HSS Hire Group PLC (AIM:HSS) fell by 8% in early trading after reporting that higher costs and faltering demand in the rental market hit trading over the first half of the year.
Though revenue increased by 6% to £170 million, adjusted pre-tax profit decreased by a third to £5.9 million, while per-share earnings and return on capital employed also fell.
High costs per vehicle, including for fuel and maintenance, alongside growing salaries have also been among the factors pushing up expenditure, HSS added in a statement.
Though the company pointed to increased investment hitting profitability over the six months to July, chief executive Steve Ashmore warned trading since had also been tough.
"The macro environment has become more challenging,” he said. “We have experienced significant volatility of demand in our rental segment over the last few weeks.”
Shares fell by 8% to 9.52p.