Shares in Speedy Hire have plummeted to a record low following a profit warning, with the company citing an economic downturn affecting businesses.
The Newton-le-Willows-based firm informed the London Stock Exchange this morning that its recent trading had been hit by reduced demand so far in 2025, as reported by .
The tools and equipment hire company noted that the positive trend seen towards the end of 2024 was "negatively impacted by the widely reported economic downturn".
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Speedy Hire stated: "This has resulted in a slower post-December shutdown recovery across the majority of our customer base."
The company also mentioned it has been affected by recent delays in Network Rail projects.
The firm announced: "With the challenging start to our final quarter and ongoing macroeconomic uncertainty, the board expects lower than anticipated profitability for the full year."
Following the release of the trading update, shares in Speedy Hire dropped nearly 30 per cent. The shares are now valued at approximately 19.5p, marking a new all-time low.
This decline follows what was described as "promising" year-on-year growth in the three months leading up to December, with revenues for that month increasing by five per cent.
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The company also made headway with its trade and retail proposition in the last quarter of 2024, establishing new "trading relationships".
Despite these efforts, the company acknowledged that it is taking longer than expected to generate the anticipated hire revenues within this division, projecting to reach these levels in the next financial year.
Despite this, executives are hopeful that the business will reap long-term benefits from increased government spending on infrastructure projects.
Speedy Hire's net debt for the 10 months to January 31 rose to approximately £123m, up from £113 million a year earlier, due to increased investment in new contracts.
However, it noted that these higher debt levels will result in a larger-than-anticipated interest charge for the current financial year.