Speedy Hire PLC shares dropped almost a third on Monday after the equipment rental firm warned tough macroeconomic conditions would eat into profit for the year.
Following improved trading in December, Speedy Hire said a slower post-shutdown recovery had been seen across the majority of its customer base since.
“Lower than anticipated profitability for the full year” was expected as a result, reflecting the wider downturn within the economy, the company added.
Panmure Liberum cut Speedy Hire’s revenue forecast by £10 million to £436 million on the back of the update, which would equate to a 3.5% uptick.
Pre-tax earnings were expected to come in flat for the year at £24.5 million in the meantime, following an £8 million cut to its projection, Panmure said.
Though a ‘buy’ rating was reiterated, Panmure cut Speedy Hire’s share price target from 47p to 30p.
Shares were down 28.9% at 19.56p on Monday.