Hire firm cuts losses but shares still fall

Merseyside-based Speedy Hire's pre-tax profits for the year to March 31 improved on the 71.1m reverse seen previously, while it said recent sales trends were "encouraging".

But shares fell 7 per cent as chairman David Wallis said: "We are under no illusions that there remain many difficult months ahead."

Year-on-year sales declines eased to 12.1 per cent in the final quarter despite the winter snow – with "progressive improvement" into the current financial year.

But the group said a cloud hung over prospects until the new Government had set out detailed plans on the cuts looming to tackle the UK's deficit.

Mr Wallis added: "Levels of activity in the construction and industrial markets remain subdued and uncertainty over the number and size of public sector projects will persist until the Government is able to give clear guidance."

Speedy's revenues fell more than 27 per cent to 351.1m last year, although the group is focusing on winning work from bigger building firms, which now account for more than a quarter of sales.

The firm has launched an 80m crackdown on costs since markets soured two years ago, shedding more than 300 jobs as well as cutting debts to 119.3m.