Speedy Hire is the UK and Ireland’s leading provider of tools, specialist equipment and services operating from a nationwide network of c.180 depots. Its activities comprise: Hire (59% FY23 revenue); generated from a broad range of plant, equipment and tool assets as well as transportation & repair income), Services (40%); includes third party asset re-hire, training, testing and the sale of fuel & other consumables, and Other (c.1%); asset disposals. During FY24, Speedy transitioned its trade/retail presence with B&Q to a digital fulfilment model. SDY also has two JV operations: Speedy Zholdas (in Kazakhstan, since 2013) and Speedy Hydrogen Services (UK, launched in H224).

25 Nov 2024

Positive start to important H2 trading period

Market conditions have been challenging but Speedy has delivered resilient metrics in H125 trading and is investing for growth.

All eyes now turn to an expected acceleration of revenue and profit growth in H2 with visible drivers for doing so. The recent share price performance suggests some investor scepticism that this will be achieved, but a c.11% NAV discount and 9.2% prospective dividend yield also catch the eye ahead of further newsflow.

We have retained our 51.1p/ share fair value estimate and evidence of accelerating H2 growth will justify this position. Ahead of that, we note that Speedy is now trading on an 11% discount to its H125 NAV and offers an FY25E dividend yield of 9.2%.

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