Half Year Results

Speedy Hire Plc

("Speedy Hire", "the Company" or "the Group")

26 November 2025

FY2026 Interim Results

Results for the six months to 30 September 2025

Speedy Hire Plc, the UK and Ireland's leading provider of tools, specialist equipment and services, announces results for the six months to 30 September 2025.

Commenting on the results Dan Evans, Chief Executive, said:

"We were delighted to have achieved significant further strategic progress in the first half, including the transformational commercial agreement with ProService. This commercial agreement is now live and expected to generate £50-55m of annualised revenue and significant earnings accretion in its first full year after integration.

Speedy Hire is a fundamentally different business now to when we embarked on our Velocity strategy. Despite subdued markets, we are gaining market share and winning significant long-term contracts, leaving us far better positioned to take advantage as and when market conditions improve.

As a result of our strategic progress, recent contract wins and the commercial agreement with ProService, we expect to offset the ongoing subdued market conditions and the Board's expectations for FY2026 remain unchanged. We look forward to FY2027 with confidence."

Strategic and operational highlights

Financial Highlights

Financial performance

Outlook

Enquiries:

Speedy Hire Plc Tel: 01942 720 000

Dan Evans, Chief Executive

Paul Rayner, Chief Financial Officer

Teneo Tel: 020 7427 5494

Giles Kernick

Analyst and investor presentations

Dan Evans, CEO, and Paul Rayner, CFO, will host a presentation and Q&A for analysts today at 9.30am at Panmure Liberum, 25 Ropemaker St, London EC2Y 9LY. For further information please contact [email protected]

Management will also be hosting an Investor Presentation and Q&A with Equity Development. The online event will be hosted by Dan Evans, CEO, and Paul Rayner, CFO, and will begin at 11.15am on Friday 28 November. The registration link to sign up for the webinar is: https://www.equitydevelopment.co.uk/news-and-events/speedy-hire-hy-results-investor-presentation-28th-november-2025

Notes:

Explanatory notes:

The Group believes that the non-GAAP performance measures presented in this announcement provide valuable additional information for readers. Further details can be found in notes 7, 9 and 13.

1 See note 9.

2 See note 7.

3 Underlying operating cash flow: cash generated from operations before changes in hire fleet and non-underlying items.

4 Free cash flow: net cash flow before movement in borrowings, merger and acquisition activity, corporate activity and returns to shareholders.

5 See note 13. This metric excludes lease liabilities.

6 Leverage: net debt5 covered by EBITDA1. This metric excludes the impact of IFRS 16.

Inside Information: This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

Forward looking statements: The information in this release is based on management information. This report includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date of this report.

Notes to Editors: Founded in 1977, Speedy Hire is the UK's leading provider of tools and equipment hire services to a wide range of customers in the construction, infrastructure, industrial, and support services markets, as well as to local trade, and retail. The Group provides complementary support services through the provision of training, asset management and compliance services. Speedy Hire is certified nationally to ISO50001, ISO9001, ISO14001, ISO17020*, ISO27001 and ISO45001. The Group operates from 138 Service Centres and on-site locations across the UK and Ireland and through a joint venture in Kazakhstan. *Lloyds British National Contracts only.

Chief Executive's statement

Today we report our interim results for the six months to 30 September 2025. Despite persistently challenging market conditions, we have continued to progress our Velocity strategy, making enabling improvements in our business and securing significant opportunities for long-term profitable growth.

Commercial agreement with ProService

We were delighted to announce completion of the comprehensive commercial hire and supply agreement with ProService ("Commercial Agreement"), for the Group to take on a right of first refusal to supply ProService with the core hire equipment it needs to fulfil its customer orders, as well as right of first refusal to supply ProService with TIC services, through Speedy Hires's Lloyds British business. In addition, the Group agreed the transfer of certain assets (from HSS Service Group Limited) and an equity subscription in HSS Hire Group plc (to be re-named ProService Building Services Marketplace plc) (together the "Transaction"). This is a transformational agreement for Speedy Hire, made possible by the progress of the Group under our Velocity growth strategy.

The Commercial Agreement will provide Speedy Hire customers with greater choice and an enhanced service, while providing ProService customers the ability to indirectly access our national network, larger equipment fleet and faster delivery capability. The agreement, which is already generating revenues, is expected to generate £50-55m of annualised revenue and will be significantly accretive to earnings in the first full financial year post agreement.

The Transaction was funded through the Group's existing resources, strengthened by our recent refinancing. Whilst we anticipate moving outside of our target leverage6 range in the short term, the Group's strong operating cash flow is expected to support meaningful deleveraging in the next 12-24 months, supported by a planned reduction in dividend payments and a lower level of hire fleet capex during H2 FY2026 and in FY2027.

Business update

Group hire revenue in the first half was impacted by the current subdued market conditions. We have however taken market share and secured significant long-term contract opportunities, including the agreement with ProService. In November, we won a major hire framework contract with Thames Water, which will mobilise during the remainder of the second half. These long-term contract opportunities give us confidence for growth in the second half.

A leading indicator of market conditions for the Group is UK Construction PMI*, which has contracted for the tenth consecutive month, with October 2025 showing the sharpest month on month decline since May 2020. In response, we continue to seek and secure opportunities to increase market share, remaining vigilant on pricing, and are focused on maximising our revenue with existing customers and from major UK infrastructure and construction projects. These include CP7 in the rail sector, despite this remaining challenging, AMP8 in the water sector and the various opportunities in the wider infrastructure and energy sectors, including nuclear.

Our Trade & Retail operation which, whilst profitable, has seen its growth constrained by the weak market conditions. We continue to explore partner expansion as this remains a key growth area for the Group, aligned to the Velocity strategy.

Our focus remains on the enhancement and growth of our core operations. During the first half, we have divested of our specialist compressor fleet which would have required significant future investment for us to maintain the quality of fleet to best service our customers. This product will now be fulfilled as part of our agreement with ProService as we continue to support our customers, demonstrating the broader benefits we expect the agreement to provide to Speedy Hire.

We have also divested of the loss-making manufacturing division of our Lloyds British business, which was not material, or core, to the Group, resulting in greater focus on our TIC services. Subsequent to the period end we have taken the opportunity to restructure that business and introduce new management into Lloyds British, to support in securing the significant growth opportunities with our existing customer base and through the new offering of its services via ProService, which will be part of our integration as this progresses.

We remain committed to our Velocity strategy during the final year of the 'Enable' phase, making the necessary foundational improvements to deliver on our targets for growth and long-term sustainable returns. The transformative investments made in technology and data especially, provided the platform to secure the Commercial Agreement with ProService, giving the Group significant scaling opportunities with lower costs to serve. As we transition to a more efficient operating model, as part of our strategy, the Group continues to review opportunities around cost efficiencies.

We have continued to assess our hire fleet categories to ensure our current fleet and future capex is targeted in the right areas to best serve our customers. We have made significant investment in our specialist fleet over the last two years, and in response to significant contract wins, we now have a well invested fleet and anticipate lower hire fleet capex in the second half and a targeted reduction in FY2027, with a focus on certain core and specialist products most in demand.

Operational efficiency and cost control

Operational efficiency remains a key part of our Velocity strategy, as we continue to enhance decision making by leveraging data and Artificial Intelligence ("AI"). AI is helping to ensure we have the right products, in the right place, at the right time, to efficiently meet customer demand; utilising our national service centre network, logistics and asset intelligence. During the first half, we have expanded the number of service centres operating our new logistics management system, Openfleet, which is now operational in over 40% of our network. This system-led approach is making it easier for customers to trade with us as well as improving business efficiency. This roll-out will continue throughout the second half across remaining locations.

Now, more than ever, cost discipline is crucial. We have continued to control costs where possible, complimented by the implementation of Velocity initiatives to improve operational efficiency as we scale. During the first half, we made necessary investments in our business to deliver on significant contract opportunities, both secured and in the Group's pipeline. This level of investment has impacted the Group's profitability in the short term, in addition to the impact of the national insurance and national living wage increases which came into effect in April 2025.

ESG

We continue to lead the hire industry in sustainability and are embracing product innovation in areas that are increasingly in demand from our customer base. We are working with our partners to deliver award winning, sustainable solutions for customers and to accelerate our own carbon reduction pathway. Underpinning this all is the need for commercial sustainability, for both our customers and Speedy Hire. During the period we have continued to invest in sustainable hire fleet products.

Trading performance

Total revenue for the period to 30 September 2025 increased by 0.8%, to £205.2m (H1 FY2025: £203.6m), with a strong performance with our National customers, offsetting volume decline with our Regional customers. As referred to above, our Trade & Retail revenues have grown year on year, albeit behind our ambitious expectations. Revenue from planned disposals of our hire fleet was £6.9m (H1 FY2025: £1.6m), primarily the result of the divestment of our specialist compressor fleet.

Gross profit was £112.5m (H1 FY2025: £113.4m), with a reduction in gross margin to 54.8% (H1 FY2025: 55.7%), being the result of a higher proportion of lower gross margin services and disposals revenue.

Adjusted EBITDA1 was £38.7m (H1 FY2025: £44.2m) and adjusted loss before tax1 was £7.2m (H1 FY2025: £0.4m profit), impacted significantly by operational gearing as hire revenue opportunities have not yet materialised to the level the Group anticipated.

The Group made a loss after taxation of £12.2m (H1 FY2025: £1.6m loss).

Revenue and margin analysis

The Group generates revenue through two key categories, Hire and Services.

Hire revenues have been impacted by a challenging market and declined year on year. A strong performance with our National customers has offset some volume decline in our Regional customer base. Rates are largely maintained but impacted by mix with our National customers. Hire revenues are expected to grow significantly during the second half, benefitting from newly secured contract wins and opportunities, including the agreements with ProService and Thames Water. The Group's pipeline remains strong as we continue to explore other opportunities for growth during the second half.

Services revenues (excluding fuel) up 10.6% on H1 FY2025, driven by growth in both Customer Solutions and Lloyds British TIC services. Divestment of the manufacturing division of Lloyds British represents a revenue loss of £2.1m from H1 FY2025, with negligible profit impact, continuing into the second half.

During the first half, the Group entered into a commercial agreement for third party supply of fuel deliveries, on which the Group recognise only a commission element. As a result, fuel revenues declined by 51.2% (£8.0m decrease) on the same period last year, although with a minimal gross profit impact.

The Group continues to monitor pricing, introducing increases to mitigate the effects of cost inflation on both overheads and new equipment purchases. Any opportunities to review price take effect as contracts are renewed, resulting in the benefit of those increases building throughout the year.

Gross margins decreased slightly from 55.7% in H1 FY2025 to 54.8% in H1 FY2026. Hire margin remained in line at 78.7% (H1 FY2025: 78.8%). Services margin reduced to 18.8% (H1 FY2025: 19.5%), due to a higher proportion of Customer Solutions revenue.

Overheads

Overheads (excluding non-underlying items) disclosed in the income statement can be further analysed as follows:

We have maintained our focus on disciplined cost management, balanced against the need to invest in the business to drive growth as part of our Velocity strategy. Underlying overheads increased by £3.9m (3.8%) from H1 FY2025, primarily attributable to the increase in national insurance and national living wage costs and one-off cost saving initiatives in the prior period.

The UK and Ireland headcount at 30 September 2025 was 3,288, a decrease of 3.1% on 30 September 2024 (3,394) and a decrease of 0.6% on 31 March 2025 (3,307).

Non-underlying items

As outlined in the results for the year end 31 March 2025, FY2026 represents the third and final year of the 'Enable' phase of our Velocity strategy. Incremental costs in respect of the investment in implementing this strategy, and executing our transformation programme, represent a significant cost to the business over the initial phases of the programme. In the first half, this resulted in non-underlying costs of £3.9m (H1 FY2025: £2.3m).

In August 2025 the Group disposed of the manufacturing division of Lloyds British, generating a loss on disposal of £2.2m, presented within non-underlying items due to the infrequent nature of such transactions.

As discussed above, on 17 November 2025 the Group completed the Transaction. Substantially all of the work required to enter into the Transaction was undertaken in the first half of FY2026. Significant legal and professional costs have been incurred to date for completion of this work, which have been presented as non-underlying items owing to the scale and rarity of a transaction such as this. Subsequent legal and professional costs anticipated in the second half are in the region of c.£0.5m.

Interest and banking facilities

The Group's net financial expense was £8.9m (H1 FY2025: £7.5m). Excluding interest on lease liabilities, the net financial expense was £5.3m (H1 FY2025: £4.5m) due to higher average levels of net debt and a change in debt structure following the refinancing of the Group in April 2025.

The Group's facilities of £225.0m comprise a £150.0m revolving credit facility ("RCF") and a £75.0m private placement term loan. The refinancing replaced the Group's prior £180.0m asset based lending facility. The RCF has a three year maturity with options to extend up to a further two years and the private placement term loan has a seven year maturity. The revolving credit facility is priced based on SONIA plus a variable margin, while any unutilised commitment is charged at 35% of the applicable margin. The price on the private placement term loan is fixed for the duration of the facility. During the period, the margin payable on the outstanding debt fluctuated between 1.85% and 2.45%. The effective average margin in the period was 2.29% (H1 FY2025: 2.12%).

The Group utilises interest rate hedges to manage fluctuations in rates. The fair value of these hedges was nil at 30 September 2025. The hedges have varying maturity dates, notional amounts and rates and provide the Group with mitigation against interest rate rises.

Interest on lease liabilities of £3.6m (H1 FY2025: £3.0m) was charged during the period, impacted by sizeable property lease extensions and new vehicle leases during the period.

Taxation

The tax credit for the period was £2.9m (H1 FY2025: £0.6m credit), reflecting a projected full year effective tax rate after amortisation and non-underlying items of 20.9% (H1 FY2025: 28.3%). The effective rate has decreased year on year primarily due to the loss-making position, and certain non-deductible expenses reducing the tax credit rather than creating additional tax charges, resulting in a lower overall effective tax rate.

Shares and earnings per share

At 30 September 2025, 516,983,637 (31 March 2025: 516,983,637) Speedy Hire Plc ordinary shares were in issue, of which 55,141,657 were held in treasury and 1,091,429 were held in the Employee Benefit Trust. Adjusted earnings per share2 was (1.28) pence (H1 FY2025: 0.07 pence), a decrease of 1.35p. Basic earnings per share2 was (2.64) pence (H1 FY2025: (0.35) pence).

Balance sheet

Total capital expenditure during the period amounted to £34.5m (H1 FY2025: £40.4m), reflecting a reduction in spend in response to slower than anticipated trading in the first half. This is further strengthened by the reduction in cash outflows relating to capital purchases to 30 September 2025, a £3.5m decrease from 30 September 2024.

Hire fleet additions in the period were £31.9m (H1 FY2025: £35.6m). Expenditure on non-hire property, plant and equipment of £2.6m (H1 FY2025: £4.8m).

Total proceeds from disposal of hire equipment were £11.2m (H1 FY2025: £6.1m). This was driven primarily by the planned divestment of specialist compressors in the period, as part of the overall project to bring greater focus to our fleet of owned assets.

Net property, plant and equipment (excluding IFRS 16 right of use assets) was £248.2m at 30 September 2025 (31 March 2025: £243.3m), of which equipment for hire represents 91.7% (31 March 2025: 91.4%).

Intangible assets decreased marginally to £37.9m (31 March 2025: £38.4m), the result of amortisation charged in the period.

Right of use assets of £105.7m (31 March 2025: £104.2m) and corresponding lease liabilities of £108.2m (31 March 2025: £105.9m) were recognised at 30 September 2025. The movement from 31 March 2025 is due to property lease extensions and new vehicle leases during the period.

Gross trade receivables totalled £93.7m at 30 September 2025 (31 March 2025: £97.9m), the result of continued focus on reducing overdue debts. Bad debt and credit note provisions were £3.6m at 30 September 2025 (30 September 2024: £3.3m; 31 March 2025: £2.9m), equivalent to 3.8% of gross trade receivables (30 September 2024: 3.5%; 31 March 2025: 3.0%). In setting the provisions the Directors have given specific consideration to the impact of macroeconomic uncertainties. Whilst the Group has not experienced a significant worsening of debt collections or debt write-offs in H1 FY2026, there remain indications of economic vulnerability and insolvencies and therefore we continue to monitor the situation closely and consequently increased the level of provision held, despite continued strong cash collections.

Debtor days were 62 days (31 March 2025: 66 days), an improvement on September 2024 (68 days) with continued focus on reducing the Group's overdue debts; which were down by £1.0m versus September 2024. Trade payables were £66.1m (31 March 2025: £54.1m). Creditor days were 69 days (31 March 2025: 61 days), the result of continued collaboration with suppliers to more closely align our working capital cycle and the negotiation of favourable terms for some significant hire fleet capex purchases.

Cash flow and net debt

Underlying operating cash flow3 for the period was £44.6m (31 March 2025: £91.8m; 30 September 2024: £45.0m), representing 115.2% (31 March 2025: 94.5%; 30 September 2024: 101.8%) conversion from EBITDA. Free cash flow4, a key metric for the Group, was £3.7m (31 March 2025: £0.8m), the result of working capital management despite continued investment in transformation of the business.

Net debt5 increased by £5.8m, from £113.1m at the beginning of the period, to £118.9m at 30 September 2025. As a result, leverage6 increased to 2.2 times (31 March 2025: 1.9 times), which is temporarily outside of the Group's target range communicated as part of the announcement of the FY2025 annual results. This follows continued investment in the hire fleet and transformation, as well as returns to shareholders during the period. Total net debt, including lease liabilities, was £227.1m (31 March 2025: £219.0m), resulting in post IFRS 16 leverage of 2.5 times (31 March 2025: 2.3 times).

The Group retained substantial headroom within its committed facilities, with undrawn RCF availability of £80.0m at 30 September 2025 (31 March 2025: £42.0m under the Group's previous £180.0m asset based finance facility).

Dividend

The Board is committed to maintaining an efficient balance sheet and regularly reviews the Group's capital resources in light of the medium-term investment requirements and in accordance with the capital allocation policy.

The Board has declared an interim dividend of 0.30 pence per share (H1 FY2025 interim dividend: 0.80 pence per share), to be paid on 21 January 2026 to shareholders on the register on 12 December 2025. This follows the planned reduction in dividend payments for a period up to the end of FY2028, as announced on 6 October 2025, to part fund the Transaction.

A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at http://www.shareview.co.uk/info/drip

Outlook

Whilst we anticipate market conditions will remain subdued for the remainder of FY2026, the share gains achieved through our recent multi-year contract wins, and the transformational Commercial Agreement with ProService, are expected to mitigate this demand headwind. As a result, the Board's expectations for FY2026 remain unchanged. We look forward to FY2027 and the long-term with increasing confidence having successfully repositioned the business during the 'Enable' phase of our Velocity strategy, leaving the Group in a far stronger position from which to capitalise when market conditions improve.

Dan Evans

Chief Executive

* Source: S&P Global (formerly IHS Markit), in collaboration with the Chartered Institute of Procurement & Supply (CIPS)

1 On 5 November 2025, £75.0m of these Borrowings were reclassified as non-current liabilities; see note 18.

1 Six months ended 30 September 2024 restated to separately show the cash flow relating to non-underlying items.

2 Relates wholly to the joint venture in Kazakhstan.

1 Accounting policies

Speedy Hire Plc is a public limited company listed on the London Stock Exchange, incorporated and domiciled in the United Kingdom. The interim condensed consolidated financial statements of the Company for the six months ended 30 September 2025 comprise the Company and its subsidiaries (together referred to as the 'Group').

The financial statements of the Group for the year ended 31 March 2025 are available from the Company's registered office, or from the website: www.speedyhire.com.

Basis of preparation

These interim condensed consolidated financial statements have been prepared under the historical cost convention, with the exception of certain financial assets and liabilities (including derivative instruments) which are measured at fair value through profit or loss.

In assessing the Group and Company's ability to continue as a going concern, the Directors have considered its liquidity position, forecast cash flows, and compliance with financing arrangements. The Directors consider the going concern basis of preparation for the Group and Company to be appropriate for the following reasons.

The Group has a £150.0m revolving credit facility ('RCF') in place through to April 2028, with uncommitted extension options for a further two years, and a £75.0m private placement term loan due to expire in April 2032. Under these facilities, the Group also has an additional uncommitted accordion of £50.0m which remains in place through to April 2028. RCF headroom as at 30 September 2025 was £80.0m (31 March 2025: £42.0m under the Group's prior asset based lending facility).

The facilities include quarterly leverage and fixed charge cover covenant tests. In preparation for entering into the Commercial Agreement with ProService, the Group agreed short term amendments to the fixed charge cover covenant on 5 November 2025, for the quarters ended 30 September 2025 and 31 December 2025, subsequent to which the covenants revert to their original levels. Under IAS 1, the classification of liabilities is based on conditions existing at the reporting date. The Group's private placement term loan of £75.0m was therefore classified as a current liability at 30 September 2025, because the amendments were not agreed at the reporting date. As of 5 November 2025, the loan notes were reclassified to non-current liabilities, given the amendments restore the Group's ability to defer settlement beyond 12 months from the reporting date. Consequently, the loan notes are not expected to be payable within 12 months from the date of approval of these Financial Statements.

The Group meets its day-to-day working capital requirements through operating cash flows, supplemented as necessary by borrowings. The Directors have prepared a going concern assessment covering at least 12 months from the date on which the Financial Statements were authorised for issue, which confirms that the Group is capable of continuing to operate within its existing loan facilities and can meet the covenant requirements set out within the facilities, considering the covenant amendments and other mitigating actions. The key assumptions on which the projections are based include an assessment of the impact of current and future market conditions on projected revenues and the anticipated impact of the Commercial Agreement with ProService. The financial projections also critically assess the net capital investment required to support those expected level of revenues.

The Board has considered severe but plausible downside scenarios, which result in reduced levels of revenue from the base case, whilst also maintaining a similar cost base. Mitigations applied in these downturn scenarios include a reduction in planned capital expenditure and restrictions on significant overhead growth. Despite the significant impact of the assumptions applied in these scenarios, the Group maintains sufficient headroom against its available facilities and covenant requirements. In the event of more sustained, or severe underperformance, including reduced benefits from the commercial agreement with ProService, there are further mitigation measures available to the Group to maintain covenant compliance and sufficient liquidity in order for the Group to meet its liabilities as they fall due.

The Directors acknowledge that there is a degree of subjectivity involved in their assumptions, particularly around the benefit expected to flow to the Group from the Commercial Agreement with ProService, and the current macroeconomic environment. In consideration of all of the above, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these Financial Statements. Accordingly, they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

Statement of compliance

These interim condensed consolidated financial statements for the six months ended 30 September 2025 have been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim report does not include all of the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 March 2025, which has been prepared in accordance with UK-adopted international accounting standards and the requirements of the Companies Act 2006, and any public announcements made by Speedy Hire Plc during the interim reporting period.

These interim condensed consolidated financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2025 were approved by the Board of Directors on 17 June 2025 and delivered to the Registrar of Companies. The report of the auditors on those accounts was qualified in respect of the Group's prior period opening property, plant and equipment balance, however did not contain any statement under section 498 of the Companies Act 2006.

These interim condensed consolidated financial statements have been reviewed, not audited.

The interim report was approved by the Board of Directors on 25 November 2025.

Significant accounting policies

Other accounting policies

There have been no new standards or interpretations issued or endorsed by the International Accounting Standards Board (IASB) or IFRIC since the date of the FY2025 year end financial statements that materially impact the Group.

The accounting policies applied by the Group in these interim condensed consolidated financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 March 2025.

The carrying amount of goodwill is tested annually for impairment and, along with other non-financial assets, at each reporting date to the extent that there are any indicators of impairment. Due to the market capitalisation of the Group at 30 September 2025 being below the consolidated net asset position, and performance behind budget, an impairment test has been undertaken at the interim reporting date, details of which can be found in note 10.

Seasonality

In addition to economic factors, revenue is subject to an element of seasonal fluctuation. Whilst construction activity tends to increase in the summer months, the equipment range helps to mitigate the impact, specifically with heating, lighting and power generation products being more in demand during the winter months. Overall, the Directors do not feel that these factors have a material effect on the performance of the Group when comparing first half results to those achieved in the second half.

2 Changes in estimates

The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing the interim condensed consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty for the consolidated financial statements for the year ended 31 March 2025 continued to apply.

This includes the basis for estimating the dilapidations provision, having taken account of subsequent settlements. At 30 September 2025, the provision is £13.2m (31 March 2025: £14.1m). If the provision were to change by £1 per square foot, a £2.2m movement in the provision would result. Management will continue to monitor and assess the adequacy of the provision recognised and the appropriateness of the judgements made.

3 Segmental analysis

The segmental disclosure presented in these interim condensed consolidated financial statements has been determined based on the way in which performance is assessed, assets are monitored and resources allocated, and hence reflects the format of reports reviewed by the 'chief operating decision-maker'. The Group's reportable segments are Hire and Services, which form the UK and Ireland ("UK&I") business.

The Hire segment relates to hire of the Group's core fleet of owned products, covering a range of product lines in categories such as small tools, access, power and battery storage, lifting, survey, powered access, welding and plant machinery. The Services segment predominantly relates to the re-hire of an extensive range of specialist equipment through partnerships with the industry's leading suppliers, referred to as Customer Solutions. This segment also includes fuel and energy sales and management, training, product sales, and test, inspection and certification services.

An element of the Group's costs are incurred at a corporate level and consequently cannot be analysed by segment. These costs, together with net corporate borrowings and taxation, are not directly attributable to the activities of the operating segments and consequently are presented under Corporate items. The remaining unallocated net assets comprise principally working capital balances held by the support services function.

For the six months ended 30 September 2025 / As at 30 September 2025

1 UK and Ireland also includes revenue and costs relating to the disposal of hire assets.

2 Intangible assets in Corporate items relate to the Group's ERP system, amortisation is charged to the UK and Ireland segment as this is fundamental to the trading operations of the Group. Depreciation in Corporate items relates to computers and is recharged from the UK and Ireland based on proportional usage.

For the six months ended 30 September 2024 / As at 30 September 2024