SPEEDY Hire, the Newton-le-Willows-based plant and tool hire group announced a loss and falling revenues for the six month period to September 30.

The group has been hit by the downturn in the construction industry caused by the recession.

Turnover tumbled by 28% to £184.8m and last year’s interim pre-tax profit of £19.4m was wiped out by a loss of £13.6m this time after including a £6m exceptional charge related to restructuring.

But the group reported two new contracts worth £8m a year, and said it was well placed for an upturn in markets.

A £99.7m rights issue was used to cut debts by 45.7% to £134.8m, around 7% of the workforce had been shed, and cost savings of £80m had been identified.

Chairman David Wallis said: “Although the outlook for UK construction remains uncertain in the short term, the group remains well positioned in the market place, having taken aggressive steps to reduce further both its net debt and cost base.”

The group’s statement said it expects to break even at the adjusted profit before tax level in the second half period.