Speedy Hire in aggressive cost cuts

Tool hire company Speedy Hire said on Monday it was broadly on track to meet its earnings expectations thanks to aggressive cost cutting, but revenue was running below its forecasts.

"With no sign of improvement in private sector spending and increased sensitivity around the sustainability of government spending, there is still significant uncertainty in the current outlook for construction" the firm said in a trading update.

"Whilst trading in recent months has begun to stabilise, risks to the group's revenue forecasts remain on the downside in the short term."

Speedy Hire said first-half turnover was likely to be around 29 percent below the same period last year.

"Any further deterioration in the group's revenue forecasts is unlikely to be offset significantly by additional cost reductions" it added.