Speedy Hire Plc (LSE:SDY) reported stable revenue for the year ended 31 March 2026 as growth from major customer accounts and its ProService commercial agreement offset softer demand in parts of its traditional hire business. The company continues to reposition its operations towards long-term infrastructure, regulated markets and higher-value service contracts as part of its ongoing transformation strategy.
Revenue Holds Firm Despite Mixed Market Conditions
Group revenue was broadly unchanged at £416.1 million during the year, reflecting resilient performance despite challenging market conditions.
Growth in national accounts and contributions from the ProService agreement helped offset weaker general hire activity and lower fuel-related revenue. Management said the business is increasingly focused on securing multi-year contracts across infrastructure and regulated sectors, creating a more predictable revenue base and supporting future expansion.
The strategy is being supported through ongoing investment in digital capabilities and operational improvements under the group’s Velocity programme.
Investment Programme Impacts Profitability
While revenue remained stable, profitability came under pressure during the year.
Adjusted EBITDA declined 12% to £85.4 million, while Speedy Hire reported an adjusted pre-tax loss of £9.8 million. Management attributed the decline to a combination of wage inflation, softer volumes and increased financing costs linked to accelerated fleet investment and the completion of the ProService transaction.
The company increased investment by approximately £20 million as it completed the “Enable” phase of its strategic programme, aimed at building a platform for future growth.
Higher Debt Leads to Dividend Rebase
Net debt increased to £159.0 million by year-end, with leverage rising to 3.3 times EBITDA.
In response, the board reset the dividend to 1.00 pence per share as it prioritises balance sheet management and debt reduction. Management expects strong cash generation over the next two years to support deleveraging while maintaining investment in growth opportunities.
The company believes the current investment cycle will position the business to generate stronger returns over the longer term.
Trading Momentum Improves in New Financial Year
Early performance in the current financial year has been encouraging, with trading ahead of the comparable period last year.
Revenue increased by approximately 2% to May, while adjusted EBITDA rose by around 13%, benefiting from operational leverage and the easing of project delays experienced previously by some customers.
Management also highlighted positive early performance from the ProService agreement, which is expected to contribute between £50 million and £55 million of annualised revenue. The contract is anticipated to become significantly earnings accretive during FY2027, strengthening confidence in the group’s medium-term outlook.
Outlook Balances Growth Opportunities and Financial Challenges
Speedy Hire’s long-term growth strategy is supported by increasing exposure to infrastructure spending, long-duration contracts and diversified service offerings.
However, the investment case continues to be influenced by weaker profitability, slower cash flow growth and elevated leverage levels. Technical indicators remain subdued, with the shares trading below key trend levels and momentum measures remaining negative.
The company’s dividend yield provides some valuation support, although earnings pressures continue to weigh on traditional valuation metrics.
More About Speedy Hire
Speedy Hire Plc is one of the leading providers of tool hire, specialist equipment and support services across the UK and Ireland. The company serves customers in construction, infrastructure, industrial and regulated sectors through a combination of equipment rental, testing, inspection and certification services.
The group has increasingly focused on securing long-term national contracts and expanding its services offering, aiming to generate more resilient revenue streams and strengthen its position in critical infrastructure markets.
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