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AIA

Speedy Hire boss quits over £5m accounts hole

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3rd Dec 2013
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Steve Corcoran, the chief executive of building equipment supplier Speedy Hire, has resigned following the discovery of a £5m hole in the company accounts.

The finance director of the company’s international division, which operates mainly in the Middle East, has also been suspended after the accounting irregularities were unearthed.

Following recent management changes in the international division, it uncovered “the mis-statement of a number of accounting balances” within the unit. Some control process within the division had been “repeatedly and deliberately circumvented,” it added.

The £5m issue will cut pre-tax profits by £3m for the current financial year, and may lead to the restatement of financial results for the two previous financial years.

Speedy Hire said it remained in compliance with financial covenants, but added the circumstances have resulted in a breach of certain other items.

It added that it was “engaged in a constructive dialogue with its lenders” and that “other senior divisional management are the subject of further investigation.”

Law firm Addleshaw Goddard be carrying out an independent investigation in to the matter.

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Replies (4)

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By andrew.hyde
04th Dec 2013 10:58

Presumably now to be renamed...

...Speedy Exit

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By asillahi
04th Dec 2013 11:13

Auditors?

Wonder what the auditors were doing in the last couple of years? Maybe they thought the hole was below materiality level.

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By moneymanager
04th Dec 2013 12:33

Doing his duty

At least he fell on his sword.

If he had been one of the great and the good (e.g politician, HMRC head etc) he would have protested his innocence/excellence, been handsomely awarded and the sword probably used to dub him instead.

 

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By SJH-ADVDIPMA
04th Dec 2013 15:27

 

 

 

Inadequate management control systems, bring companies down, but time and again, proper controls are allowed to become dysfunctional, usually following re-organisations, hiring and firing for efficiency, its like the senior people think pixies and fairies somehow keep the integrity of controls going no matter what they throw at an organisation.  Senior management teams should be intimately aware and regularly review the fit for purpose status of their management control systems.  Emporers clothes is a common problem, does really make you wonder about the justifications for high earners.

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