British tools and equipment company Speedy Hire has been hit hard by its lack of prompt return after launching an investigation into missing £20 million of scaffolding and fencing.
The company said it discovered the problem while preparing for its year-end audit, which was conducted in March.
Missing items could include equipment such as scaffolding towers, fences and non-mechanical plant items that are not tracked through individual serial numbers, it added on Wednesday.
Last year, Speedy Hire reported a net asset value of £227 million in equipment – meaning around 10 per cent of its shares were not accounted for. “Non-itemised” items make up about 22 per cent – or £50mn – of the overall equipment value, the company said.
“The board has instigated an external investigation into the issue identified with non-itemised assets, including a review of controls and accounting procedures,” said Speedy Hire in a statement.
The share price fell about 8 per cent to 39p on Friday.
The company added that it has strengthened its accounting procedures for non-itemized equipment, including weekly amounts and more on purchases and expenses.
The findings come as Speedy Hire said it would deliver profits in line with previous expectations and reported a 16 per cent increase in profits in the four months to January, compared with the same period a year earlier.
The company said the missing items could affect the value of non-related items as it approaches year-end audits, but would not affect bottom line profits.