Latest news with #SpeedyHire
Rhyl Journal
an hour ago
- Business
- Rhyl Journal
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.'
Daily Mail
3 hours ago
- Business
- Daily Mail
Speedy Hire profits fall as government puts off rail improvements
Speedy Hire has reported lower profits amid delays in government spending on major infrastructure projects. 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.
North Wales Chronicle
5 hours ago
- Business
- North Wales Chronicle
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.'
South Wales Guardian
5 hours ago
- Business
- South Wales Guardian
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.'
Glasgow Times
7 hours ago
- Business
- Glasgow Times
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.'
