Speedy Hire (SDY) H2 2024 earnings summary

Executive summary

• Launched a five-year Velocity growth strategy focused on technology, people, and operational improvements, progressing as planned in its enabling phase (years 1–3).

• Achieved resilient UK Hire performance, with national customers stable or growing despite challenging regional conditions.

• Secured significant contract wins and renewals, including a new long-term agreement with Amey and renewals with Morgan Sindall, Babcock, and Balfour Beatty.

• Invested in specialist business growth, including the acquisition of Green Power Hire, battery storage, and a joint venture for hydrogen solutions.

• Trade & Retail proposition re-engineered, exiting B&Q concessions for a digital-only model, now profitable.

Financial highlights

• Revenue declined 4.3% year-over-year to £421.5m; hire revenue down 1.7%, service revenue down 1.6%, and fuel down 23%.

• Gross margin stable at 54.6%; EBITDA margin at 23.0%.

• Free cash flow more than doubled to £24 million, supporting dividend payments.

• Net debt at year-end was £101.3 million, with leverage at 1.5x EBITDA and strong banking facilities.

• Profit before tax fell 52.1% to £14.7m, impacted by high operational gearing and lower JV profits.

Outlook and guidance

• Trading for the first months of the new year is in line with expectations, with contract wins expected to drive growth.

• FY2025 CapEx guidance is £55 million, potentially higher due to new contracts and specialist acquisitions.

• Expect second-half weighting due to seasonality and contract mobilizations.

• Targeting revenue growth to £650 million and EBITDA margin expansion to 28% by FY2028.

• Final dividend maintained at 1.80p per share, supported by free cash flow.