The firm said prevailing market conditions in the UK remained difficult and considerable cost pressures from fuel, business rates and insurance costs.

Revenue was down from £354m to £329m, although underlying revenues after taking into account the sale of Speedy’s accommodation business and expired Network Rail contract was up 4.3%.

The group also managed to reduce net debt by £37.6m to £76.3m, despite a £20.9m increase in capital expenditure.

Chief executive Steve Corcoran added: “While the UK economy remains fragile, our markets are now much more diverse than general construction.

“While we expect to see some short term disruption from the additional public holiday associated with the Queen’s Jubilee and from the restrictions imposed upon logistics in London during the Olympics and Paralympic Games, I am confident that our business will deliver another year of continued progress.”

Speedy plans to establish a number of strategically located multi service centres, each providing the full range of Speedy equipment and services, as well as boosting its regional distribution sentres.

The MSCs will be supported with 50 superstores, offering a lifting, survey and tools capability and serving the city centres and major towns, together with some 200 local stores principally drawn from its existing estate.

At year-end Speedy had delivered two MSCs, with a further two in planning, and 16 superstores, with a further four already identified for opening by Spring next year.

Corcoran said that sites that have been open for more than 12 months have delivered big improvements in performance.