Speedy Hire PLC (LON:SDY) has uncovered issues at its underperforming training business, Geason, which it bought in December 2018.
Geason, which accounts for around 2% of the group’s revenue, has not performed in line with expectations and as a result, the carrying value of goodwill and any contingent consideration payable relating to the acquisition will be written down to nil in the accounts for the year ending March 31, 2020.
In addition, Geason received a claim from a funding agency in late April 2020 alleging poor financial controls and overpayments of up to £2.6mln for the three year period commencing August 2017, which the company is investigating.
We are delighted to announce that we have been acquired by @wearespeedy Speedy Hire Plc. For more information visit: https://t.co/ZGfFKXUmnp pic.twitter.com/okvnIEvXQv
— Geason Training (@geasononline) December 13, 2018
Speedy Hire also announced that Chris Morgan will step down from the board as group finance director with effect from 31 July 2020 by mutual agreement.
The tool hire outfit revealed that its revenues in April were ahead of expectations, albeit down 35% year-on-year.
Activity levels steadily improved during May as lockdown restrictions eased and as a result hire revenues for the week ended June 5 were down by about 17% on the same period of 2017.