Speedy Hire has plunged into the red, grappling with a challenging economic landscape and tax increases announced in Chancellor Rachel Reeves' Autumn Budget.
The London-listed equipment hire specialist reported a pre-tax loss of £1.5m for the year ending 31 March, 2025, a stark contrast to the previous year's gains of £5.1m, as reported by .
On an adjusted basis, earnings before interest, taxation, depreciation and amortisation (EBITDA) also dipped by 0.3 per cent to £97.1m, while its revenue decreased from £421.5m to £416.6m.
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Headquartered in Newton-le-Willows, Speedy Hire has been compelled to shut numerous depots, attributing this to National Insurance hikes announced by Rachel Reeves last October.
The firm also warned that delays in government spending have adversely affected major infrastructure projects, although it claimed to have increased its market share in this sector.
On Wednesday, Speedy Hire disclosed that eight depots had been closed over the course of the year, along with an unspecified "reduction in headcount."
The company's debt pile also saw a significant increase, rising by £11.8m to £113.1m for the full year.
Shares dropped nearly five per cent as markets opened, with the stock down more than 12 per cent year-to-date.
Speedy Hire looks to manage costs
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Chief Executive Dan Evans commented in a statement: "We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions through the economic cycle," and added, "We are well positioned to capitalise on end market recovery."
Evans remains confident that the group will meet full-year expectations as it rolls out its "Velocity" growth strategy.
"Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our Velocity strategy... which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns," he stated.
"We anticipate seeing the benefit from a promising pipeline of growth opportunities with new and existing customers, alongside increased commitment and clarity on government spending."
Speedy Hire's shareholders have been informed they can expect dividends per share of 2.6p, consistent with the previous year.