On 28 November 2013 Speedy revealed that, following management changes at its international division, information had emerged indicating some mistakes in the accounts.
As previously reported, the discovery prompted the resignation of chief executive Steve Corcoran from the plant and tool hire group.
The board appointed lawyers from Addleshaw Goddard and forensic accountants from Deloitte to conduct an independent investigation. Speedy has also carried out its own internal review of carrying values on the international balance sheet.
The investigations have revealed that the accounting irregularities were the result of the deliberate actions of a small number of employees – not accounting errors – and these employees have now left the business.
The profit and loss adjustment to the current financial year’s accounts ( year to 31 March 2014) will be £2.7m, with the balance arising in prior periods.
New management is now in place. The company said that it has strengthened internal cost controls and implemented a new reporting structure that will provide greater transparency on activities within the international division.
Chairman Ishbel Macpherson said: "Over the last four years, Speedy has established a platform in the Middle East, built local relationships and won major contracts. The discovery of the activities of a small number of individuals that resulted in these accounting irregularities has been more than disappointing.
“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."
Got a story? Email news@theconstructionindex.co.uk
