Speedy Hire hit by Connaught collapse

Speedy Hire said it was on track to meet its full-year profit expectations despite a first-half operating loss because it traditionally picks up in the second half.

The firm, which provides tool hire services, said it would take a £1.7m charge related to the demise of social housing firm Connaught.

That charge does not include the potential impact of lost future revenues. Speedy Hire had assumed it would make £1.7m of revenue from the company.

The company said in a statement: "Although now trading profitably, the group expects to report a first half operating loss (before amortisation and exceptional items).

"The board confirms that the group is currently trading in line with its expectations for the full year in respect of adjusted profit before tax (before amortisation and exceptional items).

"These expectations are however dependent on the business maintaining momentum into the traditionally stronger second half of the year and, in particular, delivering a strong recovery in the last quarter of the financial year."