Speedy Hire has swung to a loss before tax of £1.6m in the year to 31 March, following a profit of £5.1m in its 2024 financial year.

In this period, the tools and equipment hire firm saw its revenue drop by 1.2% to £416.6m, while its operating profit fell by over 10% to £13.4m.

Furthermore, its net debt increased by £11.8m in the year to 31 March to £113.1m.

Speedy Hire said although its hire and services revenue, excluding fuel, were up 0.6% and 4.5% respectively, "challenging market conditions" along with delays in Government spending impacted major infrastructure projects, leading to these results.

Despite this, Speedy Hire said it remains committed to delivering on its Velocity growth strategy, which involves investment in its hire fleet and business transformation to position it for growth.

Chief executive at Speedy Hire, Dan Evans, said: "Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our Velocity strategy during its 'Enable' phase, which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns.

"Our transformation is key to our business, ensuring service excellence, innovation and ease of transacting for our customers, from an efficient and systems driven operating model.

"We anticipate seeing the benefit from a promising pipeline of growth opportunities with new and existing customers, alongside increased commitment and clarity on government spending."

Despite the positive outlook, investment director at AJ Bell, Russ Mould, said that it needs one of its "excavators to dig it out of a hole".

He concluded: "Profits have gone into reverse, net debt has moved upwards, positive free cash flow has evaporated and there is no dividend growth.

"The company has blamed delays in government spending impacting major infrastructure projects. However, there is a big clue as to the potential future direction of trading.

"It has boosted investment in hire fleet which indicates management is upbeat about the short to medium term opportunities. Construction rental companies don’t spend millions of pounds on new kit unless they’re confident that demand will go up."

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