"Spending on infrastructure related projects remains strong in both the public and regulated sectors, but reduced activity in other areas, such as residential, commercial, retail and mixed-use development, has become more pronounced in recent months," it said.

"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."

Revenue for the first half is expected to be up 22% on the comparative period last year with Tool Hire and Equipment Hire expected to be up approximately 21% and 25% respectively.