Jobs at tool hire firm are axed

Tool and equipment firm Speedy Hire has cut almost 500 jobs in the first phase of a major cost reduction drive.

The Merseyside-based company has over 5,000 staff and 500 branches, has cut 492 jobs, closed 38 sites and reduced its vehicle fleet.

The changes will save the company around £24m a year.

Company chairman David Wallis said he would be more certain about the future after the "traditional Christmas shutdown in the construction industry".

'Remain cautious'

Speedy Hire hopes the efficiency savings will help it offset difficult conditions after revenues for October came in 6% short of hopes.

It announced a 3.9% rise in half-year pre-tax profits to £23.8m and revenues rose £256.2m.

Speedy Hire was formed in 1977 and grew following the acquisition of Hewden Tools in August 2007.

Chairman David Wallis said the company remained on track, subject to no further deterioration in the market.

He added: "Given difficult economic conditions, we remain cautious in our outlook, and will not have sufficient certainty on our position until we are through to the other side of the traditional Christmas shutdown in the construction industry."