Speedy Hire Shares Rise Despite Update Revealing Hire Revenue Dip

Speedy Hire Plc (LON:SDY) released a business and trading update ahead of its Annual General Meeting, revealing a slight decrease in hire revenue.

The update underscores challenges in the current market environment, contributing to the stock's year-to-date decline of over 15%. However, so far on Thursday, the shares are up more than 3%.

The company acknowledged that overall market conditions remain subdued. While the UK Government's focus on economic growth is noted, this has yet to translate into significant stimulus across key sectors relevant to Speedy Hire's operations.

Despite this, management believes the company is well-positioned to capitalize on future opportunities as they arise.

Hire revenue is marginally lower compared to the same period last year. However, Speedy Hire anticipates a stronger second half, a pattern consistent with previous years.

This expectation is based on seasonal trading trends, the scheduling of major customer projects, and anticipated growth within the trade and retail customer segments. The company also highlighted recent contract wins as a positive sign.

Management's focus remains on rigorous cost control, margin management, and pricing strategies. These efforts are expected to yield further benefits in the second half of the year, helping to mitigate the impact of the softer market conditions.

Despite the current headwinds, the Speedy Hire board has maintained its expectations for the full year.