Speedy Hire cuts 4% of workforce amid 'diverging' markets

Speedy has announced that its revenue for the first half of the year will increase by around 22% but warned of a 'diverging outlook' as government-backed projects move ahead, while confidence in the general construction market drops.

In a trading statement, the plant hire company said the future was "unusually difficult to forecast" and that it take action to reduce costs amid the economic uncertainty, which included cutting around 4% of its workforce by the end of last month.

The increase in revenue at Speedy was thanks in large part to its £115m acquisition of Hewden Tools, which completed in August last year.

However first half pre-tax profit is expected to remain broadly in line with the previous year's figure.

Capital expenditure at the company is also expected to fall. Speedy originally forecast that it would spend £100m-110m in the current financial year when it announced its preliminary results in May. That figure has now fallen to around £75m.

Speedy's interim results are due out on 26 November.