Research on Speedy Hire Plc (SDY:LON) from Equity Development
Speedy Hire's trading update causes us to downgrade our expectations, with weaker-than-anticipated Q4 trading driving a 15% EBITDA downgrade to the guided c.£90m. FY26E revenue stands at £417.7m, broadly flat year-on-year, with an adjusted PBT loss of £(4.2)m, EPS of (0.72)p, a reduced DPS of 1.00p, and year-end net debt of c.£159m. Speedy's ProService strategy continues to develop positively. Staff transfers have settled, hire asset and depot integration is well-advanced, and acquired asset utilisation has edged higher, pointing to meaningful operational momentum beyond the current subdued cycle. Valuation remains compelling. The shares trade at an EV/EBITDA of 2.7× on trough earnings, yet the DCF-based fair value of 61p — over three times the current 19.3p — reflects long-term EBITDA of c.£127m, a figure which is still below our revised FY 28 estimate.