Speedy Hire broadly in line after cost cuts

12th Oct 2009 07:28

Plant hire firm Speedy Hire said earnings are broadly in line with company expectations, following aggressive cost cutting, but whilst trading in recent months has begun to stabilise, risks to the group's revenue forecasts remain on the downside in the short term. "With no sign of improvement in private sector spending and increased sensitivity around the sustainability of Government spending, there is still significant uncertainty in the current outlook for construction," the group warned in today's trading update.Second quarter Group turnover (July-September) will be broadly in line with that recorded in the first quarter.The group said first half turnover is expected to be approximately 29% below the prior year.Speedy Hire, which is expected to incur £8m in exceptional costs during the course of this financial year, added that, "any further deterioration in the group's revenue forecasts is unlikely to be offset significantly by additional cost reductions."