In a trading update for the 10 months to January 2025, Speedy said that after a promising third quarter (October-December 2024) trading had slowed again in January amid the wider economic downturn.
Speedy鈥檚 financial year runs to the end of March.
鈥淭he business achieved promising year on year growth in the quarter to 31 December 2024, with hire revenue for December 5% ahead on prior year,鈥� the company said. 鈥淭he positive momentum going into our final quarter has, however, been negatively impacted by the widely reported economic downturn. This has resulted in a slower post December shutdown recovery across the majority of our customer base. Further, the delay in CP7 rail works has also had an impact on trading in the final quarter but remains a significant opportunity for the group into FY2026.
鈥淒uring the third quarter we continued to develop our Trade & Retail proposition, securing new major trading relationships, although it is taking longer to achieve the expected levels of hire revenue which we now anticipate achieving during first quarter FY2026.鈥�
Speedy has stepped up its capital expenditure in anticipation of business growth, but this has growth has been slower to arrive than previously expected. This means that the debt burden has grown, and thus interest repayments too.
鈥淣et debt at 31st January 2025 is expected to be c.拢123m (January 2024: 拢113m),鈥� the company said. 鈥淭his is the result of previously reported investment in Capex during the first half in support of new contract wins. Working capital continues to be a key focus area and consistent with prior years we anticipate strong cash inflows in the last two months of the financial year. The increased level of net debt will result in a higher than expected interest charge for FY2025.鈥�
The trading statement concluded: 鈥淲e 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.
鈥淭he 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.鈥�
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