Speedy Hire, the largest company in the UK equipement hire sector, said that  sales were at a "slower pace than anticipated"  and is warning of increased losses in its Middle Eastern division with the publication today of its latest trading update and its outlook for the year ending 31 March 2014.

The gllomy forecast folows a review of its most recent management information. 

In its Interim Management Statement of 12 February 2014, Speedy said that "whilst performance in International is running behind expectation, the UK performance to date gives the Board confidence that the Group will meet its expectations for the full financial year".

However, the Group has now reported that asset sales are running at a slower pace than anticipated and below historical trends, with trading losses in its Middle East business "likely to be greater than anticipated as the business is being stabilised." The performance of Speedy's International division will also be negatively impacted by adverse foreign exchange movements relating to its Kazakhstan Joint Venture.

In the UK, while total  revenues are marginally higher than in the same period in the prior year, reflecting growth in services revenue, the higher margin hire revenues for February and March are below forecast..

As a consequence, the Speedy Board now expects its full year pre-tax profit for the year ending 31 March 2014, to be in the region of £14.5 million. Commenting on the outlook for the Group, Speedy said:

"Focus for the Group is on completing the stabilisation of the International division, and in the UK, focussing the sales effort to take advantage of the improving economic conditions, and delivering the previously announced network and asset optimisation projects."