Speedy Hire share price plummets again as it issues profit warning

Emma Haslett
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Speedy Hire issued a profit warning at the beginning of July (Source: Speedy Hire)

More bad news for tool hire specialist Speedy Hire, which today issued its second profit warning in three months.

Shares in the company dropped almost 14 per cent to 31.89p in early trading, after it warned that after a "disappointing start to the current financial year", its profits are expected to be "materially below current market expectations", with UK and Ireland revenues likely to be 10 per cent lower than last year.

In early July, shares tumbled 35 per cent after chief executive Mark Rogerson stepped down as the company warned on profits.

Today it announced a four-point turnaround strategy, including improved distribution of its assets, a focus on small businesses, changes to its operational structure and improvements to its IT system.

But Jan Astrand, its executive chairman, warned the measures will take time.

"Following the extremely disappointing start to the year, we have taken action to grow revenue and cut costs. While these actions will take time to come to fruition, we believe they will deliver material benefits over the medium term."
Speedy Hire can at least take solace in the fact it isn't the only UK-listed plant hire company to suffer: at the end of last month shares in newly-listed HSS Hire dropped 37 per cent as it made its own profit warning after "unpredictable" trading in August.

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