Speedy update

5 April 2023

In an update announced this morning on group trading performance for the year ended 31 March 2023, Speedy reports revenue up approximately 14 per cent over the previous year, underpinned by rate increases to counter inflationary cost pressures alongside a strong performance from its Services business.

The company states that, against the backdrop of a continuing challenging trading environment, there has been some softening of demand in recent weeks, although with a strong pipeline of new business it remains confident of future revenue growth, with adjusted profits before tax for the year expected to be in line with the Board's expectations.

In February, the Board instigated an external investigation into an issue identified with non-itemised assets, including a review of controls and accounting procedures. A further update will be provided with Speedy’s final results announcement expected on 6 June.

Management have taken corrective action and implemented new controls, and the Board says that an asset count at the end of March did not identify the need for an increase in existing provisions.

The group states that various initiatives, including an ongoing operational review and a management restructuring, will improve the efficiency of operations. The cost of these items in FY2023, including depot consolidations already announced, will be accounted for as exceptional items, and is expected to be approximately £6.6 million, and to deliver associated benefits in the region of £5 million per annum. 

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