Market Report: Earnings Warning Hits Speedy Hire Shares

Shares of tool hire company Speedy Hire have fallen after a dire profit warning.

The company, which rents everything from hammer drills and LED lights to generators, said it had been hit by a trade slowdown, contract delays and a mild winter that reduced demand for heating products.

As a result, you expect profits to be lower than previously thought. Shares fell 18.1 per cent, or 6.5p, to 29.5p.

Speedy Hair has been exposed to challenges in the construction sector. Revenue from its national clients – some of the UK’s largest contractors – rose 3 per cent in the third quarter to December 31.

But this was lower than the 5 percent growth it recorded in the first half of its financial year.

Earnings hit: Speedy Hair said it was hit by a trading slowdown, contract delays and a mild winter which led to lower demand for heating products.

Earnings hit: Speedy Hair said it was hit by a trading slowdown, contract delays and a mild winter which led to lower demand for heating products.

While the group has secured deals, it has warned that it will take longer than expected before revenues come in.

While investors appeared concerned about the latest update, some in the city remained optimistic.

“Although disappointing, this is due to events beyond Speedy Hire’s direct control,” Peel Hunt’s Andrew Nosi said.

Analysts at Liberum said that while “sentiment will undoubtedly be negatively affected by today’s update” the company has shown it has “tools to grow”.

In the broader market, the FTSE 100 rose 0.4 per cent, or 33.57 points, to 7,666.31, and the FTSE 250 rose 0.2 per cent, or 38.34 points, to 19,349.5.

Private equity firm 3i gained after an analyst upgrade at Barclays ahead of its third-quarter update on Thursday.

The investment bank said the focus would be on Action – the Dutch non-food discount retailer and the most successful in the company’s major portfolio – which should report strong trading over Christmas. Shares rose 2.6 per cent, or 64 pence, to 2,497 pence.

Stock Monitor – Argentex

Shares of currency company Argentex collapsed to a record low after it warned that difficult market conditions and the high cost of doing business would hurt profits.

In November, the group forecast its 2023 results would be roughly the same as the previous 12 months when it achieved revenues of £50.4m and profits of £11.3m.

But yesterday it revised its forecasts by forecasting revenues of £49.8m and profits of at least £8m.

Shares fell 19.4 per cent, or 13.6 pence, to 56.4 pence.

Auction Technology Group saw its value rise by almost a fifth following the positive update.

The company, which runs online marketplaces that allow bidders to access items such as paintings, sofas and antiques, said revenues rose 3 per cent to £35 million in the three months to the end of December.

As a result, it said it remains on track to increase its revenue by 5 percent to 8 percent during its fiscal year. Shares rose 19.8 per cent, or 90.5p, to 547p.

Clinical trials company Hvivo will start paying an annual dividend from this year as it benefits from growing demand for its services.

The group, which recruits healthy adult volunteers and infects them with a medical version of the virus to test the effectiveness of drugs and vaccines developed by biotech and pharmaceutical companies, reported revenues increased by 15.5 per cent to £56 million in 2023.

In another dose of good news, Hvivo has already secured 90 per cent of its revenue for the year and expects to generate £62 million. Shares rose 8.4 per cent, or 2.2p, to 28.5p.

Deliveroo has been heading in the other direction after Germany-based rival Delivery Hero, which has a 4.5 per cent stake in the group, sold its stake at a deep discount to the price it paid three years ago.

Shares fell 3.1 per cent, or 3.8p, to 118.1p.

There was some relief for Synthomer after it said it had halved its debt bill since the start of 2023.

Shares in the chemicals group rose 3.9 per cent, or 5.3 pence, to 140 pence.

Chromic, a Durham-based technology group, is benefiting from demand for its products, which are used to detect nuclear threats in Ukraine as well as cancer in hospitals around the world.

The company said it is still on track to achieve record revenues for this year, after its sales increased in the first half while losses reduced. Shares rose 0.9 per cent, or 0.05 pence, to 5.75 pence.

(tags for translation) Daily Mail

Leave a Reply

Your email address will not be published. Required fields are marked *