Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Speedy Hire sacks staff over £4.8m fraud

Speedy Hire will take a £2.7m hit in its 2014 accounts after it lost £4.8m due to false accounting in its international division.

Following an investigation into the incident, the company said it would take a £2.7m hit in the current financial year to 31 March 2014 with the balance arising in earlier years.

The investigation was undertaken by lawyers Addleshaw Goddard and accountants Deloitte. Speedy Hire also did an internal review into carrying values in the balance sheet of its international division.

Speedy Hire said the accounting irregularities were “the result of the deliberate actions of a small number of employees – these employees have now left the business”.

The company said it has also appointed a new management team, strengthened cost controls and set up a new reporting structure to give greater transparency to the international division.

Former chief executive Steve Corcoran resigned in November after the accounting problems were discovered. He stayed on in the interim period and was replaced by Mark Rogerson, the company’s former chief operating officer who was previously managing director for natural resources at Costain.

The company’s share price plunged by more than 17 per cent on the day Mr Corcoran’s departure was announced in November. Its UK business was unaffected by the false accounting and did not form part of the investigations.

Speedy Hire 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.”

She said the board had acted decisively to improve financial controls.

She added: “While 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.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.