Speedy Hire warns over ‘challenging' conditions amid depot closures
Shares in the equipment hire firm dropped on Wednesday morning as it also reported weaker revenues and swung to a loss for the past year.
The Merseyside-based business said it was impacted by 'challenging market conditions' after the Government delayed spending on major infrastructure projects, such as Network Rail's development programme.
Speedy Hire said these challenges underpin its commitment to its accelerated transformation plan in order to return to growth.
As part of its turnaround efforts, the company said it shut eight of its depots, leading to a reduction in staff numbers.
It said its headcount dropped by 74 at the end of March compared with a year earlier.
On Wednesday, the company reported that revenues for the year slipped by 1.2% to £416.6 million for the year to March 31.
It said its hire business saw sales edge up 0.6% for the year.
Meanwhile, the group also swung to a £1.5 million pre-tax loss from a £5.1 million profit a year earlier. It also saw its net debts grow by £11.8 million to £113.1 million.
Dan Evans, chief executive of the business, said: 'Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our velocity transformation strategy during its latest phase, which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns.
'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.
'Our transformation is key to our business, ensuring service excellence, innovation and ease of transacting for our customers, from an efficient and systems driven operating model.'
Mark Crouch, market analyst for EToro, said: 'It's been anything but a smooth ride for Speedy Hire.
'Grappling with spiralling costs and softening demand, the tool and equipment rental firm has found itself under mounting pressure as challenging economic conditions have pushed the business close to its limits.
'With both revenue and profit falling short of estimates, Speedy Hire's full-year results will have done little to shore up investor confidence.
'The broader trend of businesses tightening their belts is already troubling, but Network Rail's decision to delay spending on its £45.4 billion five-year infrastructure programme has delivered yet another hammer blow.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
32 minutes ago
- Reuters
UniCredit CEO, Mediobanca executive give testimony in Monte dei Paschi share probe, source says
MILAN, June 18 (Reuters) - Milan state prosecutors have heard testimony from UniCredit CEO Andrea Orcel and a Mediobanca executive as they look into the government's sale of a 15% stake in Monte dei Paschi di Siena ( opens new tab to a small group of investors in November, a source with knowledge of the matter said. The source, speaking anonymously as the investigation is ongoing, did not say when the pair were questioned and emphasised that neither were under investigation. Mediobanca ( opens new tab declined to comment. A representative for UniCredit ( opens new tab was not immediately able to comment. The Treasury was looking to build a stable core of domestic shareholders in MPS which it rescued in 2017, according to sources ahead of the sale. It sold stakes to Banco BPM , fund manager Anima Holding ( opens new tab, construction tycoon Francesco Gaetano Caltagirone and the holding company of late Ray-Ban owner Leonardo Del Vecchio. Soon after buying its stake, BPM became a takeover target of UniCredit as Orcel moved to thwart government plans to promote a tie-up between BPM and Tuscan bank MPS. The Financial Times reported last year that UniCredit sought in vain to buy a 10% stake in MPS during the sale process. The Economy Ministry said the sale was handled "transparently". It is not known which alleged crimes Milan prosecutors are investigating or who is under investigation. UniCredit is now locked in a legal battle with the government over conditions Rome has imposed on its bid for Banco BPM. Economy Minister Giancarlo Giorgetti has threatened to resign if the government were to budge on the conditions. On Wednesday, Giorgetti declined to answer when asked if anyone from his ministry was under investigation over the MPS stake placement. "Prosecutors do their job, what can I say?," he told reporters on the sidelines of a parliamentary hearing. The takeover war unfolding in Italy and the role the government is playing has raised alarm bells in the European Union and has disconcerted investors. On Thursday, a ruling on UniCredit's takeover of BPM is expected from EU competition authorities, who are looking into the conditions Italy has set. A separate EU scrutiny of how Italy vets banking deals is ongoing and could lead to fines. As part of the Milan investigation police has secured documents relating to the transaction from the offices of Banca Akros, the broker that handled the process which is a Banco BPM subsidiary. Banca Akros has said it handled the process "correctly and transparently", fully complying with applicable regulations.
The Independent
an hour ago
- The Independent
‘Ninja' Scott Bessent says Elon Musk fancies himself as ‘a viking' as he tries to downplay their feud
Donald Trump 's Treasury Secretary Scott Bessent is downplaying his widely reported clash with billionaire tech mogul Elon Musk, the former head of the Department of Government Efficiency. Speaking on the Pod Force One podcast, Bessent attributed the friction between him and the Tesla and SpaceX CEO to stylistic differences. Describing himself as more nimble and like a ninja, he remarked that Musk, on the other hand, 'fancies himself more of a Viking,' following Silicon Valley's model of 'move quickly and break things.' Bessent's effort to minimize reports of a conflict with Musk comes after the former special government employee's spectacular falling out with President Trump the week after he stepped away from his role in the administration. At the time of his departure, Musk voiced his anger at the potential impact of the 'One Big, Beautiful Bill' on the national debt. Reports of Musk butting heads with Cabinet members over his dramatic cuts to government departments have persisted since early in the administration, with the biggest clash being a fiery shouting match with Bessent back in April. MAGA podcaster Steve Bannon claimed the confrontation, which took places after the pair had left the Oval Office, had become physical with Musk body-checking Bessent 'like a rugby player.' The Treasury secretary has not confirmed the story. 'We have had disagreements, but we both want to get to the same place,' Bessent told Miranda Devine, host of the podcast and a columnist for The New York Post. 'The Silicon Valley mode of operation is move quickly and break things. I always say here at Treasury we move deliberately and fix things.' He continued: 'I think Elon's probably fancies himself more of a Viking. I think I'm more of a ninja.' The heated argument between Musk and Bessent is reported to have occurred on April 16 after the DOGE head circumvented the Treasury boss to have Trump appoint former IRS agent Gary Shapley, who leaked details about former President Joe Biden 's son's taxes, as a temporary commissioner atop the tax-collecting agency. Bessent, whose department includes the IRS, had wanted his deputy, Michael Faulkender, to act as the interim commissioner while awaiting the confirmation of former Missouri Congressman Billy Long for the position. The argument blew up between the two wealthy Trump officials in the West Wing, at which point 'F bombs started to fly' as the normally mild-mannered Bessent aggressively confronted Musk, repeatedly shouting 'F*** you!' within earshot of the Oval Office, The Atlantic reported. One witness said it was 'quite a scene' and 'loud,' while a third described the blow-up as 'two billionaire, middle-aged men thinking it was WWE in the hall of the West Wing.' According to Axios, Bessent threw barbs at Musk regarding the lackluster nature of the alleged savings uncovered by his DOGE cost-cutting effort. In response, Musk claimed the extremely successful investor who created the Key Square Group investment fund after a career with Soros Fund Management, was a 'Soros agent' — a reference to a widespread antisemitic conspiracy theory that posits investor and Democratic Party donor George Soros is a shadowy puppet master controlling much of the American political left. The shouting between the two men became so heated that White House aides reportedly had to separate them. 'They were not physical in the Oval, but the president saw it, and then they carried it down the hall, and that's when they did it again,' said one witness who spoke to Axios. One source familiar with the dispute between Musk and Bessent told The Independent that there is no love lost between the two men, dating back to when Musk unsuccessfully lobbied for Trump to appoint Howard Lutnick, former CEO of Cantor Fitzgerald, to the Treasury role. Trump, a longtime friend of Lutnick's, later appointed him to run the Department of Commerce after shrugging off Musk's lobbying efforts, instead choosing Bessent to run the Treasury Department. The White House did not deny that the blow-up occurred. Press Secretary Karoline Leavitt issued a statement in which she said it was 'no secret' that Trump 'has put together a team of people who are incredibly passionate about the issues impacting our country.'
The Sun
an hour ago
- The Sun
DWP issues update on PIP reform plans ahead of major welfare changes
THE Department for Work and Pensions has issued a major update on PIP reform plans ahead of a major shake-up. In March, the government revealed plans to tighten the rules for claiming personal independence payments (PIP). 1 The goal is to shave £5billion a year off the nation's soaring welfare budget and drive more people to return to work. Today, the proposed legislation to make this happen was introduced in Parliament for the first time. The DWP's Universal Credit and Personal Independence Payment Bill explains how the government plans to reduce the number of people claiming PIP by making the rules for eligibility stricter. Currently, you qualify for PIP by earning enough points across different tasks, like cooking, cleaning, or managing money. But, under the new rules, you'll need to score at least four points on one specific daily living activity to qualify. This means simply having minor difficulties across several areas may no longer be enough to qualify. This change could see about 800,000 people lose out, with an average loss of £4,500 per year, according to government's own impact assessment. However, the Bill also introduces measures to protect existing claimants who might lose their payments. If someone loses their PIP under the new rules, they will still receive payments for 13 weeks as a safety net. This also applies to related benefits, such as carer's allowance. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, "will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end". Food bank network Trussell said: "The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. "The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015." The Universal Credit and Personal Independence Payment Bill has also set out how the government proposes to slash incapacity benefits offered to those on Universal Credit. It also includes a proposal to hike the Universal Credit standard allowance above inflation over the next four years. What is PIP and who is eligible? HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP). The maximum you can receive from the Government benefit is £187.45 a week. PIP is for those over 16 and under the state pension age, currently 66. Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around - or both - for three months, and you expect these difficulties to continue for at least nine months (unless you're terminally ill with less than 12 months to live). You can also claim PIP if you're in or out of work and if you're already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit. PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you. You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £29.70 or £77.05. On the daily living part of PIP, the weekly rate is either £73.90 or £110.40 - and you could get both elements, so up to £187.45 in total. You can claim PIP at the same time as other benefits, except the armed forces independence payment. What's happening with Universal Credit? The government plans to freeze the extra health payments available to those on Universal Credit who are unable to work. For people already on Universal Credit, the current incapacity payment of £416.19 a month for those unable to work will be frozen until 2030. This means the payment will no longer increase with inflation each spring. However, for new claims starting from April 2026, this very same payment will be cut by half, to approximately £208 a month (or £50 a week). This reduced amount will also be frozen until 2030, meaning new claimants will receive significantly less extra support. At the same time, the government is proposing to hike the Universal Credit standard allowance above inflation over the next four years. It believes that raising the standard allowance for everyone while reducing the health top-up will make returning to work more financially worthwhile and possible. However, charities disagree. Anela Anwar, chief executive of anti-poverty charity Z2K, said: "We all know that our broken disability benefits system needs reform. "But these reckless plans, which official estimates show will plunge more than one million disabled people into poverty or even deeper into poverty, do not represent meaningful reform. "Government suggestions that these cuts are about helping people into work are entirely disingenuous. "Experts agree that only between 1% and 3% of those who will be hit by the cuts are expected to find work as a result." The government also plans to get rid of the Work Capability Assessment (WCA), which is used to decide if someone qualifies for Universal Credit health payments, at a later date. Instead, the DWP will use the PIP assessment to decide if someone is eligible for these health payments. The DWP aims to make this change by 2028. What are Work Capability Assessments? The DWP uses the Work Capability Assessment (WCA) to evaluate a claimant's ability to work when applying for Universal Credit due to a health condition or disability. The WCA focuses on assessing functional limitations rather than specific medical diagnoses. It considers both physical and mental health, awarding points based on how an individual's condition impacts their ability to carry out daily activities. After the assessment, claimants may be placed into one of two groups - Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LCWRA). Claimants assigned to the LCW group are recognised as currently unfit for work but may be capable of returning to employment in the future with the right support and assistance. Those in this group are required to engage in work-related activities, such as attending Jobcentre appointments or training courses. Failure to comply with these requirements may result in sanctions, including a reduction or suspension of benefits. Claimants are placed in the LCWRA group if their health condition or disability is considered so severe that they are not expected to be able to work or participate in any work-related activities in the foreseeable future. Those in the LCWRA group receive an additional amount on top of their standard Universal Credit allowance currently worth £416.19 a month.
