Speedy Hire blames economic downturn as it warns over weaker profits

Speedy Hire has warned that profits for the year will be weaker than previously expected, blaming an economic downturn affecting firms.

The tools and equipment hire company said it has been knocked by a slowdown in demand so far in 2025.

It told shareholders on Monday that positive momentum towards the end of 2024 was “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,” the company added.

Speedy Hire also revealed it is facing an impact from delays to Network Rail projects in recent months.

The firm said: “With the challenging start to our final quarter and ongoing macroeconomic uncertainty, the board expects lower than anticipated profitability for the full year.”

Recent weakness came after “promising” year-on-year growth in the three months to December, with revenues for December up 5%.

It added that it made progress with its trade and retail proposition over the last quarter of 2024 as secured new “trading relationships”.

However, it said it is taking longer to build up the expected levels of hire revenues in the division. It said it now expects to achieve this in the next financial year.

Nevertheless, bosses are optimistic that the business will benefit in the long term from increased government spending on infrastructure projects.

Speedy Hire saw its net debt for the 10 months to January 31 increase to around £123 million, from £113 million a year earlier, after higher investment due to new contracts.

However, it said higher debt levels mean the company will face a higher-than-expected interest charge for the current financial year.

Shares in the company slid 27% lower on Monday morning as a result.