Shares of tool and equipment hire company Speedy Hire (LSE: SDY) fell sharply on Tuesday after the firm lowered its earnings guidance due to “weakness in some end markets” and other factors. Speedy’s stock dropped 17% to 29.90p.
In a trading update, the FTSE All-Share company said it continues making progress on its ‘Velocity’ strategy but now expects full-year profits to miss previous forecasts. Speedy cited delays in major contract mobilisations, impacted seasonal revenue amid warmer winter weather, and a 6% drop in regional customer revenue through late December.
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While national customer revenue grew 3%, Speedy did not provide overall revenue figures. The company had resilient performance despite cost inflation and uncertainty, but said seasonal products were hit by the mild winter.
Going forward, Speedy still sees long-term benefits from its strategy but expects profits below expectations for the current financial year ending March 31st. The stock has fallen 27% over the past year.
