Speedy Hire warns turnover will be 29% down

Plant rental firm Speedy Hire has said first-half turnover is likely to be 29% down on last year in spite of increased stability in trading over recent months.

In an update to the City, the firm said continued uncertainty in the construction market meant “risks to the group's revenue forecasts remain on the downside in the short term".

But Speedy Hire said its finances were benefiting from aggressive cost-cutting measures and £30m of savings would be made this year as a result. Headcount has fallen by 270 (6%) during this financial year and 19 depots (5%) have been merged with other local sites.

The firm said: “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 and, whilst trading in recent months has begun to stabilise, risks to the group's revenue forecasts remain on the downside in the short term.”