Speedy goes digital only with B&Q

Speedy said warm weather, lower wholesale fuel prices and underperformance with its regional customers led to a 5% fall in revenues to around £420 million for its full year to 31 March 2024.

In its trading statement for the full year – final results will come in mid-June - the UK rental company said warmer weather had impacted on the rental of seasonal heating products, while its regional customers were facing cost inflation pressures and softer construction demand, leading to a 6% fall in revenues.

A Speedy outlet at a B&Q store near Glasgow. (Photo: IRN)

Speedy said sales with national customers had declined in the final quarter of the year but had traded positively for the full year.

The in-store partnership with DIY and builders merchants chain B&Q has now switched to being a digital only service. Speedy has exited the 22 in-store concessions that remained, with trading losses and exit costs amounting to £2 million for the year.

Said Speedy; “Our products and services are now available for digital hire in-store within every B&Q and Tradepoint as well as on the respective websites, demonstrating strong strategic progress in our trade and retail offering.”

The company said Green Power Ltd, the business it acquired in October last year for £20.2 million, was performing in line with its business plan and investment would continue to meet growing demand.

Speedy said that despite a challenging environment it had secured additional annual turnover in excess of £40 million for multi-year contracts with new and existing customers which had marginal benefits in the 2023/24 financial year but gave it confidence for growth in the current financial year.

“The momentum from securing major opportunities and progressing operational efficiencies, positions the group well to benefit from the anticipated recovery of the wider macroeconomic environment during the second half of FY2025”, said the company.

Speedy said investment in its five year ‘Velocity’ strategy – focusing on systems and data - represented a significant cost to the business and would be reported separately at the year end; “Our Velocity strategy represents a significant opportunity to the group in the future and we are committed to its development and execution.”

It added that the project had led to supply chain savings alongside management restructuring and “depot optimisation projects” which will deliver ongoing benefits.