The firm said it had cut four per cent of its workforce because of a "significant decline in revenues" from small and medium sized construction firms.

In a trading statement prior to half-year results in November, Speedy said it was still seeing "good levels of business" from government and regulated industry projects but problems in general construction made the outlook "unusually difficult to forecast".

The statement read: "Spending on infrastructure related projects remains strong in both the public and regulated sectors. government spending on schools, health, prisons and defence, together with increased activity from the regulated sector in utilities, renewable energy, rail and airports, has seen revenues from Speedy Hire's top 50 construction and industrial clients increase by 43 per cent in the five months to August. These customers account for approximately 28 per cent of Group revenue.

"However, reduced activity in other areas, such as residential, commercial, retail and mixed-use development, has become more pronounced in recent months.

This, together with the completion of existing projects, has seen the overall construction market continue to contract, resulting in a significant decline in revenues from the smaller and mid-tier customer base.

"Financial constraints and economic uncertainty have also led to some new projects being delayed or deferred, with the result that the traditional seasonal uplift in demand patterns in late August and into September has been more subdued than in previous years."