Crawley jobs at risk as Speedy Hire announces cuts

Speedy Hire
Speedy Hire

Tool rental business Speedy Hire has announced it is cutting about 200 jobs in the UK.

The company has a store in Gatwick International Distribution Centre, Cobham Way, Crawley.

The business employes 3,200 people across the UK and Ireland.

It issued its second profits warning in three months today (Tuesday September 29) and has not detailed the job cuts that would result.

Its statement said around one third will come through redundancies and the rest by not replacing employees who leave.

The firm’s chief executive, Mark Rogerson, stepped down when it issued its first profits warning in July.

The latest alert comes after rival HSS Hire last week replaced its chief executive, Chris Davies, a month after it reported deepening half-year losses and issued a profit warning that sent its share price plummeting.

HSS blamed slower-than-expected housing and home improvement markets.

Speedy Hire said the measures it has taken to turn around the business include restructuring its depot network and cutting its overheads.

It added that it expects its overheads to be around £13 million below last year, with around £10 million of these savings coming from its UK and Ireland operations, and of this £6 million coming from staff costs.

Executive chairman Jan Astrand said: “Following the extremely disappointing start to the year, we have taken action to grow revenue and cut costs.

“Whilst these actions will take time to come to fruition, we believe they will deliver material benefits over the medium term.”

Investec analyst Andrew Gibb added: “Today’s trading update conveys further disappointment, with the resolution of the previously identified legacy issues set to take longer than originally anticipated.”

Speedy Hire appointed Russell Down, group finance director, as chief executive in July to replace Mr Rogerson, although he will also retain the finance role until a replacement is hired.

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