Shares in ProService Building Services Marketplace PLC (LON:PRO) fell 14.5% to 3.3p after the group reported slower than expected progress in a key supply agreement and flagged a tough market backdrop.
The digital marketplace business said revenue for the year to 31 March 2026 is expected to be £248 million, reflecting delays in ramping up its agreement with Speedy Hire PLC (LSE:SDY) and weaker demand across the UK construction sector.
Adjusted EBITDA is expected to be at breakeven, in line with market expectations.
The company said early trading under the Speedy Hire contract had been positive, but operational challenges emerged as volumes increased. Activity is now trending towards initial targets, with the agreement still seen as a material growth opportunity.
Net debt stood at £27.2 million at the period end.
Debt facilities totalling £40.9 million are due to expire in September, with refinancing now expected to complete by the end of August after delays linked to macroeconomic and geopolitical conditions.
Looking ahead, the group said the 2027 financial year will be transitional, with underlying EBITDA expected between £9 million and £12 million, as uncertainty continues to weigh on both buyers and sellers.
Analyst Joe Brent flagged the relevance to Speedy Hire, which as well as a comprehensive commercial hire and services supply agreement, owns 9.99% of ProService shares.
"Trading at ProService seems disappointing," he said, but more positively was news of a broad range of buyers having signed up for platform access and a healthy pipeline of potential new large buyers attracted to its proposition, and that volumes transacted with Speedy Hire are now trending towards the targets set at the time of entering into the supply agreement.
Shares in Speedy Hire dipped 0.3% to 19.68p.