Speedy Hire (LSE:SDY), the UK and Ireland's leading tools and equipment hire group, swung to an adjusted pretax loss of £9.8m in the year ended 31 March, from an adjusted profit of £8.7m in the prior year, as financing costs rose following accelerated hire fleet investment and its transformational commercial agreement with ProService.
Revenue was broadly flat at £416.1m, down fractionally from £416.6m, though revenue excluding fuel rose 3.6% to £400.3m as growth with national accounts offset softer general hire volumes.
Adjusted EBITDA fell to £85.4m from £97.1m, with the margin contracting to 20.5% from 23.3%, reflecting operating gearing in a lower-volume environment and wage inflation including national living wage and employer national insurance increases.
Net debt rose to £159m from £113.1m, pushing leverage to 3.3 times, above the group's target range, though operating cash conversion strengthened to 102.3% and free cash flow turned positive at £3m.
The dividend has been rebased, with the company committing to progressive growth from the 2027 financial year and an intention to return to historic payout levels after 2028.
Trading since the year-end has been stronger: revenue to the end of May was approximately 2% ahead of the prior year, with adjusted EBITDA around 13% higher as operational gearing and cost discipline took effect.
Speedy Hire reconfirmed its full-year 2027 market guidance, which stands at consensus revenue of £475.3m and adjusted EBITDA of £117.3m.
