Shares in Speedy Hire PLC (LSE:SDY) dropped 12% to 19.36p as the tools and equipment hire group warned that earnings for the just-completed financial year were hit by worsening market conditions.
The equipment supplier to the construction, infrastructure and industrial sectors said it now expects earnings before interest, tax, depreciation and amortisation of about £90 million, following a weaker-than-expected fourth quarter, from January to March.
Having previously flagged subdued conditions at its interim results in November, the Haydock-based group said trading deteriorated further in the final months of the year, citing uncertainty around the UK Budget and geopolitical developments in the Middle East.
Speedy also pointed to customer-led delays, which reduced hire and service revenues in the period but are expected to unwind in the near term.
Despite the setback, strategic progress was made during the year, including a commercial agreement with Proservice Building Services Marketplace, expected to generate £50-55 million of revenue and boost earnings in its first full year.
Net debt is expected to be around £159 million at the year end, including £35 million invested in the Proservice deal, with deleveraging anticipated in the 2027 financial year.