Speedy update suggests market softening
30 January 2024
In a trading update today, Speedy Hire says that following weakness in some end markets and seasonal product lines, combined with delays in mobilisation of significant contract wins, the Board expects full-year profits to be below previous expectations.
The company reports resilient performance in the face of cost inflation and macroeconomic uncertainty. Construction sector challenges mean that revenues from national customers are now up 3% year-on-year as at end of the third quarter, compared to +5% at the end of H1, whilst revenues from regional customers have continued to track 6% down year on year, unchanged from the position reported at H1.
Speedy says the warmer winter has impacted revenue from seasonal products, although the company is prepared if the usual cold conditions reappear.
More positively, the hirer has seen revenue growth from new and existing national customers. In Q3, it secured over £40m of annualised revenue from new multi-year contracts. These have taken longer to mobilise due to contract specific delays and will have only marginal benefit in the 2024 financial year (FY24), with the full effect coming in the following year.
Speedy says its five-year Velocity growth and performance programme, focused on the areas of People First, ESG, Digital and a Modern Workplace, is on track, with supply chain benefits arising from its implementation being seen in the second half of FY24.
The acquisition of Green Power Hire is performing in line with expectations and Speedy says it has bought further units to enlarge its battery storage unit fleet to meet customer demand.
Speedy’s partnership with B&Q continues to evolve with products and services now available for digital hire in-store within every one of the retail warehouse’s locations.
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