Business
Financial and trading update
Financial and trading update.
About this update from Speedy Hire Plc
[{"type":"text","content":"\n \n \n Speedy Hire Plc\n \n \n (\"Speedy\", \"the Company\" or \"the Group\")\n \n \n \n \n \n \n 8 February 2023\n \n \n \n \n \n Financial and trading update\n \n \n \n \n \n Speedy, the UK's leading tools and equipment hire services company, operating across the construction, infrastructure and industrial markets, today provides a financial and trading update.\n \n \n \n \n \n \n Net book value of hire equipment\n \n \n \n \n \n \n Following recommendations made at the end of the audit for the year ended 31 March 2022 and as part of the subsequent work being undertaken by management to review controls around hire equipment, the Group has recently carried out a comprehensive count of all hire equipment in preparation for the upcoming 2023 audit.\n \n \n \n \n \n As at 31 March 2022, the reported net book value of the Group's hire equipment assets was £226.9m. The Company categorises hire equipment into two groups: those that are individually identifiable by a unique serial number to the asset register (\"itemised assets\", representing 78%, or £177.0m, of the total reported net book value), and other equipment such as scaffolding towers, fencing and non-mechanical plant which does not have a unique serial identifier and is not tracked on an individual asset basis (\"non-itemised assets\", representing 22%, or £49.9m, of the total reported net book value). The recently completed comprehensive count has covered both itemised and non-itemised assets. Whilst this count validated the previously disclosed net book value of itemised assets, it identified a deficiency in the value of non-itemised assets of c.£20.4m.\n \n \n \n \n \n \n Actions taken\n \n \n \n The Board has instigated an external investigation into the issue identified with non-itemised assets, including a review of controls and accounting procedures. In addition, management has strengthened the control environment for managing its non-itemised asset fleet, including weekly perpetual asset counts with additional internal audit focus, enhanced control over purchases and disposals, and monthly reconciliations against the fixed asset register. These actions will be further considered in conjunction with the findings of the external investigation, including any further changes to controls and processes as appropriate...