Plant hire firm will incur a 拢2.7m hit on profit this year after issues in its international division
Speedy Hire has revealed it will incur a 拢2.7m hit on profit this year after investigating a 拢4.8m black hole found in the accounts of its international division last November.
The plant firm said an investigation into 鈥渁ccounting irregularities鈥� by Deloitte and Addleshaw Goddard had concluded the total financial impact of the irregularities would total 拢4.8m, with a 拢2.7m impact this financial year to 31 March 2014 and the rest arising in earlier years.
Speedy also said 鈥渁 small number of employees鈥� in the international division whose 鈥渄eliberate actions鈥� led to the accounting irregularities had now left the business.
The company has appointed a new management team for the international division, which operates in the Middle East.
The firm鈥檚 overall chief executive Steve Corcoran stepped down in November after the black hole was discovered and replaced last month by Mark Rogerson.
Ishbel Macpherson, chairman of Speedy Hire, said: 鈥淥ver the last four years, Speedy has established a platform in the Middle East, built local relationships and won major contracts.
鈥淭he discovery of the activities of a small number of individuals that resulted in these accounting irregularities has been more than disappointing.
鈥淭he board has acted quickly and decisively to confirm the impact, embedded a new management team and improved financial controls.
鈥淲hilst 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.
鈥淲e look forward to updating the market on 26 March 2014.鈥�
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