Speedy downgrades profit forecast
06 February 2024
UK-based Speedy Hire has downgraded its profit forecast, citing a warmer winter and wider challenges in the construction sector.
Revealed in its latest trading update, revenues in the UK for Q3 ending December 31 were up by 3%, down from the 5% it posted in its half year results.
Revenue from regional customers declined by 6% following challenges across the Construction sector, although this has remained unchanged from its previous guidance for the half year.
Speedy said that despite the downgrade, the company is performing “resiliently in the face of cost inflation and macroeconomic uncertainty.”
More positively, the company has secured over £40 million of annualised revenue from new multi-year contracts which has given it a “strong pipeline of opportunities,” but it isn’t expecting to see the effects until the 2025 financial year due to “contract specific delays.”
Speedy said the purchase of battery storage unit specialist Green Power Hire Limited is performing in line with its business plan, with further units added to its fleet since the acquisition.
Elsewhere, it has made products and services available for digital hire in-store within every B&Q and Tradepoint as well as on the respective websites as part of a deal struck last year.
Its Velocity Strategy, a five year growth plan that it launched in July 2023, remains on track. Speedy said it noted supply chain benefits from the strategy in the second half of FY24 and expects it to “continue to deliver benefits into future years.”
Looking ahead, the company said Velocity will “deliver benefits and opportunity for Speedy for the long term.” It also expects net debt to reduce from the current level of £117.3 million in the last quarter of the financial year.
Speedy attributed the debt to the purchase of GPH and described it as the “normal seasonal high point.”