(Bloomberg) -- UK construction services provider Speedy Hire Plc fell the most in almost three years in London after saying it detected about £20.4 million ($25 million) in missing hire equipment, triggering an external investigation.

Speedy Hire made the discovery after carrying out a comprehensive count of the hire assets in preparation for its 2023 audit, the Newton-Le-Willows, England-based company said in a trading update on Wednesday. While it verified the previously disclosed net book value of itemized assets, it identified a deficiency in items lacking a unique serial identifier such as scaffolding towers and fencing. These represented about 22% of the total £226.9 million net book value on March 31, 2022.

The company expects to book a one-off non-cash writedown on its fiscal 2023 balance sheet, although this shouldn’t impact its cash position or underlying profit performance, it said. Speedy Hire traded down 13% at 36.7 pence as of 8:35 a.m. UK time.

Speedy Hire is performing well otherwise, it said. The company reported revenue growth of approximately 16% in the four months through Jan. 31, compared with the same period a year ago. “The Board continues to be confident on delivering underlying profit in line with expectations for the full year,” it said.


©2023 Bloomberg L.P.