Meeting revised expectations
Having last updated the market on 3 February, Speedy’s FY25 outturn has been consistent with commentary at that time. As a result, EBITDA looks to be in line with the prior year with a slightly larger H2 weighting despite a quieter Q4. In our view, Speedy’s share price discounts long-term profitability below current levels and the c.40% NAV discount looks anomalous.Speedy’s share price has traded around the 19p level since this time, so our valuation observations at that time remain valid. With pressure on UK GDP expectations, cyclical exposure is seemingly out of fashion as reflected in Speedy’s earnings multiples. The same sentiment is driving an unconventionally high dividend yield of 13.3%; we acknowledge some outlook risk here though consider this to be almost certainly overdone.
Speedy Hire provides hire equipment and services to enable the delivery of customer projects. Co.'s reportable business segments comprise U.K. and Ireland Asset Services and International Asset Services. The U.K. and Ireland Asset Services delivers asset management, with tailored services and a continued commitment to relationship management. The International Asset Services delivers major overseas projects and facilities management contracts by providing a managed site support service.
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