28th Nov 2013 18:37
LONDON (Alliance News) - Speedy Hire PLC Chief Executive Officer Steve Corcoran is stepping down and will be leaving the company after information emerged indicating the mis-statement of accounting balances in the company's International Division.
Additionally, the finance director of its International Division has been suspended and other senior divisional management are under investigation.
Speedy Hire has appointed Addleshaw Goddard LLP to conduct an independent legal investigation into its International Division's accounting balances as "information currently available suggests that certain control processes within the International Division have been repeatedly and deliberately circumvented."
The company said that it believes these issues affect a limited number of smaller contracts, not including the ZADCO and Al Futtaim Carillion contracts or its Kazakhstan joint venture.
Speedy Hire said that no final conclusions could be drawn as to the time frame or results of investigations, but reiterated that the incident was isolated to the international division.
It expects a total impact of around GBP4.5 million to GBP5.0 million. This will reduce pretax profit for the year to March 31 2014 by around GBP3.0 million, Speedy Hire said.
However, it stressed that its UK businesses, which represent 95% of its revenues, would not be affected by these issues.
Corcoran will be leaving the company at a date to be finalised, and will remain with the business for a period pending the appointment of a new chief executive.
Shares in Speedy Hire last traded down 0.25 pence at 64.50 pence.
By Hana Stewart-Smith; [email protected]; @hanassallnews
Copyright © 2013 Alliance News Limited. All Rights Reserved.
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