The firm’s share price fell by as much as 20% in early trading this morning.

An interim management statement last month stated “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”.

But in a trading update to the City this morning Speedy said:

·      asset sales are running at a slower pace than anticipated and below historical trends;

·      trading losses in our Middle East business are likely to be greater than anticipated as the business is being stabilised. The performance of the International division will also be negatively impacted by adverse foreign exchange movements relating to the Kazakhstan Joint Venture; and

·      whilst total UK 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.

Speedy said pre-tax profit for the year to March 31 2014 will now be in the region of £14.5m.

The consensus forecast among analysts had been £17.8m.

Speedy added: “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.”

Preliminary results for the year are due to be unveiled on May 13.