Middle East book out to the tune of $8m, confirms Speedy
UK-based equipment rental company Speedy Hire has confirmed that it has lost $8 million (£4.8m) plus associated costs in its International Division, which servics the Middle East, due to “the deliberate actions of a small number of employees”.
Speedy first identified the “accounting irregularities” last year, and hired law firm Goddard LLP and accountants Deloitte LLP to conduct an independent legal and forensic investigation into the irregularities.
Speedy says that the employees responsible have now left the business, and a new management team has been appointed.
“The Company has strengthened internal cost controls and implemented a new reporting structure which will provide much greater transparency on activities within the International Division,” said Ishbel Macpherson, Speedy’s chairman.
“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.”