Speedy Hire (SDY) H1 2025 earnings summary

Executive summary

• Delivered resilient first half results amid challenging market conditions, with continued investment in the Velocity strategy and hire fleet to support growth and contract wins, including Amey, and a strong pipeline for future growth.

• Trade and Retail segment turned profitable after restructuring and digitization, with B&Q tool hire growth.

• Lloyds British (TIC) business grew 10.7-11% year-over-year.

• October and November trading started well, with hire revenue up 3% year-over-year; full-year expectations remain intact.

• Loss after tax of £1.6m was driven by non-underlying transformation costs and higher interest expenses.

Financial highlights

• Revenue for the half declined 2.4% year-over-year to £203.6m, mainly due to lower wholesale fuel costs; gross profit margin improved to 56%.

• EBITDA margin maintained at 22% despite £2.7m in staff pay rises; 97% EBITDA-to-operating cash conversion achieved.

• CapEx investment of £26.4m in new hire fleet, £10m higher than prior year; net debt at £111.8m, up due to Green Power Hire acquisition.

• Free cash outflow of £1.6m in the half, but full-year free cash flow expected to be positive in the low teens of millions.

• Interim dividend held at 0.80p per share, payable January 2025.

Outlook and guidance

• Second half expected to be stronger, with Amey contract mobilization, continued Lloyds British growth, and Trade and Retail improvements.

• CapEx for the full year guided at £45-50m; leverage expected to fall from 1.8x to 1.5x by year-end.

• Board expects to meet full-year expectations, with a second-half weighting consistent with prior periods.

• FY2026 faces a £5m headwind from government budget changes, with mitigation plans in place.