Speedy Hire

Speedy Hire Dividend Analysis and Summary

• Declared dividend: Interim 0.30p per share (vs 0.80p in H1 FY2025; -0.50p, -62.5%).
• Ex-dividend date: 11/12/2025 (derived from record date).
• Record date: 12/12/2025.
• Payment date: 21/01/2026.
• Policy comment: Dividend rebased until end-FY2028 to help fund the ProService transaction; DRIP facility available.
• Indicative cash cost: c. £1.4m for the interim (0.30p on ~462m shares outstanding, excluding treasury).

• Coverage and sustainability: H1 FY2026 reported adjusted loss before tax of £7.2m and adjusted EPS of -1.28p (basic EPS -2.64p), so the interim dividend is not covered by earnings. However, free cash flow of £3.7m in H1 readily covers the c.£1.4m interim cash outflow.
• Balance sheet and leverage: Net debt £118.9m, leverage 2.2x (ex-IFRS 16), temporarily outside the 1.0–2.0x target. The Board expects deleveraging toward the middle of the range over 12–24 months, aided by lower fleet capex and the dividend rebase.
• Growth trajectory: The ProService agreement is expected to add £50–55m annualised revenue and be significantly earnings-accretive from FY2027. Recent multi-year contract wins (incl. Thames Water) should support H2 weighting, but near-term market conditions remain subdued.
• Capital allocation stance: Clear prioritisation of deleveraging and growth investment (reduced capex and rebased dividend through FY2028). This supports long-term dividend capacity but implies near-term dividend restraint.