Speedy Hire suffers £2.7m charge on accounting irregularities

ACCOUNTING IRREGULARITIES at construction equipment rental business Speedy Hire will see a charge of £2.7m added to the current financial year.

In a statement to the stock exchange, the business announced that the total impact to the company is £4.8m (including forensic fees), with the impact on P&L to the current financial year coming in at £2.7m.

The accounting irregularities were discovered last year, with Deloitte and law firm Addleshaw Goddard brought in to conduct an independent legal and forensic investigation in addition to an internal company review.

The irregularities “were the result of deliberate actions of a small number of employees, who have now left he business”, the review said. Following the discovery, the international division FD was suspended last year.

In November, CEO Steve Corcoran announced that he would step down, while the company also announced that over recent accounting periods its control process in the international division appeared to have been “repeatedly and deliberately circumvented”.

Mark Rogerson was recruited as Corcoran’s successor in January. Rogerson was previously MD of natural resources at Costain group, and prior to that spent eight years at Serco.

Ishbel Macpherson, chairman, said: “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.”