Speedy Hire launches investigation into uncovering £20m deficiency

Speedy Hire said on Wednesday that it had discovered a deficiency of £20.4m in its non-itemised assets in preparation for its 2023 audit, leading it to instigate an external investigation into the anomaly, which will include a review of its control and accounting procedures.

The London-listed group also stated it has now strengthened its control environment for the management of its non-itemised assets, such as fencing, including weekly counts and an internal audits.

Speedy added that although it expects the shortfall to bring about a one-off non-cash write down of non-itemised assets for the year ending 31 March, it was not expected to impact its cash or underlying profit performance.

Revenues for the four months to 31 January were up 16% year-on-year, and Speedy's board said it remains confident in its ability to achieve underlying profits in line with expectations.

As of 0930 GMT, Speedy Hire shares had slumped 12.26% to 36.85p.

Reporting by Iain Gilbert at Sharecast.com