ACCOUNTING IRREGULARITIES at construction equipment rental business Speedy Hire will see a charge of £2.7m added to the current financial year.
In a statement to the stock exchange, the business announced that the total impact to the company is £4.8m (including forensic fees), with the impact on P&L to the current financial year coming in at £2.7m.
The accounting irregularities were discovered last year, with Deloitte and law firm Addleshaw Goddard brought in to conduct an independent legal and forensic investigation in addition to an internal company review.
The irregularities “were the result of deliberate actions of a small number of employees, who have now left he business”, the review said. Following the discovery, the international division FD was suspended last year.
In November, CEO Steve Corcoran announced that he would step down, while the company also announced that over recent accounting periods its control process in the international division appeared to have been “repeatedly and deliberately circumvented”.
Mark Rogerson was recruited as Corcoran’s successor in January. Rogerson was previously MD of natural resources at Costain group, and prior to that spent eight years at Serco.
Ishbel Macpherson, chairman, said: “The board has acted quickly and decisively to confirm the impact, embedded a new management team and improved financial controls.
“Whilst 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. We look forward to updating the market on 26 March 2014.”
Join Financial Director, Oracle and a host of ‘Fast Data’ experts to discover how financial professionals can help create a Fast Data business
Wolseley is to cut up to 800 UK jobs and close around 80 branches costing the company about £100 million, the plumbing and heating supplier said on Tuesday despite reporting rising sales and profits
GoCompare is to demerge from esure and and be floated on the London Stock Exchange with the aim of boosting growth and performance
Three former Tesco executives, including the former finance director of Tesco UK, have been charged with fraud in relation to a £263m accounting scandal at the supermarket chain