Speedy Hire PLC (LSE:SDY) saw its shares fall 3.25% to 31.30p in early trade on Wednesday after the tools and equipment hire company said it had experienced a softening in demand in recent weeks.
In a trading update, Speedy said it expects to report revenue growth of 14% for the year ended 31 March 2023, with adjusted pre-tax profit in line with the board’s expectations.
However, the challenging trading environment has resulted in “some softening of demand in recent weeks”, the company cautioned, although it stressed that with a strong pipeline of new business, it “remains confident of future revenue growth”.
The company highlighted initiatives that are expected to deliver annual benefits of £5mln and said these actions combined with contract momentum mean "we enter FY2024 with confidence”.
Net debt at the year-end was less than £94mln.
Speedy said an external investigation into the issue identified with non-itemised assets continues to progress.
Management have taken corrective action and implemented new controls and an asset count at the end of March, as part of the new controls, “did not identify the need for an increase in existing provisions”, the company added.