Adjusted loss before tax for the six months to September was £4.8m, compared with a 2008 restated profit of £23.8m.

The tool and equipment hire group said that monthly revenue declines year on year were expected to narrow from November. Following further project deferrals, it now expected adjusted PBT at break-even level for the second half.

Gross margin was 60.2% (2008 64.5%) and the group reported an operating profit of £3.7m, down from £32.8m. Operating cash flow was up 34.7% to £25.6m.

Net debt reduced by 51.3% to £134.8m from £276.8m as a result of the group's £99.7m rights issue and strong cash generation.

The group declared an interim dividend of 0.2p, against the previous 1.7p per share after adjusting for the rights issue.

Chairman David Wallis the group remained well positioned in the market place after taking aggressive steps to reduce its net debt and cost base.

The group now had more than £80m of annualised cost savings in place and was targeting £30m of savings in the current financial year.

Encouraging progress had been made in overseas markets and non-hire services. The top 50 UK construction companies now accounted for 25.9% of revenue, previously 21.5%.

The group announced contract wins with Welsh Water Plc and WysePower together worth an expected £8m in annual revenue.