Write-off dents profits at plant hire group Speedy

Plant and equipment hire group, Speedy, has reported better annual revenues and a pre-tax profit that was significantly impaired by a £20.4m write-off.

The group also announced the appointment of a new chief financial officer.

The Newton-le-Willows-based group found irregularities in its assets base. An investigation concluded that the issue resulted from “problems with the company’s controls and accounting procedures for non-itemised assets over a number of years, and in particular the reconciliation of such counts to the group’s fixed asset register.”

This has resulted in a £20.4m asset write-off, which resulted in a pre-tax profit for the year to March 31, 2023, of £1.8m, compared with £29.1m the previous year. Turnover was £440.6m, up from £386.8m the year before.

Speedy had free cash of £10.6m, against an outflow the previous year of £18.5m, driven by improved working capital management. Net debt has risen from £67.5m to £92.4m following its £30m share buyback programme, but the board has recommended an 18.2% increase in the total dividend to 2.6p per share.

The group has achieved recent key contract wins and extensions, as well as a strong pipeline, which it said gives confidence in meeting expectations for the coming year.

Speedy said it remains vigilant to the continuing challenges of the macro-economic climate.

Chief executive, Dan Evans, said: “I am pleased to report results that reflect the strong performance we have achieved this year.

“We are excited about executing on our new growth strategy, Velocity, which provides clear direction for the business and we expect it to deliver long-term benefits to our customers, our people and our investors.

“We have made an encouraging start to FY2024 with a strong pipeline of new customer and project based opportunities.”

Speedy has unveiled Paul Rayner as chief financial officer and executive director with effect from July 1, 2023.

Paul joined Speedy in the role of interim CFO with effect from November 1, 2022. His appointment to the permanent position follows a comprehensive recruitment process supported by external consultants.

Paul is a Fellow of The Institute of Chartered Accountants with more than 25 years’ experience in senior financial roles including interim and permanent roles, respectively, on the main board of FTSE listed companies Avon Protection and Chemring Group.

Dan Evans said: “I am pleased Paul is joining the board as chief financial officer on a permanent basis. He has settled in well during his time as an interim and will be invaluable in supporting the delivery of our new Velocity strategy.”