Speedy Hire sees a bumpy road ahead

Speedy Hire, whose customers include the world’s number three retailer Tesco and engineering firm Costain, forecast a further 0.8 per cent fall in construction output this year.

“There are still a few bumps on the road for probably the next 18 months or so and we might pick up a few bruises,” said chief executive Steve Corcoran.

He forecast a tough environment ahead, particularly in areas related to commercial trade outside London, retail spending and in industrial and distribution work.

Analyst Andrew Nussey of Peel Hunt said he remained wary of the construction sector as well as the company’s exposure to the infrastructure sector, which is still witnessing a slow recovery in private sector spending.

Speedy Hire derives 47 per cent of its revenue from construction markets.

The company said finance chief Mr Read will step down from his position in August to join European industrial landlord Segro.

Real estate investment trust Segro acquires, develops, manages and sells flexible business space throughout Europe.