Speedy Hire ends year as expected as it refinances debt

(Sharecast News) - Speedy Hire said in an update on Wednesday that it expects to report full-year results in line with expectations, after delivering a resilient performance for the year ended 31 March despite challenging market conditions. The London-listed company also announced a refinancing of its debt facilities, providing increased financial flexibility to support future growth.

Hire revenue was marginally ahead of the prior year, although growth in the trade and retail segment was slower than anticipated, particularly in the final quarter.

The firm said momentum in that channel was now building, with efforts underway to expand its customer base in the 2026 financial year.

Broader economic conditions and continued delays in the CP7 rail programme weighed on some activity, though Speedy noted ongoing government support for major infrastructure projects remained a significant opportunity.

The Lloyds British division, which provides testing, inspection and certification services, delivered revenue and profit growth, while the group's joint venture in Kazakhstan traded in line with revised expectations.

Interest costs for the year were slightly higher than previously forecast due to increased average net debt, primarily reflecting investment in core and specialist hire fleet to meet new contract demand.

The company also accelerated several depot closures and support function restructuring in response to higher employment taxes announced in the Autumn budget.

Speedy said the measures were expected to generate annual savings of £3.5m, with related costs recognised as non-underlying items.

Net debt at year-end was £113m, supported by strong cash inflows of around £10m during the final two months of the year.

The group said it remained focused on working capital discipline.

Following the year-end, Speedy completed the refinancing of its debt facilities, replacing a £180m asset-based lending facility with a new £225m structure comprising a £150m revolving credit facility and a £75m private placement term loan.

The revolving facility would mature in three years with two one-year extension options, while the term loan would mature in seven years.

Speedy said the new arrangement would provide it with enhanced flexibility to support the company's growth strategy.

The board said it would announce its full-year results on 18 June.

At 1023 BST, shares in Speedy Hire were down 2.68% at 18.65p.

Reporting by Josh White for Sharecast.com.