Speedy Hire (SDY) Trading Update summary

Trading performance

• Hire revenue for H1 2024 remained consistent with the previous year, while services revenue declined by 5% due to lower fuel revenues, partially offset by growth in Lloyds British testing services.

• Group revenue was marginally down compared to H1 FY2024, reflecting challenging market conditions in some end markets.

• The Kazakhstan joint venture underperformed due to delays in major project opportunities, expected to be temporary.

• Net debt increased to approximately £112m, driven by forward buying of hire fleet assets to support growth and new contract wins, resulting in higher interest costs.

• New contracts, especially with Amey, are expected to drive significant growth in the second half, with the Board anticipating full-year expectations will be met.

Strategic initiatives and outlook

• Continued investment in the five-year Velocity transformation programme supports the growth strategy.

• The pipeline of new opportunities is expanding, with further contract wins expected to benefit FY2026 revenues.

• Ongoing government support for major infrastructure projects is anticipated to positively impact future markets.

Operational highlights

• Good progress has been made in mobilising new contracts, particularly the Amey contract announced in June.

• The Group operates from 144 service centres and on-site locations across the UK, Ireland, and through a joint venture in Kazakhstan.

• Speedy Hire holds multiple national certifications, including ISO50001, ISO9001, ISO14001, ISO17020, ISO27001, and ISO45001.