28.02.2014

Speedy concludes financial investigation

UK based Speedy has confirmed the results of the investigation into financial irregularities in its Overseas division.

The company announced the discovery of irregularities on 28th November last year and expected the total aggregate impact of them to be in the order of £4.5 million - £5 million. Addleshaw Goddard and Deloitte were recruited to conduct an independent legal and forensic investigation into the accounting irregularities and this has now been completed. The report concludes:

- The accounting irregularities were the result of the deliberate actions by a small number of employees who have now left the business.
- The total financial impact will be £4.8 million plus fees
- The P&L adjustment for the current fiscal year will be £2.7 million, with the balance arising in prior years
- The Company has appointed a new management team
- The Company has strengthened internal cost controls and implemented a new reporting structure to provide much greater transparency on activities within the International Division.

Chairman Ishbel Macpherson said: "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. We look forward to updating the market on 26 March 2014."