Speedy Hire uncovers accounting problems, CEO steps down
LONDON (Reuters) - British construction equipment provider Speedy Hire (SDY.L: Quote) said its chief executive was standing down and that the finance director of its international unit had been suspended after it uncovered accounting irregularities.
The company said on Thursday that, based on the information it had available, control processes within its international division had been repeatedly and deliberately circumvented.
Group Chief Executive Steve Corcoran will step down from the board and leave the company at a date to be finalized, the company said.
Speedy Hire said the issues were limited to smaller contracts in its international division, which operates mainly in the Middle East and accounts for 5 percent of group revenue.
It said the total financial impact of the misstatements would amount to about 4.5 million to 5.0 million pounds, including to hit to pretax profit for the year to end-March 2014 of about 3 million pounds ($4.9 million).
Speedy Hire said in a statement released after the market closed that its UK business was unaffected and that it had appointed Addleshaw Goddard LLP to conduct an independent legal investigation. ($1 = 0.6118 British pounds)
(Reporting by Paul Sandle; editing by Jane Baird)
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