Speedy starts external investigation into missing fleet

Speedy has begun an external investigation after a review of its equipment fleet identified missing non-mechanical equipment valued at £20.4 million, representing around 41% of its ‘non-itemised assets’ such as scaffold towers and fencing.

Before the stock take, Speedy had valued its entire fleet at £226.9 million, which means that approximately 9% has been lost, in terms of net book value.

The company said there was no similar loss in its fleet of larger, mechanical equipment – called ‘itemised assets’ – which are valued at £177.0 million, representing 78% of the total fleet.

Speedy has begun an external investigation, including a review of its controls and accounting procedures.

The company said in a stock market update that it had “strengthened the control environment for managing its non-itemised asset fleet, including weekly perpetual asset counts with additional internal audit focus, enhanced control over purchases and disposals, and monthly reconciliations against the fixed asset register.”

Speedy said the issue was likely to lead to a non-cash write-down on the balance sheet but was not expected to impact its underlying profitability.

Meanwhile, the company said in its financial update that its new management team’s operational review had included progress on the shift in its depot network towards “larger, more energy efficient low-carbon facilities, located and designed to create a better experience for all customers and an enhanced working environment for our colleagues.”

This has resulted in a net reduction of 20 depots in the network by the end of January 2023. The cost of the closures will be around £2.9 million.

Revenues for the four months to 31 January were up 16% against the same period in the previous year and Speedy said it continued to perform well.