Speedy Hire has revealed it has been hit by a "softening of demand" in recent weeks as a result of the "continuing challenging trading environment".
However, the Newton-le-Willows-headquartered company said it is entering its new financial year with "confidence".
That is after launching an operational review and a management restructure which is expected to cost around £6.6m, including the depot closures that have been previously announced.
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The group has also confirmed its adjusted pre-tax profits for the 12 months to March 31, 2023, are due to be in line with its expectations.
Its revenue is also said to have grown by around 14% compared to the prior year.
The update comes after Speedy Hire launched an investigation in February into the disappearance of equipment worth over £20m.
The company discovered the loss following a count of its hire equipment before its 2023 audit.
At the time, the business said that the loss is expected to result in a one-off, non-cash write down of its balance sheet of non-itemised assets for the year to March 31, 2023.
However, it added that it is not expected to impact its cash position or underlying profit performance.
In a new update to the London Stock Exchange, Speedy Hire said that the investigation is continuing to progress and a further update will be provided on June 6 when its full-year results are published.
It added: "Management have taken corrective action and implemented new controls.
"The board is reassured that an asset count at the end of March 2023, as part of the new controls, did not identify the need for an increase in existing provisions."
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