Speedy Hire's statement sends shares tumbling

Speedy Hire’s shares have plummeted after it issued a trading update predicting that the quarter’s revenues would be ‘significantly below those in the same period in 2008’.

Its prediction that year-end revenue (to 31 March 2009) would be broadly in line with 2008 sent its shares tumbling from last night’s closing price of 94p to below 50p - although they have now recovered slightly.

Speedy’s board expects adjusted pre-tax profit (pre amortisation and exceptional costs) for the year will be between £33-£38m and said net debt should be reduced to below the starting position of £255.6m.

The update said spending on infrastructure related projects continue to be buoyant in both the Public and Regulated sectors so revenues from the major contractors’ remains resilient.

However, it added that ongoing uncertainty in the credit markets continues to impact overall activity and further reduce confidence in the general construction market.