UK tool and equipment hire group Speedy Hire Plc (SDY.L) on Wednesday reported a wider net loss for fiscal 2026, hit by one-off costs and customer delays, while revenue was broadly flat amid subdued market demand. Further, the company trimmed annual dividend.
Looking ahead to fiscal 2027, the company said that the new financial year had "started well", with trading in line with market expectations.
Speedy Hire reconfirmed market guidance for fiscal 2027, including revenue of 475.3 million pounds and adjusted EBITDA of 117.3 million pounds.
For the year ended March 31, loss before tax widened to 32.3 million pounds from loss of 1.5 million pounds a year earlier. Loss per share was 5.76 pence, compared with a loss of 0.24 pence last year.
On an adjusted basis, pretax loss was 9.8 million pounds, compared with last year's profit of 8.7 million pounds. Adjusted loss per share were 1.71 pence versus earnings of 1.41 pence a year ago.
The company slipped to an operating loss of 13.3 million pounds from a profit of 13.4 million pounds in the prior year.
EBITDA fell to 85.4 million pounds from 97.1 million pounds last year.
Annual revenue was broadly flat at 416.1 million pounds, compared with 416.6 million pounds a year ago, as previously announced customer-led delays offset contract wins.
Further, the board proposed a final dividend of 0.70 pence per share, down from 1.80 pence a year earlier, taking the total dividend to 1.00 pence, compared to 2.60 pence lat year. The final dividend, costing about 3.2 million pounds, will be paid on October 2 to shareholders on the register on August 21.
The dividend is in line with the planned reduction in dividend payments for a period up to the end of fiscal 2028 to partly fund the ProService Transaction. Afer this, the Board will look to return dividends to historical levels in line with future earnings growth.
Regarding the current trading, the firm noted that revenue to the end of May was about 2 percent ahead of the comparative period, adding that customer-led delays were resolving and related projects would contribute in the first half.
Adjusted EBITDA for the same period was about 13 percent ahead, driven by operational gearing and cost control, it added.
The company said contracts secured in fiscal 2026 gave it a solid foundation for scalable growth in fiscal 2027 despite near-term market uncertainty and geopolitical risks, as it moves into the next phase of its Velocity strategy.
On the LSE, shares of Speedy Hire were losing 0.80 percent, changing hands at 19.74 pence.
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