Speedy Hire (SDY) Trading Update summary

Trading performance

• FY2025 results are expected to be in line with expectations despite challenging market conditions.

• Hire revenue was slightly up year-on-year, though growth in Trade & Retail was slower than anticipated.

• New multi-year contracts were secured, and the pipeline remains promising, especially with government infrastructure support.

• Lloyds British (Testing, Inspection, Certification) achieved revenue and profit growth; Kazakhstan JV met revised expectations.

• Cost-saving measures, including depot closures and restructuring, are expected to save £3.5m annually.

Net debt and cash flow

• Net debt at year-end is expected to be around £113m, with strong cash inflows of about £10m in the last two months.

• Higher average net debt led to slightly increased interest costs, mainly due to investment in hire fleet for new contracts.

Refinancing

• Post year-end, borrowings were refinanced with new £225m facilities: £150m revolving credit facility and £75m private placement term loan.

• The RCF matures in three years (extendable by two), and the term loan matures in seven years, providing greater financial flexibility.

• Refinancing costs will be reported as non-underlying items in FY2025.