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Speedy Hire shares fall amid value deficiency, depot reduction costs

8th Feb 2023 10:38

(Alliance News) - Speedy Hire PLC on Wednesday announced that it is performing well in its second half of its financial year 2023 ending March 31, but reported a deficiency in the value of assets and a reduction in depots.

The Merseyside-based tools hire services firm said revenue excluding disposals and effects of assets loss in the four months to January 31 was up around 16% against a year earlier.

However, based on an operational review, the company noted a deficiency in the value of some assets of around GBP20.4 million.

It has launched an external investigation into the issue, and the deficiency is expected to be recorded as a one-off non-cash write down in its balance sheet for the year ending March 31.

Further it announced closure costs of around GBP2.9 million for financial year 2023 relating to a net 20 depot reduction at the end of January.

The closures are part of the firm's "evolution of the depot network towards larger, more energy efficient low-carbon facilities". It anticipates the associated benefits will be around GBP2.9 million a year.

Speedy Hire shares fell 7.4% to 38.92 pence each in London on Wednesday morning.

By Tom Budszus, Alliance News reporter

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