Speedy Hire swings to loss

25th Nov 2009 07:55

Plant hire firm Speedy Hire swung to a half year loss and said it expects to broadly break-even at an adjusted profit before tax level for the second half.Losses before taxation, amortisation and exceptional items came to £4.8m in the six month ended 30 September compared with a profit of £23.8m last time. Revenue of £184.8m was down 27.9%.The group said its markets remain challenging and October revenues continued the broadly flat month on month pattern seen in the year to date, despite the expectation of a delayed seasonal uplift in revenue. Whilst monthly revenue declines year on year are expected to narrow from November, following further project deferrals the board now expects the group to be broadly break-even at an adjusted profit before tax level for the second half period.'Although the outlook for UK construction remains uncertain in the short term, the group remains well positioned in the market place, having taken aggressive steps to reduce further both its net debt and cost base, as well as driving through a number of initiatives to extend its competitive advantage and market leading position,' said chairman David Wallis.'In addition, encouraging progress has been made in capitalising on the business's major client relationships in order to expand its presence in overseas markets and in non-hire services.'Last month the company said earnings are broadly in line with company expectations, following aggressive cost cutting.