Speedy Hire profit warning sees shares drop

Speedy Hire has issued their second profit warning in two months. Picture:''' Neil Hanna
Speedy Hire has issued their second profit warning in two months. Picture:''' Neil Hanna
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Speedy Hire, the biggest tool and plant hire business in the UK, yesterday jolted the market with its second profit warning in two months, as the firm also revealed it is cutting about 200 jobs in an efficiency drive.

The group said that it expected revenues would be about 10 per cent below last year, and that profits would be “materially below” market expectations.There was no UK regional breakdown of the job losses.

Shares in Speedy Hire fell 16 per cent, or 6p, to 31p. The firm’s chief executive, Mark Rogerson, stepped down when it issued its first profits warning in July, to be replaced by Russell Down.

Executive chairman Jan Astrand said: “Following the extremely disappointing start to the year, we have taken action to grow revenue and cut costs.

“Whilst these actions will take time to come to fruition, we believe they will deliver material benefits over the medium term.”

Rival HSS Hire last week replaced its chief executive, Chris Davies, a month after it reported deepening half-year losses.