Speedy Hire sees FY results at lower end of its expectations

In the six months to the end of September, adjusted pre-tax profit declined 56% to £5.9m on revenue of £208.5m, down 2.9% on the same period a year earlier.

The drop in profit was attributed to the company’s investment in transformation to support its Velocity strategy, the fact that its Kazakhstan joint venture performed behind its record performance in FY23 - impacted by dollar exchange movements - and higher interest rates.

"Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, the business is resilient and well positioned to manage these challenging market conditions," the tools and equipment hire company said.

"As in prior years, the group expects a strong second half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period, including those communicated at year end. We expect to see the benefits of our investments in our Velocity strategy including operational efficiency and supply chain optimisation, in the second half and beyond."

At 0920 GMT, the shares were down 6.3% at 33.50p.