Speedy Hire tanks after profit warning

30th Jan 2024 08:54

(Sharecast News) - Tools and equipment hire services firm Speedy Hire tanked on Tuesday as it warned on profits.

The company said full-year profits were set to be below its previous expectations despite operational progress with its Velocity Strategy and new wins, due to weakness in some of its end markets and seasonal product lines, and some delays in mobilisation of significant contract wins.

Speedy said the business has continued to perform "resiliently in the face of cost inflation and macroeconomic uncertainty".

The challenges seen across much of the construction sector mean that revenues from its national customers are now up 3% year-on-year as at end of the third quarter, compared to 5% at the end of the first half. Revenues from regional customers have continued to track 6% lower year-on-year, unchanged from H1.

The company also said that the warmer winter period dented revenue from seasonal products.

Speedy said it continues to focus on delivering growth opportunities as well as operational efficiencies and remains on track with the early progress of the Velocity Strategy launched at its capital markets day last July.

At 0850 GMT, the shares were down 16% at 30.16p.