(Alliance News) - Speedy Hire PLC on Tuesday said it continued to make good progress on implementing its 'Velocity' business strategy, but lowered its earnings guidance.
Speedy Hire shares fell 17% to 29.90 pence each on Tuesday morning in London. The stock is down 27% over the past 12 months.
The Merseyside, England-based tool and equipment hire services firm said it performed resiliently amid cost inflation and macroeconomic uncertainty.
However, for the financial year ending March 31, the company anticipates profit to be below its undefined previous expectations, citing "weakness in some of our end markets and seasonal product lines, and some delays in mobilisation of significant contract wins".
Speedy Hire said that revenue from regional customers was down 6% year-on-year at the end of its financial third quarter, while revenue from national customers was up 3% annually. The company said it continued to see revenue growth from opportunities with both new and existing national customers.
Speedy Hire didn't provide actual revenue figures in its trading update on Tuesday, only percentage changes.
"The warmer winter period has also impacted our revenue from seasonal products, despite us being ready for the usual cold weather and the important support we provide to our customers," it added.
Looking ahead, Speedy Hire said: "We continue to make good progress with the implementation of our Velocity strategy, which will deliver benefits and opportunity for Speedy for the long term.
"Nevertheless, with weakness in some of our end markets and seasonal product lines, and some delays in mobilisation of significant contract wins, the board expects the full-year profits to be below its previous expectations."
By Tom Budszus, Alliance News slot editor
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Speedy Hire (SDY)