Speedy Hire PLC (LON:SDY) shares dipped almost 8% this morning after it announced a non-cash write down.
In a trading update for the year ending 31 March, the construction tools hire group wrote off £45mln goodwill as a non-exceptional item from the balance sheet.
Adjusted pre-tax profit for the full year is expected to be line with market expectations, which are currently around £4.7mln, down from £21.9mln the previous year.
Whilst profitability was down on the previous year, Panmure Gordon analyst Adrian Kearsey said that: “it will be seen as an important line in the sand for investors.”
“Given the deterioration of trading during the period, this impairment was almost inevitable,” added Kearsey.
Net debt should be broadly in line with the previous year, the board said.
Analyst forecasts put revenue for the full year at around £334mln.
Speed Hire also announced the appointment of Rob Barclay to the board as non-executive chairman.
Barclay is the managing director of construction industry supplier SIG PLC.
The group’s interim finance director Chris Morgan, former finance chief of Focus DIY, has also joined the board on a permanent basis as executive director, with effect from 1 April.
The share price was down to 35.27p.