Speedy Hire revenue up but 492 jobs cut

Speedy Hire has made 429 of 492 planned job cuts, closed 33 depots and reduced its vehicle fleet by 260 units, despite reporting a 22% rise in revenue.

The news came as it reported its interim results for the six months to 30 September 2008. Revenue stood at £256.2m for the half year, while pre-tax profit climbed 3.9% to £23.8m.

Speedy called its performance "resilient" but warned of a "severe contraction in general construction activity, primarily funded by the private sector", which it blamed on lack of confidence and capital.

It also revealed that October had been a particularly tough month, with revenue 6% lower than expectations.

The details of the reduction in the plant hire firm's heacount follow an announcement in July that Speedy would be undertaking a series of cost-cutting measures.

Company chairman David Wallis said the company's outlook was "cautious" and that the current difficult trading environment was "likely to persist for some time".

"Our approach has been to take action in the short term to ensure that your business is positioned well to take advantage of the opportunities that will present themselves as more normal times return," he added.