Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, announced the completion of an external investigation into “non-itemised assets” at the firm.

Speedy Hire said the problem “was not the result of underlying systemic fraud perpetrated on the company by its staff or third parties.”

It said the issue resulted “from problems with the company’s controls and accounting procedures for non-itemised assets over a number of years, and in particular the reconciliation of such counts to the group’s fixed asset register.”

Speedy Hire said that in addition to corrective action and new controls implemented by management, the board has “agreed a remedial plan to further strengthen the financial control environment for managing non-itemised assets …”

In a stock exchange statement, the company said: “Speedy provides the following further update on the matter relating to its non-itemised assets first notified to the market in its trading update on 8 February 2023 and further referenced in its year end trading update on 5 April 2023.

“As previously announced, following a comprehensive count of all hire equipment in preparation for the audit for the financial year ended 31 March 2023, the company identified a deficiency in the value of non-itemised assets (equipment without a unique serial identifier such as scaffolding tower, fencing and non-mechanical plant) of c.£20.4m …

“Following completion of the investigation the Board has concluded that …

” … the issue resulted from problems with the company’s controls and accounting procedures for non-itemised assets over a number of years, and in particular the reconciliation of such counts to the Group’s fixed asset register; and …

” … the issue was not the result of underlying systemic fraud perpetrated on the company by its staff or third parties.

“In addition to corrective action and new controls implemented by management, the board has agreed a remedial plan to further strengthen the financial control environment for managing non-itemised assets and provide assurance for the relevant accounting values.

“This includes additional counts of the assets and new procedures for reconciling those against its fixed asset register.

“As previously announced, as part of the new controls, the asset count at the end of March 2023 did not identify the need to increase the existing provision.”