Speedy Hire PLC (LSE:SDY) has warned profit will be below expectations this year as the equipment rental firm grapples with the UK’s wider economic downturn.
Though hire revenue climbed 5% year on year in December, momentum had been hit by wider woes over the final quarter, a statement said on Monday.
Speedy Hire flagged a “slower post-December shutdown recovery across the majority of our customer base”.
Delays in works under National Rail’s control period 7 plan, covering 2024 to 2029, had also weighed over the quarter, it said, while revenue from new partnerships was now expected later and its Kazakhstan joint venture faced a “significant downturn”.
“We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions in response to the current economic climate,” the company noted.
“The group has a promising pipeline of growth opportunities with new and existing customers and should benefit from increased government spending on infrastructure projects.
“Nevertheless, with the challenging start to our final quarter and ongoing macroeconomic uncertainty, the board expects lower than anticipated profitability for the full year.
Net debt was expected to sit at £123 million as of late January, against £113 million a year earlier, Speedy Hire added.