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Highlights

  • Speedy will acquire 79,368,711 shares in ProService plc, representing 9.99% of post-subscription share capital, and complete a £35 million asset transaction.
  • SASL secures a five-year commercial hire and services supply agreement with ProService, with annualised revenues from equipment hire estimated at £50–55 million.
  • Three HSS service centres will transfer to SASL, and around 300 HSS employees are expected to join Speedy to support operational delivery.

Speedy (LSE:SDY), the leading UK provider of tools and equipment hire, has entered into a significant commercial agreement and asset transfer deal with HSS ProService Limited (a subsidiary of HSS Hire Group plc, soon to be ProService Building Services Marketplace plc).

The Deal and Financial Terms

Speedy's subsidiary, Speedy Asset Services (SASL), will pay a total of £35 million in cash, funded from existing resources, to acquire certain assets from HSS ProService's subsidiary, HSS Service Group Limited. In addition to the cash payment, Speedy will receive a strategic equity stake of approximately 9.99% in the newly formed ProService plc.

The transaction includes the transfer of HSS's core hire equipment and the lease assignment of three service centers (two in London and one in Derby) to strengthen Speedy's network. The deal is expected to be completed by 31 December 2025, subject to final closing conditions.

Commercial Agreement and Expected Impact

The core of the deal is a comprehensive supply agreement with an initial term of five years, which SASL has the option to extend to eight years. This agreement grants SASL the right of first refusal to supply ProService with all necessary core hire equipment, which is estimated to generate £50–55 million in annual revenues for Speedy.

Furthermore, Speedy's Lloyds British business secures the right of first refusal for supplying test, inspection, and certification services to ProService. To support the expanded operations, roughly 300 HSS employees are expected to transfer to Speedy. In a reciprocal arrangement, ProService will assist SASL by providing fulfilment services for rehire and resale items, along with relevant industry training.

Financial Outlook and Strategy

Speedy anticipates that this commercial agreement will be significantly accretive to its earnings and group operating margin in the first full financial year. The company expects a rapid financial return, with the £35 million consideration fully paid back from operating cash flow within just two to three years, not including any potential returns from its new equity stake in ProService.

This transaction aligns directly with Speedy’s existing Velocity growth strategy. The company reiterates its five-year financial targets announced in July 2023, including achieving approximately £650 million in revenues and EBITDA margins of around 28%. While focusing on reducing its net debt, Speedy plans to reduce its dividend payments up to FY2028 before restoring them to historical levels. For FY2026, the company forecasts a dividend of 1.00 pence per share, with growth of at least 5% per annum for the subsequent two years.

SDY shares gained 16.18% to trade at GBX 28 per share at the time of writing on 6 October 2025.