Speedy Hire refinances on back of robust year and hopes for infrastructure lift

Speedy Hire has extended and increased its borrowing facility with its banks in anticipation of an uplift in government commitments to infrastructure spending.

The Newton-le-Willows headquartered tools and specialist equipment and services said, in a trading update for the year ended 31 March 2025, that the business “performed robustly in the period against a challenging market backdrop” and expects to report results “in line with its expectations”.

Speedy has refinanced its borrowings, replacing an existing £180m asset based lending facility, which was due to expire in July 2026. The new facilities of £225m comprise a £150m revolving credit facility and a £75m private placement term loan.

The facility has a three year maturity with options to extend up to a further two years and the loan has a seven year maturity. 

In a statement issued this morning the company said: “This new debt structure will provide the group with greater flexibility to support its growth strategy.”

The costs associated with the refinancing, estimated to be around £1m, will be presented within non-underlying items when the company reports its annual results on 18 June 2025.

However, in a bid to cut £3.5m of costs several depots will close and “various support roles” in the business will be “restructured”. 

Performance wise, hire revenue was marginally up on the previous year, having been impacted by “wider economic conditions and slower than anticipated growth in Trade & Retail”. 

While there was “slightly lower than expected hire revenue” in the final quarter the company said there is “growing traction in that revenue stream”.

Part of the reason for the upbeat message is hope that the government’s support both in the short and longer term for major infrastructure programmes “remains a significant opportunity”.

The statement alluded to having secured several new, multi-year, contracts in “a promising pipeline”.

Analysts at Panmure Liberum issued a BUY note on the shares, claiming the the trading update on the back of “good wins” and noting “the pipeline is strong”. They estimate revenues will be £436.2m in 2025’s figures, rising to £450m in 2026, and £468m in 2027, and making pre tax profits of £10m, £13m and then £23m. 

“We make 4 key points: 1) A new debt facility is larger, longer duration and fits the growth ambitions better; 2) Markets are challenging but there are ample opportunities; 3) Green energy initiatives should accelerate growth; and 4) The TIC business is growing fast at high margins,” the analysts said.

Panmure reduced their target price for the shares from 30p to 25p. At close of market yesterday the share price was 19.16p.