recovery.
'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.'
Headquartered in Newton-le-Willows, Speedy Hire provides equipment, including air conditioning units, power tools, and rubbish chutes, to the construction sector.
It ended the last financial year with net debt £11.8million higher at £113.1million.
Since then, the firm has finalised a £225million refinancing of its borrowing facilities.
Mark Crouch, market analyst at eToro, said the company 'is stuck in a classic catch-22.'
He added: 'To win new contracts, it needs to ramp up capital expenditure, fuelled by debt.
'But with the economy on shaky ground and delays in government spending weighing on major projects, taking on more debt could end up fixing one problem while wrenching open another.'
Speedy Hire shares were 0.4 per cent down at 26p on Wednesday afternoon and have slumped by around 57 per cent in the past five years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Finextra
an hour ago
- Finextra
Broadridge acquires Signal
Global Fintech leader Broadridge Financial Solutions, Inc. (NYSE: BR), today announced that it has acquired Signal, a leader in transforming customer communications for financial services and social sector firms in the UK. 0 "This is an important step toward globalizing Broadridge's digital communications solutions to better serve our clients with operations outside North America," said Mike Sleightholme, President of Broadridge International. "The combination of Signal's digital-first communications and strong relationships with UK financial services firms along with our proven scale and regulatory domain expertise transforms our ability to serve our global clients and extend our footprint in Europe." Signal provides a full suite of design, technology and consulting services that support omni-channel communications for financial services and other firms. Its proprietary technology and deep digital expertise help clients power their shift from legacy print to drive digitization and enhance client engagement. Signal provides an integrated shared service model to support in-house teams alongside specialist managed services, including fully outsourced print production. "Growing expectations from both customers and regulators are driving the need to modernise and digitise the customer and investor experience," said Barney Hosey, CEO of Signal. "Broadridge is a trusted and transformative partner to clients who shares our commitment to innovation. Its focus on providing a more holistic global customer communications experience, while delivering greater value to clients means we are very much aligned. The leadership team and I are delighted to be joining Broadridge and enabling the expansion of its global capabilities to serve customers and investors around the world." Serving nearly every major financial institution in North America and many globally, Broadridge processes billions of critical communications annually. To meet rising regulated communication and compliance requirements efficiently and securely, Broadridge leverages technology and deep regulatory expertise across global jurisdictions to ensure clients maintain compliance as rules evolve. Broadridge's communications and customer engagement platform delivers personalized, compelling digital and print experiences to attract, onboard, engage, and retain customers across industries including financial services, healthcare, utilities, telecom, and insurance. The transaction is not expected to have a material impact on Broadridge's financial results.
Press and Journal
an hour ago
- Press and Journal
New landlords wanted as three Aberdeen pubs go up for lease
Have you ever wondered what it would be like to step behind the bar at your local pub? With the Stonegate Group making three pubs in Aberdeen available for lease, now could be the perfect time to take on the challenge. The UK-wide pub operator is seeking new 'community-focused' landlords to take over the day-to-day operations at The Bobbin, Murdos Bar and the Black Dog. No prior experience of running a bar is required, with the company more concerned about finding people who are 'dedicated, determined and passionate'. Whoever takes on the businesses will also complete an online qualification to fully prepare them for the role. Instead of a fixed monthly rent, the landlords will pay a base rent plus a percentage of the net turnover. Anyone interested in taking over The Bobbin can expect a potential annual turnover of £1,151,996. The student pub on King Street, described as being 'high-volume' and 'high-energy', has a guide rent of £1,010 per week plus 4% of the net turnover. Someone with experience of managing large teams and event planning is being sought to run what's billed as the country's 'top society pub'. Meanwhile, Stonegate is seeking a 'community-driven' publican to take over the running of Murdos Bar. The listing states: 'This isn't just about running a pub; it's about continuing a legacy and deepening the roots already in place. 'This is the kind of place where everyone knows your name, and there's a sense of loyalty that's hard to manufacture.' The Cairncry Road pub is known for showing live sports and also has a function space used for events, birthdays and fundraiser. The guide rent is £1,010 per week, added to a turnover rent of £923 per week, with a potential annual turnover of £1,192,712. The Black Dog – a classic community pub – in Bridge of Don is also in need of a new 'community-focused' landlord. The ideal candidate has been described as 'hands-on' with 'high energy'. They should also have a passion for local sports and an interest in hosting events. Stonegate's estimated turnover for the North Donside Road pub is lower than the others, at £616,789 per year. However, this also means the weekly guide rent is lower per week at £433, plus £239 from the turnover rent.
Daily Mirror
an hour ago
- Daily Mirror
HMRC update after customer surprised to receive request message
HMRC warned against taking certain actions if you get the message HMRC has provided guidance after a customer received a message they were not expecting. The customer contacted the group as they had received a text message with an access code. Yet, they claimed they had not tried to access their account. HMRC responded to say there may be an innocent reason for the message. The group said: "It may just be somebody that has entered the wrong digits." Nevertheless, the tax authority did issue some further guidance to protect the person's account security. The group warned: "For security reasons, avoid clicking on any links or responding. "You can log into your account separately and check your account, review security settings and change password for added security if you wish." You can access many HMRC services with a personal tax account. Here you can see your income tax estimate, check your state pension entitlement and submit and manage a self assessment tax return. The account will also show you your National Insurance number and you can also view your simple assessment tax bill if you have one. To set up an account, you will first need to create a Government Gateway ID on the website. Another way you can monitor your tax affairs is through the HMRC app. You can use the service to see your tax code, as well as details of your state pension forecast, income and benefits payments. You can also see an estimate of the tax you need to pay and you can make a self assessment payment or a simple assessment payment. The app can also be used to check if you can pay to cover any gaps in your National Insurance record.
