Speedy Hire PLC on Wednesday said it expects its annual results to be at the lower end of its previous expectations, after reporting a sharp drop in interim profit.

Shares in Speedy Hire were down 7.6% at 33.05 pence each in London on Wednesday morning.

The Merseyside, England-based tool and equipment hire services firm said in the six months to September 30, pretax profit plunged 58% to £5.6 million from £13.2 million a year prior. This was partly driven by a 58% rise in financial expenses to £5.7 million from £3.6 million the year before.

Meanwhile, revenue slipped 2.9% to £208.5 million from £214.8 million the year before.

Speedy Hire maintained its interim dividend at 0.80 pence per share.

Looking ahead, Speedy Hire expects to deliver revenue growth in the second half of the year ending March 31, adding that it forecasts a strong second half weighting. It also said it is ‘well positioned’ to manage inflationary pressures.

‘We expect to see the benefits of our investments in our Velocity strategy, including operational efficiency and supply chain optimisation, in the second half and beyond. Whilst the macroeconomic outlook is uncertain, we remain confident of delivering results, albeit towards the lower end of the board’s expectations’, said Chief Executive Dan Evans.

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