International Division - Accounting Irregularities

RNS Number : 1547B

Speedy Hire PLC

28 February 2014

 



28 February 2014

Speedy Hire Plc

("Speedy", "the Company" or "the Group")

International Division - Outcome of Accounting Irregularities Investigation

On 28 November 2013 the Company announced that, following management changes within its International Division, information had emerged indicating the mis-statement of a number of accounting balances within the International Division.  Preliminary indications were that the total aggregate impact of these issues was estimated to be in the order of £4.5 million - £5.0 million. 

The Board appointed Addleshaw Goddard LLP and Deloitte LLP to conduct an independent legal and forensic investigation into the accounting irregularities and internally Speedy has carried out a comprehensive review of carrying values in the International balance sheet.

This investigation and additional work has now been completed and we can report as follows:

§ the accounting irregularities were the result of the deliberate actions of a small number of employees - these employees have now left the business;

§ the total financial impact has been confirmed at £4.8 million plus fees; 

§ the P&L adjustment to the current financial year to 31 March 2014 will be £2.7 million, with the balance arising in prior periods;

§ the Company has appointed an experienced new management team; and

§ the Company has strengthened internal cost controls and implemented a new reporting structure which will provide much greater transparency on activities within the International Division.

Ishbel Macpherson, Chairman, commented:

"Over the last four years, Speedy has established a platform in the Middle East, built local relationships and won major contracts.  The discovery of the activities of a small number of individuals that resulted in these accounting irregularities has been more than disappointing. 

The Board has acted quickly and decisively to confirm the impact, embedded a new management team and improved financial controls. 

Whilst there will be an impact on both the current and previous financial years, the Group remains committed to our customers in the region and positive about the opportunities.  We look forward to updating the market on 26 March 2014."

For further information please contact:

Speedy Hire Plc	Hudson Sandler
Mark Rogerson, Chief Executive Officer Lynn Krige, Group Finance Director Tel:  [phone]	Nick Lyon, Katie Matthews, Charlie Barker Tel: [phone]

Website:  www.speedyhire.plc.uk

Notes to Editors:

Founded in 1977, Speedy is the leading UK provider of equipment rental and support services to a wide range of clients across the construction, infrastructure, industrial, manufacturing and facilities management sectors - as well as to local trades and industry.

The Group operates from 258 fixed sites throughout the UK - together with a number of on-site facilities at client locations. The Group also operates in the Republic of Ireland and from an international hub, based in the Middle East.  The Group supplies a range of services including:

·      the provision of small tools and equipment

·      surveying and measurement instrumentation

·      lifting and materials handling equipment

·      low level access equipment

·      portable compressed air

·      temporary lighting equipment

·      temporary power generation

·      electrical & mechanical pumps

·      temporary site communications

·      light plant & general building equipment

As a differentiation from other general hire companies, the Group also provides associated services to manage client risk through the provision of training, asset management and testing, repair, inspection and maintenance (TRIM).

Speedy is accredited nationally to ISO9001, ISO14001 and OHSAS18001 standards. In addition it holds nationally HAE SafeHire accreditation, as well as Achilles Link-up, UVDB, Building Confidence and F-Pal. Further accreditations include UKAS (Specialist Lifting Engineers - for Compliance Inspections), Constructionline, SAFEcontractor, CHAS, LEEA and being ranked a Platinum company in the Business in the Community (BITC) CR Index 2013.

 

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