Speedy Hire’s profits have been slashed after the equipment supplier wrote down the value of its equipment by more than £20m.
In its unaudited results for the year to 31 March 2023, Speedy reported a 93.8% drop in pre-tax profit from £29.1m to £1.8m free.
However, revenue rose 13.9% to £440.6m.
In February, Speedy revealed that the unspecified assets it held – such as the scaffolding tower, fencing and non-mechanical plant – were worth £20.4m less than it had previously stated.
After an investigation, the company said in May that the problem was the result of problems with accounting controls and procedures over several years.
But it concluded that it “was not the result of an underlying systemic fraud perpetrated on the company by its staff or third parties”.
In the latest announcement of the unaudited results, Speedy chairman David Shearer said: “In addition to the corrective actions and new controls implemented by management, the board has agreed a remedial plan to further strengthen the financial control environment to manage non-detailed assets and to provide security for the relevant book values, which remains ongoing.”
The company’s chief executive, Dan Evans, said the results “reflect the strong performance we have achieved this year”.
He added that the company’s new growth strategy “provides a clear direction for the business and we expect it to deliver long-term benefits to our customers, our people and our investors.”
Evans said the business had made an “encouraging start” to the current financial year, “with a strong pipeline of new clients and project-based opportunities”.
Meanwhile, Speedy has appointed a new CFO. Paul Rayner, who has been in the role on an interim basis since November 1, will begin the new role on July 1.
