Speedy Hire warns over ‘challenging' conditions amid depot closures
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
an hour ago
- Reuters
US announces $1 billion in funding for critical minerals, materials sectors
Aug 13 (Reuters) - The Trump administration will make available $1 billion in funding to accelerate the growth of the U.S. critical minerals and materials sectors, the Energy Department said in a statement on Wednesday. The department will issue notices of funding opportunities to advance and scale mining, processing and manufacturing technologies in the critical minerals and materials supply chains, the statement said.
Daily Mail
an hour ago
- Daily Mail
Appalling text Phoenix news anchor sent husband that ended with their lives in ruins
A glamorous ex-news anchor convicted of a billion-dollar fintech scheme sent a text to her husband admitting they were fraudulently applying for government funds. Stephanie Hockridge-Reis's appalling message to her husband Nathan Reis emerged as Reis took a plea deal over his part in the Covid-19 funding scam. The couple were accused of submitting false applications for Payment Protection Program (PPP) loans during the height of the pandemic. Hockridge-Reis, 42, pleaded not guilty, but a federal jury convicted her of one count of conspiracy to commit wire fraud in June this year. She was acquitted of four counts of wire fraud. Prosecutors allege the couple coached borrowers to submit fraudulent PPP loan applications and received kickbacks once the funds were secured. The former KNXV-TV anchor claimed her actions were a 'sincere effort to support small businesses' in navigating a chaotic government problem during an era of 'unprecedented need'. But a text message she reportedly sent to Reis, 47, that appears to admit guilt has re-emerged after he pleaded guilty to their crime. 'This is us trying to apply for free money — when we don't quite qualify. lol,' she texted Reis, according to a federal indictment obtained by The Arizona Republic. Stephanie Hockridge-Reis allegedly sent a text to her husband admitting that she knew they were 'trying to apply for free money — when we don't quite qualify' Reis was scheduled to stand trial this month but entered into a plea deal on Monday, court records show. He will be sentenced in November. A federal jury found Hockridge-Reis guilty of conspiracy following the end of her trial in June. The case centered on Blueacorn, the fintech firm the couple co-founded in April 2020, just weeks after Hockridge-Reis left her anchor job. Blueacorn claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say the company became a fraud factory. According to a congressional subcommittee, Blueacorn processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, while spending virtually nothing on fraud prevention. While many small businesses struggled to survive during the pandemic, the Reis family were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales. The court was shown photos of her holding stacks of $100 bills in a bathtub and video captured at a luxury beachfront apartment in Puerto Rico, where the couple had relocated to avoid US capital gains tax. The jury also saw internal messages encouraging staff to 'push through' loan applications with no regard for red flags and a so-called 'VIPPP' list that allowed high-dollar clients to bypass security checks. 'Who the f*** cares,' she allegedly said in one message about improperly rejected applicants. 'We're not the first bank to decline borrowers who deserve to be funded… They can go elsewhere.' Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. Hockridge-Reis, an Emmy-nominated journalist who once graced magazine covers as ' Arizona 's Favorite Newscaster', will appear in court for sentencing on October 10. She faces up to 20 years in prison for the conspiracy conviction. According to court filings, the couple submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. They received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention, less than 1 percent of its intake. She spent seven years as a respected anchor for the Phoenix-based ABC affiliate and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' During the trial, federal attorneys also introduced a superseding indictment alleging that the couple fabricated payroll records, tax documents, and bank statements. In one application, Hockridge-Reis and Reis claimed to own an Amazon business generating six figures. Another loan was issued to a nonexistent company they claimed had multiple employees. The couple allegedly rerouted money through a chain of bank accounts, using interstate wires to disguise their tracks. Federal investigators say that Reis played a central role in overseeing Blueacorn's day-to-day operations and financial distributions - and helped foster the toxic culture that prioritized profit above all else. Reis plead guilty to one count of conspiracy to commit wire fraud on Monday. He is scheduled to be sentenced on November 21 and also faces a maximum penalty of 20 years in prison. The couple's case was also connected to Eric and Anthony Karnezis, two men who earlier this year pleaded guilty to PPP fraud in a related case. Eric Karnezis agreed to pay between $25 million and $65 million in restitution; Anthony agreed to repay between $3.5 million and $9.5 million. The convictions underscore what federal watchdogs have called the largest fraud wave in US history - fueled by emergency Covid aid programs and exploited by thousands of bad actors. The Paycheck Protection Program, meant to protect workers, became a cash cow for predators.
Times
an hour ago
- Times
Public spending rise leaves economy with £26 billion black hole
Rising health and benefits spending as well as a decline in North Sea oil taxes have meant a widening of Scotland's fiscal deficit to more than £26 billion, official data has shown. The annual Government Expenditure and Revenue Scotland (GERS) report noted there had been a 'weakening' of public finances as spending grew more quickly than revenue. Shona Robison, the finance secretary, suggested the nation's finances are 'sustainable' although business groups described the update as 'disappointing'. The net fiscal deficit for the 12 months to March this year was £26.5 billion, equivalent to 11.7 per cent of GDP, compared to £21.4 billion, or 9.7 per cent of GDP, in the previous financial year. The UK deficit for 2024-25 was 5.1 per cent of GDP. Revenue from the public sector in Scotland increased by 1.5 per cent to £91.4 billion while spending grew 5.6 per cent to £117.6 billion. The report noted the spending rise reflected the larger amounts going to 'devolved social security programmes' while the weaker growth in revenue will have been affected by the SNP's council tax freeze under Humza Yousaf. Scotland's more generous welfare provisions, such as the Scottish child payment, are attempting to tackle poverty but many economists, including those from the Scottish Fiscal Commission which helps to inform Holyrood's budget setting, have raised concerns about the growing burden on the state at a time when public sector finances are strained. The burgeoning public sector pay bill in Scotland is another area about which economists have worries. The GERS document covers devolved and UK government revenue and spending as well as assigning Scotland portions of industries such as oil and gas and defence. The publication is produced by public sector statisticians without political interference. It shows spending per person in Scotland was equivalent to £21,192, up from £20,251. The UK figures were £18,523 for 2024-25 and £17,940 for the previous year. Ian Murray, the Scottish secretary, argued that shows the benefit of being in the UK as Scots get £2,669 more spent on them per person than the UK average. Murray acknowledged people will 'rightly expect to see better outcomes' given higher spending levels and said giving Holyrood ministers full fiscal autonomy would lead to 'turbo-charged austerity and economic chaos for Scotland'. He said: 'These figures underline the collective economic strength of the United Kingdom and how Scotland benefits from the redistribution of wealth inside the UK.' Craig Hoy, from the Scottish Conservatives, said GERS showed the 'huge, and rising, union dividend' which Scots got from being part of the UK. He said: 'If we lost that, as we would if the SNP achieved their goal of Scottish independence, it would have a catastrophic impact on the nation's finances.' Robison pointed out GERS is calculated by assuming existing constitutional arrangements are in place so was not a measure of how the country might fare as an independent nation. She highlighted the recent success of Ireland as evidence of how small countries can thrive and stated GERS showed devolved revenue had grown 9.7 per cent in 2024-25 while spending was up 6.8 per cent. Robison said: 'The decisions we have taken here in Scotland are helping support sustainable public finances. 'Scotland's public finances are better than many other parts of the UK, with the third-highest revenue per person in the UK, behind only London and the South East. • 'Falling oil prices and a decrease in extraction present challenges going forward, but we are clear in our support for a just transition for Scotland's valued oil and gas sector, which recognises the maturity of the North Sea basin and is in line with our climate change commitments and energy security.' The Fraser of Allander Institute at Strathclyde University said the reduction in North Sea oil and gas tax receipts assigned to Scotland, which went from £4.9 billion to £4.1 billion as energy prices and production dropped, had played a part in the deficit widening. Michelle Ferguson, the director of CBI Scotland, said: 'The fact that Scotland's fiscal deficit has widened again in the latest GERS figures will be disappointing news for firms and households alike. 'Healthy public finances are essential to delivering high-quality public services, which in turn support business confidence, investment, and the skills base Scotland needs to grow its economy. 'With economic growth now forecast to be weaker over the coming months and firms still facing a heavy cost burden from stubborn inflation, it is vital that both the Scottish and UK governments continue to back business through this difficult period.'
