Speedy says profits lower on deteriorating UK market

A further deterioration of the general UK construction market has led Speedy Hire to lower its expectations for its financial year to 31 March 2009. The company is now forecasting a 21-31% fall in its pre tax profits for its financial year to 31 March with revenues similar to the previous year.

The company said the credit crunch continued to reduce confidence in general construction and that it now expected this trend to continue or worsen in the final quarter with revenues significantly lower than in the same period in 2008.

"Spending on infrastructure related projects continues to remain buoyant in both the public and regulated sectors and, as a result, revenues from the major contracting groups remains resilient", said Speedy, "However, ongoing uncertainty in the credit markets continues to impact overall activity and further reduce confidence in the general construction market."

Speedy added that it continued to enjoy "significant strengths" in the current difficult market; "The business continues to win new contracts and remains cash generative, with an ongoing target to increase further its financial headroom by reducing net debt to below the starting position of £255.6 million by the end of the current financial year."