Speedy Hire is an equipment rental company who is going to be taking a blow to their profits because of the Queen’s Diamond Jubilee and the Olympic Games that are taking place this summer.
It is expected that because of these events the demand for equipment in the capital city is going to be reduced as construction projects go on hold while the Games take place. It is estimated that the company are going to lose around £2.5 million because of the summer festivities.
These figures come out of the firm, Investec Securities. An analyst from the company, Andrew Gibbons has commented, “The business still remains in good shape and is going to meet its forecasts for next year. However, they are going to have to work very hard in order to reduce the impact that they are going to be feeling as projects go on hold over the summer.”
The stockbrokers, Panmure Gordon have recently cut their estimates for profit figures for the company from nearly £20 million to £16 million. They suggest that the majority of the lost profits are going to be associated with the Olympics. An analyst for the stockbrokers has commented, “Because so many roads are going to be closed in London for the Olympic Games, we are expecting this company to be seriously affected.”
The company has 300 sites across the country and shares have not been particularly badly affected by the announcement by these analysts that the profit figures could fall. The company has many strong contracts which will continue long into the future and are only going to be temporarily affected.
This is going to be a short-term problem that the company will recover from after the busy summer. Despite that, analysts are remaining cautious about the company’s profit predictions.