Speedy Hire backs Jan Astrand after attempts to oust chairman

Tool rental company Speedy Hire said it “strongly recommends” its shareholders vote against ousting executive chairman Jan Åstrand by its largest investor, Toscafund Asset Management.

Toscafund has forced a special general meeting on the 9 September to oust Åstrand and on Wednesday said he should resign ahead of the meeting.

In an letter on Wednesday, Martin Hughes, Toscafund chief executive said Åstrand had failed to deliver during his tenure as executive chairman and he lacked “the appropriate record or attitude” to improve the company.

The fund manager despaired that Åstrand backed out of talks in December 2015 to merge with its rival HSS Hire, which Toscafund is also a large shareholder of, for a potential £300m deal.

In a letter on Thursday the company explained that a merger with HSS Hire at the moment would not be in the best interests of its shareholders.

The FTSE small cap listed company had been restructuring the company for about three years after accounting wrongdoings were found in its Middle East operations.

Speedy Hire said: “The recovery plan, which was developed and implemented by Jan Åstrand and Russell Down [chief finance officer], has stabilised the business and that revenue is now growing. For the four months ended 31 July 2016 total pre-disposal revenue, on a like for like basis, is ahead of the prior year. Overhead costs are lower than the comparative period.”

The company also said that Åstrand, following the stabilisation of the business, will revert to to the role of non-executive chairman on 30 September, the end of Speedy Hire’s financial year.

Shares in Speedy Hire were up 1.21% to 39.47p at 1001 BST.