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
Daily Mail
2 hours ago
- Daily Mail
Top Trump aide lifts lid on his 'body check' fight with Elon Musk and calls him a 'Viking'
Treasury Secretary Scott Bessent on Wednesday spoke about his clash with Elon Musk at the White House, which famously leaked out into the press and drew widespread speculation about Musk's future at the White House. The Treasury Secretary tried to downplay the outburst, saying they were both on the same team. 'We have had disagreements, but we both want to get to the same place,' Bessent said to New York Post podcast host Miranda Devine on Monday. 'We both want to eliminate the waste, fraud and abuse in government.' Bessent and Musk famously got into a shouting match in April over who had the authority to appoint as head of the IRS. The Treasury Secretary chalked up their feud to a difference in strategies. '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 said. He compared their differences to different fighting styles. 'I think Elon's probably fancies himself more of a Viking. I think I'm more of a ninja,' he said. Bessent said that the attempts by leftwing activists and the press to vilify Musk was part of the reason he was upset. 'He was vilified by the press, by the Tesla customers, and I think that probably put stress on him,' he said. Musk left the White House at the end of May after his 130 day period as a special advisor was concluded. But Bessent said the Trump administration would continue Musk's mission at DOGE. 'I think of DOGE as an ethos and to the extent that Elon has departed physically, I think that ethos is there and the momentum for what he's done yield bigger and bigger savings over time.' In April, Trump's former Chief Strategist Steve Bannon told that Musk's physically 'shoved' 62-year-old Treasury Secretary after he was confronted over wild promises to save the administration 'a trillion dollars '. 'Scott Bessent called him out and said, "You promised us a trillion dollars (in cuts), and now you're at like $100 billion, and nobody can find anything, what are you doing?"' Bannon said. 'And that's when Elon got physical. It's a sore subject with him,' he continued. 'It wasn't an argument, it was a physical confrontation. Elon basically shoved him.' Trump confirmed the clash in June between his two billionaire advisors but denied that it got physical. 'They did have an argument, but I didn't see a lot of physicality there,' he said. Bessent boasted in the podcast interview that blue collar wages under President Trump had risen significantly since he took office. 'We've seen real wages for hourly workers, non supervisory workers, rise almost two percent in the past five months, no president has done that before,' he said. Bessent credited Trump's commitment to manufacturing and deportation of illegal immigrants as the reason for growth.
BBC News
2 hours ago
- BBC News
Warm Homes Discount: Millions on benefits to get £150 off bills
Double the number of households in Britain will get £150 off their energy bills this winter as the government changes the rules on who qualifies for the Warm Home on means-tested benefits will automatically see the money knocked off their bills no matter what size of property they live in. While debt charities and energy groups have welcomed the move, some say the scheme still leaves out some of those most at risk, including those on non-means tested benefits. Simon Francis from the End Fuel Poverty Coalition said: "With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter". It's energy companies who pay for and distribute the £150 discount to people's bills across England, Scotland and Wales. But it's the government which sets the criteria for who should receive it. Those rules were tightened under the previous administration, limiting the payment to those on the guaranteed element of pension credit, or those on means-tested-benefits living in a home with a high energy the qualification about property size, type and home energy score is being scrapped. As a result this winter 2.7 million more homes will get this extra energy bill help, including almost a million households with extension comes hot-off-the-heels of the government U-turn to re-instate the Winter Fuel Payment to the majority of pensioners. The bill for expanding the Warm Home Discount will be paid by energy companies and could be passed on through the Standing Charge, so it's possible all customers will see a slight increase in bills in the Autumn to cover this announcement. However, the government say any rise will be cancelled out by savings made by cutting energy company's expenditure and doing more to sort problem bills controlled by the energy price cap have been reduced over the summer months, and Standing Charges fell in all areas because the rules on what expenditure companies can pass on was restricted. However, current market expectations are for another rise in gas and electricity bills from the start of October because of higher oil and gas energy suppliers, Energy UK's chief executive Dhara Vyas welcomed today's announcement and said she hoped to see more help for those most in need "by accelerating progress on a new improved targeted support scheme."
Wales Online
2 hours ago
- Wales Online
110,000 extra households in Wales will see energy bills cut by £150
110,000 extra households in Wales will see energy bills cut by £150 The warm home discount is being extended, which means thousands of more households in Wales will see their energy bills slashed by £150 this winter An additional 110,000 households in Wales are set to receive a £150 reduction on their energy bills this winter as the warm home discount scheme is extended, the UK Government has confirmed. The latest measure comes after a series of cost of living support initiatives were made through the government's Plan for Change. As a result approximately 110,000 extra households in Wales will get a £150 decrease in their energy bills this winter. For money-saving tips sign up to our Money newsletter here. In the UK more than six million households will receive the discount, which will see 2.7m more households receive support including 900,000 families with children and a total of 1.8m households in fuel poverty. According to the UK Government every billpayer on means-tested benefits will be eligible, eliminating previous restrictions that excluded those in need in the past. On the UK Government's website they say their Plan for Change initiative aims to stabilise the economy, adding: "Our missions – growing the economy, an NHS fit for the future, safer streets, opportunity for all, and making Britain a clean energy superpower – are part of a decade of national renewal built on the foundations of a stable economy, secure borders, and national security." It comes after First Minister of Wales Eluned Morgan said she would hold the UK Government's 'feet to the fire' after receiving what she said were categorical assurances that Prime Minister Keir Starmer would follow through on a manifesto pledge of returning the running of post-EU structural funding to the Welsh Government. You can read more about this here. Article continues below In regards to the £150 reduction to thousands of households in Wales Mr Starmer said: " I know families across Wales are still struggling with the cost of living and I know the fear that comes with not being able to afford your next bill. "Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change." Secretary of State for Wales Jo Stevens added: "This big increase in the number of households receiving money off their energy bills will make a real difference to working people and families right across Wales. "Our key objective is putting more money in people's pockets, firstly by growing the economy but also by increasing the minimum wage, making increases to universal credit and the state pension, and providing support with energy bills." The energy price cap is set to reduce this July with the additional £150, which was announced on Wednesday, June 18, aiming to further help households. Households can find out if they are eligible with the UK Gov website here. Article continues below
