Speedy says international irregularities were deliberate

SPEEDY Hire said the total impact of the accounting irregularities within its international arm will be £4.8m, including a £2.7m hit in the current financial year.

The problem, which prompted the resignation of long-serving chief executive Steve Corcoran in November 2013, led to an internal review and external investigations by law firm Addleshaw Goddard and forensic accountants from Deloitte.

Following the completion of these processes Newton-le-Willows-based Speedy said rather than error, the irregularities were the result of “deliberate actions of a small number of employees” – all of whom are no longer employed at the group.

It said an experienced new management team was now in place, while
internal cost controls have been tightened and a new reporting structure implemented, which will provide much greater transparency on activities within the International Division.

Speedy’s chairwoman Ishbel Macpherson said: “”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.”