Speedy Hire (SDY) Trading Update summary

Trading performance

• Achieved 5% year-on-year hire revenue growth in December 2024, but momentum slowed post-holiday due to economic downturn and delayed CP7 rail works.

• Trade & Retail proposition developed with new trading relationships, though revenue ramp-up is slower than expected and now anticipated in Q1 FY2026.

• Amey contract fully mobilized and performing in line with expectations.

• Kazakhstan joint venture saw a significant downturn from early contract shutdowns, with ongoing impact expected into FY2026 but future growth opportunities remain.

Financial position

• Net debt at 31 January 2025 expected to be around £123m, up from £113m in January 2024, mainly due to capex for new contracts.

• Working capital remains a key focus, with strong cash inflows anticipated in the last two months of the financial year.

• Higher net debt will result in a higher than expected interest charge for FY2025.

Outlook

• Velocity strategy remains central, with ongoing cost management and investment balancing in response to economic conditions.

• Growth pipeline remains promising, supported by new/existing customers and expected government infrastructure spending.

• Board now expects lower than anticipated profitability for the full year due to a challenging start to the final quarter and macroeconomic uncertainty.