Speedy Hire accelerates depot closures after Reeves tax hikes
Speedy Hire said it has accelerated the planned closures of several of its depots and restructured various support roles as it wrestles with the fallout from a raft of tax hikes.
The London-listed company said the move had saved around £3.5m in costs over the year in what it described as a “challenging market backdrop.”
Despite the challenges, Speedy Hire said trading over the last financial year was in line with expectations.
Shares were up just over one per cent by mid-afternoon trading, but have fallen over 30 per cent this year to date.
Speedy Hire has suffered amid a major slowdown in demand and delays to Network Rail projects, where it supplies construction equipment.
Shares hit an all-time-low in February following a profit warning which overturned a recovery in the quarter leading up to December.
The Newton-le-Willows firm on Wednesday announced a new £225m refinancing, comprising a £150m revolving credit facility (RCF) and a £75m private placement term loan.
“The RCF has a three year maturity with options to extend up to a further two years and the private placement term loan has a seven year maturity. This new debt structure will provide the Group with greater flexibility to support its growth strategy,” Speedy Hire said in a statement to markets.
“The group remains positive about its pipeline of opportunities and the actions we have taken give confidence into the new financial year,” it added.
The equipment hire specialist won several multi-year contracts over the last quarter and said on Wednesday recent government backing for a series of major infrastructure projects represented a “significant opportunity.”
It will announce final results for the financial year ended 31 March 2025 on 18 June 2025.