Shares in Speedy Hire have slumped to a new all-time low after it issued a profit warning, blaming an economic downturn affecting firms.
The Newton-le-Willows company told the London Stock Exchange this morning that its recent trading had been impacted by a slowdown in demand so far in 2025.
The tools and equipment hire business added that positive momentum towards the end of 2024 was “negatively impacted by the widely reported economic downturn”.
Speedy Hire added: “This has resulted in a slower post-December shutdown recovery across the majority of our customer base.”
The business 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.”
In the aftermath of the trading statement being published, shares in Speedy Hire slumped by almost 30 per cent.
Its shares are now trading at around 19.5p, a new all-time low.
Recent weakness came after “promising” year-on-year growth in the three months to December, with revenues for December up five per cent.
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 £123m, 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.