Speedy results “satisfactory” despite challenging market

Speedy Hire has said its half year results for 2024 are “satisfactory” following what it describes as challenging market conditions in some of the Group’s end markets.

It said its hire revenues for the period are consistent with H1 FY2024, although lower margin Services revenue is 5% down, impacted by a decline in fuel revenues caused by a fall in wholesale fuel prices.

As a result, it said Group revenue is marginally down compared to H1 FY2024.

Meanwhile, the Group said it had continued to invest in the business to deliver on its growth strategy and as part of its five-year Velocity transformation programme, adding that the “pipeline of new opportunities continues to grow” with further contracts in the second half to benefit revenues in FY2026.

Net debt at the half year increased to £112 million, which it said was the result of forward buying of hire fleet assets to support growth with key customers including previously announced contract wins. 

One such contract is one with UK-based infrastructure services firm Amey announced in June this year. Speedy said it expects that to deliver “significant growth” in the second half.

Speedy Hire secures major infrastructure contract with Amey UK-based Speedy is to provide non-operated plant hire to Amey’s operations on a range of sector contracts including rail, highways and public estates

The new long-term contract, for revenue of up to £25 million per annum, is set to begin during the second half of Speedy Hire’s financial year, subject to a transition period.

As part of the agreement, Speedy Hire will provide non-operated plant hire to Amey’s operations on a range of sector contracts including rail, highways and public estates, a significant portion of which will consists of eco-products including H-Power Generators from Speedy Hydrogen Solutions and battery storage units from Green Power Hire.

As a result, the Board said it anticipates the Group meeting its full year expectations.

Elsewhere, its joint venture in Kazakhstan has performed below expectations in the period, due to delays in major project opportunities, although it said it to be “a matter of timing.”

Speedy will announce its full half year results on 21 November 2024.