Speedy says lost equipment ‘not fraud or theft’

UK rental company Speedy said the £20.4 million shortfall in its non-powered fleet identified in February was not caused by fraud or theft but the result of problems with accounting procedures.

Speedy said an investigation had identified “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.”

In February, the company had said that “non-itemised” assets such as scaffold towers, fencing and non-mechanical plant valued at around £20.4 million had gone missing from its fleet.

Speedy said in a stock exchange statement that in addition to corrective action and new controls, the board had agreed a plan to further strengthen financial controls to manage non-itemised equipment, including additional asset counts and procedures for checking these against its asset register.