Builders tools and equipment providers Speedy Hire has announced that it is raising £14.8 million through a placing to fund its expansion.

The Merseyside-based firm - which in June announced plans to expand into the West Midlands - also said its sales in the first five months of the financial year were up 24 per cent from last year.

Speedy Hire said it had placed £2.1 million shares at 710 pence each to raise £14.8 million to fund its expansion.

The placing represents five per cent of the company's current equity, and is being made by Oriel Securities, Speedy Hire's broker.

In a trading update ahead of the first half to September results announcement, the company said that in the five months to August, its total turnover rose 24 per cent, and its underlying like for like tool hire turnover was up nine per cent. Both the Tool and Equipment divisions are growing satisfactorily.