Shares in Speedy Hire PLC (LON:SDY) bounced after the plant hire company said a shake-up was paying off.
The stock jumped 7.5% to 39.25p after Speedy Hire said the business had stabilised and was responding to changes launched by its new management team.
Speedy had faced problems including a lack of available equipment following network improvements.
The business had also focused on strategic accounts rather than small business customers, while customer service had suffered as IT new systems were installed.
The issues caused a slower-than-expected start to the year and the company reacted by launching a review.
It has changed its board, with Jan Åstrand becoming chairman, finance chief Russell Down taking over from chief executive Mark Rogerson and new non-executive directors appointed.
The company says the changes brought in by the new management team have improved asset availability, customer service and IT systems.
Group revenue fell 12.2% to £329.1mln in the year to the end of March while group pre-tax earnings before interest, depreciation and amortisation dropped 27% to £53.1mln. Adjusted pre-tax profit fell 77.2% to £5mln.
But Down said: "The business is starting to respond positively to the actions we are undertaking.
"With a renewed focus on sales, tighter overhead control and better management information with which to manage return on capital we are creating a solid platform."