Speedy Hire

Realising our  
potential

Speedy Hire Plc
Annual Report and Accounts 2020

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Speedy Hire Plc
Chase House 
16 The Parks
Newton-le-Willows 
Merseyside WA12 0JQ

speedyservices.com/investors

BACK COVER

12mm spine

FRONT COVER

 
 
 
 
 
 
 
 
 
Who we are 
Speedy is the UK’s leading provider of tools and 
equipment hire, and services to the construction, 
infrastructure and industrial markets. Our hire and 
services business operates from over 200 locations  
in the UK and Ireland. 

We also operate internationally, providing equipment 
and manpower primarily for national government 
clients in the oil and gas markets, on long term 
framework contracts in the UAE and Kazakhstan.

Our network

Depots

Superstores

Multi Service Centres

National Distribution Centre

Contents
Strategic Report 
Who we are 

IFC
 01
Why invest in Speedy 
What we do and how we do it  02
04
Where we operate  

Company facts 

Chairman’s statement 

Chief Executive’s Review 

A digital business 

Sustainability 

Customer service 

Business development  

Services 

06

08

10

14

16

18

20

22

24
People 
Safety and sustainability report  28
(cid:37)(cid:72)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:77)(cid:78)(cid:77)(cid:12)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:42)(cid:47)(cid:40)(cid:82)(cid:3)(cid:3) 34
36
Financial Review  
Principal risks and uncertainties   40
50
Viability Statement  

Board engagement with  
our stakeholders  

What we do in more detail 

Governance 
Chairman’s letter  
to shareholders 

Directors’ Report 

Statement of Directors’  
Responsibilities 

Board of Directors 

51

54

57

58

61

62

64
Corporate Governance 
Audit & Risk Committee Report   70
Nomination Committee Report  75
77
Remuneration Report  
(cid:40)(cid:77)(cid:67)(cid:68)(cid:79)(cid:68)(cid:77)(cid:67)(cid:68)(cid:77)(cid:83)(cid:3)(cid:64)(cid:84)(cid:67)(cid:72)(cid:83)(cid:78)(cid:81)(cid:343)(cid:82)(cid:3)(cid:81)(cid:68)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)(cid:3) 98

Financial Statements  
(cid:34)(cid:78)(cid:77)(cid:82)(cid:78)(cid:75)(cid:72)(cid:67)(cid:64)(cid:83)(cid:68)(cid:67)(cid:3)(cid:40)(cid:77)(cid:66)(cid:78)(cid:76)(cid:68)(cid:3)
Statement 

109

Consolidated Statement of 
110
(cid:34)(cid:78)(cid:76)(cid:79)(cid:81)(cid:68)(cid:71)(cid:68)(cid:77)(cid:82)(cid:72)(cid:85)(cid:68)(cid:3)(cid:40)(cid:77)(cid:66)(cid:78)(cid:76)(cid:68)(cid:3)
Consolidated Balance Sheet  111
Consolidated Statement  
of Changes in Equity  

112

Consolidated Cash  
Flow Statement 
(cid:45)(cid:78)(cid:83)(cid:68)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3) 
statements  

Company Balance Sheet 

Company Statement  
of Changes in Equity 

Company Cash Flow  
Statement 

Notes to the Company  
(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:82)(cid:83)(cid:64)(cid:83)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:82)(cid:3)(cid:3)
Five-year summary 

113

114

150

151

152

153

157

Corporate Information 
(cid:50)(cid:71)(cid:64)(cid:81)(cid:68)(cid:71)(cid:78)(cid:75)(cid:67)(cid:68)(cid:81)(cid:3)(cid:40)(cid:77)(cid:69)(cid:78)(cid:81)(cid:76)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)

158

(cid:49)(cid:68)(cid:70)(cid:72)(cid:82)(cid:83)(cid:68)(cid:81)(cid:68)(cid:67)(cid:3)(cid:78)(cid:423)(cid:66)(cid:68)(cid:3)
and advisers 

160

All paper from sustainable and controlled sources.

This Annual Report is available at speedyservices.com/investors

Designed by MHP Design  |  mhpc.com

Printed by 4-Print Limited  |  4-print.co.uk

Our vision 
Our vision is to become the best 
company in our sector to do business 
with and the best to work for.

Our mission 
Our mission is to provide safe, reliable 
hire equipment and services to enable 
successful delivery of customer projects.

Our values 

'Safe'(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:421)(cid:81)(cid:82)(cid:83)(cid:3)(cid:79)(cid:81)(cid:72)(cid:78)(cid:81)(cid:72)(cid:83)(cid:88)(cid:3)(cid:72)(cid:77)(cid:3)(cid:68)(cid:85)(cid:68)(cid:81)(cid:88)(cid:83)(cid:71)(cid:72)(cid:77)(cid:70)(cid:3)(cid:86)(cid:68)(cid:3)(cid:67)(cid:78)

' As One' working together to collectively  
achieve our goals

'Innovative' to continuously improve

' Driven'(cid:3)(cid:83)(cid:78)(cid:3)(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:3)(cid:64)(cid:3)(cid:421)(cid:81)(cid:82)(cid:83)(cid:3)(cid:66)(cid:75)(cid:64)(cid:82)(cid:82)(cid:3) 
customer experience

Our customer  
value proposition 
We provide our customers with a single 
destination for the latest, most innovative,  
safe, and compliant tools and equipment.

As a result we protect our customers against 
commercial risk, enable the successful delivery 
of their projects and ensure their people are 
operating safely on site. 

(cid:47)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:3)(cid:421)(cid:81)(cid:82)(cid:83)(cid:3)(cid:66)(cid:75)(cid:64)(cid:82)(cid:82)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:81)(cid:72)(cid:68)(cid:77)(cid:66)(cid:68)(cid:3) 
(cid:72)(cid:82)(cid:3)(cid:66)(cid:78)(cid:81)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)(cid:78)(cid:420)(cid:68)(cid:81)(cid:72)(cid:77)(cid:70)(cid:13)(cid:3)

We achieve this through a combination  
of our people, nationwide depot network  
and digital propositions.

Why invest in Speedy?

   We supply large national customers,  
(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:23)(cid:22)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:343)(cid:82)(cid:3)(cid:83)(cid:78)(cid:79)(cid:3)(cid:16)(cid:15)(cid:15)(cid:3)(cid:66)(cid:78)(cid:77)(cid:83)(cid:81)(cid:64)(cid:66)(cid:83)(cid:78)(cid:81)(cid:82)(cid:11)(cid:3)
as well as local trades and industries
   Safety is our number one priority and we  
actively work with our suppliers to deliver award 
winning, sustainable solutions for customers
   We innovate to make our customers’ projects 
more successful by taking advantage of 
technological advancements
   We have high levels of customer advocacy,  
with a 92%* customer satisfaction score
   We provide an industry leading unique  
national four-hour delivery promise on  
our most popular products

*Based on average monthly responses to customer surveys

   We are improving asset availability,  
which is fundamental to ensuring that  
we provide great customer service
   (cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:64)(cid:3)(cid:82)(cid:83)(cid:81)(cid:78)(cid:77)(cid:70)(cid:3)(cid:65)(cid:64)(cid:75)(cid:64)(cid:77)(cid:66)(cid:68)(cid:3)(cid:82)(cid:71)(cid:68)(cid:68)(cid:83)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:3)
banking facility headroom, which means 
that we can continue to grow the business 
organically and through value enhancing 
acquisitions
   We aim to grow our services businesses faster 
(cid:83)(cid:71)(cid:64)(cid:77)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:26)(cid:3)(cid:83)(cid:71)(cid:72)(cid:82)(cid:3)(cid:67)(cid:72)(cid:85)(cid:68)(cid:81)(cid:82)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:86)(cid:72)(cid:75)(cid:75)(cid:3)(cid:81)(cid:68)(cid:82)(cid:84)(cid:75)(cid:83)(cid:3)(cid:72)(cid:77)(cid:3)(cid:84)(cid:82)(cid:3)
being more resilient to economic downturn
   We have successful oil and gas businesses  
(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:32)(cid:36)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:42)(cid:64)(cid:89)(cid:64)(cid:74)(cid:71)(cid:82)(cid:83)(cid:64)(cid:77)(cid:3)

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What we do and 
how we do it

(cid:3)

40% 

approx. revenue
Services
Services account for 
(cid:64)(cid:79)(cid:79)(cid:81)(cid:78)(cid:87)(cid:72)(cid:76)(cid:64)(cid:83)(cid:68)(cid:75)(cid:88)(cid:3)(cid:19)(cid:15)(cid:4)(cid:3)(cid:78)(cid:69)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
business and falls into various 
categories such as training, 
testing, inspection and 
(cid:66)(cid:68)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:11)(cid:3)(cid:79)(cid:78)(cid:86)(cid:68)(cid:81)(cid:68)(cid:67)(cid:3)(cid:64)(cid:66)(cid:66)(cid:68)(cid:82)(cid:82)(cid:3)
for specialist servicing and 
refurbishment, product 
and consumable sales, fuel 
management and rehire.

(cid:37)(cid:78)(cid:81)(cid:3)(cid:64)(cid:3)(cid:69)(cid:84)(cid:75)(cid:75)(cid:3)(cid:75)(cid:72)(cid:82)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:67)(cid:68)(cid:83)(cid:64)(cid:72)(cid:75)(cid:82)(cid:3)(cid:81)(cid:68)(cid:69)(cid:68)(cid:81)(cid:3)(cid:83)(cid:78)(cid:3)(cid:79)(cid:64)(cid:70)(cid:68)(cid:3)(cid:20)(cid:19)

60% 

approx. revenue
Hire

Consisting of approximately 
(cid:17)(cid:11)(cid:16)(cid:20)(cid:15)(cid:3)(cid:79)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:83)(cid:3)(cid:75)(cid:72)(cid:77)(cid:68)(cid:82)(cid:11)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)
hire business encompasses 
our core tools business, and 
our specialist businesses 
which include lifting, 
survey, power, rail and 
powered access.

(cid:37)(cid:78)(cid:81)(cid:3)(cid:64)(cid:3)(cid:69)(cid:84)(cid:75)(cid:75)(cid:3)(cid:75)(cid:72)(cid:82)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:67)(cid:68)(cid:83)(cid:64)(cid:72)(cid:75)(cid:82)(cid:3)(cid:81)(cid:68)(cid:69)(cid:68)(cid:81)(cid:3)(cid:83)(cid:78)(cid:3)(cid:79)(cid:64)(cid:70)(cid:68)(cid:3)(cid:20)(cid:19)

2   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Making it easy  
for customers  
to do business 

Our aim is to make it easy for 
customers to do business with us, 
(cid:83)(cid:71)(cid:81)(cid:78)(cid:84)(cid:70)(cid:71)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:3)(cid:66)(cid:71)(cid:78)(cid:72)(cid:66)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:67)(cid:72)(cid:420)(cid:68)(cid:81)(cid:68)(cid:77)(cid:83)(cid:3)
contact options to suit their needs:

Regional  
call centres
Through our regional call centres 
located throughout the country 
(cid:78)(cid:84)(cid:81)(cid:3)(cid:67)(cid:68)(cid:67)(cid:72)(cid:66)(cid:64)(cid:83)(cid:68)(cid:67)(cid:3)(cid:82)(cid:83)(cid:64)(cid:420)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
regional customer base

Online
Through our website  
and mobile app

Customer 
Relationship  
Centre 
Through our central Hub in  
South Wales dedicated to  
servicing our SME customers

Speedy 
Direct 
Through our central 
call centre in the North 
West with dedicated 
desks for our major 
customers

Depot 
network
Through c.200 
operational  
centres across 
(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)
(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   3   

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The sectors we 
operate in:

Infrastructure

 1     Transport (Roads, Rail, 
Aviation and Ports)

 2   Power 
 3   Utilities 
 4   Water and waste water

Building
 5   Housing
 6    (cid:34)(cid:78)(cid:76)(cid:76)(cid:68)(cid:81)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:7)(cid:46)(cid:423)(cid:66)(cid:68)(cid:11)(cid:3)(cid:49)(cid:68)(cid:83)(cid:64)(cid:72)(cid:75)(cid:11)(cid:3)
Warehouses and Leisure)

 7   Education
 8   Health

Industrial

 9   Oil, gas and petrochemical 
10

  Food and beverage
  Pharmaceutical
  Manufacturing

11

12

Where we operate

 1

 4

 5

 7

 2

 3

6

4   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020
4   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 8

10

12

 9

11

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Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   5   

 
 
 
 
 
Company facts

c.2,150

Hire product lines and 
approximately 280,000  
itemised assets for hire

4,065 

Total employees

1,200  

(cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:16)(cid:11)(cid:17)(cid:15)(cid:15)(cid:3)(cid:79)(cid:64)(cid:75)(cid:75)(cid:68)(cid:83)(cid:3)(cid:83)(cid:81)(cid:84)(cid:66)(cid:74)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:11)(cid:3)
(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:64)(cid:3)(cid:66)(cid:78)(cid:76)(cid:65)(cid:72)(cid:77)(cid:68)(cid:67)(cid:3)(cid:75)(cid:72)(cid:69)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:66)(cid:64)(cid:79)(cid:64)(cid:66)(cid:72)(cid:83)(cid:88)(cid:3)(cid:78)(cid:69)(cid:3)(cid:18)(cid:16)(cid:21)(cid:15)(cid:3)(cid:83)(cid:78)(cid:77)(cid:82)(cid:13)(cid:3)
That is enough to lift Nelsons Column

36,000 

Consumable product lines  
in our extended range

c.54,000

(cid:34)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:11)(cid:3)
ranging from large national 
contractors to local trades

6   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Scissor 
lifts  

(cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:68)(cid:77)(cid:78)(cid:84)(cid:70)(cid:71)(cid:3)(cid:50)(cid:41)(cid:18)(cid:17)(cid:16)(cid:24)(cid:3)
Scissor Lifts to reach from 
Buckingham Palace to  
Tower Bridge and back again

Recognition and achievements  
during FY2020

Rail Live Network  
Rail Plant Awards  
Best Performing  
Small Plant Supplier 

Network Rail  
Route to Gold  
Silver Award  
(Speedy Rail Division)

Commercial  
Fleets Awards  
Ground Breaking  
(cid:50)(cid:64)(cid:69)(cid:68)(cid:83)(cid:88)(cid:3)(cid:40)(cid:77)(cid:72)(cid:83)(cid:72)(cid:64)(cid:83)(cid:72)(cid:85)(cid:68)(cid:3)

RoSPA 
Gold Award for  
Occupational Health  
and Safety

HAE Hire Awards  
of Excellence   
Best Sustainability  
(cid:64)(cid:77)(cid:67)(cid:3)(cid:34)(cid:50)(cid:49)(cid:3)(cid:40)(cid:77)(cid:72)(cid:83)(cid:72)(cid:64)(cid:83)(cid:72)(cid:85)(cid:68)(cid:3)(cid:3)

Fleet News Awards  
Safe Fleet of the Year 

Fleet Operators  
Recognition Scheme (FORS) 
Gold status

VB9+

We have enough VB9+ 
Lighting Towers to light 
up the whole of New 
York’s Central Park

92%*

We survey our customers 
at multiple points along the 
customer journey to measure 
our performance, and their 
satisfaction with our service.

Satisfaction scores are 
consistently high, with up to 
92%* of customers rating our 
service as good or very good.

* Based on average monthly responses to customer surveys 

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   7   

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Chairman’s Statement

Overview 
I am pleased with these results as we have  
again grown revenue and underlying 
(cid:79)(cid:81)(cid:78)(cid:421)(cid:83)(cid:64)(cid:65)(cid:72)(cid:75)(cid:72)(cid:83)(cid:88)(cid:3)(cid:83)(cid:71)(cid:81)(cid:78)(cid:84)(cid:70)(cid:71)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:82)(cid:83)(cid:81)(cid:64)(cid:83)(cid:68)(cid:70)(cid:88)(cid:3)(cid:78)(cid:69)(cid:3)(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)
best in class performance and focusing on the 
customer experience. 

The business has adapted quickly to the 
challenges of the COVID-19 pandemic and is 
continuing to trade from a reduced footprint 
(cid:64)(cid:83)(cid:3)(cid:83)(cid:71)(cid:72)(cid:82)(cid:3)(cid:83)(cid:72)(cid:76)(cid:68)(cid:13)(cid:3)(cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:421)(cid:77)(cid:72)(cid:82)(cid:71)(cid:68)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)
excellent customer relationships and remain  
(cid:72)(cid:77)(cid:3)(cid:64)(cid:3)(cid:82)(cid:83)(cid:81)(cid:78)(cid:77)(cid:70)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:79)(cid:78)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:86)(cid:71)(cid:72)(cid:66)(cid:71)(cid:3)(cid:83)(cid:78)(cid:3) 
build as market conditions return to normal. 

8   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

COVID-19

The Group reacted quickly to manage its cost base and cash 

(cid:81)(cid:68)(cid:82)(cid:78)(cid:84)(cid:81)(cid:66)(cid:68)(cid:82)(cid:3)(cid:69)(cid:78)(cid:75)(cid:75)(cid:78)(cid:86)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:78)(cid:84)(cid:83)(cid:65)(cid:81)(cid:68)(cid:64)(cid:74)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:79)(cid:64)(cid:77)(cid:67)(cid:68)(cid:76)(cid:72)(cid:66)(cid:3)

(cid:72)(cid:77)(cid:3)(cid:44)(cid:64)(cid:81)(cid:66)(cid:71)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:13)(cid:3)(cid:46)(cid:84)(cid:81)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)(cid:78)(cid:79)(cid:68)(cid:81)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:82)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:81)(cid:68)(cid:76)(cid:64)(cid:72)(cid:77)(cid:68)(cid:67)(cid:3)

open, and we have continued to serve our customers nationally, 

albeit from a reduced depot footprint. Revised health and safety 

processes have been put in place to protect colleagues and 

customers and to ensure we are able to continue to support  

our customers throughout this period.

Our revenues declined initially, but are recovering as we 

have seen customers returning to work. We have reduced our 

(cid:82)(cid:83)(cid:64)(cid:420)(cid:3)(cid:66)(cid:78)(cid:82)(cid:83)(cid:82)(cid:3)(cid:83)(cid:71)(cid:81)(cid:78)(cid:84)(cid:70)(cid:71)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:84)(cid:82)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:38)(cid:78)(cid:85)(cid:68)(cid:81)(cid:77)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)(cid:82)(cid:66)(cid:71)(cid:68)(cid:76)(cid:68)(cid:82)(cid:11)(cid:3)
(cid:76)(cid:72)(cid:77)(cid:72)(cid:76)(cid:72)(cid:82)(cid:68)(cid:67)(cid:3)(cid:64)(cid:75)(cid:75)(cid:3)(cid:78)(cid:83)(cid:71)(cid:68)(cid:81)(cid:3)(cid:85)(cid:64)(cid:81)(cid:72)(cid:64)(cid:65)(cid:75)(cid:68)(cid:3)(cid:66)(cid:78)(cid:82)(cid:83)(cid:82)(cid:3)(cid:86)(cid:71)(cid:68)(cid:81)(cid:68)(cid:3)(cid:79)(cid:78)(cid:82)(cid:82)(cid:72)(cid:65)(cid:75)(cid:68)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:69)(cid:81)(cid:78)(cid:89)(cid:68)(cid:77)(cid:3) 

(cid:64)(cid:75)(cid:75)(cid:3)(cid:66)(cid:64)(cid:79)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:77)(cid:67)(cid:72)(cid:83)(cid:84)(cid:81)(cid:68)(cid:3)(cid:84)(cid:77)(cid:75)(cid:68)(cid:82)(cid:82)(cid:3)(cid:82)(cid:79)(cid:68)(cid:66)(cid:72)(cid:421)(cid:66)(cid:64)(cid:75)(cid:75)(cid:88)(cid:3)(cid:77)(cid:68)(cid:68)(cid:67)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:76)(cid:68)(cid:68)(cid:83)(cid:3)

(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:81)(cid:68)(cid:80)(cid:84)(cid:72)(cid:81)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:82)(cid:13)(cid:3)(cid:54)(cid:68)(cid:3)(cid:66)(cid:78)(cid:77)(cid:83)(cid:72)(cid:77)(cid:84)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)(cid:64)(cid:79)(cid:79)(cid:75)(cid:88)(cid:3)(cid:82)(cid:83)(cid:81)(cid:72)(cid:66)(cid:83)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)

discipline to the management of working capital. 

(cid:51)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:72)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:64)(cid:3)(cid:82)(cid:83)(cid:81)(cid:78)(cid:77)(cid:70)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:79)(cid:78)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:82)(cid:84)(cid:65)(cid:82)(cid:83)(cid:64)(cid:77)(cid:83)(cid:72)(cid:64)(cid:75)(cid:3)

unutilised bank facilities and robust plans in place to manage 

through the anticipated crisis period and adapt our business 

model as we return to a new normal. We have modelled a  

range of downturn scenarios and under all of these the Group 

continues to generate cash and would not breach any of the 

covenant tests under its banking facilities. The Group has 

operated with conservative debt levels and consequently at 

current revenue levels it would be able to operate throughout 

(cid:37)(cid:56)(cid:17)(cid:15)(cid:17)(cid:16)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:72)(cid:77)(cid:3)(cid:68)(cid:87)(cid:72)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:65)(cid:64)(cid:77)(cid:74)(cid:72)(cid:77)(cid:70)(cid:3)(cid:69)(cid:64)(cid:66)(cid:72)(cid:75)(cid:72)(cid:83)(cid:72)(cid:68)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:78)(cid:84)(cid:83)(cid:3)(cid:65)(cid:81)(cid:68)(cid:64)(cid:66)(cid:71)(cid:72)(cid:77)(cid:70)(cid:3) 
any covenant tests.

(cid:345)(cid:3)(cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:421)(cid:77)(cid:72)(cid:82)(cid:71)(cid:68)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)
excellent customer relationships and 
(cid:81)(cid:68)(cid:76)(cid:64)(cid:72)(cid:77)(cid:3)(cid:72)(cid:77)(cid:3)(cid:64)(cid:3)(cid:82)(cid:83)(cid:81)(cid:78)(cid:77)(cid:70)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:79)(cid:78)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)
from which to build as market 
conditions return to normal.”

David Shearer
Chairman

Results

Group revenue and underlying profitability has increased 
reflecting the strategy to acquire specialist businesses and grow 
higher margin SME customer revenues. Towards the financial year 
end UK and Ireland revenues were affected by reduced customer 
demand due to COVID-19, although we have now started to see 
a return in activity levels. Our Geason Training business has not 
performed in line with expectations and actions are now in place 
to address this. Nevertheless services revenues have continued 
to grow and now amount to over 40% of Group revenues. In the 
Middle East profitability during the year reduced slightly, due to 
the revised commercial terms necessary to secure an extension  
to the contract term. More recently the business has continued  
to perform well in spite of a reduction in activity levels due to  
the recent decline in the oil price. 

Dividend

As a result of the COVID-19 pandemic the Group has taken 
advantage of substantial Government support schemes in  
the UK and implemented cost reduction measures across the 
business that have affected colleagues and other stakeholders. 
Whilst the Board recognises the importance of dividend  
returns and financial discipline to shareholders, in the current 
exceptional circumstances it has decided not to recommend 
payment of a final dividend for the year. The Board has not 
fundamentally changed its dividend policy and will consider 
whether it is appropriate to recommend payment of an interim 
dividend for the current financial year at the time of the half  
year results in November.

Board and people

Rhian Bartlett joined the Board as a Non-Executive Director and 

member of the Audit & Risk, Remuneration and Nomination 

Committees on 1 June 2019. I am delighted to welcome her and 

pleased with the contribution she has already made to the Board. 

Chris Morgan will leave the Board on 31 July 2020; I would like  

to take this opportunity to thank Chris for his efforts over the  

past four years.

We carried out an external Board evaluation during the year 

and have decided to make a number of changes to roles and 

committee structures with the aim of enhancing our existing 

governance structure and spreading responsibilities more evenly 

across the Board. I am announcing today that Bob Contreras will 

step down from his role as Senior Independent Director on 1 

August 2020. Bob has undertaken this role for almost five years 

and I would like to express my personal thanks to him for his 

significant contribution and wise counsel to the Board throughout 

that period. He remains as the Chairman of the Audit & Risk 

Committee while David Garman will take over from him as  

Senior Independent Director.

We also plan to commence a recruitment exercise to add an 

additional Non-Executive Director to the Board over the next few 

months. The objective is to add to the existing complement of 

skills on the Board in the area of HR and People related matters, 

enhance Board diversity and plan for future succession.

The past few months have proved challenging for all of my 

colleagues, whether they have continued to be working or 

on furlough. I would like to take this opportunity to record 

my personal appreciation to all of the Speedy family for their 

dedication and continuing support at this challenging time.

Future

I am pleased with the performance and resilience of the business 

over the past year and more recently since the advent of the 

COVID-19 crisis. Our operating environment has changed and 

we will face challenges and uncertainties in the coming year. 

However we have a clear plan for managing the business through 

this period and will react and adapt our plans quickly to respond 

to changes in market dynamics as we move into a post COVID-19 

world. A strong balance sheet and the actions which we have 

already taken to enhance the resilience of the business will allow 

us to respond to opportunities which will arise as markets recover.

David Shearer 
Chairman

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   9   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsChief Executive’s Review

Overview 
I am pleased to report continued momentum 
(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:75)(cid:64)(cid:82)(cid:83)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:72)(cid:77)(cid:3)(cid:64)(cid:66)(cid:71)(cid:72)(cid:68)(cid:85)(cid:72)(cid:77)(cid:70)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
strategic objectives, notwithstanding the 
reduction in activity levels we experienced in 
late March 2020 due to the COVID-19 pandemic.

I am immensely proud of all of my colleagues’ 
(cid:68)(cid:420)(cid:78)(cid:81)(cid:83)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)(cid:67)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:71)(cid:68)(cid:82)(cid:68)(cid:3)(cid:84)(cid:77)(cid:79)(cid:81)(cid:68)(cid:66)(cid:68)(cid:67)(cid:68)(cid:77)(cid:83)(cid:68)(cid:67)(cid:3)
times, as we have continued to provide essential 
services and adapted to new ways of working. 

COVID-19 

At the end of March 2020, in response to the outbreak of 
(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:81)(cid:68)(cid:75)(cid:64)(cid:83)(cid:68)(cid:67)(cid:3)(cid:38)(cid:78)(cid:85)(cid:68)(cid:81)(cid:77)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:70)(cid:84)(cid:72)(cid:67)(cid:64)(cid:77)(cid:66)(cid:68)(cid:11)(cid:3)(cid:86)(cid:68)(cid:3)(cid:83)(cid:78)(cid:78)(cid:74)(cid:3)(cid:72)(cid:76)(cid:76)(cid:68)(cid:67)(cid:72)(cid:64)(cid:83)(cid:68)(cid:3)
and decisive action to protect the health and safety of our 
colleagues and stakeholders whilst maintaining the ability to 
support our customers, contain costs and preserve cash. We 
temporarily closed a number of our depots, and furloughed 
(cid:66)(cid:13)(cid:16)(cid:11)(cid:23)(cid:15)(cid:15)(cid:3)(cid:78)(cid:69)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:66)(cid:78)(cid:75)(cid:75)(cid:68)(cid:64)(cid:70)(cid:84)(cid:68)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:84)(cid:77)(cid:67)(cid:68)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:38)(cid:78)(cid:85)(cid:68)(cid:81)(cid:77)(cid:76)(cid:68)(cid:77)(cid:83)(cid:6)(cid:82)(cid:3)
(cid:34)(cid:78)(cid:81)(cid:78)(cid:77)(cid:64)(cid:85)(cid:72)(cid:81)(cid:84)(cid:82)(cid:3)(cid:41)(cid:78)(cid:65)(cid:3)(cid:49)(cid:68)(cid:83)(cid:68)(cid:77)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:50)(cid:66)(cid:71)(cid:68)(cid:76)(cid:68)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:72)(cid:77)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)(cid:84)(cid:77)(cid:67)(cid:68)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3) 
(cid:40)(cid:81)(cid:72)(cid:82)(cid:71)(cid:3)(cid:38)(cid:78)(cid:85)(cid:68)(cid:81)(cid:77)(cid:76)(cid:68)(cid:77)(cid:83)(cid:6)(cid:82)(cid:3)(cid:54)(cid:64)(cid:70)(cid:68)(cid:3)(cid:50)(cid:84)(cid:65)(cid:82)(cid:72)(cid:67)(cid:88)(cid:3)(cid:50)(cid:66)(cid:71)(cid:68)(cid:76)(cid:68)(cid:13)

(cid:32)(cid:3)(cid:81)(cid:68)(cid:66)(cid:81)(cid:84)(cid:72)(cid:83)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:69)(cid:81)(cid:68)(cid:68)(cid:89)(cid:68)(cid:3)(cid:86)(cid:64)(cid:82)(cid:3)(cid:79)(cid:84)(cid:83)(cid:3)(cid:72)(cid:77)(cid:3)(cid:79)(cid:75)(cid:64)(cid:66)(cid:68)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:64)(cid:77)(cid:77)(cid:84)(cid:64)(cid:75)(cid:3)(cid:82)(cid:64)(cid:75)(cid:64)(cid:81)(cid:88)(cid:3)
(cid:81)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:83)(cid:71)(cid:64)(cid:83)(cid:3)(cid:86)(cid:64)(cid:82)(cid:3)(cid:67)(cid:84)(cid:68)(cid:3)(cid:78)(cid:77)(cid:3)(cid:16)(cid:3)(cid:32)(cid:79)(cid:81)(cid:72)(cid:75)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:65)(cid:68)(cid:68)(cid:77)(cid:3)(cid:67)(cid:68)(cid:69)(cid:68)(cid:81)(cid:81)(cid:68)(cid:67)(cid:13)(cid:3)(cid:32)(cid:75)(cid:75)(cid:3)(cid:33)(cid:78)(cid:64)(cid:81)(cid:67)(cid:3)
directors and the leadership team agreed to reduce salaries and 
(cid:69)(cid:68)(cid:68)(cid:82)(cid:3)(cid:65)(cid:88)(cid:3)(cid:17)(cid:15)(cid:4)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:64)(cid:3)(cid:79)(cid:68)(cid:81)(cid:72)(cid:78)(cid:67)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:81)(cid:68)(cid:68)(cid:3)(cid:76)(cid:78)(cid:77)(cid:83)(cid:71)(cid:82)(cid:3)(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:16)(cid:3)(cid:32)(cid:79)(cid:81)(cid:72)(cid:75)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:13)(cid:3)(cid:32)(cid:75)(cid:75)(cid:3)
non-essential spend has been suspended and variable operating 
(cid:66)(cid:78)(cid:82)(cid:83)(cid:82)(cid:11)(cid:3)(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:40)(cid:51)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:85)(cid:68)(cid:71)(cid:72)(cid:66)(cid:75)(cid:68)(cid:3)(cid:66)(cid:78)(cid:82)(cid:83)(cid:82)(cid:11)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:65)(cid:68)(cid:68)(cid:77)(cid:3)(cid:81)(cid:68)(cid:67)(cid:84)(cid:66)(cid:68)(cid:67)(cid:13)(cid:3)

(cid:40)(cid:77)(cid:3)(cid:32)(cid:79)(cid:81)(cid:72)(cid:75)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:82)(cid:3)(cid:86)(cid:68)(cid:81)(cid:68)(cid:3)(cid:66)(cid:13)(cid:18)(cid:20)(cid:4)(cid:3)(cid:65)(cid:68)(cid:75)(cid:78)(cid:86)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:79)(cid:81)(cid:72)(cid:78)(cid:81)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:64)(cid:82)(cid:3)
we continued to trade through our larger superstores servicing 
customers who were providing essential services. Recently, we 
have seen revenue increase as customers in England, Wales and 
(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)(cid:81)(cid:68)(cid:83)(cid:84)(cid:81)(cid:77)(cid:3)(cid:83)(cid:78)(cid:3)(cid:86)(cid:78)(cid:81)(cid:74)(cid:13)(cid:3)(cid:40)(cid:77)(cid:3)(cid:41)(cid:84)(cid:77)(cid:68)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)
(cid:72)(cid:82)(cid:3)(cid:66)(cid:13)(cid:16)(cid:22)(cid:4)(cid:3)(cid:65)(cid:68)(cid:75)(cid:78)(cid:86)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:79)(cid:81)(cid:72)(cid:78)(cid:81)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:13)(cid:3)(cid:54)(cid:71)(cid:72)(cid:75)(cid:82)(cid:83)(cid:3)(cid:66)(cid:13)(cid:18)(cid:15)(cid:4)(cid:3)(cid:78)(cid:69)(cid:3)(cid:66)(cid:78)(cid:75)(cid:75)(cid:68)(cid:64)(cid:70)(cid:84)(cid:68)(cid:82)(cid:3)(cid:81)(cid:68)(cid:76)(cid:64)(cid:72)(cid:77)(cid:3)
on furlough, we have started to re-open depots and un-furlough 
(cid:66)(cid:78)(cid:75)(cid:75)(cid:68)(cid:64)(cid:70)(cid:84)(cid:68)(cid:82)(cid:3)(cid:64)(cid:83)(cid:3)(cid:64)(cid:3)(cid:81)(cid:64)(cid:83)(cid:68)(cid:3)(cid:83)(cid:71)(cid:64)(cid:83)(cid:3)(cid:81)(cid:68)(cid:422)(cid:68)(cid:66)(cid:83)(cid:82)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:67)(cid:68)(cid:76)(cid:64)(cid:77)(cid:67)(cid:13)

(cid:51)(cid:71)(cid:68)(cid:3)(cid:88)(cid:78)(cid:84)(cid:77)(cid:70)(cid:3)(cid:64)(cid:70)(cid:68)(cid:3)(cid:79)(cid:81)(cid:78)(cid:421)(cid:75)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:6)(cid:82)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:64)(cid:75)(cid:75)(cid:78)(cid:86)(cid:68)(cid:67)(cid:3)(cid:84)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)
(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:75)(cid:88)(cid:3)(cid:81)(cid:68)(cid:67)(cid:84)(cid:66)(cid:68)(cid:3)(cid:66)(cid:64)(cid:79)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:77)(cid:67)(cid:72)(cid:83)(cid:84)(cid:81)(cid:68)(cid:13)(cid:3)(cid:40)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:82)(cid:71)(cid:78)(cid:81)(cid:83)(cid:3)(cid:83)(cid:68)(cid:81)(cid:76)(cid:11)(cid:3)(cid:86)(cid:71)(cid:72)(cid:75)(cid:82)(cid:83)(cid:3)
the uncertainty continues, all non-essential capital expenditure 
has been suspended with capital expenditure incurred in April 
(cid:64)(cid:77)(cid:67)(cid:3)(cid:44)(cid:64)(cid:88)(cid:3)(cid:64)(cid:76)(cid:78)(cid:84)(cid:77)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:78)(cid:3)(cid:66)(cid:13)(cid:97)(cid:15)(cid:13)(cid:20)(cid:76)(cid:13)

“ I am immensely proud of all of my 
(cid:66)(cid:78)(cid:75)(cid:75)(cid:68)(cid:64)(cid:70)(cid:84)(cid:68)(cid:82)(cid:343)(cid:3)(cid:68)(cid:420)(cid:78)(cid:81)(cid:83)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)
during these unprecedented times, 
as we have continued to provide 
essential services and adapted to 
new ways of working. ”

Russell Down
Chief Executive

10   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

(cid:51)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:83)(cid:64)(cid:74)(cid:68)(cid:77)(cid:3)(cid:64)(cid:67)(cid:85)(cid:64)(cid:77)(cid:83)(cid:64)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:78)(cid:83)(cid:71)(cid:68)(cid:81)(cid:3)(cid:38)(cid:78)(cid:85)(cid:68)(cid:81)(cid:77)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)
support, including business rates relief, and a reduction, or 
deferral, in taxes payable. These support measures combined with 
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Group’s ability to continue to generate cash and operate within 
its existing debt facilities and covenant tests during a prolonged 
period of reduced activity. As a result of the measures taken the 
Group has generated cash for the months of April and May with 
net debt3(cid:3)(cid:64)(cid:83)(cid:3)(cid:18)(cid:16)(cid:3)(cid:44)(cid:64)(cid:88)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:3)(cid:64)(cid:76)(cid:78)(cid:84)(cid:77)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:78)(cid:3)(cid:97)(cid:21)(cid:22)(cid:13)(cid:18)(cid:76)(cid:13)

As our operations return to normal we will learn from the 
experiences of the past few months in order to simplify and 
standardise our operating model. This will allow us to be better 
(cid:79)(cid:75)(cid:64)(cid:66)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:64)(cid:67)(cid:67)(cid:81)(cid:68)(cid:82)(cid:82)(cid:3)(cid:70)(cid:81)(cid:78)(cid:86)(cid:83)(cid:71)(cid:3)(cid:78)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:84)(cid:77)(cid:72)(cid:83)(cid:72)(cid:68)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:65)(cid:68)(cid:3)(cid:76)(cid:78)(cid:81)(cid:68)(cid:3)(cid:68)(cid:423)(cid:66)(cid:72)(cid:68)(cid:77)(cid:83)(cid:3)(cid:72)(cid:77)(cid:3)
our day to day operations.

Financing and liquidity

(cid:51)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:64)(cid:3)(cid:66)(cid:78)(cid:76)(cid:76)(cid:72)(cid:83)(cid:83)(cid:68)(cid:67)(cid:3)(cid:64)(cid:82)(cid:82)(cid:68)(cid:83)(cid:3)(cid:65)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:69)(cid:64)(cid:66)(cid:72)(cid:75)(cid:72)(cid:83)(cid:88)(cid:3)(cid:78)(cid:69)(cid:3)(cid:97)(cid:16)(cid:22)(cid:20)(cid:76)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:64)(cid:77)(cid:3)
(cid:78)(cid:85)(cid:68)(cid:81)(cid:67)(cid:81)(cid:64)(cid:69)(cid:83)(cid:3)(cid:69)(cid:64)(cid:66)(cid:72)(cid:75)(cid:72)(cid:83)(cid:88)(cid:3)(cid:78)(cid:69)(cid:3)(cid:97)(cid:20)(cid:76)(cid:11)(cid:3)(cid:64)(cid:85)(cid:64)(cid:72)(cid:75)(cid:64)(cid:65)(cid:75)(cid:68)(cid:3)(cid:84)(cid:77)(cid:83)(cid:72)(cid:75)(cid:3)(cid:46)(cid:66)(cid:83)(cid:78)(cid:65)(cid:68)(cid:81)(cid:3)(cid:17)(cid:15)(cid:17)(cid:17)(cid:13)(cid:3)(cid:45)(cid:68)(cid:83)(cid:3)(cid:67)(cid:68)(cid:65)(cid:83)3, 
(cid:68)(cid:87)(cid:66)(cid:75)(cid:84)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:75)(cid:68)(cid:64)(cid:82)(cid:68)(cid:3)(cid:75)(cid:72)(cid:64)(cid:65)(cid:72)(cid:75)(cid:72)(cid:83)(cid:72)(cid:68)(cid:82)(cid:11)(cid:3)(cid:64)(cid:82)(cid:3)(cid:64)(cid:83)(cid:3)(cid:18)(cid:16)(cid:3)(cid:44)(cid:64)(cid:81)(cid:66)(cid:71)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:3)(cid:86)(cid:64)(cid:82)(cid:3)(cid:97)(cid:22)(cid:24)(cid:13)(cid:18)(cid:76)(cid:11)(cid:3)(cid:64)(cid:69)(cid:83)(cid:68)(cid:81)(cid:3)
(cid:66)(cid:78)(cid:77)(cid:83)(cid:72)(cid:77)(cid:84)(cid:68)(cid:67)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:72)(cid:77)(cid:85)(cid:68)(cid:82)(cid:83)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:66)(cid:13)(cid:97)(cid:20)(cid:20)(cid:76)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:83)(cid:78)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)
asset availability and our four-hour nationwide service promise.  
(cid:32)(cid:82)(cid:3)(cid:64)(cid:3)(cid:81)(cid:68)(cid:82)(cid:84)(cid:75)(cid:83)(cid:11)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:3)(cid:71)(cid:68)(cid:64)(cid:67)(cid:81)(cid:78)(cid:78)(cid:76)(cid:3)(cid:64)(cid:70)(cid:64)(cid:72)(cid:77)(cid:82)(cid:83)(cid:3)(cid:72)(cid:83)(cid:82)(cid:3)
(cid:66)(cid:78)(cid:76)(cid:76)(cid:72)(cid:83)(cid:83)(cid:68)(cid:67)(cid:3)(cid:65)(cid:64)(cid:77)(cid:74)(cid:72)(cid:77)(cid:70)(cid:3)(cid:69)(cid:64)(cid:66)(cid:72)(cid:75)(cid:72)(cid:83)(cid:72)(cid:68)(cid:82)(cid:3)(cid:83)(cid:78)(cid:83)(cid:64)(cid:75)(cid:75)(cid:72)(cid:77)(cid:70)(cid:3)(cid:97)(cid:16)(cid:23)(cid:15)(cid:76)(cid:3)(cid:64)(cid:77)(cid:67)(cid:11)(cid:3)(cid:72)(cid:77)(cid:3)(cid:64)(cid:67)(cid:67)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:11)(cid:3) 
has an uncommitted accordion facility of £220m. Leverage(cid:20) at  
(cid:18)(cid:16)(cid:3)(cid:44)(cid:64)(cid:81)(cid:66)(cid:71)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:3)(cid:86)(cid:64)(cid:82)(cid:3)(cid:16)(cid:13)(cid:15)(cid:3)(cid:83)(cid:72)(cid:76)(cid:68)(cid:82)(cid:11)(cid:3)(cid:65)(cid:68)(cid:75)(cid:78)(cid:86)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:33)(cid:78)(cid:64)(cid:81)(cid:67)(cid:6)(cid:82)(cid:3)(cid:83)(cid:64)(cid:81)(cid:70)(cid:68)(cid:83)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3)
through the cycle, which we believe is appropriate in current times.

Results

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(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:82)(cid:11)(cid:3)(cid:68)(cid:87)(cid:66)(cid:75)(cid:84)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:67)(cid:72)(cid:82)(cid:79)(cid:78)(cid:82)(cid:64)(cid:75)(cid:82)(cid:11)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:65)(cid:88)(cid:3)(cid:18)(cid:13)(cid:19)(cid:4)(cid:3)(cid:83)(cid:78)(cid:3)
(cid:97)(cid:19)(cid:15)(cid:17)(cid:13)(cid:20)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:18)(cid:23)(cid:24)(cid:13)(cid:17)(cid:76)(cid:8)(cid:11)(cid:3)(cid:81)(cid:68)(cid:422)(cid:68)(cid:66)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:79)(cid:81)(cid:72)(cid:78)(cid:81)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:64)(cid:66)(cid:80)(cid:84)(cid:72)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:82)(cid:3)
(cid:64)(cid:77)(cid:67)(cid:3)(cid:70)(cid:81)(cid:78)(cid:86)(cid:83)(cid:71)(cid:3)(cid:72)(cid:77)(cid:3)(cid:50)(cid:44)(cid:36)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:82)(cid:11)(cid:3)(cid:78)(cid:420)(cid:82)(cid:68)(cid:83)(cid:3)(cid:65)(cid:88)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:72)(cid:76)(cid:79)(cid:64)(cid:66)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)
(cid:81)(cid:68)(cid:67)(cid:84)(cid:66)(cid:68)(cid:67)(cid:3)(cid:64)(cid:66)(cid:83)(cid:72)(cid:85)(cid:72)(cid:83)(cid:88)(cid:3)(cid:75)(cid:68)(cid:85)(cid:68)(cid:75)(cid:82)(cid:3)(cid:67)(cid:84)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:83)(cid:78)(cid:86)(cid:64)(cid:81)(cid:67)(cid:82)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:68)(cid:77)(cid:67)(cid:13)(cid:3)

(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)(cid:50)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:82)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:3)(cid:70)(cid:81)(cid:68)(cid:86)(cid:3)(cid:65)(cid:88)(cid:3)(cid:23)(cid:13)(cid:24)(cid:4)(cid:11)(cid:3)(cid:79)(cid:81)(cid:72)(cid:76)(cid:64)(cid:81)(cid:72)(cid:75)(cid:88)(cid:3)(cid:67)(cid:84)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)
the prior year acquisition of Geason Training and growth in our 
(cid:43)(cid:75)(cid:78)(cid:88)(cid:67)(cid:82)(cid:3)(cid:33)(cid:81)(cid:72)(cid:83)(cid:72)(cid:82)(cid:71)(cid:3)(cid:83)(cid:68)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:65)(cid:84)(cid:82)(cid:72)(cid:77)(cid:68)(cid:82)(cid:82)(cid:13)(cid:3)(cid:40)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:44)(cid:72)(cid:67)(cid:67)(cid:75)(cid:68)(cid:3)(cid:36)(cid:64)(cid:82)(cid:83)(cid:3)(cid:81)(cid:68)(cid:85)(cid:68)(cid:77)(cid:84)(cid:68)(cid:82)(cid:3)(cid:69)(cid:68)(cid:75)(cid:75)(cid:3)
(cid:82)(cid:75)(cid:72)(cid:70)(cid:71)(cid:83)(cid:75)(cid:88)(cid:3)(cid:81)(cid:68)(cid:422)(cid:68)(cid:66)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:81)(cid:68)(cid:85)(cid:72)(cid:82)(cid:68)(cid:67)(cid:3)(cid:66)(cid:78)(cid:76)(cid:76)(cid:68)(cid:81)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:83)(cid:68)(cid:81)(cid:76)(cid:82)(cid:3)(cid:77)(cid:68)(cid:70)(cid:78)(cid:83)(cid:72)(cid:64)(cid:83)(cid:68)(cid:67)(cid:3)(cid:64)(cid:82)(cid:3)(cid:79)(cid:64)(cid:81)(cid:83)(cid:3) 
of an extension to the term of the main contracts. 

(cid:38)(cid:81)(cid:78)(cid:82)(cid:82)(cid:3)(cid:76)(cid:64)(cid:81)(cid:70)(cid:72)(cid:77)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:20)(cid:20)(cid:13)(cid:16)(cid:4)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:20)(cid:19)(cid:13)(cid:18)(cid:4)(cid:8)(cid:11)(cid:3)(cid:64)(cid:82)(cid:3)(cid:64)(cid:3)(cid:81)(cid:68)(cid:82)(cid:84)(cid:75)(cid:83)(cid:3)
of increased revenues from higher margin SME customers and 
an increase in Services revenues. Overheads increased as a 
result of the acquisitions, however remain tightly controlled and 
(cid:66)(cid:78)(cid:77)(cid:82)(cid:68)(cid:80)(cid:84)(cid:68)(cid:77)(cid:83)(cid:75)(cid:88)(cid:3)(cid:36)(cid:33)(cid:40)(cid:51)(cid:32)(cid:16)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:65)(cid:88)(cid:3)(cid:21)(cid:13)(cid:20)(cid:4)(cid:3)(cid:83)(cid:78)(cid:3)(cid:97)(cid:18)(cid:24)(cid:13)(cid:16)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:18)(cid:21)(cid:13)(cid:22)(cid:76)(cid:8)(cid:13)(cid:3)
(cid:36)(cid:33)(cid:40)(cid:51)(cid:35)(cid:32)(cid:16)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:65)(cid:88)(cid:3)(cid:17)(cid:13)(cid:20)(cid:4)(cid:3)(cid:83)(cid:78)(cid:3)(cid:97)(cid:16)(cid:15)(cid:22)(cid:13)(cid:19)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:16)(cid:15)(cid:19)(cid:13)(cid:23)(cid:76)(cid:8)(cid:13)

(cid:51)(cid:71)(cid:68)(cid:81)(cid:68)(cid:3)(cid:86)(cid:68)(cid:81)(cid:68)(cid:3)(cid:97)(cid:16)(cid:17)(cid:13)(cid:24)(cid:76)(cid:3)(cid:78)(cid:69)(cid:3)(cid:77)(cid:68)(cid:83)(cid:3)(cid:68)(cid:87)(cid:66)(cid:68)(cid:79)(cid:83)(cid:72)(cid:78)(cid:77)(cid:64)(cid:75)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:77)(cid:82)(cid:68)(cid:82)(cid:3)(cid:72)(cid:77)(cid:66)(cid:84)(cid:81)(cid:81)(cid:68)(cid:67)(cid:3)(cid:67)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)
(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:17)(cid:13)(cid:15)(cid:76)(cid:8)(cid:3)(cid:79)(cid:81)(cid:72)(cid:77)(cid:66)(cid:72)(cid:79)(cid:64)(cid:75)(cid:75)(cid:88)(cid:3)(cid:72)(cid:77)(cid:3)(cid:81)(cid:68)(cid:75)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:83)(cid:78)(cid:3)(cid:38)(cid:68)(cid:64)(cid:82)(cid:78)(cid:77)(cid:3)(cid:51)(cid:81)(cid:64)(cid:72)(cid:77)(cid:72)(cid:77)(cid:70)(cid:13)(cid:3)
As previously announced Geason Training has not performed 
in line with expectations and consequently exceptional items 
(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:68)(cid:3)(cid:64)(cid:3)(cid:66)(cid:71)(cid:64)(cid:81)(cid:70)(cid:68)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:72)(cid:76)(cid:79)(cid:64)(cid:72)(cid:81)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:64)(cid:82)(cid:82)(cid:68)(cid:83)(cid:82)(cid:11)(cid:3)(cid:79)(cid:64)(cid:81)(cid:83)(cid:72)(cid:64)(cid:75)(cid:75)(cid:88)(cid:3)(cid:78)(cid:420)(cid:82)(cid:68)(cid:83)(cid:3)
by a write back of contingent consideration. Further details are 
included in the Financial Review.

(cid:32)(cid:67)(cid:73)(cid:84)(cid:82)(cid:83)(cid:68)(cid:67)(cid:3)(cid:79)(cid:81)(cid:78)(cid:421)(cid:83)(cid:3)(cid:65)(cid:68)(cid:69)(cid:78)(cid:81)(cid:68)(cid:3)(cid:83)(cid:64)(cid:87)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:97)(cid:18)(cid:19)(cid:13)(cid:24)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:18)(cid:16)(cid:13)(cid:19)(cid:76)(cid:8)(cid:13)(cid:3)
Adjusted earnings per share2(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:20)(cid:13)(cid:20)(cid:19)(cid:3)(cid:79)(cid:68)(cid:77)(cid:66)(cid:68)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:19)(cid:13)(cid:24)(cid:21)(cid:3)(cid:79)(cid:68)(cid:77)(cid:66)(cid:68)(cid:8)(cid:13)

(cid:51)(cid:71)(cid:68)(cid:3)(cid:77)(cid:68)(cid:83)(cid:3)(cid:65)(cid:78)(cid:78)(cid:74)(cid:3)(cid:85)(cid:64)(cid:75)(cid:84)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:343)(cid:82)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:97)(cid:17)(cid:17)(cid:22)(cid:13)(cid:16)(cid:76)(cid:3)
(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:17)(cid:16)(cid:21)(cid:13)(cid:24)(cid:76)(cid:8)(cid:13)(cid:3)(cid:34)(cid:64)(cid:79)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:77)(cid:67)(cid:72)(cid:83)(cid:84)(cid:81)(cid:68)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:68)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:68)(cid:87)(cid:79)(cid:64)(cid:77)(cid:82)(cid:72)(cid:78)(cid:77)(cid:3)
of our four-hour delivery service in London to a nationwide 
(cid:79)(cid:81)(cid:78)(cid:76)(cid:72)(cid:82)(cid:68)(cid:3)(cid:64)(cid:66)(cid:81)(cid:78)(cid:82)(cid:82)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:11)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:70)(cid:81)(cid:68)(cid:86)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:72)(cid:77)(cid:83)(cid:68)(cid:81)(cid:77)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:64)(cid:75)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:72)(cid:77)(cid:3)(cid:78)(cid:81)(cid:67)(cid:68)(cid:81)(cid:3)
to diversify our customer base. The investment has enabled us 
(cid:83)(cid:78)(cid:3)(cid:76)(cid:64)(cid:72)(cid:77)(cid:83)(cid:64)(cid:72)(cid:77)(cid:3)(cid:64)(cid:3)(cid:75)(cid:78)(cid:86)(cid:3)(cid:64)(cid:85)(cid:68)(cid:81)(cid:64)(cid:70)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:64)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:18)(cid:13)(cid:19)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:82)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:18)(cid:13)(cid:18)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:82)(cid:8)(cid:3)
(cid:86)(cid:71)(cid:72)(cid:66)(cid:71)(cid:3)(cid:86)(cid:72)(cid:75)(cid:75)(cid:3)(cid:64)(cid:75)(cid:75)(cid:78)(cid:86)(cid:3)(cid:66)(cid:64)(cid:79)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:77)(cid:67)(cid:72)(cid:83)(cid:84)(cid:81)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)(cid:81)(cid:68)(cid:67)(cid:84)(cid:66)(cid:68)(cid:3)(cid:67)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:37)(cid:56)(cid:17)(cid:15)(cid:17)(cid:16)(cid:13)(cid:3)
(cid:32)(cid:82)(cid:82)(cid:68)(cid:83)(cid:3)(cid:84)(cid:83)(cid:72)(cid:75)(cid:72)(cid:82)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:3)(cid:79)(cid:81)(cid:68)(cid:3)(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:86)(cid:64)(cid:82)(cid:3)(cid:20)(cid:21)(cid:13)(cid:21)(cid:4)(cid:3)
(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:20)(cid:22)(cid:13)(cid:15)(cid:4)(cid:8)(cid:11)(cid:3)(cid:81)(cid:68)(cid:422)(cid:68)(cid:66)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:72)(cid:77)(cid:85)(cid:68)(cid:82)(cid:83)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:83)(cid:78)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:78)(cid:81)(cid:83)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:69)(cid:78)(cid:84)(cid:81)(cid:12)(cid:71)(cid:78)(cid:84)(cid:81)(cid:3)
delivery promise.

Dividend

(cid:51)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:81)(cid:68)(cid:76)(cid:64)(cid:72)(cid:77)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:64)(cid:3)(cid:82)(cid:83)(cid:81)(cid:78)(cid:77)(cid:70)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:79)(cid:78)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:11)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:82)(cid:84)(cid:65)(cid:82)(cid:83)(cid:64)(cid:77)(cid:83)(cid:72)(cid:64)(cid:75)(cid:3)
headroom, despite the reduction in activity levels as a result of the 
(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:79)(cid:64)(cid:77)(cid:67)(cid:68)(cid:76)(cid:72)(cid:66)(cid:13)(cid:3)(cid:51)(cid:71)(cid:68)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:76)(cid:78)(cid:67)(cid:68)(cid:75)(cid:75)(cid:68)(cid:67)(cid:3)(cid:64)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:78)(cid:84)(cid:83)(cid:66)(cid:78)(cid:76)(cid:68)(cid:82)(cid:3)
(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:34)(cid:46)(cid:53)(cid:40)(cid:35)(cid:12)(cid:16)(cid:24)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:84)(cid:77)(cid:67)(cid:68)(cid:81)(cid:3)(cid:64)(cid:75)(cid:75)(cid:3)(cid:82)(cid:66)(cid:68)(cid:77)(cid:64)(cid:81)(cid:72)(cid:78)(cid:82)(cid:3)(cid:72)(cid:82)(cid:3)(cid:79)(cid:81)(cid:78)(cid:73)(cid:68)(cid:66)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:78)(cid:3)(cid:70)(cid:68)(cid:77)(cid:68)(cid:81)(cid:64)(cid:83)(cid:68)(cid:3)(cid:66)(cid:64)(cid:82)(cid:71)(cid:3)
(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:66)(cid:78)(cid:76)(cid:72)(cid:77)(cid:70)(cid:3)(cid:421)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:64)(cid:82)(cid:3)(cid:64)(cid:3)(cid:81)(cid:68)(cid:82)(cid:84)(cid:75)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:66)(cid:78)(cid:82)(cid:83)(cid:3)(cid:82)(cid:64)(cid:85)(cid:72)(cid:77)(cid:70)(cid:3)(cid:76)(cid:68)(cid:64)(cid:82)(cid:84)(cid:81)(cid:68)(cid:82)(cid:3)
it has implemented, reductions to planned capital expenditure 
and the utilisation of Government support. Under the current 
circumstances the Board has decided it would not be appropriate 
(cid:83)(cid:78)(cid:3)(cid:81)(cid:68)(cid:66)(cid:78)(cid:76)(cid:76)(cid:68)(cid:77)(cid:67)(cid:3)(cid:79)(cid:64)(cid:88)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:64)(cid:3)(cid:421)(cid:77)(cid:64)(cid:75)(cid:3)(cid:67)(cid:72)(cid:85)(cid:72)(cid:67)(cid:68)(cid:77)(cid:67)(cid:13)(cid:3)(cid:51)(cid:71)(cid:68)(cid:3)(cid:33)(cid:78)(cid:64)(cid:81)(cid:67)(cid:3)(cid:86)(cid:72)(cid:75)(cid:75)(cid:3)(cid:66)(cid:78)(cid:77)(cid:82)(cid:72)(cid:67)(cid:68)(cid:81)(cid:3)
whether it is appropriate to recommend payment of an interim 
dividend at the time of the half year results in November.

 COMMERCIAL
   XCELLENCE

Being industry leader in 
sustainability

>  Safety as Standard
>  Innovation
>
>  Stakeholder Engagement

Accreditations & 

  NVIRONMENTAL
 IMPACT

Minimising our impact on the 
environment

>  Reducing Environmental Impact
>  Recycling & Waste Reduction
>  Water & Air Quality
>  Transport and Logistics
>  Energy Use

SOCIAL
R   SPONSIBILITY

Creating better people and a 
better society

>  Health & Wellbeing
>  Diversity & Gender equality
>  Charities & Communities
>  Community Engagement

Each of the Energise Journey KPIs we have committed to are aligned with the 10 UN Sustainable Development Goals.

A Digital business

p14

Sustainability

p16

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   11   

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Chief Executive’s Review continued

Strategy and operational review 

Our vision is to be the best company in our sector to do  
business with and the best to work for. This entails being  
uniquely customer focused in everything that we do and  
actively listening and communicating with our people.

UK and Ireland

(cid:54)(cid:68)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:68)(cid:3)(cid:66)(cid:13)(cid:20)(cid:19)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:40)(cid:81)(cid:68)(cid:75)(cid:64)(cid:77)(cid:67)(cid:11)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:72)(cid:77)(cid:70)(cid:3)
from large national contractors to local SMEs. We are pleased 
to have extended our contract with Babcock, and won and 
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achieved by proactively managing these customers through our 
Customer Relationship Centre (CRC) in South Wales, enhancing 
service levels to this customer base whilst reducing our cost to 
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sales force to enable targeted new customer acquisition and 
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specialist teams with technical knowledge to better service our 
customers’ needs. 

We have grown our Services businesses faster than our hire 
business. Services revenues are less capital intensive, have 
greater visibility and are more recurring in nature than hire 
revenues. As a result they are ROCE(cid:19) enhancing for the Group. 
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fuel management services. We target our sales force to sell the 
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now comes from Services compared to c.30% three years ago, 
primarily due to growth in testing and training revenues from the 
acquisitions of Lloyds British and Geason Training respectively. 
Geason Training has performed below expectations during the 
year due to lower than expected learner enrolments, the setup 
of a number of regional training centres which have yet to reach 
critical mass and a poor control environment. 

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assurance visit from a funding agency and market conditions due 
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provided for amounts which may become repayable as a result 
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training business, and consequently the Group has implemented 
a number of management changes and is reviewing further 
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Our customers’ key priority is the prompt availability of products 
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most popular products. This four-hour promise was originally 
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customer service culture, and the investment we have made in 
equipment, systems and processes. We will continue to evolve 
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customers the service that they have come to expect.

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We are using machine learning to set depot stocking levels, 
target sales activity and optimise logistics. During FY2020 we 
re-launched our online account management service ‘MySpeedy’ 
with an improved customer interface and new features. 

The enhanced service enables both large and small customers 
instant secure access to their hire information, together with a 
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larger account customers; the ability to view transactions and 
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to download and print documents including invoices, proof of 
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(cid:68)(cid:77)(cid:64)(cid:65)(cid:75)(cid:68)(cid:82)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:77)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:78)(cid:420)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:67)(cid:72)(cid:81)(cid:68)(cid:66)(cid:83)(cid:75)(cid:88)(cid:3)(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:83)(cid:71)(cid:68)(cid:72)(cid:81)(cid:3)
mobile device. All of this makes it easier for our customers to 
do business with us whether by telephone, in-depot or digitally 
through our website or mobile app. We have made further 
progress during the year with our mobile app and are in active 
discussions with a number of our major customers to fully 
integrate the app into their ordering process.

Customer 
service

p18

Business 
development

p20

12   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Chief Executive’s Review continued

International

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oil and gas market, principally in Abu Dhabi. We have operated in 
the region for many years and have worked on our main contracts 
for in excess of seven years; during the year the contracts were 
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with our main customer in relation to longer term opportunities. 
As a result of regional market conditions, and more recently the 
declining oil price, the commercial terms of the extensions were 
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lower rehire and consumable sales, although hire revenue grew 
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(cid:83)(cid:78)(cid:3)(cid:82)(cid:68)(cid:66)(cid:84)(cid:81)(cid:68)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:66)(cid:78)(cid:77)(cid:83)(cid:81)(cid:64)(cid:66)(cid:83)(cid:3)(cid:68)(cid:87)(cid:83)(cid:68)(cid:77)(cid:82)(cid:72)(cid:78)(cid:77)(cid:82)(cid:13)(cid:3)(cid:36)(cid:33)(cid:40)(cid:51)(cid:32)(cid:16) margins remained 
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continued strong returns from the asset base. 

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increased cyclical shutdown activity in the period.

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engagement scores were strong. Our intention was to perform the 
full survey in April 2020; however this will now be undertaken 
once normal working conditions resume. Feedback from prior 
year surveys has related to communication and during the year 
we launched a new web and app based communications tool,  
‘The Hub’. This has proved invaluable for communicating with 
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introduced a number of regional employee forums with the 
Chairpersons meeting myself and the HR Director quarterly in 
order to address any matters raised.

The Board is committed to maintaining the welfare of our 
colleagues at this challenging time. We have ensured that there  
is regular communication with, and support for colleagues 
who are participating in the long-term success of the business, 
whether working or on furlough leave. This has included calls  
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for their ongoing support and dedication during the year, and as 
we continue to navigate this challenging time.

Energise

Guidance

We launched a new Environmental, Social and Governance (ESG) 
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to improve our own environmental and sustainability performance, 
but also a commitment to continue to invest in the latest innovative 
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as hybrid, solar and hydrogen are becoming viable power sources 
and we are committed to investing in this cleaner technology for 
our customers. The Energise programme also encompasses our 
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colleagues participating in volunteering activities during the year.

People

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During the year we undertook a pulse survey of all colleagues  
to ascertain progress against the full survey results undertaken 
the prior year. 

As stated in our announcements on 9 April 2020 and 8 June 
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suspended until the position stabilises.

Summary and outlook

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and robust balance sheet. 

Our priority remains the welfare of our colleagues, customers and 
the communities we serve. We continue to monitor Government 
guidance and take action to ensure the safety of our colleagues 
as we continue to operate to satisfy customer demand. Whilst 
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reassured by our performance in the last three months. We are 
well placed to emerge in a position of strength to pursue our 
strategic objectives as more normal trading levels return.

Russell Down 
Chief Executive

Services

p22

Explanatory notes:
(cid:16)(cid:3)(cid:33)(cid:68)(cid:69)(cid:78)(cid:81)(cid:68)(cid:3)(cid:68)(cid:87)(cid:66)(cid:68)(cid:79)(cid:83)(cid:72)(cid:78)(cid:77)(cid:64)(cid:75)(cid:3)(cid:72)(cid:83)(cid:68)(cid:76)(cid:82)(cid:11)(cid:3)(cid:82)(cid:68)(cid:68)(cid:3)(cid:45)(cid:78)(cid:83)(cid:68)(cid:3)(cid:16)(cid:16)(cid:3)(cid:83)(cid:78)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:37)(cid:72)(cid:77)(cid:64)(cid:77)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:50)(cid:83)(cid:64)(cid:83)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:82)
2 See Note 9 to the Financial Statements
3 See Note 20 to the Financial Statements
(cid:19)(cid:3)(cid:3)(cid:3)(cid:49)(cid:68)(cid:83)(cid:84)(cid:81)(cid:77)(cid:3)(cid:78)(cid:77)(cid:3)(cid:34)(cid:64)(cid:79)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)(cid:36)(cid:76)(cid:79)(cid:75)(cid:78)(cid:88)(cid:68)(cid:67)(cid:25)(cid:3)(cid:47)(cid:81)(cid:78)(cid:421)(cid:83)(cid:3)(cid:65)(cid:68)(cid:69)(cid:78)(cid:81)(cid:68)(cid:3)(cid:83)(cid:64)(cid:87)(cid:11)(cid:3)(cid:64)(cid:76)(cid:78)(cid:81)(cid:83)(cid:72)(cid:82)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:68)(cid:87)(cid:66)(cid:68)(cid:79)(cid:83)(cid:72)(cid:78)(cid:77)(cid:64)(cid:75)(cid:3)(cid:72)(cid:83)(cid:68)(cid:76)(cid:82)(cid:3)(cid:67)(cid:72)(cid:85)(cid:72)(cid:67)(cid:68)(cid:67)(cid:3)
by the average capital employed (where capital employed equals shareholders’ funds and 
net debt3(cid:8)(cid:11)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:75)(cid:64)(cid:82)(cid:83)(cid:3)(cid:16)(cid:17)(cid:3)(cid:76)(cid:78)(cid:77)(cid:83)(cid:71)(cid:82)
(cid:20)(cid:3)(cid:43)(cid:68)(cid:85)(cid:68)(cid:81)(cid:64)(cid:70)(cid:68)(cid:25)(cid:3)(cid:45)(cid:68)(cid:83)(cid:3)(cid:67)(cid:68)(cid:65)(cid:83)3(cid:3)(cid:66)(cid:78)(cid:85)(cid:68)(cid:81)(cid:68)(cid:67)(cid:3)(cid:65)(cid:88)(cid:3)(cid:36)(cid:33)(cid:40)(cid:51)(cid:35)(cid:32)(cid:16)(cid:13)(cid:3)(cid:51)(cid:71)(cid:72)(cid:82)(cid:3)(cid:76)(cid:68)(cid:83)(cid:81)(cid:72)(cid:66)(cid:3)(cid:68)(cid:87)(cid:66)(cid:75)(cid:84)(cid:67)(cid:68)(cid:82)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:72)(cid:76)(cid:79)(cid:64)(cid:66)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:40)(cid:37)(cid:49)(cid:50)(cid:3)(cid:16)(cid:21)(cid:13)

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1  | Strategic Priorities

DIGITAL BUSINESS
Embracing digital 
technology

Becoming a more digital business has  
been a key strategic priority in recent  
years. Starting in 2016 we undertook  
a wholesale review of our internal  
systems and management information. 

This has resulted in all our management 
information now being available to managers 
on live dashboards. The information is 
updated at regular intervals from our  
ERP system and can be interrogated from  
all our locations based on permissions  
within the hierarchy. Real time information  
is readily available and hence decisions can 
be made based on accurate information in  
a timely manner.

The business has also embraced the use of 
(cid:64)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:72)(cid:64)(cid:75)(cid:3)(cid:72)(cid:77)(cid:83)(cid:68)(cid:75)(cid:75)(cid:72)(cid:70)(cid:68)(cid:77)(cid:66)(cid:68)(cid:13)(cid:3)(cid:54)(cid:68)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:65)(cid:68)(cid:68)(cid:77)(cid:3)(cid:86)(cid:78)(cid:81)(cid:74)(cid:72)(cid:77)(cid:70)(cid:3)
with a third party provider for a number of 
years to optimise our data and identify areas 
(cid:69)(cid:78)(cid:81)(cid:3)(cid:72)(cid:76)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:77)(cid:70)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:68)(cid:423)(cid:66)(cid:72)(cid:68)(cid:77)(cid:66)(cid:88)(cid:13)(cid:3)(cid:54)(cid:68)(cid:3)(cid:64)(cid:81)(cid:68)(cid:3)(cid:66)(cid:84)(cid:81)(cid:81)(cid:68)(cid:77)(cid:83)(cid:75)(cid:88)(cid:3)
actively using machine learning to set depot 
stocking levels, target customer sales and 
optimise logistics. 

During FY2020 we have continued to develop 
our ability to transact with customers through 
our website and mobile app by making it 
easier for customers to do business with 
us online. We have re-launched our online 
account management service ‘MySpeedy’ 
with an improved customer interface and 
new features. 

The easy to use service gives both large 
and small customers instant secure access 
to their hire information, together with a 
(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:84)(cid:82)(cid:68)(cid:69)(cid:84)(cid:75)(cid:3)(cid:69)(cid:68)(cid:64)(cid:83)(cid:84)(cid:81)(cid:68)(cid:82)(cid:3)(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:72)(cid:77)(cid:70)(cid:25)(cid:3)(cid:78)(cid:79)(cid:83)(cid:72)(cid:78)(cid:77)(cid:82)(cid:3)
(cid:69)(cid:78)(cid:81)(cid:3)(cid:67)(cid:72)(cid:420)(cid:68)(cid:81)(cid:68)(cid:77)(cid:83)(cid:3)(cid:84)(cid:82)(cid:68)(cid:81)(cid:3)(cid:64)(cid:66)(cid:66)(cid:68)(cid:82)(cid:82)(cid:3)(cid:75)(cid:68)(cid:85)(cid:68)(cid:75)(cid:82)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
larger account customers; the ability to 
view transactions and history including 
(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:72)(cid:68)(cid:82)(cid:11)(cid:3)(cid:66)(cid:78)(cid:75)(cid:75)(cid:68)(cid:66)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:78)(cid:420)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:82)(cid:26)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:64)(cid:65)(cid:72)(cid:75)(cid:72)(cid:83)(cid:88)(cid:3)
to download and print documents including 
invoices, proof of delivery and collection 
(cid:77)(cid:78)(cid:83)(cid:72)(cid:66)(cid:68)(cid:82)(cid:11)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:66)(cid:78)(cid:76)(cid:79)(cid:75)(cid:72)(cid:64)(cid:77)(cid:66)(cid:68)(cid:3)(cid:66)(cid:68)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:68)(cid:82)(cid:26)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)
(cid:68)(cid:77)(cid:64)(cid:65)(cid:75)(cid:68)(cid:82)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:77)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:78)(cid:420)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)
directly from their mobile device.

14   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Requirements 
I WANT TO...

• Apply for an account
• Register for MySpeedy
• Find a depot
• View products
•  Place order for delivery or collection

The digital 
customer journey*

Deliver
I RECEIVE...

(cid:350)(cid:3)(cid:49)(cid:68)(cid:66)(cid:68)(cid:72)(cid:85)(cid:68)(cid:3)(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:88)(cid:3)(cid:83)(cid:68)(cid:87)(cid:83)(cid:3)(cid:77)(cid:78)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:82)
• Track delivery status
• Access electronic proof of delivery
• Feedback via customer survey

Get the job done 
I USE...

• ‘How To’ videos
• Leave feedback

Settlement 
I PAY...

• View and download invoice
• Query invoice
• Pay invoice
• View loss/damage paperwork
• View statements

(cid:50)(cid:424)(cid:16)(cid:75)(cid:76)(cid:85)(cid:72) 
(cid:44)(cid:3)(cid:50)(cid:41)(cid:41)(cid:664)(cid:43)(cid:44)(cid:53)(cid:40)(cid:17)(cid:17)(cid:17)

(cid:350)(cid:3)(cid:46)(cid:420)(cid:12)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:68)(cid:80)(cid:84)(cid:72)(cid:79)(cid:76)(cid:68)(cid:77)(cid:83)
•  Receive text collection 

(cid:77)(cid:78)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:82)

• Track collection status
•  Access electronic proof  

of collection

•  Leave feedback via  
customer surveys

Management 
I NEED SUPPORT...

• View and download reports
• View account information
• Save and schedule reports

•  Check inspection status  

for hired equipment

(cid:350)(cid:3)(cid:3)(cid:53)(cid:72)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:84)(cid:72)(cid:79)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:83)(cid:68)(cid:82)(cid:83)(cid:3)(cid:66)(cid:68)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:68)(cid:82)(cid:3) 

(cid:7)(cid:51)(cid:49)(cid:40)(cid:44)(cid:14)(cid:43)(cid:75)(cid:78)(cid:88)(cid:67)(cid:82)(cid:3)(cid:33)(cid:81)(cid:72)(cid:83)(cid:72)(cid:82)(cid:71)(cid:8)

• Access key contact information
• Email support teams
• Leave feedback

* Functionality may vary between digital platforms

STRATEGY IN ACTION 

Enhancing the customer experience 
through our digital services

Speedy is the core supplier of plant, 
tools and generators to Siemens across 
(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:11)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:79)(cid:64)(cid:81)(cid:83)(cid:77)(cid:68)(cid:81)(cid:68)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:83)(cid:71)(cid:68)(cid:76)(cid:3)(cid:83)(cid:78)(cid:3)
help reduce their hire costs through 
Speedy’s new mobile app. 

The ‘MySpeedy’ digital service allows 
the company’s employees to manage 
on-hire equipment, while enabling 
(cid:83)(cid:71)(cid:68)(cid:76)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:420)(cid:12)hire products at the click 
of a button. This removes the need for 
Siemens employees to contact Speedy 
to arrange collection of equipment 
and eliminates the risk of products 
being held beyond their hire period, 
enabling the company - which typically 
has thousands of items on hire at any 
(cid:78)(cid:77)(cid:68)(cid:3)(cid:83)(cid:72)(cid:76)(cid:68)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:12)(cid:3)(cid:83)(cid:78)(cid:3)(cid:76)(cid:64)(cid:74)(cid:68)(cid:3)(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:3)
savings. As a result Siemens average 
hire days have reduced since it began 
using the app. The new digital service is 
used by more than 80 users at Siemens 

nationwide, including buyers, site 
managers and other site personnel  
from across its Mobility, Power and  
Gas and Wind Power divisions. 

“Speedy has been our hire partner 
(cid:69)(cid:78)(cid:81)(cid:3)(cid:421)(cid:85)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:65)(cid:84)(cid:82)(cid:72)(cid:77)(cid:68)(cid:82)(cid:82)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)
always focused on introducing new 
services, which have transformed 
how we can hire the products and 
equipment we need. The new app 
(cid:71)(cid:64)(cid:82)(cid:3)(cid:64)(cid:67)(cid:67)(cid:68)(cid:67)(cid:3)(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:3)(cid:85)(cid:64)(cid:75)(cid:84)(cid:68)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:84)(cid:82)(cid:11)(cid:3)
giving our people a simpler and more 
(cid:422)(cid:68)(cid:87)(cid:72)(cid:65)(cid:75)(cid:68)(cid:3)(cid:82)(cid:78)(cid:75)(cid:84)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:71)(cid:68)(cid:75)(cid:79)(cid:72)(cid:77)(cid:70)(cid:3)(cid:84)(cid:82)(cid:3)(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:3)
(cid:77)(cid:68)(cid:86)(cid:3)(cid:68)(cid:423)(cid:66)(cid:72)(cid:68)(cid:77)(cid:66)(cid:72)(cid:68)(cid:82)(cid:13)(cid:346)(cid:3)(cid:47)(cid:64)(cid:84)(cid:75)(cid:3)(cid:35)(cid:84)(cid:77)(cid:66)(cid:78)(cid:76)(cid:65)(cid:68)(cid:11)(cid:3)
Commodity Manager at Siemens.

Speedy intend to continue working with 
other areas of the Siemens business to 
help more of their employees feel the 
(cid:65)(cid:68)(cid:77)(cid:68)(cid:421)(cid:83)(cid:82)(cid:3)(cid:78)(cid:69)(cid:3)(cid:84)(cid:82)(cid:72)(cid:77)(cid:70)(cid:3)(cid:50)(cid:79)(cid:68)(cid:68)(cid:67)(cid:88)(cid:343)(cid:82)(cid:3)(cid:69)(cid:84)(cid:75)(cid:75)(cid:88)(cid:3)(cid:67)(cid:72)(cid:70)(cid:72)(cid:83)(cid:64)(cid:75)(cid:3)
hire service.

The new app has added 
(cid:82)(cid:72)(cid:70)(cid:77)(cid:72)(cid:421)(cid:66)(cid:64)(cid:77)(cid:83)(cid:3)(cid:85)(cid:64)(cid:75)(cid:84)(cid:68)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)
us, giving our people 
a simpler and more 
(cid:422)(cid:68)(cid:87)(cid:72)(cid:65)(cid:75)(cid:68)(cid:3)(cid:82)(cid:78)(cid:75)(cid:84)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)
helping us deliver  
(cid:77)(cid:68)(cid:86)(cid:3)(cid:68)(cid:423)(cid:66)(cid:72)(cid:68)(cid:77)(cid:66)(cid:72)(cid:68)(cid:82)(cid:13)(cid:3)

Paul Duncombe 
Commodity Manager, 
Siemens

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2  | Strategic Priorities

SUSTAINABILITY
Innovation driving 
sustainable solutions

We have a reputation within the industry for working 
in partnership with our customers and supply chain 
on introducing new and innovative products to 
our range. We aim to lead the way in helping our 
customers deliver their projects more sustainably 
and becoming a more sustainable business. 

Working together as a responsible business

 COMMERCIAL
   XCELLENCE

Being industry leader in 
sustainability

>  Safety as Standard
>  Innovation
>
>  Stakeholder Engagement

Accreditations & 

  NVIRONMENTAL
 IMPACT

Minimising our impact on the 
environment

>  Reducing Environmental Impact
>  Recycling & Waste Reduction
>  Water & Air Quality
>  Transport and Logistics
>  Energy Use

SOCIAL
R   SPONSIBILITY

Creating better people and a 
better society

>  Health & Wellbeing
>  Diversity & Gender equality
>  Charities & Communities
>  Community Engagement

Each of the Energise Journey KPIs we have committed to are aligned with the 10 UN Sustainable Development Goals.

From reducing our own carbon footprint,  
to developing low energy and cleaner  
products and site solutions for our customers, 
we aim to drive the sustainability agenda.

(cid:32)(cid:83)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:50)(cid:79)(cid:68)(cid:68)(cid:67)(cid:88)(cid:3)(cid:36)(cid:87)(cid:79)(cid:78)(cid:3)(cid:71)(cid:68)(cid:75)(cid:67)(cid:3)(cid:72)(cid:77)(cid:3)(cid:46)(cid:66)(cid:83)(cid:78)(cid:65)(cid:68)(cid:81)(cid:3)(cid:17)(cid:15)(cid:16)(cid:24)(cid:3)
we launched our new Corporate Social 
Responsibility (CSR) programme branded  
as ‘Energise’. The Energise programme has  
(cid:65)(cid:68)(cid:68)(cid:77)(cid:3)(cid:67)(cid:68)(cid:85)(cid:68)(cid:75)(cid:78)(cid:79)(cid:68)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:83)(cid:71)(cid:81)(cid:68)(cid:68)(cid:3)(cid:79)(cid:81)(cid:72)(cid:77)(cid:66)(cid:72)(cid:79)(cid:64)(cid:75)(cid:3)(cid:64)(cid:72)(cid:76)(cid:82)(cid:25)

   Commercial Excellence: being industry 

leaders in sustainability

   Environmental Impact: minimising  

our impact on the environment

   Social Responsibility: creating better  

people and a better society

The programme is built on these three 
core pillars, underpinned with a number of 
supporting activities associated with individual 
(cid:42)(cid:68)(cid:88)(cid:3)(cid:47)(cid:68)(cid:81)(cid:69)(cid:78)(cid:81)(cid:76)(cid:64)(cid:77)(cid:66)(cid:68)(cid:3)(cid:40)(cid:77)(cid:67)(cid:72)(cid:66)(cid:64)(cid:83)(cid:78)(cid:81)(cid:82)(cid:3)(cid:64)(cid:75)(cid:75)(cid:78)(cid:86)(cid:72)(cid:77)(cid:70)(cid:3)(cid:84)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)
measure our progress, address where we need 
to improve and celebrate our successes. 

The programme is sponsored by Chief Executive, 
Russell Down, the board member responsible for 
CSR improvements. Our aim is to engage all of 
our stakeholders on this journey by harnessing 
the collective power of suppliers, customers and 
employees to achieve our overall objectives.

16   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

 
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STRATEGY IN ACTION 

Sustainable fuel solutions

During FY2020 Speedy introduced a second 
generation fPod®, a stand-alone site refuelling 
station. The fPod® can be installed at any 
site, servicing every fuel user working on 
that project. The station reduces vehicle 
movements and fuel containers on-site, 
bringing environmental, safety and cost 
(cid:65)(cid:68)(cid:77)(cid:68)(cid:421)(cid:83)(cid:82)(cid:13)(cid:3)(cid:37)(cid:72)(cid:83)(cid:83)(cid:68)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:64)(cid:77)(cid:3)(cid:72)(cid:77)(cid:83)(cid:68)(cid:75)(cid:75)(cid:72)(cid:70)(cid:68)(cid:77)(cid:83)(cid:3)(cid:76)(cid:78)(cid:77)(cid:72)(cid:83)(cid:78)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)
system and as part of our fuel management 
service, the fuel level is accurately monitored 
(cid:64)(cid:77)(cid:67)(cid:3)(cid:81)(cid:68)(cid:421)(cid:75)(cid:75)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:68)(cid:77)(cid:82)(cid:84)(cid:81)(cid:68)(cid:3)(cid:64)(cid:3)(cid:66)(cid:78)(cid:77)(cid:82)(cid:83)(cid:64)(cid:77)(cid:83)(cid:3)(cid:69)(cid:84)(cid:68)(cid:75)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:75)(cid:88)(cid:3)(cid:83)(cid:78)(cid:3)
improve productivity on site, and to eradicate 
unnecessary delivery journeys caused by poor 
fuel level estimation. 

The second generation ‘fPod® Elite’ has been 
(cid:72)(cid:77)(cid:83)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:68)(cid:67)(cid:3)(cid:72)(cid:77)(cid:83)(cid:78)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:67)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:13)(cid:3)(cid:40)(cid:77)(cid:3)
(cid:64)(cid:67)(cid:67)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:83)(cid:78)(cid:3)(cid:64)(cid:75)(cid:75)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:65)(cid:68)(cid:77)(cid:68)(cid:421)(cid:83)(cid:82)(cid:3)(cid:78)(cid:69)(cid:3)(cid:72)(cid:83)(cid:82)(cid:3)(cid:79)(cid:81)(cid:68)(cid:67)(cid:68)(cid:66)(cid:68)(cid:82)(cid:82)(cid:78)(cid:81)(cid:11)(cid:3)
the new fPod® Elite is capable of billing 
(cid:67)(cid:72)(cid:420)(cid:68)(cid:81)(cid:68)(cid:77)(cid:83)(cid:3)(cid:84)(cid:82)(cid:68)(cid:81)(cid:82)(cid:3)(cid:68)(cid:13)(cid:70)(cid:13)(cid:3)(cid:82)(cid:84)(cid:65)(cid:12)(cid:66)(cid:78)(cid:77)(cid:83)(cid:81)(cid:64)(cid:66)(cid:83)(cid:78)(cid:81)(cid:82)(cid:3)(cid:82)(cid:68)(cid:79)(cid:64)(cid:81)(cid:64)(cid:83)(cid:68)(cid:75)(cid:88)(cid:11)(cid:3)
which further reduces emissions and improves 
safety by eliminating the need for sub-
contractors to bring their own fuel on-site.

During the year Speedy also began supplying 
new Green D+ Hydrotreated Vegetable Oil 
(HVO) fuel. HVO is a form of renewable diesel 
that has been produced from vegetable fats 
and oils and reduces carbon emissions by up 
to 90% compared to regular fossil fuel. Unlike 
regular biodiesel, hydrogen is used as a catalyst 
in the creation process instead of methanol. 
This environmentally-friendly alternative to 
mineral diesel can be used in modern vehicles, 
generators, construction machinery and 
industrial power systems.

Green D+ HVO fuel is now provided as Speedy’s 
standard low emission fuel and is the only HVO 
fuel approved for use in Speedy equipment.  
For every 350 litres of Green D+ HVO fuel used, 
1 tonne of CO2 is saved versus fossil fuel. It has 
been widely adopted in the UK as a drop-in 
(cid:67)(cid:72)(cid:68)(cid:82)(cid:68)(cid:75)(cid:3)(cid:81)(cid:68)(cid:79)(cid:75)(cid:64)(cid:66)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:65)(cid:88)(cid:3)(cid:66)(cid:68)(cid:77)(cid:83)(cid:81)(cid:64)(cid:75)(cid:75)(cid:88)(cid:3)(cid:69)(cid:84)(cid:68)(cid:75)(cid:75)(cid:68)(cid:67)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:82)(cid:11)(cid:3)
(cid:65)(cid:78)(cid:83)(cid:71)(cid:3)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:78)(cid:420)(cid:12)(cid:81)(cid:78)(cid:64)(cid:67)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:76)(cid:64)(cid:81)(cid:72)(cid:77)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:82)(cid:13)(cid:3)

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   17   

 
 
 
 
 
3  | Strategic Priorities

CUSTOMER SERVICE
(cid:35)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:3)(cid:421)(cid:81)(cid:82)(cid:83)(cid:3)(cid:66)(cid:75)(cid:64)(cid:82)(cid:82)(cid:3)
customer experience

(cid:46)(cid:84)(cid:81)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:71)(cid:64)(cid:85)(cid:68)(cid:3)(cid:66)(cid:78)(cid:76)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)(cid:68)(cid:87)(cid:79)(cid:68)(cid:66)(cid:83)(cid:3)(cid:421)(cid:81)(cid:82)(cid:83)(cid:3)(cid:66)(cid:75)(cid:64)(cid:82)(cid:82)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)
from Speedy with colleagues who ‘go the extra mile’ 
for our customers. We aim to deliver the highest level 
of service at every step of the customer journey; from 
order and delivery through to collection and invoicing. 

We survey our customers at multiple 
points along the customer journey 
to measure our performance, and 
their satisfaction with our service. 
Satisfaction scores are consistently high, 
with up to 92%* of customers rating 
our service as good or very good. 

During FY2020 we expanded and 
rebranded our Customer Excellence 
Team to deal with general customer 
enquiries, and also ensure that we 
‘close the loop’ on customer feedback, 
by ensuring that all comments are 
addressed to a satisfactory conclusion. 

We have recently changed our customer 
survey provider to improve the output 
available and assist with making any 
(cid:72)(cid:76)(cid:79)(cid:81)(cid:78)(cid:85)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:82)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:79)(cid:81)(cid:78)(cid:66)(cid:68)(cid:82)(cid:82)(cid:68)(cid:82)(cid:13)(cid:3)(cid:40)(cid:77)(cid:3)
(cid:37)(cid:56)(cid:17)(cid:15)(cid:17)(cid:16)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:34)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:36)(cid:87)(cid:66)(cid:68)(cid:75)(cid:75)(cid:68)(cid:77)(cid:66)(cid:68)(cid:3)(cid:51)(cid:68)(cid:64)(cid:76)(cid:3)
will be working with our new provider 
to carry out more detailed customer 
surveys and gather further intelligence 
on our service.

National launch of our  
four-hour delivery promise 
(cid:40)(cid:77)(cid:3)(cid:41)(cid:64)(cid:77)(cid:84)(cid:64)(cid:81)(cid:88)(cid:3)(cid:17)(cid:15)(cid:16)(cid:23)(cid:11)(cid:3)(cid:86)(cid:68)(cid:3)(cid:75)(cid:64)(cid:84)(cid:77)(cid:66)(cid:71)(cid:68)(cid:67)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
same day service promise on our most 
popular products within the London 
area. Since that time we have continued 
to evolve and improve our service 
(cid:78)(cid:420)(cid:68)(cid:81)(cid:72)(cid:77)(cid:70)(cid:13)(cid:3)(cid:54)(cid:68)(cid:3)(cid:81)(cid:78)(cid:75)(cid:75)(cid:68)(cid:67)(cid:3)(cid:78)(cid:84)(cid:83)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)
across all of our depots nationally 
(cid:72)(cid:77)(cid:3)(cid:44)(cid:64)(cid:81)(cid:66)(cid:71)(cid:3)(cid:17)(cid:15)(cid:16)(cid:23)(cid:11)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:82)(cid:84)(cid:65)(cid:82)(cid:68)(cid:80)(cid:84)(cid:68)(cid:77)(cid:83)(cid:75)(cid:88)(cid:3)
strengthened that service promise 
further by launching a four-hour 
(cid:67)(cid:68)(cid:75)(cid:72)(cid:85)(cid:68)(cid:81)(cid:88)(cid:3)(cid:79)(cid:81)(cid:78)(cid:76)(cid:72)(cid:82)(cid:68)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:44)(cid:17)(cid:20)(cid:3) 
in November of the same year. 

(cid:40)(cid:77)(cid:3)(cid:41)(cid:64)(cid:77)(cid:84)(cid:64)(cid:81)(cid:88)(cid:3)(cid:17)(cid:15)(cid:17)(cid:15)(cid:3)(cid:86)(cid:68)(cid:3)(cid:68)(cid:87)(cid:83)(cid:68)(cid:77)(cid:67)(cid:68)(cid:67)(cid:3)(cid:83)(cid:71)(cid:72)(cid:82)(cid:3)
(cid:84)(cid:77)(cid:72)(cid:80)(cid:84)(cid:68)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)(cid:78)(cid:420)(cid:68)(cid:81)(cid:72)(cid:77)(cid:70)(cid:11)(cid:3)(cid:75)(cid:64)(cid:84)(cid:77)(cid:66)(cid:71)(cid:72)(cid:77)(cid:70)(cid:3) 
the four-hour delivery promise on  
our most popular products nationally. 
We are proud to say that the success 
of delivering this service is due to our 
people being fully focused on the 
customer, and working as one team 
to deliver what is a unique service 
delivery promise in our industry. 

18   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

* Based on average monthly responses 
to customer surveys

S
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STRATEGY IN ACTION 

Delivering on our promises 

(cid:34)(cid:75)(cid:72)(cid:79)(cid:421)(cid:77)(cid:68)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:68)(cid:82)(cid:3)(cid:79)(cid:81)(cid:78)(cid:69)(cid:68)(cid:82)(cid:82)(cid:72)(cid:78)(cid:77)(cid:64)(cid:75)(cid:3)
construction support services to a 
wide range of clients throughout the 
UK, and has been a Speedy customer 
for 15 years. Contracted on one of 
the most iconic buildings in London, 
(cid:17)(cid:17)(cid:3)(cid:33)(cid:72)(cid:82)(cid:71)(cid:78)(cid:79)(cid:82)(cid:70)(cid:64)(cid:83)(cid:68)(cid:11)(cid:3)(cid:34)(cid:75)(cid:72)(cid:79)(cid:421)(cid:77)(cid:68)(cid:3)(cid:77)(cid:68)(cid:68)(cid:67)(cid:68)(cid:67)(cid:3)(cid:64)(cid:77)(cid:3)
urgent delivery of fuel to keep the 
(cid:79)(cid:78)(cid:86)(cid:68)(cid:81)(cid:3)(cid:81)(cid:84)(cid:77)(cid:77)(cid:72)(cid:77)(cid:70)(cid:3)(cid:78)(cid:77)(cid:3)(cid:82)(cid:72)(cid:83)(cid:68)(cid:13)(cid:3)(cid:34)(cid:75)(cid:72)(cid:79)(cid:421)(cid:77)(cid:68)(cid:3)(cid:66)(cid:64)(cid:75)(cid:75)(cid:68)(cid:67)(cid:3)
on Speedy and within 90 minutes 
Speedy’s Central London team had 
delivered 400 litres of sealed fuel to 
keep the site running. 

Just in time deliveries is an 
essential part of keeping  
a site running in London. 
We knew that when we 
called Speedy that they 
would deliver on their 
unique brand promise.

What we require from our 
service partners on such 
an iconic site such as 22 
Bishopsgate is a ‘can do’ 
attitude.

We can always trust 
that Speedy can deliver 
at short notice when 
required, whilst always 
maintaining the quality 
(cid:78)(cid:69)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:3)(cid:83)(cid:71)(cid:68)(cid:88)(cid:3)(cid:78)(cid:420)(cid:68)(cid:81)(cid:13)

James Gallagher 
Logistics Manager, 
(cid:34)(cid:75)(cid:72)(cid:79)(cid:421)(cid:77)(cid:68)

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   19   

 
 
 
 
 
4  | Strategic Priorities

BUSINESS DEVELOPMENT
Structured for growth

We are proud to be the UK's leading tools, 
equipment and plant hire services company, 
operating nationally across the construction, 
infrastructure and industrial markets. Our 
aim is to grow market share by winning 
customers across our market segments:

  Major contractors

  Regional contractors

  SME customers

During FY2020 we won major contracts with  
(cid:44)(cid:78)(cid:81)(cid:70)(cid:64)(cid:77)(cid:3)(cid:50)(cid:72)(cid:77)(cid:67)(cid:64)(cid:75)(cid:75)(cid:11)(cid:3)(cid:54)(cid:68)(cid:75)(cid:82)(cid:71)(cid:3)(cid:54)(cid:64)(cid:83)(cid:68)(cid:81)(cid:11)(cid:3)(cid:50)(cid:68)(cid:75)(cid:75)(cid:64)(cid:421)(cid:68)(cid:75)(cid:67)(cid:11)(cid:3)(cid:32)(cid:76)(cid:66)(cid:78)(cid:38)(cid:72)(cid:420)(cid:68)(cid:77)(cid:11)(cid:3)
Persimmon, and Crest Nicholson and have extended 
our contract with Babcock. Our regional sales teams  
have business development targets for growing 
existing and winning new accounts. 

(cid:46)(cid:84)(cid:81)(cid:3)(cid:50)(cid:44)(cid:36)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:3)(cid:65)(cid:64)(cid:82)(cid:68)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:72)(cid:77)(cid:66)(cid:81)(cid:68)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:20)(cid:15)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)
(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:3)(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:19)(cid:24)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:79)(cid:81)(cid:72)(cid:78)(cid:81)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:11)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:19)(cid:20)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)
(cid:72)(cid:77)(cid:3)(cid:37)(cid:56)(cid:17)(cid:15)(cid:16)(cid:23)(cid:13)(cid:3)(cid:51)(cid:71)(cid:72)(cid:82)(cid:3)(cid:71)(cid:64)(cid:82)(cid:3)(cid:65)(cid:68)(cid:68)(cid:77)(cid:3)(cid:64)(cid:66)(cid:71)(cid:72)(cid:68)(cid:85)(cid:68)(cid:67)(cid:11)(cid:3)(cid:72)(cid:77)(cid:3)(cid:75)(cid:72)(cid:77)(cid:68)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)
strategy, through proactive management of these 
accounts by our Customer Relationship team based  
in South Wales.

(cid:35)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)(cid:86)(cid:68)(cid:3)(cid:81)(cid:68)(cid:12)(cid:79)(cid:81)(cid:78)(cid:421)(cid:75)(cid:68)(cid:67)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:82)(cid:64)(cid:75)(cid:68)(cid:82)(cid:3)(cid:69)(cid:78)(cid:81)(cid:66)(cid:68)(cid:3)(cid:83)(cid:78)(cid:3)
further enable them to deliver growth through 
focusing on acquiring new customers, and growing 
(cid:68)(cid:87)(cid:72)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:66)(cid:66)(cid:78)(cid:84)(cid:77)(cid:83)(cid:82)(cid:13)(cid:3)(cid:51)(cid:71)(cid:68)(cid:3)(cid:77)(cid:68)(cid:86)(cid:3)(cid:82)(cid:83)(cid:81)(cid:84)(cid:66)(cid:83)(cid:84)(cid:81)(cid:68)(cid:3)(cid:66)(cid:75)(cid:68)(cid:64)(cid:81)(cid:75)(cid:88)(cid:3)(cid:67)(cid:68)(cid:421)(cid:77)(cid:68)(cid:82)(cid:3)
the role of each sales team, whilst separating out 
specialist sales teams who have the technical 
knowledge in specialist categories to better  
service our customers’ needs. 

20   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

THE SPEEDY EXPO 2019

Building strong relationships with customers 
is a key objective for our annual event, the 
Speedy Expo, which is the largest private 
(cid:68)(cid:87)(cid:71)(cid:72)(cid:65)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:78)(cid:69)(cid:3)(cid:72)(cid:83)(cid:82)(cid:3)(cid:74)(cid:72)(cid:77)(cid:67)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:13)(cid:3)(cid:32)(cid:83)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:68)(cid:85)(cid:68)(cid:77)(cid:83)(cid:3)
(cid:71)(cid:68)(cid:75)(cid:67)(cid:3)(cid:72)(cid:77)(cid:3)(cid:46)(cid:66)(cid:83)(cid:78)(cid:65)(cid:68)(cid:81)(cid:3)(cid:17)(cid:15)(cid:16)(cid:24)(cid:11)(cid:3)(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:16)(cid:11)(cid:20)(cid:15)(cid:15)(cid:3)(cid:66)(cid:84)(cid:82)(cid:83)(cid:78)(cid:76)(cid:68)(cid:81)(cid:82)(cid:11)(cid:3)
employees and suppliers came together to 
learn more about the innovative one-stop-
shop service we provide to the market. 

(cid:44)(cid:78)(cid:81)(cid:68)(cid:3)(cid:83)(cid:71)(cid:64)(cid:77)(cid:3)(cid:16)(cid:18)(cid:15)(cid:3)(cid:82)(cid:84)(cid:79)(cid:79)(cid:75)(cid:72)(cid:68)(cid:81)(cid:82)(cid:3)(cid:82)(cid:71)(cid:78)(cid:86)(cid:66)(cid:64)(cid:82)(cid:68)(cid:67)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:75)(cid:64)(cid:83)(cid:68)(cid:82)(cid:83)(cid:3)
technology, products and services in the 
market to a record number of customer visitors, 
market analysts, and Speedy employees. 

Seminars and panel sessions with audience 
participation were held in a seminar theatre 
located in the main exhibition hall. Customers, 
senior Speedy leaders, suppliers and 
other stakeholders discussed topics such 
as sustainability, procurement trends and 
digital technology to enhance the customer 
experience. The seminars proved very popular 
(cid:64)(cid:77)(cid:67)(cid:3)(cid:86)(cid:68)(cid:81)(cid:68)(cid:3)(cid:64)(cid:83)(cid:83)(cid:68)(cid:77)(cid:67)(cid:68)(cid:67)(cid:3)(cid:65)(cid:88)(cid:3)(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:20)(cid:15)(cid:15)(cid:3)(cid:67)(cid:68)(cid:75)(cid:68)(cid:70)(cid:64)(cid:83)(cid:68)(cid:82)(cid:13)

Russell Down with the Expo host Amanda Stretton

STRATEGY IN ACTION 

Developing relationships 
with Canal and River Trust

Canal and River Trust are a charity who 
look after and bring to life 2,000 miles 
of waterways across England and Wales. 
The Trust works with volunteers and 
communities to transform canals and 
rivers into spaces where local people 
want to spend time, bringing wellbeing 
opportunities to millions. 

Their work involves not only maintaining 
and improving the waterways, but 
promoting them widely to the eight million 
plus people who have waterways on their 

doorstep as a free, accessible and 
(cid:75)(cid:78)(cid:66)(cid:64)(cid:75)(cid:3)(cid:82)(cid:78)(cid:84)(cid:81)(cid:66)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:86)(cid:68)(cid:75)(cid:75)(cid:65)(cid:68)(cid:72)(cid:77)(cid:70)(cid:13)(cid:3)(cid:46)(cid:77)(cid:3)(cid:16)(cid:3)(cid:32)(cid:79)(cid:81)(cid:72)(cid:75)(cid:3)
(cid:17)(cid:15)(cid:16)(cid:24)(cid:11)(cid:3)(cid:50)(cid:79)(cid:68)(cid:68)(cid:67)(cid:88)(cid:3)(cid:76)(cid:78)(cid:65)(cid:72)(cid:75)(cid:72)(cid:82)(cid:68)(cid:67)(cid:3)(cid:64)(cid:3)(cid:83)(cid:86)(cid:78)(cid:3)(cid:88)(cid:68)(cid:64)(cid:81)(cid:3)
contract with the Canal and River Trust 
to initially supply small tools to the 
organisation in England and Wales.

Following a successful initial period 
(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:72)(cid:77)(cid:70)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:64)(cid:66)(cid:66)(cid:78)(cid:84)(cid:77)(cid:83)(cid:11)(cid:3)(cid:72)(cid:77)(cid:3)(cid:46)(cid:66)(cid:83)(cid:78)(cid:65)(cid:68)(cid:81)(cid:3)(cid:17)(cid:15)(cid:16)(cid:24)(cid:3)
Speedy were able to extend the scope 
of works through winning a further 
plant tender with the Trust which was 
(cid:76)(cid:78)(cid:65)(cid:72)(cid:75)(cid:72)(cid:82)(cid:68)(cid:67)(cid:3)(cid:69)(cid:81)(cid:78)(cid:76)(cid:3)(cid:16)(cid:3)(cid:45)(cid:78)(cid:85)(cid:68)(cid:76)(cid:65)(cid:68)(cid:81)(cid:13)(cid:3)

The plant tender was awarded 
to Speedy following a thorough 
process where Speedy were 
able to demonstrate its 
(cid:66)(cid:78)(cid:76)(cid:79)(cid:81)(cid:68)(cid:71)(cid:68)(cid:77)(cid:82)(cid:72)(cid:85)(cid:68)(cid:3)(cid:64)(cid:65)(cid:72)(cid:75)(cid:72)(cid:83)(cid:88)(cid:3)(cid:83)(cid:78)(cid:3)(cid:78)(cid:420)(cid:68)(cid:81)(cid:3)
an extended range of services 
through its core operation. 
Speedy has built a trusted 
reputation and cultivated 
excellent relationships with our 
team, and we look forward to 
working with them throughout 
the contract period.

Jonathan Telford 
Framework Contract Manager  
Canal and River Trust

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   21   

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5  | Strategic Priorities
5  | Strategic Priorities

SERVICES
Enabling the 
successful delivery  
of customer projects

Our strategy includes an aspiration to grow our 
services businesses faster than our hire business. 
Services revenues are less capital intensive and as  
a result they are ROCE enhancing for the Group.

40% of our revenue now comes from services 
compared to around 30% three years ago 
primarily due to growth in testing and training 
revenues following acquisitions in these areas.

   (cid:47)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:83)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:66)(cid:78)(cid:77)(cid:82)(cid:84)(cid:76)(cid:64)(cid:65)(cid:75)(cid:68)(cid:3)(cid:82)(cid:64)(cid:75)(cid:68)(cid:82)(cid:25)(cid:3)(cid:72)(cid:77)(cid:66)(cid:78)(cid:81)(cid:79)(cid:78)(cid:81)(cid:64)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)
sales of volume consumables to our major 
customers, depot consumables incidental to 
equipment hire and sales of new equipment;

(cid:46)(cid:84)(cid:81)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:82)(cid:3)(cid:65)(cid:84)(cid:82)(cid:72)(cid:77)(cid:68)(cid:82)(cid:82)(cid:3)(cid:66)(cid:78)(cid:77)(cid:82)(cid:72)(cid:82)(cid:83)(cid:82)(cid:3)(cid:78)(cid:69)(cid:25)

   (cid:37)(cid:84)(cid:68)(cid:75)(cid:3)(cid:76)(cid:64)(cid:77)(cid:64)(cid:70)(cid:68)(cid:76)(cid:68)(cid:77)(cid:83)(cid:25)(cid:3)(cid:64)(cid:3)(cid:84)(cid:77)(cid:72)(cid:80)(cid:84)(cid:68)(cid:3)(cid:79)(cid:81)(cid:78)(cid:79)(cid:78)(cid:82)(cid:72)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:82)(cid:3)

(cid:83)(cid:71)(cid:68)(cid:3)(cid:78)(cid:77)(cid:75)(cid:88)(cid:3)(cid:52)(cid:42)(cid:3)(cid:79)(cid:75)(cid:64)(cid:77)(cid:83)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:66)(cid:78)(cid:76)(cid:79)(cid:64)(cid:77)(cid:88)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:72)(cid:83)(cid:82)(cid:3)(cid:78)(cid:86)(cid:77)(cid:3)
fully integrated fuel division.

The complementary nature of our services 
enables the entire sales force and depot 
colleagues to cross sell the full portfolio  
of products and services to our customers. 

   (cid:47)(cid:64)(cid:81)(cid:83)(cid:77)(cid:68)(cid:81)(cid:68)(cid:67)(cid:3)(cid:82)(cid:68)(cid:81)(cid:85)(cid:72)(cid:66)(cid:68)(cid:82)(cid:25)(cid:3)(cid:81)(cid:68)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:68)(cid:80)(cid:84)(cid:72)(cid:79)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:77)(cid:78)(cid:83)(cid:3)
(cid:78)(cid:86)(cid:77)(cid:68)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:72)(cid:77)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:66)(cid:78)(cid:81)(cid:68)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:68)(cid:80)(cid:84)(cid:72)(cid:79)(cid:76)(cid:68)(cid:77)(cid:83)(cid:13)(cid:3)
(cid:42)(cid:68)(cid:88)(cid:3)(cid:64)(cid:81)(cid:68)(cid:64)(cid:82)(cid:3)(cid:78)(cid:69)(cid:3)(cid:81)(cid:68)(cid:71)(cid:72)(cid:81)(cid:68)(cid:67)(cid:3)(cid:68)(cid:80)(cid:84)(cid:72)(cid:79)(cid:76)(cid:68)(cid:77)(cid:83)(cid:3)(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:68)(cid:3) 
large plant, powered access and cranes;

   (cid:51)(cid:81)(cid:64)(cid:72)(cid:77)(cid:72)(cid:77)(cid:70)(cid:25)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:79)(cid:79)(cid:81)(cid:68)(cid:77)(cid:83)(cid:72)(cid:66)(cid:68)(cid:82)(cid:71)(cid:72)(cid:79)(cid:82)(cid:11)(cid:3) 
NVQs, professional skills and safety  
training through the acquisition of  
(cid:38)(cid:68)(cid:64)(cid:82)(cid:78)(cid:77)(cid:3)(cid:51)(cid:81)(cid:64)(cid:72)(cid:77)(cid:72)(cid:77)(cid:70)(cid:3)(cid:72)(cid:77)(cid:3)(cid:35)(cid:68)(cid:66)(cid:68)(cid:76)(cid:65)(cid:68)(cid:81)(cid:3)(cid:17)(cid:15)(cid:16)(cid:23)(cid:26)

   (cid:51)(cid:68)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:11)(cid:3)(cid:72)(cid:77)(cid:82)(cid:79)(cid:68)(cid:66)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:66)(cid:68)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:25)(cid:3)

undertaken through our Lloyds British  
brand which ensures our customers  
remain compliant across a broad range  
of market sectors;

22   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

STRATEGY IN ACTION 

(cid:36)(cid:87)(cid:79)(cid:64)(cid:77)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:69)(cid:84)(cid:68)(cid:75)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:82)(cid:72)(cid:78)(cid:77)(cid:3)(cid:83)(cid:78)(cid:3)(cid:42)(cid:68)(cid:75)(cid:83)(cid:65)(cid:81)(cid:64)(cid:88)(cid:3)

Keltbray are a leading UK civil engineering 
group, providing a vast range of services 
related to engineering and construction. 

(cid:35)(cid:84)(cid:81)(cid:72)(cid:77)(cid:70)(cid:3)(cid:17)(cid:15)(cid:16)(cid:24)(cid:11)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:42)(cid:68)(cid:75)(cid:83)(cid:65)(cid:81)(cid:64)(cid:88)(cid:3)(cid:38)(cid:81)(cid:78)(cid:84)(cid:79)(cid:3)
consumed four million litres of red diesel. 
Their Sustainability and Procurement 
departments joined forces with the objective 
of streamlining their supply chain, and 
improving the way they manage the supply 
of red diesel for their site operations. Having 
undergone a meticulous process with a range 
of suppliers, with the two key objectives 
of selecting a supplier who could deliver 
on quality of service and cost, they chose 
Speedy to become the sole supplier of fuel 
services for their projects.

By expanding our partnership with 
Speedy, we are streamlining our fuel 
provision for projects with a supplier 
we can trust. As well as service, Speedy 
were also able to demonstrate a unique 
ability to use telematics to ensure 
the right amount of fuel is delivered 
at the right time to site, ensuring the 
operations never run dry. We’re looking 
forward to working with Speedy in this 
new capacity going forward. 

Kiro Tamer 
Group Energy Manager,  
(cid:42)(cid:68)(cid:75)(cid:83)(cid:65)(cid:81)(cid:64)(cid:88)

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Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   23   

 
 
 
 
 
People

We are proud of the work our 
colleagues are undertaking as 
we have continued to provide 
essential services and adapted  
to new ways of working in both  
the UK and the Middle East.

24   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Staff in the workshop at our Warrington Multi-Service Centre

Keeping people safe – COVID-19 response

From mid-March 2020 the business in the UK and internationally 
has been affected by the outbreak of the COVID-19 pandemic. 
Since the outbreak, we took immediate and decisive action to 
protect the welfare and safety of our colleagues and stakeholders. 

Where possible, we have ensured employees are working 
from home through our secure and robust infrastructure and 
technology platforms. Our UK and Ireland operations have 
remained open, and we have continued to serve our customers 
nationally, albeit from a reduced depot footprint. Revised health 
and safety processes have been put in place to protect colleagues 
and customers and to ensure we are able to continue to support 
our customers at this time. 

At the outset we temporarily closed a number of our depots, 
and furloughed c.1,800 of our colleagues in the UK under 
the Government's Coronavirus Job Retention Scheme and in 
Ireland under the Irish Government's Wage Subsidy Scheme. 
We continued to trade through our larger superstores servicing 
customers who were providing essential services. Recently, 
we have seen revenue slowly increasing as a number of larger 
customers return to work and consequently we have started to 
re-open depots and un-furlough colleagues at a rate that reflects 
increases in customer demand.

Throughout this period we have been in close communication 
with all colleagues through our online intranet portal, ‘The Hub’ 
which has provided up to date advice and news on the situation. 
Our first priority during these unprecedented times has always 
been to ensure the welfare of our colleagues, suppliers and 
customers. Having initially closed all our depots to customers, 
with deliveries and collections being undertaken by our own 
transport fleet, we are now facilitating customer collections and 
returns to operating depots through new processes that conform 
to social distancing guidelines. 

We are proud of the work our colleagues are undertaking as we 
have continued to provide essential services and adapted to new 
ways of working in both the UK and the Middle East.

People Matters

In order to achieve our vision to become the best company in our 
sector to work for, we aim to ensure our workforce is engaged 
with the business. We recognise that we need to identify the 
issues that affect colleagues while working for Speedy and 
consequently undertake regular employee surveys. 

People Matters employee survey

During FY2020 we undertook a People Matters pulse employee 
survey focusing on the key areas that are important to our 
people. We were pleased with both the response rate and the 
engagement index. The highest scoring questions reflected 
employees’ commitment to helping Speedy achieve its vision.

A number of actions have been introduced this year following 
feedback from prior year surveys.

We have set up a number of employee forums across the business 
to allow employees a ‘voice’. These forums meet at least quarterly 
and consist of a representative cross section of colleagues. On 
a quarterly basis a meeting is held with the Chief Executive, HR 
Director and the chairperson of each forum to discuss business 
performance and address any issues raised by each regional 
forum. Mr Rob Barclay, the designated Non-Executive Director 
responsible for employee engagement, also periodically attends 
this meeting. His attendance has helped ensure the employee 
voice is heard in the main boardroom.

Internal communications have been improved through the 
launch of a new online communications platform, The Hub. 
The key objective of introducing The Hub is to ensure that 
all employees are able to be communicated with regarding 
specific important company information, as well as more general 
company news that promotes our values and culture. As a secure, 
online cloud based platform, the Hub has enabled all Speedy 

colleagues, whether office, depot or field based to receive 
company news and information directly, via their work and/
or personal mobile phones, laptops, desktops and tablets. The 
Hub has quickly become the destination for colleagues to go 
to on a daily basis to read, watch and share the latest company 
and people news. The platform offers a level of flexibility which 
has proved extremely valuable during the COVID-19 outbreak. 
It has assisted in enabling the business to react and respond 
quickly to disseminating timely, up to the minute information and 
provided a feedback channel for employees to utilise. An ongoing 
communications plan is being undertaken to raise awareness of, 
and generate engagement with The Hub, with specific emphasis 
on targeting field based and remote employees. 

Through our Learning and Development team we have also 
developed a training course to enable managers to improve their 
communication skills. This face-to-face course will be delivered 
from a number of Speedy locations nationwide. The course gives 
managers the tools to improve communication with their teams, and 
will help all team members feel more connected with the business.

Promoting positive mental health

We recognise that mental health and wellbeing is a key issue 
within the construction industry, particularly at this time, and 
one that our people feel passionate about. During the year we 
appointed 53 volunteer Mental Health First Aiders throughout 
the business. The team have been trained to identify potential 
mental health issues in the workplace, and proactively promote 
strategies for positive mental health and wellbeing amongst our 
colleagues. Further support is available to colleagues through our 
Employee Assistance Programme.

Under our corporate responsibility brand ‘Energise’, we have  
set up a Wellbeing Committee consisting of employees from 
across the business to consider all aspects of employee welfare. 
The committee will develop campaigns and initiatives promoting 
a healthy approach to mind and body.

Positive mental health

53

Mental Health First Aiders 
throughout the business

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   25   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPeople continued

Lloyd's on-site training 

Training and developing our people

We are committed to developing our skills base, and our internal 
Training Academy delivers a comprehensive schedule of online, 
classroom and practical training courses. The training team offers 
a full range of technical training courses which makes sure our 
employees are carrying out their roles effectively and safely. 

Our learning and development courses are designed to help our 
employees reach their full potential, and also build the skills 
and behaviours which will help support Speedy’s customer led 
culture. For our depot based employees, we offer courses to 
achieve NVQ level 2 and 3 in:

• Hire and Rental Operations

• Management and Team Leadership

• Business Administration

• Customer Service

• Driving Goods and Vehicles

26   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Employees who have been identified as having the potential, 
ability and aspiration for leadership positions are invited to join 
our High Potential Programme. The programme consists of three 
main strands, two of which provide a management qualification 
accredited by the Institution of Leadership and Management.  
The three strands ensure employees at all levels, and stages of 
their career, have access to development which supports our 
approach to succession planning for all roles. During FY2020  
64 employees took part in these programmes.

To develop our senior leaders across the business we partnered  
with the Henley Business School who offer a comprehensive 
range of courses which help us implement positive changes to 
the culture of our business. During FY2020 38 of our leaders 
attended these courses. 

Apprenticeships and graduate schemes

During the year we have continued our graduate recruitment 
programme and taken on a number of new graduates principally 
in Head Office based roles. The programme provides a range 
of training, personal development and experience to develop 
a thorough understanding of Speedy and our business in its 
entirety. The aim for our graduates is to develop relevant skills, 
knowledge and behaviours to develop a successful career over 
the course of the two year Graduate Development Programme, 
assisting in effective succession planning for the future growth  
of the Company. The scheme provides:

• On the job training 

• The chance to study for relevant qualifications where necessary

• Completing business experience modules 

• A tailored learning and development programme

• The opportunity to complete projects set by the Executive Board

•  Integration onto the High Potential Programme in year two  

to develop first time manager and leadership skills

Additionally, we have 79 colleagues participating in 
apprenticeship schemes across the business, primarily in 
engineering based roles.

Training and development

NVQ 2/3

Available to depot  
based employees

People continued

Staff interacting with customers

Performance and recognition 

We have a consistent Personal Development Review (PDR) 
process for all colleagues which measures performance against 
pre-defined objectives, and identifies areas for training and 
development. The process includes a formal one-to-one meeting 
with the colleague’s line manager which supports enhanced 
individual performance and career aspirations. Our performance 
related bonus scheme links directly to the PDR process as well as 
wider performance metrics.

We run an employee recognition scheme ‘Celebrating 
Excellence’. The scheme empowers all employees to nominate 
their colleagues for a spot award in recognition of excellent 
performance. 1,483 employees received an award during FY2020.

We host an annual Excellence Awards event where outstanding 
teams and individuals are publicly recognised for their 
performance. The awards are made over a number of categories 
including Customer Experience, Leader of the Year and Rising 
Star, and nominations are received from colleagues within the 
business. During FY2020 we had a record number of colleagues 
nominated for an award.

Our long service recognition scheme celebrates loyalty for those 
who have 10, 20 and 25 years’ service with the Company. 129 
employees reached these milestones during this financial year. 

Rewards and benefits

We aim to provide competitive reward and benefits packages that 
attract, motivate and retain people in the most efficient manner. 
During FY2020 we benchmarked and adjusted the salaries of 
further roles across the business which helped to retain the key 
skills required to compete in the marketplace.

We run a number of incentive and recognition schemes which 
span all colleagues, most of which are performance related. We 
have also reviewed and updated our employee benefits package 
as we recognise that salary is not the only component that 
motivates employees. 

Under The Equality Act 2010 (Gender Pay Gap Information) 
Regulations 2017 we published our third Gender Pay Gap report. 
We are pleased to report that as a Group we have no significant 
gender pay bias. We will continue to ensure that employees  
are rewarded and recognised fairly for their contribution and  
that they have equal access to opportunities within all areas of 
the business.

Group headcount 

4,065

employees  
(31 March 2019: 4,063)

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   27   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsSafety and sustainability report 

Safety is our first priority 

Safety is Speedy’s first priority, and our Health and Safety  
Policy is constructed with the clear objective of eliminating 
accidents and injuries at work.

We believe that effective risk management is key to operating  
a sustainable business. Our strategy for delivering effective  
risk management and improved performance includes:

• A positive safety culture

• Clear and visible safety leadership

• Commitment to continuous improvement

• Engagement with our workforce

• Awareness of risk at all levels

• A learning organisation

At Speedy we positively encourage the reporting of all incidents, 
irrespective of severity, and use them as a learning opportunity. 
Data is continually reviewed to identify any trends in actual 
incidents or near misses to mitigate against re-occurrence and 
share any lessons learned.

We have undertaken a number of recent acquisitions which have 
resulted in the Group entering new sectors and providing a wider 
specialist service offering. This has resulted in a larger workforce, 
more locations and exposure to a broader range of risks.

This in turn has, due to the increased diversity and size of the 
business and improved reporting, seen an increase in RIDDORs 
and hence a rising Accident Frequency Rate (AFR).

The foundations to safety success lie in excellence in training,  
the provision of the right equipment, clarity in our 
communications and the right culture.

In all health and safety matters we emphasise the importance of 
personal responsibility, to include both the responsibilities that 
our people have for their own health and safety in the workplace 
and that of their colleagues. We also focus on the importance  
of near miss and non-conformance reporting as this gives us  
the information and knowledge to stop accidents happening, 
allowing us to address the potential causes of accidents and  
not the end results.

Commitment to continuous improvement 

Having a positive safety culture is crucial to delivering high  
levels of safety performance. During FY2021 our plan includes  
a number of key initiatives that, dependent on COVID-19,  
we will implement:

•  A temperature check to measure the maturity level  

of the safety culture.

•  A bespoke industry leading Manual Handling training 

programme

•  Workshops for senior managers covering safety culture, why 

things go wrong and how to hold a safety conversation

A number of other key improvements were underway pre 
COVID-19 and will be re-started once conditions permit:

•  A new HSE IT platform to collect, collate, analyse and report  
all data relating to Safety and Environmental Management

•  A programme to build on and reinforce Speedy’s positive  

safety culture by engendering the key attributes of positive 
safety culture

•  Restructuring the HSSEQ team to provide positive and proactive 

safety interventions 

28   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Reporting

Awards and accreditations

We have a robust reporting programme in place, which includes 
regular audits, reviews and monitoring. This includes:

• Setting annual health and safety performance targets

•  Providing monthly reports to the Executive Board on safety 

We are committed to quality, health, safety, the environment  
and sustainability in every aspect of our business. We have  
taken a pioneering stance on health and safety in the hire 
industry and worked hard to improve standards across our 
business and our market.

performance

• Reporting regularly to key stakeholders on safety performance

•  Monitoring safety performance standards through safety 

inspections, audits and reviews

•  Recording and investigating accidents, dangerous occurrences 

and near misses

•  Implementing effective measures to prevent re-occurrence  

of incidents

Key reporting measures

0.31

RIDDOR accidents per 
100,000 hours worked  
(FY2019: 0.19*)

0.06

Specified Injury  
Frequency Rate per  
100,000 hours worked  
(FY2019: 0.06*)

* Restated due to a change in the working hours 
calculation methodology and late reporting

We are active members of the major industry accreditation 
schemes, and are committed to working with them to improve 
best practice.

We successfully secured ISO 27001 Information Security 
Management certification for the Speedy businesses, in addition 
to achieving ISO 50001 certification for the acquired businesses 
Lifterz and Geason Training.

Speedy’s current ISO certifications include:

• ISO 9001:2015 – Quality Management

• ISO 14001:2015 – Environmental Management

•  ISO 17020:2012* – Accreditation for the operation  
of various types of bodies performing inspection

• OHSAS 18001:2007 – Health and Safety Management 

• ISO 27001:2013 – Information Security Management

• ISO 50001:2011 – Energy Management

*Lloyds British National Contracts

We remain accredited to Achilles Building Confidence, FPal,  
UVDB, and RISQS in addition to a number of other accreditations 
and certifications which are essential for us to be able to trade 
with specific clients.

FY2020 was another successful year for Speedy. For the sixth 
consecutive year we were awarded a RoSPA Gold Award, for 
achieving a high level of safety performance and demonstrating 
well-developed occupational health and safety management 
systems. We are pleased to have also earned the following 
awards and recognitions:

• Ground Breaking Safety Initiative – Commercial Fleets Awards

• Safe Fleet of the Year – Fleet News

•  HAE Hire Awards of Excellence – Best Sustainability  

and CSR Initiative 

• Fleet Operators Recognition Scheme (FORS) – Gold Status

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   29   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsSafety and sustainability report continued

Energise – our new Corporate Social  
Responsibility (CSR) roadmap

Social Responsibility

Health, safety and wellbeing

During FY2020 our staff wellbeing groups have supported those 
who need help or just a friendly ear. Over the past 12 months we 
have been training Mental Health First Aiders within the business 
and currently have 53 throughout the company. We launched 
eight regional employee forums with up to ten members on each, 
to encourage communication within the business and enable 
colleagues to meet, raise issues and prioritise solutions. This 
encourages ideas that range from small changes that improve 
everyday processes, to large initiatives that help us operate 
more efficiently or deliver an improved employee or customer 
experience. Every suggestion is considered and the forums are 
sponsored by Chief Executive, Russell Down.

The Speedy Charities Committee

Our Charities Committee oversees contributions to our nominated 
charities WellChild, The Lighthouse Club, and local charities 
through the efforts of our people in raising money for causes 
close to their hearts. Over the past 12 months, Speedy colleagues 
have raised over £32,000 for charities.

We promoted zero single use plastic at the Speedy Expo in 2019, 
raising £900 through donations from delegates for re-usable 
water bottles at the show for Surfers Against Sewage, a UK based 
charity that clean British beaches. We raised a further £4,000 at 
the Speedy Expo 2019 dinner for WellChild and The Lighthouse 
Club. We raised over £1,500 for Macmillian Cancer Support in 
September 2019. Our Christmas raffle raised over £1,000 for St 
Rocco’s Hospice. In 2019 Speedy and its employees contributed 
to over 25 different charities through sponsorship, cake sales, 
donations and raffles. Speedy is donating £10,000 for 20 sports 
kits during 2020. The initiative is to encourage all sporting 
enthusiasts to take part in activities to encourage healthy living. 
We continue to support local charitable events through employee 
volunteering days and providing equipment.

Prison workshop programme

Speedy has been active in supporting the rehabilitation of prisoners 
since 2006. We currently operate at HMP Garth in Lancashire 
running a training workshop for up to 40 inmates at any one time. 
We have trained in excess of 500 people and over 150 NVQs have 
been achieved.

Speedy has been leading the CSR agenda in our industry for many 
years, and we work closely with our customers and suppliers to 
ensure we are working together to become a more responsible 
business. In October 2019 we launched our new CSR programme 
‘Energise’ to reflect our strategic objectives. 

Energise – working together as a responsible business

Launched at the Speedy Expo in October 2019, our new  
CSR brand ‘Energise’ consists of three main drivers:

•  Social Responsibility – Creating better people and a better society

•  Commercial Excellence – Being an industry leader in sustainability

•  Environmental Impact – Minimising our impact on  

the environment

The Energise programme is sponsored by Chief Executive,  
Russell Down, the board member responsible for CSR 
improvements. We have appointed an Energise committee made 
up of senior members of several functions within Speedy, who 
meet regularly to ensure we are making continuous progress 
with our agenda, and reporting annually on our social and 
environmental impacts against our targets. Many of the Energise 
journey KPIs we have committed to is aligned with the ten  
United Nations Sustainable Development Goals (UNSDG’s 2030).

The three principal areas within Energise cover the following:

Social Responsibility:

• Health and Wellbeing

• Diversity and Gender Equality

• Charities and Communities

• Community Engagement

Commercial Excellence:

• Safety as Standard

• Innovation

• Accreditation

• Stakeholder Engagement

Environmental Impact:

• Reducing Environmental Impact

• Recycling and Waste Reduction

• Water and Air Quality

• Transport and Logistics

• Energy

Energise is at the heart of everything we do as a business.  
We are committed to reducing carbon, increasing efficiencies, 
trading safely and ethically and helping our customers achieve 
their own responsibility targets.

Working together as a responsible business

30   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Safety and sustainability report continued

Commercial Excellence

Speedy Partnership Programme (SPP)

The Speedy Partnership Programme connects Speedy, our 
suppliers and customers, to develop a more responsible approach 
to product development, processes and initiatives that reduce 
carbon footprint, control dust etc. Our SPP allows attendees and 
participants to share best practice and learn from each other.

Product Innovation

During the year we invested £2.8 million in lighting towers to 
help our customers reduce emissions, and fuel costs. The 300 
solar-powered products together with 800 VB9 LED+ units,  
can reduce carbon emissions and fuel costs by 70%. We now 
have a fleet of 3,500 lighting towers.

During FY2020 Speedy introduced a second generation fPod®, 
the stand alone site refuelling station. The fPod® can be installed 
to any site, servicing every fuel user working on that project. The 
fPod® reduces vehicle movements and fuel containers on site, 
bringing environmental, safety and cost benefits. The second 
generation ‘fPod® Elite’ has been launched into the fleet during 
the year. It is capable of billing sub-contractors separately, which 
further reduces emissions and improves safety by eliminating the 
need for sub-contractors to bring their own fuel on site. 

Environmental Impact

Environmental sustainability

Reducing our carbon footprint is a key target and we have 
measured our carbon footprint for the last eight years and 
reported to the Carbon Disclosure Project for the last five years. 
Key achievements include:

•  Overall reduction in carbon footprint from 26,606 tonnes in 

2015 to 19,500 tonnes in 2019

•  Since 2015 we have reduced carbon footprint on a per capita  

basis from approximately 11 tonnes per capita to under six tonnes 
per capita in 2019 

Air quality

We are taking many steps to ensure that we are leading the way 
with regards to air quality initiatives. We have met with DEFRA to 
discuss London’s ‘Low Emission Zone’ for non-road mobile machinery 
(NRMM) and what this means for our suppliers and customers.

During the year we also began supplying new Green D+ 
Hydrotreated Vegetable Oil (HVO) fuel. HVO is a form of 
renewable diesel that has been produced from vegetable fats and 
oils and reduces carbon emissions by up to 90% compared to 
regular fossil fuel. It can be used in modern vehicles, generators, 
construction machinery and industrial power systems. Green D+ 
HVO fuel is now provided as Speedy’s standard low emission fuel 
and is the only HVO fuel approved for use in Speedy equipment. 
For every 350 litres of Green D+ HVO fuel used, 1 tonne of CO2  
is saved versus fossil fuel. 

Energy usage 

The annual quantity of emissions in tonnes of carbon dioxide 
equivalent resulting from activities for which the company is 
responsible, including the combustion of fuel or the operation 
of any facility during 2019 was 22,402.55te. This information is 
reported every four years as required by ESOS. The last submission 
to report on our energy usage was December 2019. The ISO50001 
accreditation was awarded to Speedy during 2019 due to 
Speedy’s robust energy management systems.

The annual quantity of emissions in tonnes of carbon dioxide 
equivalent resulting from the purchase of electricity, heat, steam 
or cooling by the company for its own use during 2019 was 
21,721.60te. As stated above it is an ESOS requirement to report 
every four years.

Figures in kWh which is the aggregate of the annual quantity 
of energy consumed from activities for which the company is 
responsible involving the combustion of fuel and the operation  
of any facility is as follows for the regions Speedy operate in:

• UK Mainland: 21,146.49te

•  Green Option (GO) products grew by 16% to 178 during the year

• Northern Ireland and Republic of Ireland: 331.26te

•  Proud holders of the energy management accreditation under 

• MENA: 76.55te

the ESOS Government energy savings scheme

• Kazakhstan: 167.30te

•  Silver Standard Members of the Supply Chain Sustainability 

• Total: 21,721.60te

School and working towards Gold Membership

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   31   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsSafety and sustainability report continued

The methodologies used to calculate the information provided 
on emissions and energy consumption adopted by Speedy 
to calculate carbon emissions for 2019 was provided using 
the DEFRA calculation, which was verified by Stephen Sykes, 
independent consultancy Collins McHugh LTD.

Speedy is implementing many energy savings initiatives 
throughout the estate including the introduction of LED lighting 
and improving the energy efficiency of heating systems in 
buildings. ‘Toolbox talks’ are also undertaken with colleagues  
to ensure they understand the impact of energy usage, waste  
and savings.

Regular energy audits are conducted on an annual basis as 
required for the ISO50001 accreditation.

Total CO2e emissions per employee for 2019 was 5.41te.

Waste management improvements 

We work with suppliers to reduce or, in some cases, eliminate 
consumable packaging which would otherwise be passed on 
to ourselves or our customers. Hilti, one of our main suppliers 
deliver all 'Ready for Rent' products in the relevant equipment 
cases. We are also encouraging our suppliers to introduce reusable 
packaging.

During the year, as part of our latest cardboard waste 
sustainability project we worked in conjunction with Stihl to 
backhaul the cardboard waste created by the delivery of 750 
saws. A total of 500kgs of cardboard waste was removed from 
Speedy due to this initiative.

We also recycle cardboard, wood, metal, plastic, paper, waste oils, 
food waste, and are introducing new waste reduction campaigns 
including:

•  Speedy has now entered the Circular Economy; plastic waste is 
now removed from general waste and will be re-granulated to 
sell as a commodity into the plastic market, thus removing 100 
tonnes of waste.

•  Backhauling of waste from express depots to MSC’s. This will 

reduce the number of vehicles on the Speedy estate, reduce our 
carbon footprint and ensure less contamination in recyclates to 
achieve better costs and increase possible rebates.

Human rights and modern slavery

Our Human Rights Policy and Anti-Slavery Policy applies to all 
employees and commits Speedy to upholding the provision of 
basic human rights and eliminate any discriminatory practices. 
The policies emphasise our commitment to human rights in 
the way we do business, seeking to create and maintain a work 
culture which allows equal human rights to all persons whilst 
prohibiting actions contrary to this, such as forced or child labour.

Equality and diversity

At Speedy we aim to ensure that everyone is rewarded and 
recognised fairly for their contribution, with equal access to 
opportunities, no matter what part of our business they work 
within. We believe in promoting equality and diversity within 
our workforce and we work hard to encourage inclusivity in all 
our activities both internally within Speedy and externally with 
our customer base. Our recruitment team is working to attract 
applicants from a wide variety of backgrounds, increasing 
diversity at all levels and in all roles.

A breakdown by gender of the number of people who were 
Directors of the Company, senior managers and other employees 
as at the end of the reporting period, is set out as follows:

• Directors – female 14%, male 86%;

• A project to eliminate waste through working with our suppliers

• Senior management team – female 18%, male 82%; and

•  Repurposing waste within the business (transporting waste 

•  All Speedy employees (UK and Ireland) – female 19%,  

types to depots that require them e.g. pallets)

male 81%.

•  Reducing Head Office waste generated through a reduction in 
printing, and raising recycling awareness. We have significantly 
reduced the volume of paper printed in our depot network by 
the use of electronic PDAs and not printing contract paperwork 
since November 2017

Within our head office at Haydock the breakdown by gender  
is female 56%, male 44%.

32   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Safety and sustainability report continued

Speedy Hire Plc Corporate  
Greenhouse Gas (GHG) Report

Introduction

This GHG Report has been compiled covering the fuels 
combusted directly by Speedy operations, fugitive refrigerant 
gases, energy consumed in our UK Mainland activities, Northern 
and Republic of Ireland operations and our International 
businesses and includes the business travel and waste disposal 
activities of our UK Mainland offices and depots.

Reporting processes were streamlined in 2019 to include recent 
acquisitions, which were not required in the prior year; 2018 data 
has not been restated for this change.

Combustion of Fuel and Operation of Facilities

The wider introduction of telematics and fuel management has 
resulted in improved reporting systems and controls which have 
led to reduced usage.

Electricity, Heat, Steam and Cooling Purchased for own use  

There has been a significant reduction in the use of electricity and 
gas over the past 12 months. A number of depots have had LED 
lighting installed resulting in a reduction in usage. Many depots 
and MSC’s are part of the lighting exchange scheme. In addition 
our Glasgow MSC underwent a complete heating overhaul during 
the year resulting in an 81% reduction in energy use.

Scope 3 Business Travel – Rail and Air

There has been a significant rise in the use of rail and air travel. 
We have encouraged colleagues to use rail more frequently as a 
more sustainable source of travel. 

This year’s reporting accuracy has improved as we have included 
usage from all sources including both direct company bookings 
and expenses claims. 

Waste disposal

During 2019 the change in waste services provider resulted in 
a significant decrease in waste going to landfill. The amount of 
waste that ended up in landfill reduced to 1.8 tonnes, a 94% 
reduction. This has had a corresponding effect on carbon tonnage, 
with carbon attributed to landfill reducing from 18.32 tonnes to 
0.04 tonnes.

Waste generated on the Speedy estate is processed as Refuse-
Derived Fuel (RDF), therefore zero waste is sent to landfill.

Speedy has now entered the Circular Economy, plastic waste is 
now removed from general waste and will be re-granulated to 
sell as a commodity into the plastic market, thus removing 100 
tonnes of waste.

The overall CO2 emitted per employee has reduced to 5.41 tonnes 
(2018: 6.01 tonnes) in line with our objective of reducing our 
carbon footprint.

Methodology

We have reported on all of the emission sources required 
under the Companies Act 2006 (Strategic and Directors’ Report) 
Regulations 2013. We do not have any responsibility for any 
sources that are not included in our consolidated statement 
except those quoted in the Omissions section.

We have used the GHG Protocol Corporate Accounting and 
Reporting Standard (revised edition), Scopes 1, 2 and 3, and 
emission factors from UK Government’s GHG Conversion Factors 
for Company Reporting 2018. This year’s report includes Well to 
Tank, Transmission and Distribution, and Waste factors also.

Omissions

The combustion of diesel for the testing of equipment/machinery 
could not be established for this reporting period.

Data confidence

The data used to report the GHG emissions was reviewed and 
examined and gives a ‘High’ level of confidence +/- 4.4%. This 
was established using the ‘GHG Protocol guidance on uncertainty 
assessment in GHG inventories and calculating statistical 
parameter uncertainty’, and has been independently verified. 

Global GHG emissions

For the year to 31 December 2019 we have seen a reduction in 
our CO2 per employee of 10%. A detailed breakdown is provided 
in the table below compared against the prior year:

Tonnes of CO2e

Current Reporting  
Year 

Comparison
Year

Emissions From: 

2019 

2018

Combustion of Fuel and  
Operation of Facilities 

Electricity, Heat, Steam  
and Cooling purchased  
for own use 

18,735.62 

19,499.79

2,985.95 

3,621.73

Total Scope 1 and 2 Emissions  21,721.60 

23,121.52

Scope 3  
Business Travel – Rail and Air 

373.33 

153.16

Scope 3  
Waste – Recycled / Recovered  40.53 

25.43

Scope 3  
Waste – Landfill 

Scope 3  
Transmission and  
Distribution of Electricity 

0.04 

18.32

267.05 

–

Total Scope 3 Emissions 

680.95 

196.91

Tonnes CO2e per employee 

5.41 

6.01

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   33   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements  
 
 
Financial and non-financial KPIs

Financial KPIs

KPI

Revenue 
£m 

EBITA1 
£m 

EBITA1 margin  
% 

EBITDA1 
£m 

EBITDA1 margin  
% 

Adjusted profit before tax1 
£m 

Utilisation  
% 

ROCE2  
% 

Why this KPI is important 
to our strategy

How we have done

FY2019 performance*

A measure of the work  
we are undertaking. 

£406.7m  £394.7m

A measure of the profit we  

generate from our revenue.  £39.1m  £36.7m

Highlights how successful  
Speedy is in maximising its  
return from the revenue 
generated. 

9.6% 

9.3%

A measure of operating  

return before depreciation.  £107.4m  £104.8m

Highlights value generated  
either through operational  
efficiency or the quality of  
the revenue. 

A measure of profit we  
generate from our revenue  
activity having accounted for  
all costs before taxation. 

26.4% 

26.6%

£34.9m  £31.4m

A measure of how many of  
our assets are on hire to  

customers by net book value.  56.6% 

A measure of how well  
Speedy is delivering a return  

from the capital invested.  12.0% 

57.0%

11.7%

*Restated as a result of the adoption of IFRS 16 - see Note 1 (Accounting policies)

Explanatory notes:
1 Before exceptional items, see Note 11 to the Financial Statements
2    Return on Capital Employed: Profit before tax, amortisation and exceptional items divided  
by the average capital employed (where capital employed equals shareholders’ funds and  
net debt3), for the last 12 months
3 See Note 20 to the Financial Statements
4 See Note 9 to the Financial Statements

34   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial KPIs

KPI

Net debt3 
£m 

Why this KPI is important 
to our strategy

A measure of the  
Company’s borrowings. 

Net debt3 to EBITDA1  
x 

A measure of how leveraged 
the balance sheet is.  

How we have done

FY2019 performance*

£79.3m  £89.1m
1.0x 

1.1x

NBV of property,  
plant and equipment 
£m 

Adjusted earnings  
per share4 
pence 

Non-Financial KPIs

As assets are our core 
revenue generator, this  
effectively measures the  
scale of investment to 
support revenue. 

A measure of the return 
generated for each holder  
of our ordinary shares. 

£257.6m  £249.1m

5.54p 

4.96p 

KPI

Why this KPI is important 
to our strategy

Target

How we have done

Keeping people safe  
(specified injury rate)

Impact on climate change –  
CO2e per capita

We recognise that we and our 
customers work in some of the 
UK’s most dangerous industry 
sectors and therefore we have a 
responsibility towards keeping 
people safe.

We must play our part in the 
low carbon economy, create 
efficiencies within our business 
and be a responsible business  
to invest in, do business with, 
and work for.

0.1 accidents per 
100,000 hours worked.

0.06 accidents per 
100,000 hours worked.

7.50 tonnes 
per capita.

5.41 tonnes 
per capita.

Customer excellence*

We aim to provide first class 
customer service, measuring  
our levels of service (between 
1.0 and 5.0) and identifying 
areas for improvement.

Customer satisfaction 
score 4.0. 

Customer sentiment 
score 4.0.

Customer satisfaction 
score 4.6. 

Customer sentiment 
score 3.7.

*Based on average responses to customer surveys April to September 2019

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   35   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
Financial Review

COVID-19 

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the Cash Flow Statement, there have been no changes in the 

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Decisive action was swiftly taken to contain costs and preserve 

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operate within its existing debt facilities and covenant tests 

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during a period of reduced trading activity.

Impact of reporting under IFRS 16 Leases 

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the Balance Sheet with the recognition of a right of use asset and 

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£23.8m of depreciation has been charged and an incremental 

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of rental charges no longer recognised. 

corresponding lease liability for all qualifying leased equipment, 

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vehicles and property. 

36   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

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the mix impact of training at higher margin, and increased 
the mix impact

revenue from SME customers at better rates.
revenue from S

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before taxation, amortisation and exceptional costs increased to 
before taxation

(cid:97)(cid:18)(cid:19)(cid:13)(cid:24)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)
(cid:97)(cid:18)(cid:19)(cid:13)(cid:24)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:18)(cid:16)(cid:13)(cid:19)(cid:76)(cid:8)(cid:13)(cid:3)

The Group incu
The Group incurred net exceptional expenses before taxation of 

(cid:97)(cid:16)(cid:17)(cid:13)(cid:24)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)(cid:25)(cid:3)(cid:97)(cid:17)(cid:13)(cid:15)(cid:76)(cid:8)(cid:13)(cid:3)(cid:37)(cid:84)(cid:81)(cid:83)(cid:71)(cid:68)(cid:81)(cid:3)(cid:67)(cid:68)(cid:83)(cid:64)(cid:72)(cid:75)(cid:82)(cid:3)(cid:64)(cid:81)(cid:68)(cid:3)(cid:72)(cid:77)(cid:66)(cid:75)(cid:84)(cid:67)(cid:68)(cid:67)(cid:3)(cid:65)(cid:68)(cid:75)(cid:78)(cid:86)(cid:13)
(cid:97)(cid:16)(cid:17)(cid:13)(cid:24)(cid:76)(cid:3)(cid:7)(cid:17)(cid:15)(cid:16)(cid:24)

After taxation, amortisation and exceptional items, the Group 
After taxation, 

(cid:76)(cid:64)(cid:67)(cid:68)(cid:3)(cid:64)(cid:3)(cid:79)(cid:81)(cid:78)(cid:421)(cid:83) (cid:78)
(cid:76)(cid:64)(cid:67)(cid:68)(cid:3)(cid:64)(cid:3)(cid:79)(cid:81)(cid:78)(cid:421)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:97)(cid:16)(cid:21)(cid:13)(cid:23)(cid:76)(cid:11)(cid:3)(cid:66)(cid:78)(cid:76)(cid:79)(cid:64)(cid:81)(cid:68)(cid:67)(cid:3)(cid:83)(cid:78)(cid:3)(cid:64)(cid:3)(cid:79)(cid:81)(cid:78)(cid:421)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:97)(cid:17)(cid:18)(cid:13)(cid:17)(cid:76)(cid:3)(cid:72)(cid:77)(cid:3)(cid:17)(cid:15)(cid:16)(cid:24)(cid:13)(cid:3)

(cid:345)(cid:3)(cid:51)(cid:71)(cid:68)(cid:3)(cid:33)(cid:78)(cid:64)(cid:81)(cid:67)(cid:3)(cid:81)(cid:68)(cid:76)(cid:64)(cid:72)(cid:77)(cid:82)(cid:3)(cid:66)(cid:78)(cid:77)(cid:421)(cid:67)(cid:68)(cid:77)(cid:83)(cid:3)(cid:83)(cid:71)(cid:64)(cid:83)(cid:3)
the business can operate within its 
existing debt facilities and covenant 
tests during a period of reduced 
trading activity.”

Chris Morgan
Group Finance Director

Segmental analysis

Gross margins improved from 57.1% to 57.7%. Hire margin 

The Group’s segmental reporting is split into UK and Ireland, and 

increased to 77.0% (2019: 76.7%), and was supported by the 

International. The figures in the tables below are presented before 

growth in the higher margin SME market, which more than offset 

corporate costs of £3.9m (2019: £5.4m), which have reduced  

price deflation. Services margin strengthened to 26.0% (2019: 

27.8% reflecting continued cost control and lower IT depreciation.

23.2%) due to the mix benefit of the training growth. Overheads 

UK and Ireland

Revenue 
(excluding disposals)

Year ended  
31 March  
2020 
£m 

Year ended  
31 March  
2019  
£m 

Movement
%

367.3 

353.1 

4.0 

EBITDA1.* 

EBITA1.* 

102.7 

37.3 

100.5 

36.2 

2.2

3.0

remain under tight control and, excluding acquisitions, were 3.1% 

lower than the comparative period. Headcount has increased  

slightly to 3,464, compared to 3,458 at 31 March 2019.

Asset utilisation pre COVID-19 was 56.6% (2019: 57.0%), and 

reflected investment to support our four-hour delivery promise. 

The business continues to perform well in a competitive market 

despite uncertainty during the year associated with the UK’s departure 

from the European Union, and more recently, COVID-19. A number 

*Restated as a result of the adoption of IFRS 16 – see Note 1 (Basis of preparation)

of decisive actions have been swiftly taken to contain costs and 

Excluding disposals, revenue increased by 4.0% to £367.3m (2019: 

£353.1m) with an increase across both Hire and Services. Revenue 

preserve cash, whilst maintaining the capability to support customers, 

and protect the health and safety of colleagues and stakeholders. 

for the period benefited from the full year effect of the acquisitions 

International

of Geason Training and Lifterz.

Hire revenues increased by 1.4%. Increased telemarketing activity 

at our Customer Relationship Centre in Newport, South Wales 

continued to result in significant revenue uplift from SME customers, 

which grew 32.1%. This growth helped offset less favourable 

trading conditions, Carillion comparatives and the impact of 

Revenue 

EBITDA1.* 

EBITA1.* 

Year ended  
31 March  
2020 
£m 

Year ended  
31 March  
2019  
£m 

35.2 

8.2 

5.7 

36.1 

8.5 

5.9 

Movement
%

(2.5)

(3.5)

(3.4)

COVID-19 in March 2020. The addition of Lifterz in March 2019 has 

*Restated as a result of the adoption of IFRS 16 – see Note 1 (Basis of preparation)

complemented Speedy’s previous powered access acquisitions, 

creating a comprehensive national presence. We now have the 

second largest fleet in the UK.

International revenue in the United Arab Emirates decreased 

by 2.5%. This slowdown in growth from previous periods was 

anticipated due to lower rehire and consumable sales, although 

Services revenues grew by 8.9%. This has been achieved following 

hire revenue grew 11.4%. The renegotiation during 2019 to secure 

the acquisition of Geason Training, and testing and rehire growth. 

the extensions with our principal customer, Abu Dhabi National Oil 

Despite this, Geason Training has performed below expectations 

Corporation (ADNOC), has impacted commercial terms, contributing 

during the year due to lower than expected learner enrolments 

to a decrease in EBITA1, which fell by 3.4%. Despite the fall, EBITA1 

and the setup of a number of regional training centres which have 

margin was 16.2% (2019: 16.3%) reflecting continued strong 

yet to reach critical mass. More recently the business has been 

returns from the asset base.

further impacted by market conditions due to COVID-19 and an 

assurance visit from a funding agency as described in Note 22. As 

a consequence the fair value of the contingent consideration has 

been reduced to £nil (2019: £10.9m), and an impairment charge 

recognised of £20.1m. The net impact of the impairment and the 

contingent consideration adjustment is £9.2m.

Our share of profit from the joint venture in Kazakhstan increased 

to £2.8m (2019: £1.9m) having benefited from further increased 

cyclical shutdown activity in the period.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   37   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
Financial Review continued

Exceptional items

There were £12.9m net exceptional expenses incurred during the year (2019: £2.0m).

Recognised in  
distribution and  
admin expenses 
£m 

Recognised in  
net financial   
expenses 
£m 

10.9 

– 

– 

10.9 

– 

– 

– 

– 

– 

Total 
£m

10. 9

(20.1)

(3.0)

(12.2)

3.9

(1.7)

(2.0)

(0.6)

(0.3)

– 

(20.1) 

(3.0) 

(23.1) 

3.9 

(1.7) 

(2.0) 

(0.6) 

(0.3) 

(23.8) 

10.9 

(12.9)

The tax charge for the period was £3.9m (2019: £5.5m), with an 
effective tax rate of 18.8% (2019: 19.2%); the decrease in the 
effective rate includes the impact of exceptional items in the period. 
The underlying effective tax rate amounts to 17.2% (2019: 17.5%). 

Shares, earnings per share and dividends

At 31 March 2020, 526,773,177 Speedy Hire Plc ordinary shares 
were outstanding, of which 5,472,206 were held in the Employee 
Benefits Trust.

Adjusted earnings per share2 was 5.54 pence (2019: 4.96 pence), 
an increase of 11.7%. Basic earnings per share was 3.23 pence 
(2019: 4.47 pence). 

An interim dividend of 0.70 pence per share (2019: 0.60 pence 
per share) was paid on 10 January 2020. In view of the current 
exceptional circumstances, the Board has not recommended 
payment of a final dividend (2019: 1.40 pence per share). 

Capital expenditure and disposals

Total capital expenditure during the year amounted to £63.2m 
(2019: £61.8m), of which £55.3m (2019: £55.1m) related to 
equipment for hire, and £7.9m to other property, plant and 
equipment (2019: £6.7m), which included investment in IT in 
order to deliver our digital strategy. 

Expenditure in the period reflects further investment in tools, 
access, generators and lighting to improve availability in these 
categories, ensuring that the UK and Ireland businesses can 
continue to execute our four-hour delivery promise. Investment 
also increased in the UAE, to support hire growth with non ADNOC 
customers. Since November 2017 the Group has invested over 
£55m in the powered access market in line with its strategy to build 
a national presence through in-fill acquisitions and organic capital 
expenditure, and now has the second largest fleet in the UK.

Changes to fair value of contingent consideration 

Impairment of Training CGU 

Training provision 

Exceptional items relating to Training CGU 

Sale of surplus land 

Integration costs 

Property related costs 

COVID-19 related costs 

International contract costs 

A £20.1m impairment charge for the Training cash-generating unit 
(CGU) was recognised in operating profit in the year, offset by an 
exceptional financial credit of £10.9m (2019: expense £0.8m) in 
relation to changes in the fair value of contingent consideration 
payable for the Geason Training acquisition.

Other exceptional items comprised a £3.0m training provision 
relating to potential funding repayments and associated costs, 
£1.7m acquisition and integration costs, £2.0m property related 
costs, £0.6m COVID-19 related expenses and £0.3m in relation  
to the UAE contract renewal. These were in part offset by a  
profit on the sale of a plot of surplus land of £3.9m. 

Interest

The Group’s net financial expense before exceptional items 
decreased slightly to £7.0m (2019: £7.2m).

Borrowings under the Group’s bank facility are priced on the 
basis of LIBOR plus a variable margin, while any unutilised 
commitment is charged at 35% of the applicable margin. During 
the period, the margin payable over LIBOR on the outstanding 
debt fluctuated between 1.50% and 2.00% dependent on the 
Group’s performance in relation to leverage and the weighting of 
borrowings between receivables and plant and machinery. The 
effective average margin in the period was 1.84% (2019: 1.80%).

The Group utilises interest rate hedges to manage fluctuations 
in LIBOR. The fair value of these hedges was not material at 31 
March 2020 and they have varying maturity dates to October 2022. 

Interest on lease liabilities of £3.2m (2019: £3.5m) was incurred 
during the period, following the implementation of IFRS 16 (see 
Note 1 Basis of Preparation).

Taxation

The Group seeks to protect its reputation as a responsible 
taxpayer, and adopts an appropriate attitude to arranging its 
tax affairs, aiming to ensure effective, sustainable and active 
management of tax matters in support of business performance. 

38   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
Financial Review continued

Capital expenditure has maintained the young average age of the 
fleet; 3.4 years (2019: 3.3 years). Total disposal proceeds were 
£11.7m (2019: £17.8m). During the period we further optimised 
our stockholdings across the network, applying machine learning 
to inform decisions on returns and asset utilisation, which 
highlighted those areas requiring investment. The number of 
product lines has further reduced, and this has enabled us to 
continually improve the efficiency of our supply chain.

Balance sheet

The Group continues to have a strong balance sheet, which reflects 
the proactive management of the asset fleet and working capital.

Net assets at 31 March 2020 were £209.9m (2019: £202.0m), 
equivalent to 39.8 pence per share. 

Net property, plant and equipment (excluding IFRS 16 right of 
use assets) was £257.6m at 31 March 2020 (2019: £249.1m), 
of which equipment for hire represents 88.2% (2019: 87.1%). 
Of the equipment for hire, £11.4m related to the International 
business (2019: £7.1m).

Intangibles decreased to £23.1m (2019: £41.7m), which included 
the impairment of goodwill and other intangibles associated with the 
Training CGU (£18.5m), and also acquisition fair value adjustments.

The Board’s objective is to maximise long term shareholder returns 
through a disciplined deployment of cash generated, and it has 
adopted the following capital allocation policy in support of this:

•  Organic growth: the Board will invest in capital equipment to 
support demand in our chosen markets. This investment will 
be in hire fleet and IT systems to better enable us to serve our 
customers;

•  Regular returns to shareholders: the Board intends to pay a 
regular dividend to shareholders, with a policy of growing 
dividends through the business cycle, and a payment in the 
range of between 33% and 50% adjusted earnings per share2;

•  Acquisitions: the Board will continue to explore value enhancing 
acquisition opportunities in markets adjacent to, and consistent 
with its existing operations;

•  Gearing and treatment of excess capital: the Board is committed 

to maintaining an efficient balance sheet. The Board has 
adopted a target gearing in the region of 1.5x net debt3 to 
EBITDA1 through the business cycle, although it is prepared 
to move outside this if circumstances warrant. The Board will 
continue to review the Group’s balance sheet in light of the 
policy, and medium term investment requirements, and will 
return excess capital to shareholders if and when appropriate.

Right of use assets of £64.7m (2019: £72.2m) and corresponding 
lease liabilities of £72.9m (2019: £82.4m) were recognised at  
31 March 2020 following the implementation of IFRS 16.

Capital structure and treasury

Speedy’s long term funding is provided through a combination  
of shareholders’ funds and bank debt.

Gross trade receivables totaled £100.7m at 31 March 2020  
(2019: £100.2m). Bad debt provisions were £3.9m at 31 March 
2020 (2019: £3.7m), equivalent to 3.9% of gross trade receivables 
(2019: 3.7%), with an improved trend despite the increased  
bad debt risk associated with COVID-19. Debtor days were 69.6 
(2019: 65.8), of which UK and Ireland were 66.0 (2019: 64.1).

Trade payables were £52.3m (2019: £45.9m). Creditor days  
were 103.7 (2019: 99.3).

Cash flow and net debt3

Cash generated from operations for the year was £64.5m 
(2019: £61.2m). Free cash flow (before dividends and financing 
activities) increased to £45.2m (2019: £13.6m), reflecting the 
acquisitions made in the prior year.

Net debt3 decreased by £9.8m from £89.1m at the beginning  
of the period to £79.3m at 31 March 2020. Excluding the impact 
of IFRS 16, leverage5 improved to 1.0x (2019: 1.1x).

The Group’s continued strong cash position resulted in 
substantial headroom within the Group’s bank facility.

Capital allocation policy

The Board intends to continue to invest in the business in order  
to grow revenue, profit and ROCE4. This investment is expected 
to include capital expenditure within existing operations, as well 
as value enhancing acquisitions that fit with the Group’s strategy 
and are returns accretive.

The Group’s £180m asset based finance facility, which was 
amended and extended in October 2017, runs through to 
October 2022. The additional uncommitted accordion of £220m 
remains in place through to October 2022, should further funding 
requirements be needed.

The average gross borrowings under the facility during the year 
ended 31 March 2020 increased to £110.2m (2019: £92.9m) 
reflecting the full year effect of the acquisitions of Geason 
Training and Lifterz. The facility includes quarterly leverage5 
and fixed charge cover covenant tests which are only applied 
if headroom in the facility falls below £18m. The Group had 
significant headroom against these tests throughout the period.

Return on capital

ROCE4 is a key performance measure for the Group and increased 
to 12.0% (2019: 11.7%). This remains significantly ahead of the 
Group’s weighted average cost of capital of 9.2%, and continues 
to reflect the improved profitability and balance sheet discipline. 

Chris Morgan 
Group Finance Director

Explanatory notes:
1 Before exceptional items, see Note 11 to the Financial Statements
2 See Note 9 to the Financial Statements
3 See Note 20 to the Financial Statements
4   Return on Capital Employed: Profit before tax, amortisation and exceptional items divided 
by the average capital employed (where capital employed equals shareholders’ funds and 
net debt3), for the last 12 months
5 Leverage: Net debt3 covered by EBITDA1. This metric excludes the impact of IFRS 16.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   39   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPrincipal risks and uncertainties

The business strategy in place and the nature of the industry in 
which we operate expose the Group to a number of risks. As part 
of the risk management framework in place, the Board considers 
on an ongoing basis the nature, likelihood and potential impact of 
each of the significant risks it is willing to accept in achieving its 
strategic objectives.

The Board has delegated to the Audit & Risk Committee 
responsibility for reviewing the effectiveness of the Group’s 
internal controls, including the systems established to identify, 
assess, manage and monitor risks. These systems, which ensure 

that risk is managed at the appropriate level within the business, 
can only mitigate risk rather than eliminate it completely.

Direct ownership of risk management within the Group lies with 
the senior management teams. Each individual is responsible 
for maintaining a risk register for their area of the business and 
is required to update this on a regular basis. The key items are 
consolidated into a Group risk register which has been used by 
the Board to carry out a robust assessment of the principal risks.

The principal risks and mitigating controls in place are 
summarised below.

Risk

Description and potential impact

Strategy for mitigation

COVID-19 pandemic

Trading performance

The UK and Ireland imposed lockdown 
has reduced economic activity and this 
slowdown has affected Group revenues. 
The uncertainty of the length of the 
downturn in revenue leads to difficulty 
in forecasting.

People

The COVID-19 pandemic may lead to 
shortages in the workforce as a direct 
result of illness, social shielding or 
isolation measures, along with depot 
closures. This may result in an inability 
to effectively service our customers’ 
requirements.  

Supply chain

The supply of goods, services and assets 
(including the availability of spares) 
may be disrupted. This may also result 
in an inability to effectively service our 
customers’ requirements. 

Middle East

With a mainly expat workforce, travel 
restrictions may result in an inability 
to operate our offshore activities. The 
global decline in demand for oil may 
result in a reduction of the market 
in which the Group predominantly 
operates its overseas division.

As a supplier to industries that have 
continued to operate, the Group has 
also continued to trade.  Entering 
the new financial year a significant 
proportion of revenues have been 
retained, with trading through the 
Group’s digital platform and by 
telephone.  During the lockdown we 
suspended hire charges for equipment 
not in use in order that the impact was 
minimised.

We acted quickly to contain costs and 
preserve cash, including halting all 
discretionary spend and consolidating 
our depot network, temporarily closing 
sites and servicing our clients from 
alternative locations, thus ensuring  
we maintain a national coverage.

We continue to monitor Government 
guidance and take action to ensure the 
safety of our colleagues, as we support 
customers continuing to operate.

We have utilised the Government’s 
coronavirus job retention scheme, 
furloughing up to 50% of our workforce.  
This increases the opportunity for our 
people to remain healthy pending a 
return to work, whilst also reducing 
costs.  We have followed Government 
advice, with all employees who can 
perform duties from home doing so.  
This involves the utilisation of our 
secure and robust infrastructure and 
technology platforms. 

40   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Risk

Description and potential impact

Strategy for mitigation

COVID-19 pandemic continued

Despite many colleagues working  
from home, we have not experienced  
a noticeable drop in productivity.

Speedy operates one of the youngest 
hire fleets in the industry and is well 
placed to provide asset availability as 
a result of better reliability. The age 
profile also allows us to optimise capital 
expenditure management during this 
period, whilst maintaining customer 
service. Our planning for Brexit included 
increasing our stocks of critical spares, 
and these remain in place to allow us  
to maintain our fleet effectively if  
there are short term disruptions to  
the supply chain.

Based on various revenue downturn 
scenarios, and the measures outlined 
above, the Board remains confident 
that the Group can operate within its 
existing debt facilities and covenant 
tests during a prolonged period of 
reduced trading activity, including in  
the event of a second lockdown.

In the Middle East we implemented 
similar measures to those in the UK with 
remote working where possible from 
the outset of the pandemic. Employees 
based offshore have remained in situ 
and continue to provide service where 
required by our customers, operating 
a two-shift rotation pattern for safety 
where appropriate. Incentives have 
been used to maintain morale for 
those not permitted to return home. 
Should a reduction in the Middle East 
market become apparent as a result 
of COVID-19, the cost base will be 
managed appropriately.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   41   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPrincipal risks and uncertainties continued

Risk

Description and potential impact

Strategy for mitigation

Safety, health  
and environment

Service

Serious injury or death

Speedy operates, transports and 
provides for rental a wide range of 
machinery. Without rigorous safety 
regimes in place there is a risk of injury 
or death to employees, customers or 
members of the public.

Environmental hazard

The provision of such machinery 
includes handling, transport and 
dispensing of substances, including fuel, 
that are hazardous to the environment 
in the event of spillage. The delivery 
locations for many of our customers 
require Speedy to operate in designated 
low emission zones.

The Group is recognised for its 
industry-leading position in promoting 
enhanced health and safety compliance, 
together with a commitment to product 
innovation. The Group’s health, safety, 
and environmental teams measure 
and promote employee understanding 
of, and compliance with, procedures 
that affect safety and protection of 
the environment. Customer account 
managers are responsible for addressing 
service and safety issues.

We maintain systems that enable us to 
hold appropriate industry recognised 
accreditations.

Speedy has incorporated hybrid 
and fully electric vehicles into the 
commercial fleet to ensure we meet 
and in some cases exceed emission 
requirements.

All operatives who handle hazardous 
substances are trained and provided 
with appropriate equipment to manage 
small scale spills. In the case of more 
serious accidents, we have a contract 
with a third party specialist who would 
undertake any clean-up operation as 
necessary.

Provision of equipment

Speedy is required to provide well 
maintained equipment to its customers 
on a consistent and dependable basis.

Back office services

It is important that Speedy is able 
to provide timely and accurate 
management information to its 
customers, along with accurate invoices 
and supporting documentation.

In both cases, a failure to provide such 
service could lead to a failure to attract 
or retain customers, or to diminish 
the level of business such customers 
undertake with Speedy.

During the year we have successfully 
launched our nationwide four-hour 
service promise under “Trust Speedy 
to Deliver”. Our use of personal digital 
assistants (PDAs) and online based 
customer feedback system are fully 
embedded into our business and 
these are used to improve the on-site 
customer experience.  

Speedy liaises with its customer base 
and takes into account feedback where 
particular issues are noted, to ensure 
that work on resolving those issues is 
prioritised accordingly.

42   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Principal risks and uncertainties continued

Risk

Description and potential impact

Strategy for mitigation

Revenue and trading 
performance

Competitive pressure

The hire market is fragmented and 
highly competitive. We are continuing 
to develop strategic relationships with 
larger customers and also working hard 
to grow our local and regional accounts.

Reliance on high value customers

There is a risk to future revenues 
should preferred supplier status with 
larger customers be lost when such 
agreements may individually represent 
a material element of our revenues. 

The International business in the  
Middle East is dependent on major 
contracts which are due for renewal 
in August 2020.

Project and change 
management

Acquisitions

Our strategy includes selective 
acquisitions that complement or extend 
our existing business in specialised 
markets. There is a risk that suitable 
targets are not identified, or that 
acquired businesses do not perform to 
expectations.

The Group monitors its competitive 
position closely, to ensure that it is able 
to offer customers the best solution. 
The Group provides a wide breadth of 
offerings, supplemented by its rehire 
division for specialist equipment. The 
Group monitors the performance of 
its major accounts against forecasts, 
strength of client future order books 
and individual expectations with a view 
to ensuring that the opportunities for 
the Group are maximised. Market share 
is measured and competitors’ activities 
are reported on and reacted to where 
appropriate. The Group’s integrated 
services offering further mitigates 
against this risk as it demonstrates 
value to our customers, setting us apart 
from purely asset hire companies.

No single customer currently accounts for 
more than 10% of revenue or receivables. 
We have been successful in growing our 
SME customer base, which also helps 
to mitigate this risk. Investment has 
been made to diversify our International 
business in the Middle East.

All potential business combinations 
are presented to the Board, with an 
associated business case, for approval.

Once a decision in principle is made, a 
detailed due diligence process covering 
a range of criteria is undertaken. The 
results of due diligence are presented 
to the Board prior to formal approval 
being granted.

The use of a cross functional project 
team ensures effective integration into 
the Group. These teams work with a 
blueprint plan, modified as needed to 
specifically address any risks identified 
during the due diligence phase.

A Programme Management Office 
function is established with clearly 
defined governance in place to oversee 
all change initiatives.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   43   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPrincipal risks and uncertainties continued

Risk

People

Partner and supplier  
service levels 

Description and potential impact

Strategy for mitigation

Skill and resource requirements for 
meeting the Group’s objectives are 
actively monitored and action is taken 
to address identified gaps. Succession 
planning aims to identify talent within 
the Group and is formally reviewed 
on an annual basis by the Nomination 
Committee, focusing on both short and 
long-term successors for the key roles 
within the Group.

Programmes are in place for employee 
induction, retention and career 
development, which are tailored to the 
requirements of the various business 
units within the Group. 

The Group regularly reviews 
remuneration packages and aims to 
offer competitive reward and benefit 
packages, including appropriate short 
and long-term incentive schemes.

A dedicated and experienced supply 
chain function is in place to negotiate 
all contracts and maximise the 
Group’s commercial position. Supplier 
accreditations are recorded and tracked 
centrally through a supplier portal 
where relevant and set service related 
KPIs are included within standard 
contract terms. Regular reviews take 
place with all supply chain partners.

Employee excellence

In order to achieve our strategic 
objectives, it is imperative that we are 
able to recruit, retain and motivate 
employees who possess the right skills 
for the Group.

Supply chain

Speedy procures assets and services 
from a wide range of sources, both UK 
and internationally based. Within the 
supply chain there are risks of non-
fulfilment.

Partner reputation

A significant amount of our revenues 
come from our rehire offering, where 
the delivery or performance is effected 
through a third party partner.

Speedy’s ability to supply assets with 
the expected customer service is 
therefore reliant on the performance 
of others with the risk that if this is not 
effectively managed, the reputation of 
Speedy and hence future revenues may 
be adversely impacted.

44   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Principal risks and uncertainties continued

Risk

Description and potential impact

Strategy for mitigation

Operating costs

Cyber Security and  
data integrity

Fixed cost base

Speedy has a fixed cost base including 
people, transport and property. When 
revenues fluctuate this can have a 
disproportionate effect on the Group’s 
financial results.

The Group has a purchasing policy in 
place to negotiate supply contracts 
that, wherever possible, determine 
fixed prices for a period of time. In 
most cases, multiple sources exist for 
each supply, decreasing the risk of 
supplier dependency and creating a 
competitive supply-side environment. 
All significant purchase decisions are 
overseen by a dedicated supply chain 
team with structured supplier selection 
procedures in place. Property costs 
are managed by an in-house team of 
specialists who manage the estate. 

We operate a dedicated fleet of 
commercial vehicles that are maintained 
to support our brand image. Fuel 
is purchased through agreements 
controlled by our supply chain processes.

The growth of our services offering 
will help to mitigate this risk as these 
activities have overheads that are  
more flexible.

IT system availability

Speedy is increasingly reliant on 
IT systems to support our business 
activities. Interruption in availability 
or a failure to innovate will reduce 
current and future trading opportunities 
respectively.

Data accuracy

The quality of data held has a direct 
impact on how both strategic and 
operational decisions are made. If 
decisions are made based on erroneous 
data there could be a direct impact on 
the performance of the Group.

Data security

Speedy, as with any organisation, holds 
data that is commercially sensitive and in 
some cases personal in nature. There is 
a risk that disclosure or loss of such data 
is detrimental to the business, either as a 
reduction in competitive advantage or as 
a breach of law or regulation.

Annual and more medium-term planning 
processes are in place; these create future 
visibility as to the level and type of IT 
infrastructure and services required to 
support the business strategy. Business 
cases are prepared for any new/upgraded 
systems, and require formal approval.

Management information is provided 
in all key areas from dashboards that 
are based on real time data drawn from 
central systems.  We have devised a data 
management framework and identified 
data owners across the business who 
are responsible for putting in place 
procedures to maintain accuracy of the 
information.

Mitigations for IT data recovery are 
described below under business 
continuity as these risks are linked.

Speedy’s IT systems are protected against 
external unauthorised access. All mobile 
devices have access restrictions and, where 
appropriate, data encryption is applied.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   45   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPrincipal risks and uncertainties continued

Risk

Funding 

Description and potential impact

Strategy for mitigation

Sufficient capital

Should the Group not be able to obtain 
sufficient capital in the future, it might 
not be able to take advantage of 
strategic opportunities or it might be 
required to reduce or delay expenditure, 
resulting in the ageing of the fleet 
and/or non-availability. This could 
disadvantage the Group relative to its 
competitors and might adversely impact 
its ability to command acceptable levels 
of pricing.

The Board has established a treasury 
policy regarding the nature, amount and 
maturity of committed funding facilities 
that should be in place to support the 
Group’s activities. 

The £180m asset based finance facility 
including an additional uncommitted 
accordion of £220m, is available 
through to October 2022. Close 
relationships are maintained with the 
Group’s bankers with a view to ensuring 
that the Group enjoys a broad degree  
of support.

In line with the treasury policy, the 
Group’s capital requirements, forecast 
and actual financial performance 
and potential sources of finance are 
reviewed at Board level on a regular 
basis in order that its requirements can 
be managed with appropriate levels of 
spare capacity. 

46   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Principal risks and uncertainties continued

Risk

Description and potential impact

Strategy for mitigation

Economic vulnerability 

Economy

Any changes in construction/industrial 
market conditions could affect activity 
levels and consequently the prices 
that the Group can charge for its 
services. Any reduction in Government 
expenditure which is not offset by an 
increase in private sector expenditure 
could adversely affect the Group. 

Although the COVID-19 pandemic  
has recently overshadowed Brexit,  
in common with many UK businesses, 
Speedy faces uncertainty as to the 
possible impact of leaving the  
European Union.

The Group assesses changes in both 
Government and private sector 
spending as part of its wider market 
analysis. The impact on the Group of 
any such change is assessed as part of 
the ongoing financial and operational 
budgeting and forecasting process. Our 
strategy is to develop a differentiated 
proposition in our chosen markets and 
to ensure that we are well positioned 
with clients and contractors who are 
likely to benefit from those areas in 
which increased activity is forecast.

The main risk in relation to the UK’s 
departure from the European Union 
is the impact on the overall market in 
which Speedy operates. In addition, 
there are limited risks associated with 
availability of assets and spares, cost 
price inflation, labour availability and 
consequences of potential border 
arrangements in Ireland (the Irish 
business poses only a limited risk, since 
turnover is less than 3% of the overall 
Group’s). Risks have been assessed 
in detail by the Board as part of the 
overall risk assessment process, and 
contingency plans established.  

These plans include the consideration 
of alternative sources for equipment 
supply and forward buying of spares 
stock. Sensitivity analysis has been 
prepared and reviewed by the Board.  
Combined with strong progress against 
strategic goals, the Board believes 
that these plans will allow Speedy 
to continue to maximise growth 
opportunities in whatever scenario 
transpires. Notwithstanding the impact 
on the wider economy, no significant 
impact on the Group is therefore 
expected at this stage.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   47   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsPrincipal risks and uncertainties continued

Risk

Corporate  
culture

Business 
continuity

Description and potential impact

Strategy for mitigation

Operational empowerment and culture

We operate an internal structure that 
is aligned around separate specialisms 
to better serve our customer base. 
Each division is challenged to operate 
with a degree of empowerment within 
overriding Group policies. 

Achievement of corporate objectives is 
dependent on individuals’ behaviours 
and these are influenced by the 
corporate culture.

Business interruption

Any significant interruption to  
Speedy’s operational capability, 
whether IT systems, physical restrictions 
or personnel based, could adversely 
impact current and future trading as 
customers could readily migrate to 
competitors.

This could range from short-term  
impact in processing of invoices that 
would affect cash flows to the loss  
of a major site.

All Speedy employees are expected to 
abide by our Code of Conduct, which 
forms a condition of employment. 
Training is provided, via a combination 
of online and face-to-face means, to all 
management grades in areas such as 
compliance with the Bribery Act 2010 and 
relevant competition laws. Group policies 
are in place that both support and oversee 
key aspects of our operation in particular 
the areas of treasury, purchasing, asset 
management, accounting and debt 
management. Review and exception 
reporting activities are in place, which are 
designed to reduce the risk of individuals 
overriding controls put in place by the Group. 

All of the above are supported by  
a well-publicised and robust 
whistleblowing policy with rigorous 
follow up of all concerns raised.

We have transformed our corporate 
culture in recent years, however there 
will be a need for continuous evolution 
as the Group develops and makes 
further acquisitions.

As described in the paragraph above, 
the Group has continued to operate 
effectively during the COVID-19 
pandemic.  Management acted promptly 
in line with our documented plan to 
establish a crisis management team 
which co-ordinated the activities 
required in a rapidly changing 
environment.

Preventative controls, back-up and 
recovery procedures are in place for 
key IT systems. Changes to Group 
systems are considered as part of wider 
change management programmes 
and implemented in phases wherever 
possible. The Group has critical incident 
plans in place for all its central UK and 
International sites. Insurance cover is 
reviewed at regular intervals to ensure 
appropriate coverage in the event of a 
business continuity issue.

48   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Principal risks and uncertainties continued

Risk

Description and potential impact

Strategy for mitigation

Asset holding  
and integrity

Asset range and availability

Speedy’s business model relies on 
providing assets for hire to customers, 
when they want to hire them. In 
order to maximise profitability and 
ROCE4, demand is balanced with the 
requirement to hold a range of assets 
that is optimally utilised.

Our understanding of customer 
expectation of the relative timescales 
for delivery across our range of assets 
allows us to reduce holdings of less 
time critical assets by centralising the 
storage locations, whilst at the same 
time increasing the breadth of holding 
across our customer trading locations  
of those assets most likely to be 
required on a short notice basis. 

We regularly monitor our asset status 
information and use this to optimise  
our asset holdings.

We constantly review our range of 
assets and introduce innovative 
solutions to our customers as new 
products come to market, under our 
Green Option programme.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   49   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsViability Statement

The Group operates an annual planning process which includes 
a five year strategic plan and a one year financial budget. These 
plans, and risks to their achievement, are reviewed by the Board 
as part of its strategy review and budget approval processes. The 
Board has considered the impact of the principal risks, including 
COVID-19, to the Group’s business model, performance, solvency 
and liquidity as set out above.  

The FY2021 budget was completed prior to the recent increased 
economic uncertainty resulting from COVID-19. The Group 
responded quickly to assess the potential impact on revenues, 
costs and cash; actions implemented immediately included 
restricting discretionary spend, consolidating the depot 
network, temporarily closing sites and servicing customers from 
alternative locations. The Board has considered various downturn 
scenarios during a prolonged period of reduced activity and 
believes that trading conditions are likely to recover during 
FY2021.

The Directors have determined that three years is an appropriate 
period over which to assess the Viability statement. The 
projections for the first three years of the strategic plan are 
based on detailed action plans developed by the Group with 
specific initiatives and accountabilities. There is inherently less 
certainty in the projections for years four and five. The Group has 
a £180m asset-based finance facility in place through to October 
2022. The strategic plan makes certain assumptions about the 
adequacy of facilities and expected renewal on broadly similar 
terms to meet the Group’s capital investment and acquisition 
strategies.

In making this statement, the Directors have considered the 
resilience of the Group, its current position, the principal risks 
facing the business in distressed but reasonable scenarios, 
including various risks associated with COVID-19 as set out 
above, and the effectiveness of any mitigating actions.

Based on this assessment, the Directors have a reasonable 
expectation that the Company will be able to continue in operation 
and meet its liabilities as they fall due over the period to March 2023.

50   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Board engagement  
with our stakeholders 

Section 172(1) statement

Stakeholder engagement

Section 172 of the Companies Act 2006 requires a director of 
a company to act in the way he or she considers, in good faith, 
would most likely promote the success of the company for the 
benefit of its members as a whole, and in doing so have regard 
(amongst other matters) to:

• the likely consequences of any decisions in the long-term;

• the interests of the company’s employees;

•  the need to foster the company’s business relationships  

with suppliers, customers and others;

•  the impact of the company’s operations on the community  

and environment;

Engagement with relevant stakeholders is a key consideration of 
the Board which varies depending on the subject at hand. Pages 
52 and 53 detail Speedy’s key stakeholders and how we engage 
with them. 

As mentioned above the Board receives reports from 
management concerning its customers, suppliers and others in 
a business relationship with the Company which it takes into 
account in its discussions and also in the Section 172(1) decision 
making process. The Board has also received training relating to 
its obligations under Section 172(1) and the consideration of the 
Company’s stakeholders. Additionally, the annual Board training 
programme reinforces these obligations. 

•  the desirability of the company maintaining a reputation for 

Employee engagement

high standards of business conduct; and

• the need to act fairly as between members of the company.

Each Director and the Board collectively gives careful 
consideration to the factors set out above and have acted in a 
way they consider complies in all respects with their Section 
172(1) duties. Details of how the Board discharged its duties  
are set out in the Strategic Report pages 51 to 53 and should be 
read in conjunction with information disclosed in the Governance 
section, on pages 57 to 97. To help facilitate this before each 
scheduled Board meeting all Directors receive appropriate 
reports addressing key matters concerning its customers, 
suppliers, investors, employees, regulators and the environment 
and also information regarding the Group, comprising a financial 
report and briefings from senior executives. The Chief Executive 
and Group Finance Director also brief Directors on results, key 
issues and strategy. During Board meetings, the Non-Executive 
Directors regularly make further enquiries of the Executive 
Directors and seek further information which is provided either at 
the relevant meeting or subsequently. This information and any 
related reports (provided either before or after meetings)  
are considered in the Board’s discussions and in its decision 
making process when having regard to Section 172 of the 
Companies Act 2006.

In addition to the Board receiving reports from management 
concerning its employees the Board engages directly with its 
employees in a variety of ways. This includes via its Employee 
Forum (attended periodically by Non-Executive Director, Rob 
Barclay), via its Excellence Awards, the annual Expo and Chief 
Executive and Group Finance Director ‘Up to Speed’ and ‘The Hub’ 
communications and updates. Further information on employee 
engagement can be found at pages 24 to 27. 

Board decisions and stakeholders

We set out an on page 25 an example of how the Directors have 
had regard to Section 172(1) when discharging their duties and 
the effect that this regard had on the decisions being made. 

Our key stakeholders 

Engagement with our key stakeholders plays an essential role 
throughout the business. It is a multi-layered process with 
engagement touching all levels of our business from front line 
operations to the Board and its Committees. 

Our key stakeholders and examples of how we engage is detailed 
in the table below. Relevant information from these interactions 
informs judgements and decision making.

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   51   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsBoard engagement with our stakeholders continued

Key stakeholder

Ways we engage

Areas discussed

Customers

Employees

• Face to face meetings and calls

•  Availability of products and services 

• Speedy website and mobile apps

• Social media 

• Tendering and RfP processes

• Monitoring of hires, sales and services

• Customer services centres

•  Real time customer satisfaction 

surveys

• Product videos and peer reviews

(including use of AI)

• Improved customer service

• Range of products and services

• Value for money

•  Access to good services  

e.g. Speedy App and tracking

•  Same day service commitment to 

customers on our top selling products 
(including Capital Commitment)

• Advertising campaigns

•  ‘One Speedy’ for first class customer 

• Speedy Expo

experience

• Sustainability solutions

• Product development

• Career opportunities

• Wellbeing (including mental health) 

•  Training and development  

(including safety)

• Pay and conditions

• Colleague engagement 

•  Employee forums  

(including NED attendance)

•  Annual People Matters Survey  

and pulse surveys

•  Apprenticeship and graduate 

programmes

•  Benchmarking of key roles  

within the business

•  Rollout of ‘The Hub’ communications 

platform to enhance employee 
intranet and engagement

• ‘Up to Speed’ e-communications

•  Roadshows and senior management 

meetings held at various UK and 
Ireland locations

•  Training Academy schedule of online, 

classroom and practical training courses

• Personal Development Reviews

•  ‘Celebrating Excellence’ scheme  

and Excellence Awards

•  Long service recognition scheme  
at 10, 20 and 25 years’ service

• Speedy Expo

52   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Board engagement with our stakeholders continued

Key stakeholder

Ways we engage

Areas discussed

Suppliers

Investors

• Speedy Expo

• Quality management 

• Tendering processes

• Cost efficiency

• Visits and meetings

• Ethical Trading policy

• Supplier conferences

• Long-term relationships

• CSR and sustainability

• Product development

•  Partnership Programme engages 
customers, suppliers and peer  
groups on key sustainability issues

•  Pioneering use of electric vans 

reducing CO2

• Industry trade shows

• Product innovation days

•  Annual report

• Financial and operating performance

• Annual General Meeting

• Dividends 

• RNS announcements

• Risk information

• Investor presentations and roadshows

• Access to Management

• Corporate website

• Future strategy information

• One-on-one meetings

• Remuneration Policy

• Information requests

•  Remuneration Policy engagement

Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   53   

Strategic ReportCorporate  InformationGovernanceFinancial  Statementscontinued from page 2

What we do

Hire

60% approx. revenue

(cid:34)(cid:78)(cid:77)(cid:82)(cid:72)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:3)(cid:78)(cid:69)(cid:3)(cid:64)(cid:79)(cid:79)(cid:81)(cid:78)(cid:87)(cid:72)(cid:76)(cid:64)(cid:83)(cid:68)(cid:75)(cid:88)(cid:3)(cid:17)(cid:11)(cid:16)(cid:20)(cid:15)(cid:3)(cid:79)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:83)(cid:3)(cid:75)(cid:72)(cid:77)(cid:68)(cid:82)(cid:11)(cid:3) 
the hire business encompasses our core tools 
business, and our specialist businesses which include 
lifting, survey, power, rail and powered access.

Tools 
The latest hand tools and accessories including our 
extensive range of environmental next generation 
(cid:36)(cid:45)(cid:36)(cid:49)(cid:38)(cid:40)(cid:50)(cid:36)(cid:3)(cid:64)(cid:79)(cid:79)(cid:81)(cid:78)(cid:85)(cid:68)(cid:67)(cid:3)(cid:79)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:83)(cid:82)(cid:13)

Lifting 
A broad range of equipment for any lifting requirements, 
including hoists, winches, hydraulic cylinders and jacks 
supported by our Lloyds British business.

Survey 
Some of the most technologically advanced and accurate 
instruments from leading manufacturers in the industry, 
all fully maintained and calibrated by expert teams at our 
approved service centres.

Power 
(cid:32)(cid:77)(cid:3)(cid:72)(cid:77)(cid:67)(cid:84)(cid:82)(cid:83)(cid:81)(cid:88)(cid:3)(cid:75)(cid:68)(cid:64)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:78)(cid:69)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:75)(cid:64)(cid:83)(cid:68)(cid:82)(cid:83)(cid:3)(cid:68)(cid:77)(cid:68)(cid:81)(cid:70)(cid:88)(cid:3)(cid:68)(cid:423)(cid:66)(cid:72)(cid:68)(cid:77)(cid:83)(cid:3)
hybrid and solar generators, compressors and pumps  
(cid:69)(cid:78)(cid:81)(cid:3)(cid:68)(cid:85)(cid:68)(cid:81)(cid:88)(cid:3)(cid:82)(cid:72)(cid:89)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:79)(cid:81)(cid:78)(cid:73)(cid:68)(cid:66)(cid:83)(cid:11)(cid:3)(cid:66)(cid:78)(cid:76)(cid:65)(cid:72)(cid:77)(cid:68)(cid:67)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:69)(cid:84)(cid:68)(cid:75)(cid:3)
management service.

Rail 
(cid:49)(cid:40)(cid:50)(cid:48)(cid:50)(cid:3)(cid:64)(cid:66)(cid:66)(cid:81)(cid:68)(cid:67)(cid:72)(cid:83)(cid:68)(cid:67)(cid:11)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)(cid:72)(cid:77)(cid:67)(cid:84)(cid:82)(cid:83)(cid:81)(cid:88)(cid:3)(cid:66)(cid:78)(cid:76)(cid:79)(cid:75)(cid:72)(cid:64)(cid:77)(cid:83)(cid:3)
assets that are supported by a project management service.

Powered access 
(cid:50)(cid:68)(cid:66)(cid:78)(cid:77)(cid:67)(cid:3)(cid:75)(cid:64)(cid:81)(cid:70)(cid:68)(cid:82)(cid:83)(cid:3)(cid:422)(cid:68)(cid:68)(cid:83)(cid:3)(cid:72)(cid:77)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:52)(cid:42)(cid:3)(cid:79)(cid:81)(cid:78)(cid:85)(cid:72)(cid:67)(cid:72)(cid:77)(cid:70)(cid:3)(cid:64)(cid:3)(cid:86)(cid:72)(cid:67)(cid:68)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3)(cid:78)(cid:69)(cid:3)
equipment including boom lifts, specialist platforms and 
cherry pickers.

Services

40% approx. revenue

Services revenues fall into  
(cid:83)(cid:71)(cid:68)(cid:3)(cid:69)(cid:78)(cid:75)(cid:75)(cid:78)(cid:86)(cid:72)(cid:77)(cid:70)(cid:3)(cid:66)(cid:64)(cid:83)(cid:68)(cid:70)(cid:78)(cid:81)(cid:72)(cid:68)(cid:82)(cid:25)(cid:3)

Training
Supported by the acquisition of Geason Training, we 
provide apprenticeships, NVQs, professional skills and 
safety training along with other progressive end-to-end 
training courses. 

(cid:55)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:76)(cid:81)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:76)(cid:425)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) 
Provided through our Lloyds British brand, we ensure  
our customers remain compliant through providing 
(cid:83)(cid:68)(cid:82)(cid:83)(cid:72)(cid:77)(cid:70)(cid:11)(cid:3)(cid:72)(cid:77)(cid:82)(cid:79)(cid:68)(cid:66)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:66)(cid:68)(cid:81)(cid:83)(cid:72)(cid:421)(cid:66)(cid:64)(cid:83)(cid:72)(cid:78)(cid:77)(cid:3)(cid:69)(cid:78)(cid:81)(cid:3)(cid:64)(cid:3)(cid:65)(cid:81)(cid:78)(cid:64)(cid:67)(cid:3)(cid:81)(cid:64)(cid:77)(cid:70)(cid:68)(cid:3) 
of market sectors.

Powered access specialist servicing and refurbishment 
(cid:51)(cid:71)(cid:81)(cid:78)(cid:84)(cid:70)(cid:71)(cid:3)(cid:78)(cid:84)(cid:81)(cid:3)(cid:43)(cid:72)(cid:69)(cid:83)(cid:68)(cid:81)(cid:89)(cid:11)(cid:3)(cid:47)(cid:81)(cid:78)(cid:75)(cid:72)(cid:69)(cid:83)(cid:3)(cid:32)(cid:66)(cid:66)(cid:68)(cid:82)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:47)(cid:75)(cid:64)(cid:83)(cid:69)(cid:78)(cid:81)(cid:76)(cid:3)(cid:50)(cid:64)(cid:75)(cid:68)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)
Hire businesses we can provide specialist servicing and 
refurbishment services for powered access equipment.

Product and consumable sales
(cid:54)(cid:68)(cid:3)(cid:78)(cid:420)(cid:68)(cid:81)(cid:3)(cid:78)(cid:85)(cid:68)(cid:81)(cid:3)(cid:23)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)(cid:66)(cid:78)(cid:81)(cid:68)(cid:3)(cid:79)(cid:81)(cid:78)(cid:67)(cid:84)(cid:66)(cid:83)(cid:3)(cid:75)(cid:72)(cid:77)(cid:68)(cid:82)(cid:3)(cid:64)(cid:77)(cid:67)(cid:3)(cid:18)(cid:21)(cid:11)(cid:15)(cid:15)(cid:15)(cid:3)(cid:72)(cid:77)(cid:3)
total in our extended range both at a local level and 
through a centrally managed procurement team.

Fuel Management
(cid:50)(cid:79)(cid:68)(cid:68)(cid:67)(cid:88)(cid:3)(cid:72)(cid:82)(cid:3)(cid:83)(cid:71)(cid:68)(cid:3)(cid:78)(cid:77)(cid:75)(cid:88)(cid:3)(cid:52)(cid:42)(cid:3)(cid:79)(cid:75)(cid:64)(cid:77)(cid:83)(cid:3)(cid:71)(cid:72)(cid:81)(cid:68)(cid:3)(cid:66)(cid:78)(cid:76)(cid:79)(cid:64)(cid:77)(cid:88)(cid:3)(cid:86)(cid:72)(cid:83)(cid:71)(cid:3)(cid:72)(cid:83)(cid:82)(cid:3)(cid:78)(cid:86)(cid:77)(cid:3)
fully integrated fuel division, providing a competitive 
fuel supply or a fully managed service including products 
that can help customers reduce consumption, minimise 
deliveries and reduce overall costs.

Rehire
We provide a one-stop-shop for customers with a 
complete plant and equipment range through our 
partnerships with industry leading suppliers.

54   Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020

Our network

Operational sites across the UK and 
Ireland providing national coverage, 
as well as opearating internationally 
in the Middle East and Kazakhstan.

Depots

Superstores

Multi Service Centres

National Distribution Centre

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Strategic Report  Speedy Hire Plc Annual Report and Accounts 2020   55   

 
 
 
 
 
Governance

Contents
Governance 
Chairman’s letter  
to shareholders 

Directors’ Report 

Statement of Directors’  
Responsibilities 

Board of Directors 

57

58

61

62

64
Corporate Governance 
Audit & Risk Committee Report  70
Nomination Committee Report  75
77
Remuneration Report  
Independent auditor’s report   98

56   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Chairman’s letter to shareholders

Committee; and having regard to the current size of the Board, 
reducing the current membership of the committees to three 
Non-Executive Directors. The selection process for the new 
Non-Executive Director will commence later in the year as the 
changes to the guidance and restrictions in respect of COVID-19 
permit. The timings for the other changes are detailed on page 67. 
The changes provide opportunity to build further on the Board’s 
diversity and promote a better balance of responsibilities across 
the Board and its Committees. Further detail regarding the 
evaluation can be found at page 67.

In accordance with the Code and the Company’s Articles of 
Association, all Directors serving at the time of the Annual 
General Meeting will be submitting to annual re-election. 

The Annual General Meeting will be held on 10 September 2020 
and further details regarding location and attendance will be 
announced at the time of issuing the Notice of Meeting, allowing 
consideration of the UK Government’s guidance and restrictions 
on travel and public gatherings in relation to COVID-19 in place  
at that time. 

David Shearer 
Chairman

Dear Shareholder

On behalf of the Board I am pleased to present the Governance 
Report for FY2020. This section of the Annual Report highlights 
the Company’s corporate governance processes (alongside 
the work of the Board and Board Committees) which are the 
framework through which we build our business and form  
our decisions. 

During the year a number of new requirements were introduced 
by the UK Corporate Governance Code 2018 (the ‘Code’) and 
other new reporting regulations. These notably place more 
focus on culture and engagement with the workforce and other 
stakeholders when making decisions, which are duties that myself 
and the Board are committed to uphold. More information on how 
this is carried out is detailed on pages 51 to 53. The Company 
reports against the Code and I am pleased to confirm, as noted on 
page 64, that we have been in full compliance with the provisions 
of the Code throughout the year. 

As I reported in my Chairman’s letter to shareholders last year,  
the Nomination Committee recruited Rhian Bartlett as a new  
Non-Executive Director and a member of the Audit & Risk, 
Nomination, and Remuneration Committees from 1 June 2019. 
Rhian was elected at the Annual General Meeting on 11 July 
2019. This appointment further strengthened relevant skills  
and expertise available to the Board and its Committees,  
along with broadening diversity as a whole. 

During the year the Board undertook its triennial externally 
facilitated Board and Committee evaluation with the assistance 
of Genius Boards Limited. The evaluation was a comprehensive 
and forward looking review and I was pleased that the findings 
indicated that the Board was generally effective. Following that 
review and the Board discussions which followed around the key 
recommendations the Board has decided to make a number of 
changes, which include the appointment of a new Non-Executive 
Director; separating the common holding of the role of Senior 
Independent Director and Chair of the Audit & Risk Committee; 
considering my continuing role as Chair of the Nomination 

Governance  Speedy Hire Plc Annual Report and Accounts 2020   57   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceDirectors’ Report

Strategic Report

Substantial shareholders

As at 22 June 2020, the Company had been notified under the 
Disclosure Guidance and Transparency Rules of the following 
holders of shares with 3% or more of the total voting rights in  
the issued share capital of the Company.

Shareholder name 

Schroders plc  

Merian Global Investors (UK) Limited 

Polar Capital LLP  

Standard Life Aberdeen Plc 

Aberforth Partners LLP 

Artemis Investment Management LLP 

Percentage of 
 voting rights

13.23

8.44

7.38

7.22

3.88

3.29

Directors

The Directors who served during the year and the interests of 
Directors in the share capital of the Company are set out on page 95. 

In accordance with the Company’s Articles of Association, all new 
Directors submit for election at the first Annual General Meeting 
following their appointment and all other Directors submit for 
annual re-election at each Annual General Meeting.

No Director had any interest, either during or at the end of the 
year, in any disclosable contracts or arrangements, other than a 
contract of service, with the Company or any subsidiary company. 
No Director had any interest in the shares of any subsidiary 
company during the year.

Equal opportunities

The Group employed 3,464 people in the UK and Ireland, and 
601 people internationally as at 31 March 2020. The Group has 
a clear policy that employees are recruited and promoted solely 
based on aptitude and ability. The Group does not discriminate 
in any way in respect of race, sex, marital status, age, religion, 
disability or any other characteristic of a similar nature. In the 
case of disability, bearing in mind the aptitude of the applicant 
concerned, all reasonable adjustments are considered to enable 
employment or continued employment as well as to ensure that 
any disabled employees receive equal treatment in matters such 
as career development, promotion and training. Managers at all 
levels are trained and developed to adhere to and promote this 
goal, including receiving training specifically on diversity matters. 
Further information on equal opportunities within the Group is 
set out on page 32 in the Strategic Report, along with details of 
the gender balance of those personnel in senior management  
and their reports.

This section contains additional information which the Directors 
are required by law and regulation to include within the Annual 
Report and Accounts. This section along with the Chairman’s 
statement on pages 8 and 9, the Strategic Report on pages 1 to 
55, the Corporate Governance review on pages 64 to 69 and 
the reports of the Audit & Risk, Nomination and Remuneration 
Committees on pages 70 to 97, which are incorporated by 
reference into this report and are deemed to form part of this 
report, constitutes the Directors’ Report in accordance with the 
Companies Act 2006. 

The Strategic Report was approved by the Board and authorised 
for issue on 22 June 2020.

Results and dividends

The consolidated profit after taxation for the year was £16.8m 
(2019: £23.2m). This is after a taxation charge of £3.9m (2019: 
£5.5m) representing an effective rate of 18.8% (2019: 19.2%).  
An interim dividend of 0.70 pence per share was paid during  
the year. As indicated in the Chairman’s statement at page 9,  
the Directors have not proposed a final dividend for FY2020.

Related party transactions

Except for Directors’ service contracts, the Company did not  
have any material transactions or transactions of an unusual 
nature with, and did not make loans to, related parties in the 
period in which any Director is or was materially interested.

Buy-back of shares

At the Annual General Meeting held on 11 July 2019, a special 
resolution was passed to authorise the Company to make 
purchases on the London Stock Exchange of up to 10% of its 
ordinary shares. 

As at 22 June 2020, no shares had been purchased under this 
authority. Shareholders will be requested to renew this authority 
at the forthcoming Annual General Meeting on 10 September 2020. 

Financial instruments

The Group holds and uses financial instruments to finance  
its operations and manage its interest rate and liquidity risks.  
Full details of the Group’s arrangements are contained in  
Note 19 to the Financial Statements.

Going concern

The Directors consider that the Group has adequate financial 
resources and has access to sufficient borrowing facilities to 
continue operating for the foreseeable future. The Directors 
continue to assess the various risks associated with the UK’s 
departure from the European Union and the potential impact of  
the COVID-19 pandemic, and recognise the uncertainty of any 
resultant market impact. 

The Directors believe that contingency plans against known risks, 
and strong progress against strategic goals, will allow the Company 
to continue to maximise growth opportunities. Accordingly, as 
detailed in Note 1 to the Financial Statements (Accounting policies), 
the Directors continue to adopt the going concern basis in preparing 
the Annual Report and Accounts.

58   Governance  Speedy Hire Plc Annual Report and Accounts 2020

 
Employee involvement

Disclosure of information to auditors 

The Group actively aims to promote employee involvement in 
order to achieve a shared commitment from all employees to the 
success of the businesses in which they are employed. To support 
this, eight regional employee forums have been established 
who meet quarterly with the chair of each reporting to a group 
employee forum, again on a quarterly basis. Rob Barclay in his 
capacity as the designated Non-Executive Director for employee 
engagement periodically attends the group employee forum 
quarterly meetings. His attendance has helped ensure the 
employee voice is heard in the boardroom. This enables a greater 
understanding of workforce concerns and their consideration in 
Board decisions, which is illustrated at pages 51 and 52 along 
with other methods of engagement with the workforce.

The Board believes in the effectiveness of financial incentives. 
It is the Group’s policy that employees should generally be 
eligible to participate in some form of incentive scheme as soon 
as practicable after joining the Group, following the conclusion 
of any relevant probationary period. Details of annual incentive 
arrangements for Executive Directors are summarised in the 
Remuneration Committee’s Report on pages 77 to 97. 

The Group has a people strategy in place aimed at being an 
employer of choice, as can be seen on pages 24 to 27 of the  
Strategic Report. The Group actively makes a number of 
commitments to its employees, including pay, engagement and 
development. The Board sees employee engagement as a key 
part of its success. Further details of how the Board engages with 
employees can be seen at pages 51 to 52 of the Strategic Report.

Exercise of Board powers 

In performing its duty to promote the success of the Company 
and the wider Group, the Board is committed to effective 
engagement and the fostering of relationships with all relevant 
stakeholders which is illustrated at pages 51 to 53. To help 
facilitate this, monthly management reporting to the Board 
addresses key matters concerning relevant customers, suppliers, 
investors, employees, regulators and the environment. These 
reports are considered in its discussions and influence the Board 
decision making process allowing regard to the matters within 
Section 172 of the Companies Act 2006. Further information and 
a statement on how the Directors have had regard to the matters 
set out in Section 172 when discharging their duties is disclosed 
on page 51 of the Strategic Report.

The Directors who held office at the date of approval of this 
Directors’ Report confirm that, so far as they are each aware, there 
is no relevant audit information of which the Company’s auditors 
are unaware and each Director has taken all the steps that he 
or she ought to have taken as a Director to make himself or 
herself aware of any relevant audit information and to establish 
that the Company’s auditors are aware of that information. This 
confirmation is given and should be interpreted in accordance 
with the provisions of Section 418 of the Companies Act 2006.

Auditors

KPMG LLP was reappointed at the Annual General Meeting of 
the Company held on 11 July 2019 and its appointment expires 
at the conclusion of this year’s Annual General Meeting. KPMG 
LLP has expressed its willingness to continue in office. The 
Board is recommending KPMG LLP be reappointed as auditors 
and resolutions concerning this and to authorise the Directors 
to determine the auditors’ remuneration will be put to the 
forthcoming Annual General Meeting on 10 September 2020.  
Last year’s Annual Report indicated that external audit services 
would be retendered in FY2021, for commencement of services 
in FY2022. However, the Audit & Risk Committee has decided to 
extend the timetable by a further 12 months due to COVID-19 
and related Government social distancing guidance, which is not 
conducive to conducting a retender exercise in the immediate 
short term. External audit services will now be retendered in 
FY2022, for commencement of services in FY2023. 

Takeover Directive information

Where not provided elsewhere in this report, the additional 
information required for shareholders as a result of the 
implementation of the Takeover Directive into English law  
is set out below.

Share capital

As at 31 March 2020, the Company’s share capital comprised a 
single class of ordinary shares of 5 pence each. As at 31 March 
2020 the issued share capital was £26,338,658.85 comprising 
526,773,177 ordinary shares of 5 pence each. There are no 
special rights or obligations attaching to the ordinary shares. 

Restrictions on share transfers

The Company’s Articles of Association provide that the  
Company may refuse to transfer shares in the following 
customary circumstances:

•  where the share is not a fully paid share;

•   where the share transfer has not been duly stamped  

with the correct amount of stamp duty;

•   where the transfer is in favour of more than four  

joint transferees;

Governance  Speedy Hire Plc Annual Report and Accounts 2020   59   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceDirectors’ Report continued

•   where the share is a certificated share and is not  

accompanied by the relevant share certificate(s) and such  
other evidence as the Board may reasonably require to  
prove the title of the transferor; or

•   in certain circumstances where the shareholder in question  

has been issued with a notice under Section 793 of the 
Companies Act 2006.

These restrictions are in addition to any which are applicable  
to all UK listed companies imposed by law or regulation.

Shares with special rights

There are no shares in the Company with special rights with 
regard to control of the Company.

Restrictions on voting rights

The Notice of Annual General Meeting specifies deadlines for 
exercising voting rights and appointing a proxy or proxies to  
vote in relation to resolutions to be passed at the Annual General 
Meeting. All proxy votes are counted and the numbers for, against 
or withheld in relation to each resolution are announced at the 
Annual General Meeting and published on the Company’s website 
after the meeting.

Agreements which may result in restrictions on share transfers

The Company is not aware of any agreements between 
shareholders which may result in restrictions on the transfer  
of securities and/or on voting rights.

Shares in the Company are held in the Speedy Hire Employee 
Benefits Trust (‘Trust’) for the purpose of satisfying awards made 
under the Company’s Performance Share Plan. Unless otherwise 
directed by the Company, the Trustees of the Trust abstain from 
voting on any shares held in the Trust in respect of which the 
beneficial interest has not vested in any beneficiary. In relation to 
shares held in the Trust where the beneficial interest has vested 
in a beneficiary, the beneficiary can direct the Trustees how to 
vote. As at 22 June 2020 the Trust held 5,472,206 shares in the 
Company (1.04% of the issued share capital). 

Compensation for loss of office

There are no agreements between the Company and its 
Directors or employees providing for compensation for loss of 
office or employment (whether through resignation, purported 
redundancy or otherwise) that occurs in the event of a bid for 
the Company or takeover. 

Directors’ indemnities

Throughout the financial year and at the date of approval of 
the Financial Statements, the Company has purchased and 
maintained Directors’ and Officers’ liability insurance in respect 
of itself and its Directors. As permitted by the Companies Act 
2006, it is the Company’s policy to indemnify its Directors. 
Qualifying deeds of indemnity are put in place for all Directors 
on appointment.

Political contributions

Appointment and replacement of Directors

No political donations were made during the year (2019: nil). 

The Company’s Articles of Association provide that all Directors 
must stand for election at the first Annual General Meeting after 
having been appointed by the Board. Thereafter a Director will 
retire from office at each Annual General Meeting and submit  
to re-election.

Articles of Association

The Company’s Articles of Association may be amended  
by special resolution of the Company’s shareholders.

Directors’ powers

At the Annual General Meeting to be held on 10 September 2020, 
shareholders will be asked to renew the Directors’ power to allot 
shares and buy back shares in the Company and to renew the 
disapplication of pre-emption rights.

Change of control – significant agreements

There are no significant agreements to which the Company is 
a party that may take effect, alter or terminate upon a change 
of control following a takeover bid other than in relation to: (i) 
employee share schemes; and (ii) the Company’s borrowings, 
which would become repayable on a takeover being completed. 

Carbon and Energy Reporting

All disclosures concerning the Group’s carbon and energy 
consumption (as required under The Companies (Directors’ 
Report) and Limited Liability Partnerships (Energy and Carbon 
Report) Regulations 2018) are included in the Safety and 
Sustainability section of the Strategic Report on pages 28 to 33.

Annual General Meeting

The Company’s Annual General Meeting will be held on 10 
September 2020 and further details regarding location and 
attendance will be announced at the time of issuing the Notice 
of Meeting, allowing consideration of the UK Government’s 
guidance and restrictions on travel and public gatherings in 
relation to COVID-19 in place at that time.  A formal Notice of 
Meeting, an explanatory circular and a form of proxy will be sent 
separately to shareholders. 

This report was approved by the Board and signed on its behalf 
by Russell Down, Chief Executive. By Order of the Board on 22 
June 2020.

Russell Down 
Chief Executive

60   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Statement of Directors’ Responsibilities 

in respect of the Annual Report and Financial Statements

The Directors are responsible for preparing the Annual Report 
and the Group and Parent Company Financial Statements in 
accordance with applicable law and regulations. 

Company law requires the Directors to prepare Group and Parent 
Company Financial Statements for each financial year. Under that 
law they are required to prepare the Group Financial Statements 
in accordance with IFRSs as adopted by the European Union 
(‘EU’) and applicable law and have elected to prepare the Parent 
Company Financial Statements on the same basis. 

Under company law the Directors must not approve the Financial 
Statements unless they are satisfied that they give a true and 
fair view of the state of affairs of the Group and Parent Company 
and of their profit or loss for that period. In preparing each of the 
Group and Parent Company Financial Statements, the Directors 
are required to:

•  select suitable accounting policies and then apply them 

consistently;

Under applicable law and regulations, the Directors are also 
responsible for preparing a Strategic Report, Directors’ Report, 
Directors’ Remuneration Report and Corporate Governance 
statement that comply with that law and those regulations. 

The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the UK governing the 
preparation and dissemination of Financial Statements may  
differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect  
of the Annual Financial Report

We confirm that to the best of our knowledge:

•  the Financial Statements, prepared in accordance with the 
applicable set of accounting standards, give a true and fair 
view of the assets, liabilities, financial position and profit or 
loss of the Company and the undertakings included in the 
consolidation taken as a whole; and

•  make judgements and estimates that are reasonable,  

•  the Strategic Report includes a fair review of the development 

and performance of the business and the position of the 
Company and the undertakings included in the consolidation 
taken as a whole, together with a description of the principal 
risks and uncertainties that they face.

We consider the Annual Report and Accounts, taken as a whole,  
is fair, balanced and understandable and provides the information 
necessary for shareholders to assess the Group’s position and 
performance, business model and strategy.

David Shearer  
Chairman  

Russell Down 
Chief Executive

22 June 2020

relevant and reliable;

•  state whether they have been prepared in accordance with  

IFRSs as adopted by the EU;

•  assess the Group and Parent Company’s ability to continue  

as a going concern, disclosing, as applicable, matters related  
to going concern; and

•  use the going concern basis of accounting unless they either 
intend to liquidate the Group or the Parent Company or to  
cease operations, or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Parent 
Company’s transactions and disclose with reasonable accuracy  
at any time the financial position of the Parent Company and 
enable them to ensure that its Financial Statements comply  
with the Companies Act 2006 and, in respect of the Group 
Financial Statements, Article 4 of the International Accounting 
Standards Regulation. They are responsible for such internal 
control as they determine is necessary to enable the preparation 
of financial statements that are free from material misstatement, 
whether due to fraud or error, and have general responsibility  
for taking such steps as are reasonably open to them to safeguard 
the assets of the Group and to prevent and detect fraud and other 
irregularities.

Governance  Speedy Hire Plc Annual Report and Accounts 2020   61   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceBoard of Directors

1. David Shearer 
Non-Executive Chairman

Appointment to the Board and Committee memberships

Appointed to the Board as Non-Executive Chairman on 1 October 
2018. Prior to this appointment David was a Non-Executive 
Director of Speedy from 9 September 2016. David is also 
Chairman of the Nomination Committee and has previously  
been a member of each of Speedy’s Audit & Risk, Nomination,  
and Remuneration Committees.

Skills and experience

David is an experienced independent director, corporate financier 
and turnaround specialist. He is Non-Executive Chairman of 
Stobart Group Limited, Socium Group Holdings Limited and the 
Scottish Edge Fund. David was previously senior partner for 
Scotland & Northern Ireland and a UK Executive Board member 
of Deloitte LLP, Co-Chairman of Martin Currie (Holdings) Limited, 
Chairman of Mouchel Group plc and Crest Nicholson plc and a 
Non-Executive director of City Inn Limited in each case standing 
down after completing the successful restructuring of these 
businesses. He was also Non-Executive Chairman of Aberdeen 
New Dawn Investment Trust plc, Liberty Living Group Plc and 
Liberty Living Finance plc: Senior Independent Director of Renold 
plc, STV Group plc, Superglass Holdings plc and Scottish Financial 
Enterprise, a Non-Executive director of Mithras Investment Trust 
plc and a Governor of The Glasgow School of Art.
 N  

2. Russell Down
Chief Executive

Appointment to the Board 

Appointed to the Board as Group Finance Director in April 2015 
and promoted to Chief Executive in July 2015.

Skills and experience

Russell was formerly Group Finance Director (from 2008 to 2015) 
at Hyder Consulting Plc (‘Hyder’), the multinational design and 
engineering consultancy. He spent 17 years in total at Hyder in 
a number of senior roles, including five years as Group Financial 
Controller and six years as Regional Finance and Commercial 
Director for the Middle East operations based in Dubai. Russell is 
a Fellow of the Institute of Chartered Accountants in England and 
Wales, having qualified with KPMG LLP, and has previously worked 
for container leasing company Cronos as Director of Accounting.

3. Chris Morgan
Group Finance Director

Appointment to the Board 

Appointed to the Board as Group Finance Director in April 2016.

Skills and experience

DIY, and before that held a number of senior finance positions at 
Tesco including Group Controller from 1999 to 2004, and more 
recently as Finance Director for the Czech Republic and Slovakia. 
Chris is a Fellow of the Institute of Chartered Accountants in 
England and Wales.

4. Bob Contreras
Senior Independent Director

Appointment to the Board and Committee memberships

Appointed to the Board in December 2015 as Non-Executive 
Director and Chairman of the Audit & Risk Committee and a 
member of the Nomination and Remuneration Committees. 
Appointed as Senior Independent Director on 31 March 2016.

Skills and experience

Bob has been Executive Chairman of Adler & Allan Limited, a 
private equity backed Environmental Services Company, since 
December 2017. Bob was formerly Chief Executive at Northgate 
plc, the FTSE 250 leading light commercial vehicle hire business 
in both the UK and Spain between June 2010 and January 2017, 
having joined the business as Finance Director in June 2008. 
Prior to his appointment at Northgate, Bob was President of the 
Surgical Division of Mölnlycke Health Care Group, a world-leading 
manufacturer of products and services for the professional 
healthcare sector. He was also previously Chief Executive and 
Finance Director of private equity backed Damovo Group S.A.,  
and Group Finance Director of Azlan Group plc.  
 A  N R

5. Rob Barclay
Independent Non-Executive Director 

Appointment to the Board and Committee memberships

Appointed to the Board in April 2016 as Non-Executive Director 
and Chairman of the Remuneration Committee and a member  
of the Audit & Risk and Nomination Committees. 

Skills and experience

Rob is currently the CEO for the National Timber Group (‘NTG’), 
the UK’s leading Independent sawmilling and distribution 
business. Private equity backed NTG is made up of a number of 
market leading brands providing valued added solutions to the 
construction industry. He was formerly the Managing Director UK, 
Ireland and Middle East of SIG plc, the FTSE 250 market leading 
supplier of specialist products to the building and construction 
industry between January 2013 and March 2018. Rob joined SIG 
in 1997 and held various senior management roles within the 
business including Managing Director of SIG Distribution, having 
led its creation by bringing together the Group’s UK insulations, 
interiors, construction accessories and fixings businesses. Prior to 
joining SIG, Rob was a Regional Manager for a global wood products 
company based in New Zealand, from where he originates. 

Chris was formerly Chief Financial Officer at Go Outdoors, the 
UK’s leading retailer of outdoor equipment and clothing (from 
2012 to 2015). He was previously Chief Financial Officer at Focus 

A N  R

62   Governance  Speedy Hire Plc Annual Report and Accounts 2020

5

6

1

32

7

4

6. Rhian Bartlett
Independent Non-Executive Director 

7. David Garman
Independent Non-Executive Director 

Appointment to the Board and Committee memberships

Appointment to the Board and Committee memberships

Appointed to the Board on 1 June 2019 as Non-Executive 
Director and a member of the Audit & Risk, Nomination and 
Remuneration Committees.

Skills and experience

Rhian is currently Director of Fresh Foods at J Sainsbury plc.  
Prior to joining Sainsbury’s she worked at Screwfix Direct, a 
Kingfisher plc Group company, as Customer and Digital Director 
having previously held the position of Commercial Director.  
Prior to Screwfix Rhian was Director UK Trading at eBay, held 
various positions with J Sainsbury plc (including Business Unit 
Director and Head of On-line Merchandising) and was a Category 
Manager and Head of Online Marketing at Homebase.

A N R

Appointed to the Board in June 2017 as Non-Executive Director 
and member of the Audit & Risk and Nomination Committees. 
Appointed a member of the Remuneration Committee from 9 
November 2017.  

Skills and experience

David is currently Senior Independent Director at John Menzies 
plc, a Non-Executive Director at Troy Income & Growth Trust plc 
and a Director of several private companies. David has a broad 
range of industrial experience and was previously Chief Executive 
of TDG plc (now TDG Limited), a European contract logistics and 
supply chain management business, an Executive Director of 
Associated British Foods plc and held a variety of management 
roles at United Biscuits. He was also the Senior Independent 
Director at St Modwen Properties Plc and Phoenix IT plc,  
and a Non-Executive Director at Kewill plc and Victoria plc. 

A N R

Key to Committees: A Audit & Risk   N Nomination   R Remuneration          Committee Chair

Governance  Speedy Hire Plc Annual Report and Accounts 2020   63   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceCorporate Governance

Governance progress

During the year the Company built upon its review of its 
governance practices in FY2019 in light of the UK Corporate 
Governance Code 2018 and implemented relevant changes to 
ensure reporting compliance for the current financial year. In 
line with this Rhian Bartlett was appointed as an additional Non-
Executive Director and a member of the Audit & Risk, Nomination 
and Remuneration Committees. This further ensured relevant 
skills and expertise are available to the Board and its Committees, 
whilst enhancing diversity at Board level. 

During the year the Board undertook its triennial externally 
facilitated Board and Committee evaluation with the assistance 
of Genius Boards Limited. Key outputs from the evaluation and 
subsequent Board discussion resulted in the Board’s decision 
to appoint a new Non-Executive Director and also reorder certain 
responsibilities across the Board and its Committees. The reordering 
includes: separating the common holding of the role of Senior 
Independent Director and Chair of the Audit & Risk Committee; 
considering the Chair of the Board stepping down as Chair of the 
Nomination Committee; and having regard to the current size 
of the Board reducing the membership of each committee to 
three Non-Executive Directors. The selection process for the new 
Non-Executive Director will be commenced later in the year as 
the situation under COVID-19 permits. The timings for the other 
changes are detailed on page 67. These changes as a whole build 
upon the Board’s diversity and also promote a better balance of 
responsibilities across the Board and its Committees. Further detail 
regarding the outputs from the evaluation can be found at page 67.

UK Corporate Governance Code compliance

The Board is committed to maintaining high standards of corporate 
governance. The Board first reported its compliance with the 
Combined Code in 2004. Since then, other than as explained in 
previous annual reports and accounts, it has complied in full with 
the Combined Code (now the UK Corporate Governance Code) 
and continued to develop its approach to corporate governance 
and the effective management of risk in the context of an evolving 
business. This year the Company is reporting against the UK 
Corporate Governance Code 2018 (the ‘Code’), which applies to 
financial years beginning on or after 1 January 2019. A copy of the 
2018 edition of the Code is available to view on the website of the 
Financial Reporting Council at www.frc.org.uk.

Throughout the year ended 31 March 2020, the Company has 
been in full compliance with the provisions set out in the Code.

Directors

The Board

The Board comprises a Non-Executive Chairman, the two Executive 
Directors and four independent Non-Executive Directors. 

64   Governance  Speedy Hire Plc Annual Report and Accounts 2020

In the year ended 31 March 2020, the Board met eight times. 
The Board also meets as required on an ad hoc basis to deal 
with urgent business, including the consideration and approval 
of matters that are reserved to the Board. The table below lists 
the Directors’ attendance at the Board meetings and Committee 
meetings during the year ended 31 March 2020.

Rhian Bartlett was appointed to the Board on 1 June 2019 
as a Non-Executive Director and member of the Audit & Risk, 
Nomination and Remuneration Committees.

Board and Committee attendance

Board  

Audit & Risk 
(8)  Committee (4) 

Nomination  Remuneration
 Committee (2)  Committee (5)

Executive Directors

Russell Down 

Chris Morgan  

8/8 

8/8 

Non-Executive Directors

David Shearer 

8/8 

Bob Contreras  

8/8 

Rob Barclay 

8/8 

Rhian Bartlett1  

7/7 

David Garman 

8/8 

– 

– 

2/2 

4/4 

4/4 

3/3 

4/4 

– 

– 

2/2 

2/2 

2/2 

1/1 

2/2 

–

–

2/2

5/5

5/5

4/4

5/5

1  Rhian Bartlett was appointed as Non-Executive Director and a member  

of the Audit & Risk , Nomination and Remuneration Committees on 1 June 2019.

Directors who are not a member of a Board Committee may attend 
meetings at the invitation of the relevant Committee Chair.

The Board has approved a schedule of matters reserved for 
decision by it. That schedule is available for inspection at the 
Company’s registered office and on the Company’s website.  
The matters reserved for decision by the Board can be subdivided 
into a number of key areas including, but not limited to:

•   financial reporting (including the approval of interim and  

final Financial Statements, interim management statements  
and dividends);

•   approving the form and content of the Group’s Annual 

Report and Financial Statements (following appropriate 
recommendations from the Audit & Risk Committee) to ensure 
that it is fair, balanced and understandable overall and provides 
the information necessary for shareholders to assess the 
Company’s position and performance, business model and 
strategy;

•  the Group’s finance, banking and capital structure arrangements;

•   Group strategy and key transactions (including major 

acquisitions and disposals);

•   Stock Exchange/Listing Authority matters (including the issue  
of shares, the approval of circulars and communications to  
the market);

 
 
 
•   approval of the policies and framework in relation to 

Board Committees

The Audit & Risk Committee is chaired by Bob Contreras. Its other 
members are Rob Barclay, Rhian Bartlett and David Garman. 
Details of its activities during the year are detailed in the Audit & 
Risk Committee Report on pages 70 to 74. 

The Remuneration Committee is chaired by Rob Barclay. The other 
members are Bob Contreras, Rhian Bartlett and David Garman. 
The Committee Chairman’s Statement, Directors’ Remuneration 
Policy and Report are on pages 77 to 97.  

The Nomination Committee is chaired by David Shearer. The other 
members are Bob Contreras, Rob Barclay, Rhian Bartlett and David 
Garman. The Committee therefore satisfies the requirement of 
Provision 11 of the Code that a majority of its members are to be 
independent Non-Executive Directors. The report on the activities 
of the Committee is contained on pages 75 and 76. 

The Chairman and other Non-Executive Directors generally meet 
at least twice a year without the Executive Directors present. In 
addition, the Chairman regularly briefs the other Non-Executive 
Directors on relevant developments regarding the Company and 
Group as necessary. The Senior Independent Director and the 
other Non-Executive Directors usually meet at least annually 
without the Chairman present, to appraise the Chairman’s 
performance as part of the Board annual appraisal process. 

The minutes of all meetings of the Board and each Committee 
are taken by the Company Secretary or Assistant Company 
Secretary. In addition to constituting a record of decisions taken, 
the minutes reflect questions raised by the Directors relating to 
the Company’s businesses and, in particular, issues raised from 
the reports included in the Board or Committee papers circulated 
prior to the relevant meeting. Any unresolved concerns are 
recorded in the minutes.

On resignation, written concerns (if any) provided by an outgoing 
Non-Executive Director are circulated by the Chairman to the 
remaining members of the Board.

Appropriate Directors’ and Officers’ insurance cover is arranged 
and maintained via the Company’s insurance brokers, Marsh Ltd, 
and is reviewed annually.

remuneration across the Group (following appropriate 
recommendations from the Remuneration Committee);

•   oversight of the Group’s risk appetite, risk acceptance and 

programmes for risk mitigation;

•   approval of the Group’s risk management and internal control 
processes (following appropriate recommendations from the 
Audit & Risk Committee);

•  approving the Company’s annual Viability Statement;

•   the constitution of the Board itself, including its various 

Committees, and succession planning (following appropriate 
recommendations from the Nomination Committee); and

•   approving the Group’s policies in relation to, inter alia, the 

Group’s Code of Conduct and whistleblowing, the Bribery Act, 
the environment, health and safety and corporate responsibility.

Matters requiring Board or Committee approval are generally the 
subject of a proposal by the Executive Directors, which is formally 
submitted to the Board, together with supporting information, as 
part of the Board or Committee papers made available prior to the 
relevant meeting. Where practicable, papers are generally made 
available via an electronic platform at least five days in advance 
of such meetings, to allow proper time for review and ensure the 
best use of the Directors’ time. The implementation of matters 
approved by the Board, particularly in relation to matters such 
as significant acquisitions or other material projects, sometimes 
includes the establishment of a sub-committee comprising at 
least one Non-Executive Director, where relevant.

Chairman and Chief Executive

The posts of Chairman and Chief Executive are held by  
David Shearer and Russell Down, respectively.

A statement as to the division of the responsibilities between 
the Chairman and Chief Executive is available on the Company’s 
website. The Board considered that the Chairman, on his 
appointment, met the independence criteria set out in Provision 
10 of the Code. The Board has an established policy that the  
Chief Executive should not go on to become Chairman.

Board balance and independence

The Board currently comprises the Chairman, two Executive 
Directors and four independent Non-Executive Directors: Bob 
Contreras, Rob Barclay, Rhian Bartlett and David Garman. The four 
Non-Executive Directors bring a strong and independent non-
executive element to the Board. The Senior Independent Director is 
Bob Contreras. The independent Non-Executive Directors and their 
respective experience, details of which are set out on pages 62 and 
63, clearly indicates that they are of sufficient calibre and number 
for their views to carry appropriate weight in the Board’s decisions. 
The Board considers that each of Bob Contreras, Rob Barclay, Rhian 
Bartlett and David Garman are independent on the basis of the 
criteria specified in Provision 10 of the Code and, generally, are 
free from any business or other relationship which could materially 
interfere with the exercise of their independent judgement. 

Governance  Speedy Hire Plc Annual Report and Accounts 2020   65   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceCorporate Governance continued

The Companies Act 2006 allows directors of public companies 
to authorise conflicts, and potential conflicts of interest of 
directors, where the Articles of Association contain a provision to 
that effect. The Company’s Articles of Association give the Board 
authority to authorise matters which may otherwise result in 
the Directors breaching their duty to avoid a conflict of interest. 
Directors who have an interest in matters under discussion at 
a Board meeting must declare that interest and abstain from 
voting. Only Directors who have no interest in the matter being 
considered are able to approve a conflict of interest and, in taking 
that decision, the Directors must act in a way they consider, in 
good faith, would be most likely to promote the success of the 
Company. The Directors are able to impose limits or conditions 
when giving authorisation if they feel this is appropriate. Any 
conflicts considered by the Board and any authorisations given 
are recorded in the Board minutes and in the register of conflicts 
which is reviewed annually by the Board. The Board considers 
that its procedures to approve conflicts of interest and potential 
conflicts of interest are operating effectively. 

The Board is both balanced and diverse in respect of its 
experience and skills. The Board remains committed to 
maintaining and building on its diversity and encouraging that 
within senior management levels as recruitment opportunities 
arise. Any succession planning for the Board recognises this  
and diversity, including of gender, is considered where possible  
in the shortlisting of candidates. 

Appointments to the Board

The Board has established a Nomination Committee. The terms 
of reference of the Nomination Committee are published on 
the Company’s website. The Committee meets formally as 
necessary, but at least twice a year. This is detailed in more depth 
in the Nomination Committee Report on pages 75 and 76. The 
principal functions of the Nomination Committee are to consider 
and review the structure and composition of the Board and 
membership of Board Committees. It also considers candidates 
for Board nomination including job description, re-election to the 
Board for those candidates standing for annual re-election at the 
Annual General Meeting and succession planning generally, plus 
ensuring a diverse pipeline. 

A specification for the role of Chairman, including anticipated 
time commitment, is included as part of the written statement 
of division of responsibilities between the Chairman and Chief 
Executive. Details of the Chairman’s other material commitments 
are set out on page 62 and are disclosed to the Board in advance 
and included in a register of the same maintained by the 
Company Secretary. 

The terms and conditions of appointment of all the Non-Executive 
Directors, and those of the Chairman, are available for inspection 
at the Company’s registered office during normal business hours. 
Each letter of appointment specifies the anticipated level of time 
commitment including, where relevant, additional responsibilities 
derived from involvement with the Audit & Risk, Remuneration or 
Nomination Committees. Details of other material commitments 
are disclosed to the Board and a register of the same is 
maintained by the Company Secretary.

During the year Rhian Bartlett was appointed to the Board as a 
Non-Executive Director. The appointment process and search  
and selection activities were reported on in the Company’s 
Annual Report and Accounts 2019.

No Director is a Non-Executive Director or Chairman of a FTSE 
100 company.

Diversity

The Board recognises the value of diversity in the boardroom 
and the benefit to the Group’s overall performance that diversity 
across backgrounds, experience, knowledge, skills and gender can 
bring. In new appointments, the Nomination Committee seeks to 
select individuals who are best able to meet the recommended 
requirements of the role and improve overall diversity of the Board. 

Information and professional development

Before each scheduled Board meeting all Directors receive 
reports from the Chief Executive and Group Finance Director on 
results, key issues and strategy. Additionally these reports (and 
where relevant additional reports from senior executives) address 
key matters concerning the Company’s customers, suppliers, 
investors, employees, regulators and the environment. During 
Board meetings, the Non-Executive Directors regularly make 
further enquiries of the Executive Directors and seek further 
information which is provided either at the relevant meeting or 
subsequently. This information and any related reports (provided 
either before or after meetings) are considered in the Board’s 
discussions and in its decision making process when having 
regard to Section 172 of the Companies Act 2006.

The Board recognises the importance of tailored induction 
training on joining the Board and ongoing training and education, 
particularly regarding new laws and regulations which relate to or 
affect the Group. Such training and education is obtained by the 
Directors individually through the Company, including briefings 
from external advisers, through other companies of which they 
are Directors or through associated professional firms or as 
members of their professional bodies.

66   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Corporate Governance continued

Procedures are in place to enable Directors to take independent 
professional advice, if necessary, at the Company’s expense, 
in the furtherance of their duties. The procedure to enable 
such advice to be obtained is available for inspection on the 
Company’s website.

All Directors have access to the advice and services of the 
Company Secretary, whose role is to ensure that information 
is received by the Board in a timely manner, all procedures are 
followed and applicable rules and regulations are complied with. 
The appointment or removal of the Company Secretary is a matter 
specifically reserved for decision by the Board.

Performance evaluation

The Board, each director and the Board’s committees are reviewed 
annually, with this year’s review of the Board and its Committees 
being externally supported as part of a triennial programme. 
After considering a number of external providers, Genius Boards 
Limited were appointed. Neither Genius Boards nor its appointed 
evaluator have undertaken any other work for the Company 
during the year and have no other current connection with the 
wider Group. 

The external evaluation considered the performance of the 
Board and its Committees. The evaluation process included 
detailed interviews with each Director, the Company Secretary, 
Chief Information Officer, Chief Operating Officer and Head 
of Risk and Assurance. The evaluation included a review of 
relevant Board papers and attendance at Board and Committee 
meetings as an observer. Conclusions from the external review 
were discussed with the Chairman and subsequently discussed 
with the Board. Individual feedback to Committee Chairs on the 
performance of each Committee was discussed and reported 
on. The evaluation concluded that the Board and Committees 
were generally operating effectively. The principal findings and 
recommendations of the independent evaluation designed to 
further enhance Board effectiveness, as subsequently discussed 
and agreed by the Board for implementation are: 

•  Appointment of an additional Non-Executive Director. The 
appointment will provide an opportunity to increase Board 
diversity, experience and knowledge and particularly within 
the business transformation, people matters and HR leadership 
areas. It is anticipated that such skills will both support the 
business and complement the Board and the Committee’s 
existing skills and knowledge and contribute to greater Board 
effectiveness. The selection process for the new Non-Executive 
Director will commence later in FY2021, as the situation under 
COVID-19 permits.

•  Renaming the Audit Committee as the “Audit & Risk Committee”. 
This will better reflect the Committee’s intention to expand its 
focus on risk, including corporate and business risk (for example, 
in light of the COVID-19 pandemic).

•  Division of the role of Senior Independent Director and Chair  
of Audit & Risk Committee held by Bob Contreras, to facilitate  
a more even balance of responsibilities and increased focus  
on each role. This will be effected by the appointment of  
David Garman as the Senior Independent Director effective  
from 1 August 2020. 

•  Increasing the effective allocation of time input for the 

Chairman of the Board, David Shearer. This will be considered 
by the potential appointment of a new Chair of the Nomination 
Committee, following the appointment of the new Non-
Executive Director. David Shearer will remain a member of  
the Nomination Committee following such appointment. 

•  Having regard to the size of the Board, reducing the Committee 

membership to three Non-Executive Directors to better 
balance Director responsibilities and strengthen engagement 
and challenge between the Committees and the Board. These 
changes will be implemented on 1 August 2020 by David 
Garman stepping down from the Audit & Risk Committee,  
Rob Barclay from the Nominations Committee and Bob Contreras 
from the Remuneration Committee. Following the appointment 
of a new Non-Executive Director the Board will review whether 
Rhian Bartlett continues on the Remuneration Committee or is 
replaced by the new Non-Executive Director. This would enable 
Committee responsibilities to continue to be shared across all 
Non-Executive Directors; and 

•  Introduction of post meeting reviews amongst the Directors 

both with and without the Executive Directors and Chairman to 
provide a regular opportunity to consider the effectiveness of 
Board meetings.

The Chairman reviewed the performance and development 
needs of each of the Executive and Non-Executive Directors. 
The Non-Executive Directors, led by Bob Contreras (the Senior 
Independent Director) conducted an evaluation of the Chairman, 
and the Senior Independent Director discussed the results of 
that assessment with the Chairman. No actions were considered 
necessary as a result of the evaluation, and the Board is satisfied 
with the Chairman’s commitment and performance. 

Governance  Speedy Hire Plc Annual Report and Accounts 2020   67   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceCorporate Governance continued

Re-election

Procedure

Pursuant to the Code and under the Company’s Articles of 
Association all Directors must submit to annual re-election 
at each Annual General Meeting. Biographical details of all 
the Directors are included in this report in order to enable 
shareholders to take an informed decision on any re-election 
resolution. The letters of appointment of each of the Non-
Executive Directors and the Chairman confirm that appointments 
are for specified terms and that reappointment is not automatic.

Directors’ remuneration

The performance related elements of the remuneration of the 
Executive Directors form a significant proportion of their potential 
total remuneration packages. The performance related elements 
of the schemes in which the Executive Directors are entitled 
to participate are set out in more detail in the Remuneration 
Report. The Remuneration Committee, with the advice of the 
Executive Compensation practice of Aon plc (‘Aon’), reviews the 
Company’s Remuneration Policy on a regular basis including for 
the new Remuneration Policy for the next three years detailed 
at pages 81 and 86 and the design of performance related 
remuneration schemes. Such performance related elements 
have been designed with a view to aligning the interests of the 
Executive Directors with those of shareholders and to incentivise 
performance at the highest level. 

The service contracts for Russell Down and Chris Morgan provide 
for termination by the Company on one year’s and nine months’ 
notice respectively. It is the Company’s current policy that notice 
periods on termination of Directors’ contracts should not exceed 
12 months.

The policy of the Board is that the remuneration of the Non-
Executive Directors should be consistent with the levels 
of remuneration paid by companies of a similar size. The 
levels of remuneration also reflect the time commitment and 
responsibilities of each role, including Chairmanship of Board 
Committees. It is the policy of the Board that remuneration for 
Non-Executive Directors should not include share options or  
any other share based incentives.

The remuneration of the Non-Executive Chairman is dealt with 
by the Remuneration Committee. The remuneration of Non-
Executive Directors is dealt with by a Committee of the Board 
specifically established for this purpose, normally comprising 
the Chief Executive and the Group Finance Director, without the 
presence of the Non-Executive Directors. The remuneration of all 
Non-Executive Directors is reviewed annually. The remuneration 
of Non-Executive Directors was scheduled to be reviewed at the 
end of FY2020 but due to the outbreak of COVID-19 this review 
(along with Company’s annual salary review) has been deferred. 
All Directors, including the Non-Executive Directors, agreed to 
a three month 20% reduction in salaries and fees from 1 April 
2020. Further details of the remuneration of Non-Executive 
Directors are set out on page 91.

The Board has constituted a Remuneration Committee which 
met five times during the year. The terms of reference of the 
Remuneration Committee are published on the Company’s 
website and are fully compatible with Provision 33 of the Code. 
The Remuneration Committee members are Rob Barclay, Bob 
Contreras, Rhian Bartlett and David Garman who are independent 
of management and free from any business or other relationship 
which could materially interfere with the exercise of their 
independent judgement. The Chief Executive attends by invitation 
but is not present for discussions relating to his own remuneration. 
The Remuneration Committee has appointed Aon to advise it 
in relation to the design of appropriate executive remuneration 
structures. Aon has no other connection with the Company.

The responsibilities of the Remuneration Committee include 
setting Remuneration Policy, ensuring that remuneration 
(including pension rights and compensation payments) and the 
terms of service of the Executive Directors are appropriate and 
that Executive Directors are fairly rewarded for the contribution 
which they make to the Group’s overall performance. It is also 
responsible for the allocation of shares under long-term incentive 
arrangements approved by shareholders and in accordance with 
agreed criteria. In addition, it monitors current best practice in 
remuneration and related issues.

The Board’s policy is that all new long-term incentive schemes  
(as defined in the Listing Rules) and significant changes to existing 
schemes should be specifically approved by shareholders, 
while recognising that the Remuneration Committee must have 
appropriate flexibility to alter the operation of these arrangements 
to reflect changing circumstances. The Company’s current long-
term incentive scheme was approved by shareholders in 2014.

A more detailed summary of the work of the Remuneration 
Committee during the year and the Group’s proposed Remuneration 
Policy for the next three years is contained on pages 77 to 97.

Accountability and audit

Financial reporting

The Directors’ Report and independent auditor’s report appear 
on pages 58 to 60 and pages 98 to 107 respectively and comply 
with the provisions of Provisions 27 and 30 of the Code.

Audit & Risk Committee and auditors

The Board has established an Audit & Risk Committee which met 
four times during the year. The terms of reference of the Audit & 
Risk Committee are published on the Company’s website. Such 
terms of reference are compatible with the provisions of Provision 
25 of the Code. The Board is satisfied that the Chairman of the 
Audit & Risk Committee, Bob Contreras, has appropriate recent 
and relevant financial experience and that the Committee as a 
whole has competence relevant to the sector in which it operates.

68   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Corporate Governance continued

In addition to responsibility for the Group’s systems of internal 
control, the Committee is responsible for reviewing the integrity 
of the Company’s accounts, including the half and full-year 
results, and recommending their approval to the Board.

The Committee meets on a regular basis with the external 
auditors and internal audit function to review and discuss 
issues arising from internal and external audits and to agree 
the scope and planning of future work. The effectiveness of the 
Group’s internal audit function is one of the matters reviewed in 
conjunction with the external auditors.

The Audit & Risk Committee has primary responsibility for making 
a recommendation on the appointment, reappointment and 
removal of the external auditors. The policy of the Audit & Risk 
Committee is to ensure auditor objectivity and independence  
is safeguarded at all times. As further detailed on page 74,  
the Audit & Risk Committee considers that the Company’s 
auditors are independent. 

A more detailed description of the work of the Audit & Risk 
Committee during the year is contained in the separate report  
of the Committee on pages 70 to 74.

Following the year end, the Audit Committee has been renamed 
the Audit & Risk Committee.

Internal control

The Board is responsible for the Company’s internal control 
procedures and processes and for reviewing the effectiveness  
of such systems.

The Board, via the Audit & Risk Committee, conducts a review, 
at least annually, of the Group’s systems of internal control. 
Such a review considers all material controls, including financial, 
operational and compliance controls and risk management 
systems, and accords with the recommendations contained 
in the FRC’s guidance on Risk Management, Internal Control 
and Related Financial and Business Reporting (formerly the 
Turnbull Guidance). A formal report is prepared by the external 
auditors, KPMG LLP, highlighting matters identified in the course 
of its statutory audit work, and is reviewed by the Audit & Risk 
Committee in the presence of KPMG LLP and, by invitation, the 
Chief Executive, the Group Finance Director, the Director of 
Finance and the Head of Risk and Assurance. The Committee  
also considers formal reports prepared and presented by the 
internal audit function. The findings and recommendations of  
the Committee are then formally reported to the Board for 
detailed consideration. 

Relations with shareholders

Dialogue with institutional shareholders

The Chief Executive and Group Finance Director routinely 
attend brokers’ and analysts’ presentations, which include 
the Company’s half and full-year results. The Chairman, Chief 
Executive and Group Finance Director, with assistance from the 
Company’s brokers, collate feedback from such presentations 
and report the findings to the next meeting of the Board. 
The Chairman is also available to discuss matters with major 
shareholders in relation to, inter alia, results, strategy and 
corporate governance issues. The Senior Independent Director, 
Bob Contreras, is available to attend meetings with major 
shareholders in order to understand their issues and concerns 
should the normal communication channels with the Chairman, 
Chief Executive or Group Finance Director be considered 
ineffective or inappropriate.

During February to April 2020 the Chair of the Remuneration 
Committee and the Company Secretary consulted with a number 
of the Company’s larger shareholders to discuss remuneration 
policies. The Company approached all of its significant 
shareholders, representing over 70% of the Company’s total 
voting rights and meetings were held where requested. The 
comments received were considered by the Remuneration 
Committee in determining the Group’s approach to executive 
compensation. Relevant content resulting from these meetings 
were reported to the Board so that all Directors were made aware 
of shareholder views.

Constructive use of the Annual General Meeting

The Company’s Annual General Meeting procedures include, as a 
matter of course, specifying the level of proxies lodged on each 
resolution and the balance for and against each resolution and 
votes withheld after each has been dealt with on a show of hands. 
It is also the Company’s policy to propose a separate resolution at 
the Annual General Meeting on each substantive separate issue, 
including in relation to the Annual Report and Accounts and the 
Directors’ Remuneration Report. 

All Committee Chairmen will be available for shareholders’ 
questions at the Annual General Meeting subject to the UK 
Government’s guidance and restrictions on travel and public 
gatherings in relation to COVID-19 in place at the date of  
the meeting. 

The Company’s standard procedure is to ensure that the Notice 
of Annual General Meeting and related papers are sent to 
shareholders at least 20 working days before the meeting.

Governance  Speedy Hire Plc Annual Report and Accounts 2020   69   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceAudit & Risk Committee Report

The Audit & Risk Committee presents its report in relation to the  
financial year ended 31 March 2020. 

Audit & Risk Committee objectives and terms of reference

The Audit & Risk Committee’s key objectives are the review 
of the effectiveness of the Group’s financial reporting and 
internal controls, together with the procedures for identification, 
evaluation and reporting of key risks. The role of the Audit & Risk 
Committee in monitoring the integrity of the Group’s financial 
affairs is important to shareholders and other stakeholders, 
both internal and external. Accordingly we work closely with 
management and our external and internal auditors to adopt  
best practice approaches to policies and controls. In addition,  
a key objective of the Audit & Risk Committee is to ensure all 
financial reporting is fair, balanced and understandable. The 
Audit & Risk Committee is satisfied that the Group’s internal and 
external processes are considered to be robust and appropriately 
aligned to delivering good financial reporting and governance. 
The Directors confirm that they have carried out a comprehensive 
assessment of the principal risks facing the Group, including 
those that would threaten its business model, future performance, 
solvency or liquidity.

The terms of reference of the Audit & Risk Committee, which 
include all matters referred to in the UK Corporate Governance 
Code, are reviewed annually by the Audit & Risk Committee 
and proposed changes made to the Board. The current terms of 
reference can be found at speedyservices.com/investors and  
are also available in hard copy from the Company Secretary.

Following the year end, the Audit Committee has been renamed 
the Audit & Risk Committee.

Composition of the Audit & Risk Committee

The Audit & Risk Committee comprises four Non-Executive 
Directors: Bob Contreras (Chairman), Rob Barclay, Rhian Bartlett 
and David Garman. All members are considered by the Board to  
be independent. Biographies of each of the members of the  
Audit & Risk Committee are set out on pages 62 and 63. 

The Audit & Risk Committee is chaired by Bob Contreras, a 
chartered accountant with over 20 years’ experience as a board 
member at both listed and private companies. His biography is 
set out on page 62. The Board is satisfied that Bob Contreras has 
recent and relevant financial experience and that the Committee 
as a whole has an appropriate balance of skills, experience, 
qualifications and sector related knowledge. 

Attendance

The Audit & Risk Committee’s agenda is linked to events in the 
Group’s financial calendar, and the Audit & Risk Committee met  
on four occasions during the year. Details of the attendance at 
Audit & Risk Committee meetings are set out below.

Audit & Risk Committee members and meetings attended

Name 

Position 

Meetings 
attended

Bob Contreras 
(Chairman)

Non-Executive Director 

4/4 

Rob Barclay  

Non-Executive Director 

Rhian Bartlett 1 

Non-Executive Director 

David Garman 

Non-Executive Director 

4/4

3/3

4/4

1  Rhian Bartlett was appointed on 1 June 2019 as member of the Audit & Risk Committee.

70   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Bob Contreras 
Chairman of the Audit & Risk Committee

 
 
Audit & Risk Committee Report continued

Operation and responsibilities of the Audit & Risk Committee

•  considering the independence of the external auditors,  

The Chairman, Chief Executive and Group Finance Director, 
together with representatives from the external auditors, the 
Director of Finance and the Head of Risk and Assurance, are 
invited to attend meetings of the Audit & Risk Committee, 
although the Audit & Risk Committee reserves time for discussions 
without any invitees being present. The external auditors and the 
Head of Risk and Assurance meet privately with the Audit & Risk 
Committee, to advise the Audit & Risk Committee of any matters 
which they consider should be brought to their attention without 
the Executive Directors present. The external auditors and the 
Head of Risk and Assurance may also request a meeting with the 
Audit & Risk Committee if they consider it necessary. The Risk 
and Assurance department carries out the Group’s internal audit 
function. The Chairman of the Audit & Risk Committee also holds 
private meetings both with the Head of Risk and Assurance and 
the external auditors.

The Company Secretary acts as secretary to the Audit & Risk 
Committee. The members of the Audit & Risk Committee can, 
where they judge it necessary to discharge their responsibilities, 
obtain independent professional advice at the Company’s expense.

The Audit & Risk Committee undertakes its activities in line with 
an annual programme of business. The Audit & Risk Committee’s 
duties include, inter alia:

Internal controls and risk

•  monitoring the effectiveness and appropriateness of  

internal controls;

•  evaluating the Board’s process for identifying and managing 

significant risk in the business;

•  considering the effectiveness and resourcing of the internal 

audit function;

•  determining and directing the scope of the internal audit 

programme;

• appointing or replacing the Head of Risk and Assurance;

•  reviewing matters reported through the Group’s whistleblowing 

policy; and

•  monitoring performance of the Group’s senior finance personnel 

and ensuring their development.

External auditors

•  monitoring the effectiveness of the external audit process 

including recommending the appointment, re-appointment  
and remuneration of the external auditors;

•  liaising with the external auditors in respect of the rotation  

of audit partners at appropriate junctures;

•  considering and, if thought appropriate, approving the use  

of the external auditors for non-audit work;

taking into account: (i) non-audit work undertaken by them;  
(ii) feedback from various stakeholders; and (iii) the Audit &  
Risk Committee’s own assessment; and

•  monitoring and considering the provisions and recommendations 
of the UK Corporate Governance Code in respect of external 
auditors. This involves a review of the scope of the audit, the 
auditor’s assessment of risk, appropriateness of materiality  
and the key findings.

Financial Statements

•  monitoring the integrity of the Group’s Financial Statements and 
formal announcements relating to the Group’s performance;

•  reviewing the Company’s Viability Statement, challenging 

assumptions made with management and, if thought 
appropriate, recommending this for approval by the Board  
and inclusion in the Annual Report and Financial Statements;

•  considering liquidity risk and the use of the going concern  
basis for preparing the Group’s Financial Statements; and 

•  evaluating the content of the Annual Report and Financial 

Statements, to advise the Board as to whether it may reasonably 
conclude that the Annual Report and Financial Statements is 
fair, balanced and understandable overall and provides the 
information necessary to enable shareholders to assess the 
performance, business model and strategy of the Group.

As part of its annual programme of business the Audit & 
Risk Committee regularly receives updates from the external 
auditors as to developing accounting standards, and members 
are expected to participate personally in relevant briefing and 
training sessions during the year.

Significant areas considered by the Audit & Risk Committee  
during FY2020 

During the year, the Audit & Risk Committee considered and 
discussed with the external auditors the following items:

• the existence and valuation of hire equipment;

•  the going concern basis for the preparation of the  

Financial Statements;

•  the estimation and disclosure of costs and fair values  

associated with acquired businesses;

• the estimation and disclosure of exceptional items;

• the adoption of IFRS 16 in respect of leases taken by the Group; and

• the valuation of trade receivables.

The role and response of the Audit & Risk Committee to these, 
along with any corresponding impact on the Group’s Financial 
Statements, are discussed in more detail in this report. 

Existence and valuation of hire equipment

The hire fleet comprises several million individual assets, 
represents the largest asset on the balance sheet, and underpins 
the Group’s key revenue streams.

Governance  Speedy Hire Plc Annual Report and Accounts 2020   71   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceAudit & Risk Committee Report continued

The control environment surrounding the management of 
the hire fleet is critical to maintaining an up to date record of 
the assets and ensuring that they are correctly valued within 
the Financial Statements. In order to gain assurance that the 
control environment is operating in a satisfactory manner, the 
Audit & Risk Committee requires internal audit to review the 
asset management processes. The findings of these reviews are 
considered by the Audit & Risk Committee at each meeting.

In addition to considering the appropriateness of the Group’s 
depreciation policies, the Audit & Risk Committee reviews the 
valuation of hire equipment taking into consideration a consistent 
track record of the Group in disposing of hire equipment at close 
to book value. This also incorporates a thorough review of useful 
economic lives and residual values.

As a result of the work performed, the Audit & Risk Committee is 
satisfied that hire equipment assets are appropriately valued.

Going concern basis for the preparation of the Financial Statements 

The Group has adopted a going concern basis for the preparation 
of the Financial Statements. Judgement over the future cash 
flows of the business (for a period of at least 12 months from 
signing the accounts) and their interaction with the available 
liquidity from the Group’s borrowing facilities must be applied 
in concluding whether to adopt a going concern basis of 
preparation. The Audit & Risk Committee has challenged forecast 
cash flows, the assumptions applied to derive the cash flows and 
availability of finance from existing facilities. The Audit & Risk 
Committee has considered the various risks associated with the 
COVID-19 pandemic and the UK’s departure from the European 
Union, and recognises the uncertainty of the nature of the UK’s 
future trading relationship with the European Union, and resultant 
market impact.

The Group has a £180m asset based finance facility (the ‘facility’) 
and an additional uncommitted accordion (£220m) which 
mature in October 2022 and have no prior scheduled repayment 
requirements. Throughout the year, the Group has remained 
in compliance with its financial covenants under the Group’s 
banking facilities. 

Based on the expectations of future cash flows and the continued 
availability of the banking facilities, the Audit & Risk Committee 
has concluded that the available borrowing facilities are adequate 
for both existing and future levels of business activity. The Audit 
& Risk Committee therefore considers that it is appropriate to 
continue to adopt a going concern basis in the preparation of  
the Financial Statements.

Costs and fair values associated with acquired businesses

An element of the Group’s growth strategy is to make value 
enhancing core hire or services acquisitions. 

In December 2018 the Group acquired Geason Holdings Limited 
(‘Geason Training’) and in March 2019 the Group acquired Lifterz 
Holdings Limited (‘Lifterz’). 

The acquisitions of the Geason Training and Lifterz businesses 
and the subsequent integrations, including the creation of one 
Speedy Powered Access business, have resulted in a number 
of costs including property costs (depot consolidations), 
redundancy, project management and IT related costs which 
management have considered to be exceptional items.

The Audit & Risk Committee has reviewed the assumptions made 
by management and is satisfied, in conjunction with the assessment 
made by the external auditors, that the values and associated 
disclosures presented in the Financial Statements in respect of 
acquired businesses are consistent with accounting policies.

Exceptional items

Geason Training has performed below expectations during the 
year due to lower than expected learner enrolments, the setup 
of a number of regional training centres which have yet to reach 
critical mass and a poor control environment. More recently the 
business has been further affected by an assurance visit from 
a funding agency and market conditions due to COVID-19. As 
a consequence, an exceptional impairment charge has been 
recognised in respect of the Training cash-generating unit.

In April 2020 the Group was notified that a funding agency was 
suspending payments, and seeking repayment of £2.6m from 
Geason Training, based on an extrapolation of errors found in a 
small sample of learner documentation over a three year period 
from August 2017. The Group has engaged external lawyers who 
have responded to the agency. At this time it is not possible to 
make an accurate estimate of the timing or amount that may be 
repayable from this or other potential claims we may receive. 
£3.0 million has been provided by management as an exceptional 
charge including legal and verification costs. The provision is made 
without any admission of liability. The Group is investigating what 
mitigations may be available to it in relation to this matter.

The consideration paid for the Geason Training business included 
a contingent element. Management has undertaken a fair 
value exercise in relation to this, in addition to the net assets 
acquired including purchased goodwill, resulting in a credit that 
management has considered to be exceptional.

During the year the Group sold a plot of surplus land, for  
which an exceptional profit on disposal has been recognised.

An exceptional provision has been made for specific non-
recurring identified repairs required to properties within the 
depot network as a result of potential landlord claims.

Other exceptional costs have been recognised in the year, 
including bad debt and staff related costs associated with 
COVID-19, and costs associated with the renewal of the major 
contract in the International division.

The Audit & Risk Committee has reviewed the assumptions 
made by management and is satisfied, in conjunction with the 
assessment made by the external auditors, that the values and 
associated disclosures presented in the Financial Statements in 
respect of these items are consistent with accounting policies.

72   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Audit & Risk Committee Report continued

IFRS 16

From 1 April 2019 the Group has reported under IFRS 16 Leases 
for the first time. This has resulted in a material grossing up of 
the Balance Sheet with the recognition of a right of use asset and 
corresponding lease liability for all qualifying leased equipment, 
vehicles and property. The Income Statement has also been 
impacted as the right of use asset has been depreciated and 
interest charged on the lease liability, largely offset by rental 
charges no longer recognised. There have been no changes in 
the reported net cash flows although operating cash flows and 
financing cash flows have been impacted.  

Given the complexity and volume of data involved, this has 
included the introduction of a specialist software application  
to undertake the calculations required. The financial impact of 
IFRS 16 in the period is described in Note 1. 

The Audit & Risk Committee has reviewed the calculations made 
by management and the associated disclosures and is satisfied,  
in conjunction with the assessment made by the external 
auditors, that the values presented in the Financial Statements 
are consistent with accounting policies. 

Valuation of trade receivables

The Group trades with a large number of customers across a 
number of sectors and the carrying amount of receivables  
from these customers comprises a substantial current asset. 
Judgement is required in determining the extent to which these 
current assets will prove irrecoverable, and a provision for this  
is reflected in the carrying value of those current assets. 

The Audit & Risk Committee considers the levels of provisions 
against receivables and any changes to the provisioning policy 
recommended by the Directors, taking into account trends 
within the ageing profile of the receivables balance, levels of 
non-collectability experienced by the business and the economic 
climate in which the customers operate including the impact  
of COVID-19. 

As a result of the work performed, the Audit & Risk Committee  
is satisfied that trade receivables are appropriately valued.

Internal control and risk management

The Board is responsible for the Group’s system of internal 
control and risk management and for reviewing its effectiveness. 
The detailed review of internal controls has been delegated by 
the Board to the Audit & Risk Committee.

The Risk and Assurance Department incorporates the Group’s 
internal audit function. The Head of Risk and Assurance reports 
to the Board and to the Audit & Risk Committee. The internal 
audit function is involved in the assessment of the quality of 
risk management and internal controls. It helps to promote and 
develop further effective risk management in all areas of the 
business, including the embedding of risk registers and risk 
management procedures within individual business areas.  
The Audit & Risk Committee receives detailed reports from  
the Risk and Assurance Department at each meeting. 

The Audit & Risk Committee ensured that questionnaires were 
circulated to senior management requesting they notify internal 
audit of any significant irregularities in information provided for 
inclusion in the Financial Statements. None have been reported.

The Audit & Risk Committee has reviewed the effectiveness of 
internal controls and risk management during the year taking 
into consideration the framework and risk register maintenance 
by management, in addition to reports from both internal and 
external auditors. The Audit & Risk Committee has concluded that 
the internal controls have operated effectively during FY2020.

Review of internal audit

The Audit & Risk Committee reviews the effectiveness of the 
Group’s internal audit function. This review includes the audit 
plan and the level of resource devoted to internal audit, as 
well as the degree to which the function can operate free 
from management restrictions. The Audit & Risk Committee 
considered the results of the audits undertaken by the internal 
audit function and in particular considered the response of 
management to issues raised by internal audit, including the time 
taken to resolve matters reported. Although internal audit has 
raised recommendations for improvement in the normal course 
of business, the Audit & Risk Committee is satisfied that none of 
these constituted significant control failings during FY2020.

Attribute Standard 1312 of the Chartered Institute of Internal 
Auditors (‘CIIA’) International Professional Practices Framework 
requires an external quality assessment of internal audit to be 
undertaken every five years. The review undertaken in FY2017 
concluded that the Group’s internal audit function ‘Generally 
Conforms’ to the CIIA standards (the highest possible rating). 
In addition to this, the Head of Risk and Assurance is required 
to undertake an annual self-assessment of adherence to this 
framework. This self-assessment is considered by the Audit &  
Risk Committee during its review of internal audit. 

On an annual basis the Audit & Risk Committee circulates a 
questionnaire to Directors and senior management inviting 
comments on the Risk and Assurance function. The responses 
are considered by the Audit & Risk Committee and are used 
in conjunction with the other review processes described to 
determine whether internal audit is working effectively.

Following the review, the Audit & Risk Committee concluded  
that the Group’s internal audit function remains effective.

The Internal Audit Charter was reviewed by the Audit & Risk 
Committee during the financial year and it was determined  
that this remained fit for purpose.

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Strategic ReportCorporate  InformationFinancial  StatementsGovernanceAudit & Risk Committee Report continued

Review of the work, effectiveness and independence  
of the external auditors

The Audit & Risk Committee reviews annually the relationship 
between the Group and the external auditors and has responsibility 
for monitoring the external auditors’ independence and objectivity. 
This work includes an assessment of their performance and cost-
effectiveness, a review of the scope of their work, as well as their 
compliance with ethical, professional and regulatory requirements. 
The Audit & Risk Committee also reviews any major issues which 
arise during the course of the audit and their resolution, key 
accounting and audit judgements, and any recommendations  
made to the Board by the auditors and the Board’s response. 
The Audit & Risk Committee is responsible for ensuring that an 
appropriate relationship is maintained between the Group and 
the external auditors.

The policy for the use of the external auditors for non-audit related 
purposes was reviewed by the Audit & Risk Committee during the 
financial year and it was determined that this remained appropriate 
and no changes were made. The policy is designed to control the 
provision of non-audit services by the external auditors in order to 
ensure that their objectivity and independence are safeguarded. 
The policy provides that preference should be given to retaining 
consultants other than from the external auditors unless strong 
reasons exist to the contrary, and that non-audit fees paid to the 
auditor should not exceed 100% of the audit related fees paid 
in that year, and the three-year average of non-audit fees paid to 
the auditor should not exceed 50% of the annual audit fees. The 
policy further requires that the provision of any non-audit services 
by the external auditors is subject to prior approval by the Audit 
& Risk Committee. The Audit & Risk Committee closely monitors 
the amount the Company spends with the external auditors on 
non-audit services. The only non-audit services provided by the 
auditors in the year relate to the review of the Company’s half-year 
results which the Audit & Risk Committee accepted was work 
best undertaken by the external auditors. These fees represented 
12.4% of the annual audit fees and the three-year average was 
13.2%. Details of the fees, split between audit and non-audit 
services, payable to the external auditors are given in Note 4 to  
the Financial Statements.

The Audit & Risk Committee considered the external auditor's 
performance during the year and reviewed the level of fees charged, 
which are considered appropriate given the size of the Group.  

Appointment of auditors

Having considered the results of the Audit & Risk Committee’s 
work, the Board is recommending the re-appointment of KPMG 
LLP as auditors of the Group for FY2021. PricewaterhouseCoopers 
will continue to perform the audit of the Group’s Middle Eastern 
operations. KPMG LLP has expressed its willingness to continue 
as external auditors of the Group. Separate resolutions proposing 
its reappointment and the determination of its remuneration will 
be proposed at the Annual General Meeting to be held on 10 
September 2020.

As noted previously, the Group’s external audit contract was last 
tendered in April 2001. The Audit & Risk Committee recognises 
the change made by the UK Financial Reporting Council regarding 
the retendering of audit services at least once every ten years 
for companies in the FTSE 350 and above. This, alongside the 
transition arrangements available under the Companies Act 
2006, requires that a new auditor be appointed for services to 
commence for the FY2025 audit at the latest. KPMG LLP’s own 
procedures require the rotation of the lead audit partner after 
five years, which took place as at the end of FY2016 with Chris 
Hearld appointed as lead partner. The Audit & Risk Committee 
had intended to retender external audit services in FY2021, 
for commencement of services in FY2022. However, the Audit 
& Risk Committee has decided to extend the timetable by a 
further 12 months due to COVID-19 and related Government 
social distancing guidance, which is not conducive to conducting 
a retender exercise in the immediate short term. External audit 
services will now be retendered in FY2022, for commencement of 
services in FY2023. In the meantime, the Audit & Risk Committee 
has recommended that KPMG LLP should remain as auditors, on 
the basis that the current audit partner from KPMG LLP is a strong 
and independent partner who the Audit & Risk Committee is 
satisfied will robustly challenge management appropriately. 

Code of Conduct

The Company remains committed to the highest standards of 
business conduct and expects its Directors, employees, consultants 
and other stakeholders to act accordingly. The Company has a well-
established Code of Conduct which incorporates a whistleblowing 
policy. These policies are actively promoted within the Group. Code 
of Conduct training is covered in our induction programme for new 
employees and where appropriate, this is reinforced on an annual 
basis via an online training course for existing employees.

Communicating with shareholders

The Company places considerable importance on communication 
with its shareholders, including both institutions and private 
shareholders. The Group’s Chief Executive and Group Finance 
Director are closely involved with investor relations. The Group’s 
Chairman also regularly meets with investors. The views of the 
Company’s major shareholders are reported to the Board and  
are regularly discussed at meetings of the Board and at the 
various committees of the Board, including, where appropriate, 
the Audit & Risk Committee.

Approval of Annual Report and Financial Statements

Having reviewed the Annual Report and Financial Statements 
and verified its contents with key internal stakeholders, the 
Audit & Risk Committee advised the Board that in its opinion 
the Annual Report and Financial Statements was fair, balanced 
and understandable overall and provides all the information 
necessary to enable shareholders to assess the performance, 
business model and strategy of the Group. 

This report was approved by the Board on 22 June 2020.

Bob Contreras  
Chairman of the Audit & Risk Committee

74   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Nomination Committee Report

The Nomination Committee presents its report in relation to the 
financial year ended 31 March 2020. Chaired by David Shearer, 
the key functions of the Nomination Committee are to review  
the structure and composition of the Board, to identify and 
propose to the Board suitable candidates to fill Board vacancies, 
and to undertake succession planning for Board and senior 
management positions.

Operation of the Nomination Committee

The Nomination Committee generally meets on two occasions 
during a year, although it can meet more regularly if required. 
The Company Secretary acts as secretary to the Nomination 
Committee. The members of the Nomination Committee can, 
where they judge it necessary to discharge their responsibilities, 
obtain independent professional advice at the Company’s expense.

Composition of the Nomination Committee

The Nomination Committee’s duties include, inter alia:

•  ensuring that there is a formal and transparent procedure for  

the appointment of new Executive and Non-Executive Directors 
to the Board and making recommendations to the Board on  
such appointments;

•  reviewing the size and composition of the Board along with 

membership of Board Committees;

•  evaluating the balance of skills, knowledge and experience  

on the Board;

•  ensuring that succession planning is in place for the Board  

and senior management;

•  ensuring that Non-Executive Directors are able to devote 

sufficient time to discharge their duties;

•  making recommendations to the Board in respect of Directors 

standing for re-election; and 

•  overseeing the development of a diverse pipeline for  

succession to the Board.

The Nomination Committee comprises the Chairman, David 
Shearer, and the four independent Non-Executive Directors, 
Bob Contreras, Rob Barclay, Rhian Bartlett and David Garman. 
Appointments and attendance at meetings during the year are 
set out below. Biographies of the members of the Nomination 
Committee are set out on pages 62 and 63.

The terms of reference of the Nomination Committee are reviewed 
annually by the Committee and proposed changes are made to the 
Board. The current terms are published on the Company’s website  
at speedyservices.com/investors and are also available in hard  
copy form on application to the Company Secretary. 

Attendance

The Nomination Committee met on two occasions during the year. 
Details of the attendance at Nomination Committee meetings are 
set out in the table below. At the invitation of the Chairman, the 
Chief Executive may attend meetings. The Group’s HR Director 
may also be invited to attend, particularly where discussions  
are taking place around succession planning within the Group.

Nomination Committee members and meetings attended

Name 

Position 

Meetings  
attended

David Shearer 
(Chairman)

Non-Executive Chairman 

2/2 

Bob Contreras 

Non-Executive Director 

Rob Barclay   

Non-Executive Director 

Rhian Bartlett1 

Non-Executive Director 

David Garman 

Non-Executive Director  

2/2

2/2

1/1

2/2

1Rhian Bartlett was appointed on 1 June 2019 as member of the Nomination Committee.

David Shearer 
Chairman of the Nomination Committee

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Nomination Committee Report continued

The Nomination Committee leads the process for all Board 
appointments, carefully evaluating the skills available on the 
Board and how these may be best balanced and enhanced 
by agreeing the person specification, selecting external 
recruitment consultants, considering all candidates and making 
recommendations to the Board for appointment. In selecting 
candidates, the Nomination Committee gives due consideration 
to the benefits of diversity. All recommendations made are on 
merit against objective criteria.

During the year the Nomination Committee undertook all of the 
duties set out above and additionally reviewed the leadership 
needs of the organisation and succession planning for key 
individuals, including Executive and Non-Executive Directors. 
The review included the identification of talented individuals for 
key management roles and development across the Group, along 
with the encouragement of exceptional talent and discussion of 
relevant retention initiatives. 

The Nomination Committee recommended the three-year 
extension of the term of appointment of David Garman to  
expire at the Company’s Annual General Meeting in 2023.

The review of the structure, size, composition and diversity of 
the Board in FY2019 resulted in the recommendation that an 
additional Non-Executive Director be appointed. This culminated 
in the appointment of Rhian Bartlett to the Board, Audit & Risk, 
Nomination and Remuneration Committees on 1 June 2019. The 
appointment process and search and selection activities were 
reported on in the Company’s Annual Report and Accounts 2019. 
In the annual review for FY2020 it was agreed to defer conclusion 
of the discussion of the size and composition of the Board until 
after the annual review of the Group strategy and the external 
Board and Committee evaluations. These subsequently resulted 
in the Committee recommending to the Board:

•  Appointment of an additional Non-Executive Director. The 
appointment will provide an opportunity to increase Board 
diversity, experience and knowledge and particularly within 
the business transformation, people matters and HR leadership 
areas. It is anticipated that such skills will both support the 
business and complement the Board and its Committees 
existing skills and knowledge and contribute to greater Board 
effectiveness. The selection process for the new Non-Executive 
Director will be managed by the Committee and commence later 
in FY2021, as the situation under COVID-19 permits.

•  Division of the role of Senior Independent Director and Chair  
of Audit & Risk Committee held by Bob Contreras, to facilitate  
a more even balance of responsibilities and increased focus  
on each role. This would be effected by the appointment of 
David Garman as the Senior Independent Director effective  
from 1 August 2020;   

•  Consideration given to increasing the effective allocation of 
time input for the Chairman of the Board, David Shearer. This 
will be considered by the potential appointment of a new Chair 

of the Nomination Committee, following the appointment of 
the new Non-Executive Director.  David Shearer would remain 
a member of the Nomination Committee following such 
appointment; and 

•  Having regard to the size of the Board, reducing the membership 

of its Committees to three Non-Executive Directors to better 
balance Director responsibilities and strengthen engagement 
and challenge between the Committees and the Board. These 
changes would be effected by David Garman stepping down from 
the Audit & Risk Committee, Rob Barclay from the Nomination 
Committee and Bob Contreras from the Remuneration Committee, 
in each case effective from 1 August 2020. Following the 
appointment of a new Non-Executive Director the Committee will 
review whether Rhian Bartlett continues on the Remuneration 
Committee or is replaced by the new Non-Executive Director. 
This would enable Committee responsibilities to continue to be 
shared across all Non-Executive Directors. 

The Board approved the recommendations on 22 June 2020. 

The appointment of an additional Non-Executive Director together 
with the other changes to be implemented as detailed above, are 
intended to build further upon the Board’s diversity and promote 
a better balance of responsibilities across the Board and its 
Committees contributing to increased effectiveness as a whole. 
An additional Non-Executive Director will also provide additional 
scope for succession and refreshing the Board in due course.

With regard to the appointment of a new Non-Executive Director 
the Group continues to recognise the importance of diversity, 
including gender diversity, at all levels of the organisation and 
is mindful of the Hampton-Alexander Review recommendations, 
such that female directors are to comprise 33% of boards. The 
Committee will continue to have regard to this recommendation 
when considering future Board appointments.

Diversity

Continuing to develop an increasingly diverse and inclusive 
workforce is an important factor in supporting the Company’s 
strategy which additionally helps create a sustainable and 
prosperous business. As detailed above, these principles are 
supported in the composition of our Board and its future 
appointments. More generally the Group’s approach to equality 
and diversity can be seen on page 32 of the Strategic Report, 
along with details of the gender balance of those personnel in 
senior management and their direct reports.

The Nomination Committee has recommended the re-election of 
all Directors standing for re-election at the forthcoming Annual 
General Meeting.  

This report was approved by the Board on 22 June 2020.

David Shearer  
Chairman of the Nomination Committee

76   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Remuneration Report

Annual Statement

The Remuneration Committee presents its report in relation to  
the financial year ended 31 March 2020. This year’s report has 
been split into three sections: 

•  this Annual Chair’s Statement summarising major decisions  

and any relevant changes to remuneration;

•  the Remuneration Policy Report, which sets out the Group’s 
proposed policy on the remuneration of the Executive and  
Non-Executive Directors for the next three years; and

•  the Annual Remuneration Report outlining how the Group’s 

Remuneration Policy was implemented in FY2020.

In accordance with the Large and Medium-sized UK companies 
and Groups (Accounts and Reports) (Amendment) Regulations 
2013, (the ‘Regulations’), at the 2020 Annual General Meeting 
(‘AGM’) the Company will be asking shareholders to vote on two 
separate resolutions as follows:

•  the binding triennial vote on the Directors’ Remuneration Policy, 
which will, subject to shareholder approval, become formally 
effective as at the date of the AGM; and 

•  an advisory vote on the Annual Report on Directors’ 

Remuneration, which provides details of the remuneration earned 
by Directors for performance in the year ended 31 March 2020.

The Committee has undertaken a thorough review of the 
remuneration structures in place for the Executive Directors, to 
ensure that the policy remains fit for purpose for the next three 
year cycle. Some modifications to the policy are being proposed 
to take account of the new remuneration requirements of the UK 
Corporate Governance Code, the relevant policies of shareholder 
representative bodies and the constructive input received from 
our shareholders during consultation and emerging best practice, 
while retaining our focus on sustainable performance and 
delivering long-term shareholder value. Our conclusion is that 
the current remuneration structure continues to drive the right 
behaviours which has been endorsed by our shareholders who 
approved last year’s remuneration report with circa 98% vote in 
favour. The modifications we are proposing are in response to the 
constructive input of shareholders and emerging best practice.

Performance and reward for FY2020

Speedy has produced an encouraging set of results against volatile 
market conditions for the financial year ended 31 March 2020; with 
the final month of the year under the shadow of COVID-19, which 
reduced annual profit. The performance for FY2020 is reflected in 
the Executive Directors’ variable pay outturns. 

The annual bonus was based on challenging financial performance 
targets assessed against Group PBT (70%) and ROCE (30%), both 
on a pre-IFRS 16 basis. Threshold levels of performance were not 
met and no bonus will be payable for FY2020. 

Rob Barclay 
Chairman of the Remuneration Committee

The Performance Share Plan (‘PSP’) awards granted in 2017, to 
the Executive Directors and other participating members of the 
management team, are due to vest in June 2020. The awards 
were based fifty percent on an adjusted Earnings Per Share (on a 
pre-IFRS 16 basis) (‘EPS’) performance condition and fifty percent 
on a relative Total Shareholder Return (‘TSR’) condition, both 
measured over the three-year performance period to 31 March 
2020. Speedy’s TSR performance ranked above the upper quartile 
against the constituent members of the FTSE 250 (excluding 
investment trusts) and 100% of this element of the award will 
vest. EPS was 5.21p (on a pre-IFRS 16 basis) which was below 
threshold of 5.41p and this element of the award will not vest.  
On the basis of the foregoing, 50% of the total award made is 
due to vest in June 2020.  

The variable pay outcomes are consistent with the outturns 
against the performance targets. The Committee was satisfied 
that the short and long-term variable pay outturns accurately 
reflect the wider performance of the Group and has not exercised 
discretion to override the calculation of the pay out on the 
vesting outcomes. The outturn of the TSR element of the share 
award was additionally considered in the light of the underlying 
performance of the Company over the three year performance 
period, with year on year increases in adjusted profit before tax 
and EPS (both on a pre-IFRS 16 basis). The Committee determined 
that the vesting of the TSR related element would be reflective of 
its underlying performance over the performance period. 

Governance  Speedy Hire Plc Annual Report and Accounts 2020   77   

Strategic ReportCorporate  InformationFinancial  StatementsGovernanceRemuneration Report continued

Proposed amendments to our Directors’ Remuneration  
Policy for FY2021

The current remuneration policy was approved at the 2017 AGM 
and the remuneration framework has contributed to the success 
of the Group, focusing on incentivising the management team to 
continue to deliver value to shareholders and aligning rewards 
to sustainable performance. The implementation of the current 
policy has been strongly endorsed by our shareholders with an 
advisory vote of circa 98% in favour in 2019.

No fundamental changes to the overarching remuneration 
policy are being proposed. However, a number of modifications 
are being proposed to take account of the new UK Corporate 
Governance Code, updated shareholder guidelines and current 
market practice that will allow flexibility to deliver appropriate 
rewards and drive performance over the next policy cycle. This 
year, we consulted with major shareholders and the revisions 
proposed are in response to the constructive feedback received 
and emerging best practice.

•  Pension allowances for newly appointed Executive Directors 
will be in line with those available to the majority of the UK 
workforce; currently 3.0%. For existing Executive Directors, 
the maximum pension allowance in the policy will be reduced 
from 20% of salary to 15% immediately on approval of the 
policy. The pension contribution levels for incumbent Executive 
Directors will reduce to be fully aligned to the level of the 
majority of the UK workforce by the end of the policy.

•  We are significantly increasing the in-employment shareholding 

requirement from 100% to 200% of salary, to further align  
the interests of the Executive Directors with shareholders.  
New Executive Directors will be required to meet this 
requirement within five years of appointment to the Board. 
Incumbent Executive Directors will be expected to reach the 
increased requirement within a reasonable timeframe of the 
adoption of the new policy.

•  A post-cessation shareholding requirement will be introduced 

for all Executive Directors for a period of two years post-
employment. The requirement will be the same as the 
in-employment shareholding requirement in year one (or the 
Executive Director’s actual shareholding on departure, if lower), 
reducing to 50% of the year one holding for the following year. 

This will apply to shares acquired (net-of-tax) under awards 
granted after the date the policy takes effect. Shares purchased 
from the Executive Directors’ own funds would not be included 
to avoid discouraging the purchase of shares in the future.

•  The annual bonus maximum in the policy will be increased 

from 100% to 125% of salary, at the same time introducing a 
compulsory deferral into shares, which vest after two years, for 
any bonus in excess of 100% of salary. We will continue to use 
the additional headroom conservatively.

•  The current exceptional limit of 200% of salary for PSP awards 
in the current policy, which has not been utilised during the 
policy period, will be removed in the new policy.  The annual 
policy maximum will remain at 150% of salary.

Application of the Remuneration Policy in FY2021 

Base salary

Base salaries for each Executive Director are reviewed annually 
by the Remuneration Committee, taking account of the Directors’ 
performance, experience and responsibilities with any changes 
effective from 1 April. When determining Executive Directors’ 
base salaries, the Remuneration Committee has regard to 
economic factors, remuneration trends and the general level of 
salary increases awarded throughout the Group. 

Due to the outbreak of COVID-19 the Company’s annual salary 
review due on 1 April 2020 has been deferred. All Directors and 
senior management agreed to a three month 20% reduction in 
salaries and fees from 1 April 2020.

Annual bonus

For the financial year beginning 1 April 2020, the maximum 
annual bonus opportunity will be held at 100% of salary, 
unchanged from the previous financial year. However, while the 
current COVID-19 landscape remains uncertain, we propose 
to defer any decision on whether it is appropriate to operate a 
bonus plan for FY2021 until later in the year.  To the extent the 
bonus plan is operated, threshold, target and stretch targets will 
be disclosed in the relevant year’s remuneration report.

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Remuneration Report continued

PSP

The annual policy maximum is 150% of salary. Speedy has always 
used the policy headroom conservatively and will continue to do 
so. Performance has historically been assessed against relative 
total shareholder return (‘TSR’) (50% of the award) and earnings 
per share (‘EPS’) growth targets (50% of the award) over three 
financial years. 

In recent years awards under the PSP have been made in late 
May. However, given current market volatility as a consequence 
of the COVID-19 pandemic we are proposing to delay PSP awards 
for FY2021 until we are better able to determine the most 
appropriate measures and set meaningful performance targets.  
Should we consider using significantly different metrics to EPS 
and TSR, we would first consult with major shareholders.

For any awards that may be made in FY2021, the grant levels  
will not exceed 125% of salary, significantly below the maximum 
levels permitted in the policy. The Company will continue to set 
robust and challenging performance targets. The current two  
year post-vesting holding period will continue to apply to  
vested PSP awards. 

As required by the Regulations, we have disclosed in this year’s 
report the ratio between the Chief Executive’s remuneration and 
that of the median, lower and upper quartile of UK employees. 
Further details can be found at page 97.

Shareholder engagement

In addition to the shareholder consultation on the proposed 
Directors’ Remuneration Policy referred to above, the 
Committee takes an active interest in any shareholder views 
on the Company’s executive remuneration and is mindful of 
the concerns of shareholders and other stakeholders. We will 
continue to take into account the views of our shareholders 
as appropriate. The Committee was pleased by the strong 
support received from shareholders for the Annual Report 
on Remuneration at the 2019 AGM. I am grateful for the 
consideration and constructive feedback from shareholders 
during the consultation process this year.

Conclusion

Our Directors’ Remuneration Policy continues to drive the 
intended performance from the Executive Directors in challenging 
market conditions. 

We acknowledge shareholders’ preference for dividend 
equivalents to be delivered in shares, and to vest only to the 
extent the award vests. This is the approach we have applied 
historically and will continue to apply going forward.

I hope you find this report clear and helpful in understanding our 
remuneration policy and practices, and I look forward to receiving 
continued shareholder support for the related shareholder 
resolutions at our AGM.

This report was prepared by the Remuneration Committee  
and approved by the Board on 22 June 2020.

Rob Barclay  
Chairman of the Remuneration Committee

Pay and practices in the wider Group

When considering the Remuneration Policy for the Executive 
Directors, the Remuneration Committee takes into account pay 
and employment conditions across the Company. Every employee 
in Speedy participates in a discretionary bonus scheme relevant 
to their role, ensuring all employees are able to share in the 
success of the organisation. In addition, alongside the Company 
wide salary review process, investment has also been made 
during the year to ensure that employees are paid above the 
National Living Wage and further increases have been given 
to employees in key roles where recruitment and retention 
is a priority. Our apprentices are paid well above the relevant 
apprentice minimum wage during their first year and then at least 
the relevant minimum or living wage until they transfer off the 
apprenticeship scheme, at which point they are paid above the 
National Living Wage.

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Directors’ Remuneration Policy Report

•  Alignment to culture: the remuneration principles encourage 

behaviour that the Committee expects; and

•  Proportionality: the link between individual awards, the delivery 
of strategy and the long-term performance of the Group is clear.

As a result, the Remuneration Committee has determined 
that the remuneration of Executive Directors will provide an 
appropriate balance between fixed and performance related 
pay elements. The Remuneration Committee will continue to 
review the Remuneration Policy to ensure it takes due account 
of remuneration best practice and that it remains aligned with 
shareholders’ interests.

Directors’ Remuneration Policy table

The table below summarises each element of the Remuneration 
Policy for the Executive Directors, explaining how each element 
operates and the links to the corporate strategy. If approved, the 
policy will be effective from the date of the Company’s 2020 AGM.

This policy report in full can also be found on the Company 
website (www.speedyhire.com); it has been prepared in 
accordance with the provisions of the Companies Act 2006 
(“the Act”) and the Large and Medium-sized Companies and 
Groups (Accounts and Reports) (Amendment) Regulations 2013 
(“the Regulations”) as amended, the UK Corporate Governance 
Code, the Financial Conduct Authority’s Listing Rules and the 
Disclosure and Transparency Rules. It also takes into account the 
accompanying Directors’ Remuneration Reporting Guidance.

The proposed policy has been determined after reviewing 
the impact of the previous policy, considering the Company’s 
strategy, remuneration philosophy and business model.  The 
new Corporate Governance Code and updated shareholder and 
proxy guidelines and wider best practice have also been taken 
into account in the proposed policy being formally submitted for 
approval in the required triennial vote at the 2020 AGM.

The overall approach to remuneration remains consistent, with 
modest adjustments to ensure the policy continues to underpin 
the performance of the business and addresses the requirements 
of the revised UK Corporate Governance Code. The Committee’s 
overall policy continues to deliver a balanced remuneration 
package to executives that is focused on total remuneration, 
rather than the individual market positioning of each element 
of pay; with a significant proportion of the package based on 
performance related variable pay.

The Remuneration Report will note how the Remuneration Policy 
has been implemented over the previous year and how it will be 
implemented in the following year.

This part of the Directors’ Remuneration Report sets out the 
Remuneration Policy for the Group. This new Remuneration Policy 
will be put to shareholders for approval in a binding vote at the 
2020 AGM and if approved it will be effective from that date.  
The Remuneration Committee’s current intention is that the 
revised policy will operate for the three year period to the  
Annual General Meeting in FY2024. 

Policy overview

The primary objective of the Remuneration Policy is to promote 
the long-term success of the Group. In working towards the 
fulfilment of this objective the Remuneration Committee takes 
into account a number of factors when setting the Remuneration 
Policy for the Executive Directors including the following:

•  the need to attract, retain and motivate high calibre Executive 

Directors and senior management;

•  internal pay and benefits levels, and practice and employment 

conditions within the Group as a whole;

•  the recommendations set out in the UK Corporate Governance 
Code and the views of shareholders and their representative 
bodies; and

•  periodic external comparisons to examine current market trends 
and practices and equivalent roles in similar companies taking 
into account their size, business complexity, international scope 
and relative performance.

Our remuneration structure is intended to be simple and 
transparent, and to contribute to the building of a sustainable 
performance culture. The main elements of the remuneration 
package for Executive Directors are a base salary, benefits 
and pension provision and, subject to stretching performance 
conditions, an annual bonus plan and shares awarded under a 
Performance Share Plan (‘PSP’).

The key principles of the policy are:

•  Clarity: maintain transparency of our competitive total 

remuneration structure that is driven by our business strategy 
and model, focuses on sustained long-term value creation  
and is aligned with the interests of shareholders;

•  Predictability: to ensure that targets set each year result 

in stretching ambitions and that the scale of the reward is 
proportionate; 

•  Simplicity: ensure the remuneration structure avoids 

unnecessary complexity, with a reward package that balances 
short and long-term performance, rewarding Company and 
personal performance;

•  Risk is appropriately managed. The remuneration of Executive 
Directors provides an appropriate balance between fixed and 
performance related pay elements: restraint on fixed pay, with  
a substantial proportion of total remuneration based on variable 
pay linked to performance;

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Directors’ Remuneration Policy table

Salary

Purpose and  
link to strategy

Recognises the knowledge, skills and experience, as well as the size and scope of the role.

Provides an appropriate level of basic fixed income avoiding excessive risk arising from over  
reliance on variable income. 

Operation

Normally reviewed annually with changes typically effective 1 April.

Paid in cash on a monthly basis.

Pensionable.

Comparison against companies with similar characteristics and sector peers are taken into  
account in review.

Internal reference points, the responsibilities of the individual role, progression within the role  
and individual performance are also taken into account.

Maximum

There is no prescribed maximum annual basic salary or salary increase. Details of the current salary 
levels are set out in the Annual Remuneration Report. 

Salary increases are awarded at the discretion of the Committee. Salary increases (in percentage 
of salary terms) will ordinarily be considered in relation to those applied to the broader employee 
population. 

The Committee retains discretion to award a lower or a higher increase to recognise, for example, 
the performance and contribution of an individual; an increase in the scale, scope or responsibility 
of the role and/or to take account of relevant market movements.

Where an Executive Director’s salary is set below market levels at appointment, a series of increases 
may be given (in addition to the factors listed above) in order to achieve the desired salary 
positioning, subject to satisfactory individual performance.

Performance targets

None, although the overall performance of the individual is considered as part of the review  
process alongside the factors described in how we operate the salary policy.

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Directors’ Remuneration Policy table

Benefits

Purpose and  
link to strategy

To provide a competitive benefits package.

To promote recruitment and retention.

Operation

Benefits may include a car or car allowance, health benefits including permanent incapacity  
and life insurance.

Other benefits including relocation allowances may be offered if considered appropriate and 
reasonable by the Committee. Executive Directors may be eligible for other benefits which are 
introduced for the wider workforce on broadly similar terms.

Any reasonable business related expenses can be reimbursed (including the tax thereon if 
determined to be a taxable benefit).

Executive Directors are also eligible to participate in any all employee share plans operated by  
the Company, in line with prevailing HMRC guidelines (where relevant), on the same basis as for 
other eligible employees.

Defined contribution and/or pension allowance.

Maximum

There is no maximum limit, but the Committee reviews the cost of the benefits provision on a  
regular basis to ensure that it remains appropriate. The value of benefits is based on the cost to  
the Company and varies according to individual circumstances.

The maximum level of participation is subject to the limits imposed by HMRC from time to time  
(or a lower cap set by the Company).

Performance targets

n/a

Pension

Purpose and  
link to strategy

Provide market competitive retirement benefits, to reward sustained contribution. 

Operation

Defined contribution and/or pension allowance.

Maximum

For new Executive Directors appointed after the 2020 AGM, Company contribution levels will be aligned 
to those available to the majority of the UK workforce, from time to time, currently 3.0% of salary.  

For incumbent Executive Directors an immediate reduction of maximum in policy on 1 April 2020 to 
15% of basic salary p.a. The pension contribution levels for incumbent Executive Directors will be further 
reduced to be fully aligned to the level of the majority of the UK workforce by the end of the policy.

Performance targets

n/a

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Directors’ Remuneration Policy table

Bonus

Purpose and  
link to strategy

Incentivise delivery of specific strategic objectives, including financial performance and personal 
annual goals.

Maximum bonus only payable for achieving demanding targets.

Operation

Annual awards based on targets set by the Committee normally at the beginning of each  
financial year.

The extent to which the performance measures have been achieved is determined by the  
Committee after the end of the performance period. The level of bonus for each measure is 
determined by reference to the actual performance relative to that measure’s performance targets, 
on a pro-rata basis. 

All bonus payments are at the ultimate discretion of the Committee and the Committee retains an 
overriding ability to ensure that overall bonus payments reflect its view of corporate performance 
during the year when determining the final bonus amount to be awarded.

Annual bonus awards up to 100% of salary are normally payable in cash (although the Committee 
reserves the right to deliver some or all of the bonus in shares which may be deferred).

For financial years commencing after the policy is approved, the portion of any bonus paid,  
in excess of 100% of salary, will normally be compulsorily deferred into shares, for two years. 

Malus and clawback provisions apply to allow recoupment of bonus (including as to any deferred 
portion) for three years from the bonus payment date in the event of material misstatement of 
performance, a significant failure of risk management, serious misconduct, corporate failure or 
reputational damage.  

Participants may also be entitled to receive dividend equivalents on vested shares.  
Any dividend equivalents would normally be delivered in shares.

Maximum

The annual bonus policy maximum is 125% of salary in any financial year.

Performance targets

Performance metrics will be set for each financial year by the Committee aligned to the Company’s 
key strategic objectives.

Group financial measures (e.g. profit before tax) will apply. 

Personal and/or strategic KPIs may apply for a minority of the bonus.

The performance metrics and targets are reviewed annually to ensure they remain appropriate.  
The Committee retains the discretion to set alternative metrics as appropriate.

Performance measured over one financial year.

No more than 50% of the maximum opportunity will be payable for on-target performance.

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Directors’ Remuneration Policy table

Performance Share Plan

Purpose and  
link to strategy

Aligned to main strategic objectives of delivering long term value creation. 

Align Executive Directors’ interests with those of shareholders.

To recruit and retain Executive Directors. 

Operation

Discretionary conditional awards or nil or nominal cost options are normally granted annually.

The Committee reviews the quantum of awards annually and monitors the continuing suitability  
of the performance measures.

Awards vest subject to performance conditions normally measured over three financial years.

A two-year post vesting holding period requirement, which continues to apply post employment  
for shares that vest, net of sales to settle tax or other withholding due on the vesting or exercise  
of awards.

Malus and clawback provisions apply to allow recoupment for a period of three years following the 
vesting of an award, in the event that the value of a vested award is subsequently found to have 
been overstated as a result of a material misstatement of performance, a significant failure of risk 
management, serious misconduct, corporate failure, reputational damage, or any other matter which 
the Committee deems relevant.  

Participants may also be entitled to receive dividend equivalents on shares which vest.

Any dividend equivalents accrued will normally be delivered in shares.

All awards are subject to the discretions contained in the relevant plan rules.

Maximum

Maximum annual awards of 150% of salary in any financial year may be granted.

Performance targets

Performance normally measured over three years.

Awards currently vest based on performance against stretching relative Total Shareholder Return 
targets and/or absolute Earnings Per Share targets set and assessed by the Committee. However, 
different measures may be set for future award cycles, as appropriate, to reflect the strategic priorities 
of the business at that time.

Performance underpins may also apply.

A maximum of 25% vests at threshold increasing to 100% vesting at maximum on a straight  
line basis.

The Committee retains discretion to override formulaic outcomes in deciding the level of vesting to 
reflect wider Company performance. Any exercise of discretion will be fully disclosed to shareholders.

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Remuneration Report continued

Directors’ Remuneration Policy table

Shareholding  requirements

Purpose and  
link to strategy

To strengthen the alignment between the interests of the Executive Directors and those  
of shareholders.

Operation

In accordance with best practice, share ownership requirements apply during and after employment.

In-employment  shareholding requirement

Executive Directors will normally be required to retain at least 50% of the shares acquired on  
the vesting of share awards, net of tax, until the required level of shareholding is achieved.

Deferred bonus shares, vested PSP shares, shares subject to a holding period and open market 
purchase shares, including shares held by a spouse or children under 18 count towards this limit,  
on a net of tax basis.

Newly appointed Executive Directors would normally be expected to achieve the required 
shareholding within five years of the date of appointment.

Existing Executive Directors would normally be expected to achieve the increased requirement 
within a reasonable timeframe of the adoption of the policy.

Post-employment shareholding requirement

Executive Directors will normally be required to retain a shareholding until the second anniversary 
of the date they ceased to be an Executive Director.

The post-cessation shareholding requirement will apply to shares acquired (net-of-tax) under awards 
granted under this policy. Shares acquired under all employee share plans or purchased from the 
Executive Directors’ own funds would not be included.

Maximum

Executive Directors are required to build up and maintain an in employment shareholding worth  
at least 200% of base salary.

Executive Directors will normally be required to retain a shareholding at the level of the  
in employment shareholding requirement, or the actual shareholding on cessation if lower,  
for a period of 12 months post employment; reducing to 50% of the year one holding for the 
subsequent 12 months.

Performance targets

n/a

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Directors’ Remuneration Policy table

Non-Executive Directors

Purpose and  
link to strategy

Operation

To attract and retain high calibre Non-Executive Directors. 

The Non-Executive Directors’ fees are set by the Board on the recommendation of the  
Executive Directors. No Director takes part in discussions relating to their own remuneration.

The fees are set taking into account the time commitment and responsibilities of the role.  
Additional fees may be payable in relation to extra responsibilities undertaken such as chairing  
a Board Committee and/or a Senior Independent Director or other designated role or being a 
member of a committee.

If there is a temporary yet material increase in the time commitments for Non-Executive Directors, 
the Board may pay extra fees on a pro-rata basis to recognise the additional workload.

Fees are normally paid monthly in cash and are normally reviewed annually.

Expectation that individuals build and maintain a shareholding equal to 100% of fees.

Non-Executive Directors can be reimbursed for any reasonable business related expenses  
(including the tax thereon, if determined to be a taxable benefit).

Non-Executive Directors do not participate in incentive or pension plans and are not eligible  
to receive benefits.

Maximum

There is no prescribed maximum fee or fee increase. Total fees for the Non-Executive Directors  
are subject to the overall limit set out in the Company’s Articles of Association.

Any increase will be guided by changes in market rates, time commitments and responsibility levels.

Performance targets

n/a

Notes: 
1  The choice of the performance metrics applicable to the annual bonus scheme reflect the Remuneration Committee’s belief that any incentive compensation should be appropriately 

challenging and tied to both the delivery of key financial targets and individual and/or strategic performance measures intended to ensure that Executive Directors are incentivised to  
deliver across a range of objectives for which they are accountable. The Remuneration Committee has retained some flexibility on the specific measures which will be used to ensure that  
any measures are fully aligned with the strategic imperatives prevailing at the time they are set.

2  The performance conditions applicable to the PSP awards were selected by the Remuneration Committee on the basis that a combination of relative TSR and key financial objectives provides 
strong alignment with the delivery of long-term returns to shareholders and incentivises strong Group financial performance – consistent with the Company’s objective of delivering superior 
levels of long-term value to shareholders. The Remuneration Committee has retained flexibility on the measures which will be used for future award cycles to ensure that the measures are 
fully aligned with the strategy prevailing at the time the awards are granted. Notwithstanding this, the Remuneration Committee would seek to consult with major shareholders in advance of 
any material change to the choice or weighting of the PSP performance measures.

3  The Remuneration Committee operates the annual bonus, PSP and all employee share plans in accordance with the relevant plan rules and where appropriate, the Listing Rules and HMRC 

legislation. The Remuneration Committee, consistent with market practice, retains discretion over a number of areas relating to the operation and administration of the plans. These include, 
for example, selecting the participants, the timing and quantum of awards and setting performance criteria each year, determining “good leaver” status, determining the extent of vesting 
based on the assessment of performance, form of payment, discretion to retrospectively amend performance targets in exceptional circumstances (providing the new targets are no less 
challenging than originally envisaged) and in respect of share awards, to adjust the number of shares subject to an award in the event of a variation in the share capital of the Company.

4  Consistent with HMRC legislation, the all employee Sharesave scheme does not have performance conditions.

5  Directors are eligible to receive payment, and any existing award may vest, in accordance with the terms of any such award made prior to the approval of the Remuneration Policy detailed  

in this report, and in accordance with the provisions of the Remuneration Policy in force at the time such award or right to receive payment was made or granted.

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Remuneration Report continued

Remuneration scenarios for Executive Directors

How employees’ pay is taken into account

The remuneration package comprises core fixed pay (base 
salary, pension and benefits) and performance based variable 
pay (annual bonus and the PSP). The chart below illustrates the 
composition of the Executive Directors’ remuneration packages 
under the proposed policy for threshold, on-target and stretch 
performance. 

Remuneration (£000s)

£
2
0
0

£
4
0
0

£
6
0
0

£
8
0
0

£
0

,

£
1
0
0
0

,

£
1
2
0
0

,

£
1
4
0
0

,

£
1
6
0
0

,

£
1
8
0
0

Minimum

100%

£459

Target

52%

21% 27%

£895

Maximum

35%

29%

36%

£1,331

Maximum  
+50%  
growth

29%

25%

46%

£1,573

Minimum

100%

£306

Target

52%

21%

27%

£592

Maximum

35%

29% 36%

£879

Maximum  
+50%  
growth

29%

25%

46%

£1,038

Fixed pay

Annual bonus

Long-term incentives

e
v
i
t
u
c
e
x
E
f
e
i
h
C

r
o
t
c
e
r
i
D
e
c
n
a
n
i
F
p
u
o
r
G

Notes: 
•  salary levels effective 1 April 2020 have not changed from the prior year. Due to the 
impact of COVID-19, the 1 April 2020 salary review has been deferred. All Directors 
agreed to a three month 20% reduction in salaries and fees from 1 April 2020 which  
is not accounted for in the graph;

• an approximated annual value of benefits based on FY2020 figures;

•  an annualised pension contribution (as at 15% of salary) based upon FY2020 figures.  
Note there will be a reduction over the policy period to align with rest of workforce;

•  below threshold performance comprises salary, benefits and pension only, with no bonus 

awarded and no PSP awards vested;

•  whilst the decision to operate a bonus and PSP awards for FY2021 has been deferred,  

it has been assumed on-target performance comprises annual bonus, based on maximum 
award levels of 100% of salary, with on-target bonus of 50% of the maximum, and for 
the PSP, maximum award levels of 125% of salary and an assumption that 50% of the 
performance shares will vest;

•  stretch performance comprises annual bonus awarded at the maximum level of 100% of 
salary, and for the PSP, an assumption that 100% of the performance shares will vest; and

•  stretch performance plus 50% share price appreciation illustrates the effect of a 50% 

growth in the Company’s share price on the value of the PSP awards.

The Remuneration Committee does not directly consult with 
employees regarding the remuneration of Executive Directors. 
However, the Chairman of the Committee is the designated 
employee Non-Executive Director and is involved in employee 
forum meetings and matters concerning employees across the 
UK. Pay and conditions across the Group are considered when 
designing the policy for Executive Directors and continue to 
be considered in relation to implementation of the policy. The 
Remuneration Committee regularly interacts with the HR function 
and senior operational executives and monitors pay trends across 
the workforce. Salary increases will ordinarily be (in percentage 
of salary terms) in line with those of the wider workforce. The 
requirement to consider wider pay and employment conditions 
elsewhere in the Group is considered by the Remuneration 
Committee to be a key objective and is embedded in the 
Remuneration Committee’s terms of reference.

By the end of the Remuneration Policy, if approved, pension 
allowance levels for Executive Directors will have been fully 
aligned to those of the majority of the UK workforce. Speedy is 
disclosing the pay ratio for the Chief Executive, compared to that 
of UK employees at the median, lower and upper quartile. This 
will be calculated annually going forward and the year-on-year 
trends considered in the wider context of employee pay  
at Speedy. 

How the Executive Directors’ Remuneration Policy  
relates to the wider Group

The Remuneration Policy described above provides an overview 
of the structure that operates for the most senior executives 
in the Group. Employees below executive level have a lower 
proportion of their total remuneration made up of incentive-
based remuneration, with remuneration driven by market 
comparators and the impact of the role in question. Long-term 
incentives are reserved for those judged as having the greatest 
potential to influence the Group’s strategic direction, earnings 
growth and share price performance. 

Consistent with the Group’s approach of recognising the 
contribution of its employees at all levels in the business, the 
Group operates bonus incentives throughout the Group, a long-
term service award scheme under which employees serving 10, 
20 and 25 years receive a range of additional benefits, including 
additional days of annual holiday entitlement. These benefits are 
popular amongst employees and the Group believes that they 
fulfil a business need by encouraging and rewarding the loyalty 
and motivation of long serving employees and by rewarding 
those employees with higher levels of experience.

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How shareholders’ views are taken into account

The Remuneration Committee considers shareholder feedback 
received in relation to the AGM each year and shareholder 
views on our executive remuneration policy more generally. The 
Committee consulted proactively with our major shareholders on 
the proposed new Remuneration Policy and revisions were made 
to take account of the feedback received where appropriate.
Outside of this, the Remuneration Committee seeks to engage 
with its major shareholders when any significant changes to the 
Remuneration Policy are proposed. The Remuneration Committee 
will consider shareholder feedback received in relation to the 
Directors’ Remuneration Report each year. The Remuneration 
Committee also has regard to additional feedback received from 
time to time, and closely monitors developments in institutional 
investors’ best practice expectations. 

Approach to recruitment and promotions

The remuneration package for a new Executive Director would be 
set in accordance with the terms of the approved Remuneration 
Policy prevailing at the time of appointment and take into account 
the skills and experience of the individual, the market rate for a 
candidate of that experience and the importance of securing the 
relevant individual.

The overarching principles applied by the Remuneration 
Committee in developing the remuneration package will be to set 
an appropriate base salary together with benefits and short and 
long-term variable pay that takes into account the complexity of 
the role. Salary would be provided at such a level as required to 
attract the most appropriate candidate and may be set initially at 
a below market level on the basis that it may progress towards a 
competitive market level once expertise and performance have 
been proven and sustained. Salary will be considered in the 
context of the total remuneration package.

The maximum level of variable pay which may be awarded to 
new Executive Directors, excluding the value of any buy-out 
arrangements, will be in line with the policy set above. In 
addition, the Remuneration Committee may offer additional cash 
and/or share-based elements to replace deferred or incentive 
pay forfeited by an executive leaving a previous employer when 
it considers these to be in the best interests of the Company and 
its shareholders. It will, where possible, ensure that these awards 
are consistent with awards forfeited in terms of the form of award, 
vesting periods and expected value. Such elements, may be 
made under Section 9.4.2 of the Listing Rules where necessary. 
Shareholders will be informed of any such arrangements at the 
time of appointment.

The Remuneration Committee may apply different performance 
measures, performance periods and/or vesting periods for 
initial awards made following appointment under the annual 
bonus and/or long-term incentive arrangements, subject to the 
rules of the plan, if it determines that the circumstances of the 
recruitment merit such alteration. A PSP award can be made 
shortly following an appointment (assuming the Company is not 
in a closed period).

For an internal Executive Director appointment, any variable pay 
element awarded in respect of the prior role may be allowed to 
pay out according to its original terms, adjusted, if appropriate to 
take account of the new appointment.

For external and internal appointments, the Remuneration 
Committee may agree that the Company will meet certain 
relocation and/or incidental expenses as appropriate.

The fee structure and quantum for Non-Executive Director 
appointments will be based on the prevailing Non-Executive 
Director fee policy taking into account the experience and  
calibre of the individual.

The Board evaluation and succession planning processes in  
place are designed to ensure there is the correct balance of skills, 
experience and knowledge on the Board. The activities of the 
Nomination Committee overseeing these matters are disclosed  
in the Nomination Committee Report.

Service contracts and approach to leavers

The Company’s policy is for Executive Directors to have service 
contracts which may be terminated with no more than 12 
months’ notice from either party. The Executive Directors’ service 
contracts are available for inspection by shareholders at the 
Company’s registered office.

The relevant dates of service contracts and notice periods for  
the current Executive Directors are set out as follows:

Executive Director 

Date of contract 

Notice period

Russell Down 

Chris Morgan 

8 January 2015 

13 January 2016 

12 months

9 months

No Executive Director has the benefit of provisions in his or her 
service contract for the payment of pre-determined compensation 
in the event of termination of employment. It is the Remuneration 
Committee’s policy that the service contracts of Executive 
Directors will provide for termination of employment by giving 
notice or by making a payment of an amount equal to the 
monthly basic salary and pension contributions in lieu of notice. 

88   Governance  Speedy Hire Plc Annual Report and Accounts 2020

Remuneration Report continued

The policy also provides that no Executive Director should 
be entitled to a notice period or payment on termination of 
employment in excess of the levels set out in his or her service 
contract and in determining amounts payable on termination, 
the Remuneration Committee will take into consideration 
the Executive Director’s duty to mitigate his or her loss when 
determining the amount of compensation.

Annual bonus may be payable with respect to the period of the 
financial year served although it will be pro-rated for time and 
paid at the normal pay out date. Different performance targets 
may be set for the remainder of this bonus period to reflect the 
Directors’ specific responsibilities. Any share-based entitlements 
granted to an Executive Director under the Company’s share 
plans will be determined based on the relevant plan rules. 
In certain prescribed circumstances, such as death, ill health, 
disability or other circumstances at the discretion of the 
Remuneration Committee, ‘good leaver’ status may be applied.
For good leavers, awards will normally vest at the normal vesting 
date. PSPs vesting will also be subject to the satisfaction of 
the relevant performance conditions at that time (including an 
overall performance underpin attached to the award) and pro-
rata reduction to reflect the proportion of the vesting period 
actually served. However, under the plan rules, the Remuneration 
Committee has discretion to determine that awards vest at 
cessation of employment and/or to disapply the time pro-rating 
requirement if it considers it appropriate to do so.

In relation to a termination of employment, the Remuneration 
Committee may make payments in relation to any statutory 
entitlements or payments to settle or compromise claims 
as necessary. The Remuneration Committee also retains the 
discretion to reimburse reasonable legal expenses incurred 
in relation to a termination of employment and to meet any 
transitional or outplacement costs if deemed necessary.  
Payment may also be made in respect of accrued benefits, 
including untaken holiday entitlement.

There is no provision for additional compensation on a 
change of control. In the event of a change of control, the PSP 
awards will normally vest on (or shortly before) the change of 
control subject to the satisfaction of the relevant performance 
conditions at that time and, unless the Remuneration Committee 
determines otherwise, reduced pro-rata to reflect the proportion 
of the vesting period served. Outstanding awards under any 
all-employee share plans will vest in accordance with the 
relevant scheme plan. Bonuses may become payable, subject 
to performance and, unless the Remuneration Committee 
determines otherwise, subject to a pro-rata reduction to reflect 
the curtailed performance period.

External appointments

The Board allows Executive Directors to accept appropriate 
outside commercial non-executive director appointments 
provided the aggregate commitment is compatible with their 
duties as Executive Directors. The Executive Directors concerned 
may retain fees paid for these services, which will be subject to 
approval by the Board. No Non-Executive Directorships in a listed 
company were held by the Executive Directors during the year.

Non-Executive Directors

The Chairman and Non-Executive Directors do not have contracts 
of service, but their terms are set out in letters of appointment. 
Appointments are subject to annual re-election by shareholders 
at the AGM and may be terminated by three months’ notice on 
either side. The letters of appointment of the Non-Executive 
Directors, copies of which are available for inspection at the 
Company’s registered office during normal business hours, 
specify an anticipated time commitment of 50 days per annum 
in relation to David Shearer and 15 days in relation to Bob 
Contreras, Rob Barclay, Rhian Bartlett and David Garman.

Relevant appointment letter and term dates of Non-Executive Directors are set out as follows: 

Non-Executive Director 

David Shearer2 

Bob Contreras 

Rob Barclay 

Rhian Bartlett 

David Garman 

Appointment  
letter date 

18 July 2018 

9 December 2015 

30 March 2016 

1 June 2019 

25 May 2017 

Month of last 
election 

July 2019 

July 2019 

July 2019 

July 2019 

July 2019 

 Expected month of expiry 
of current term 1 

July 2021

December 2021

April 2022

July 2022

July 2023

1  Subject to annual re-election by shareholders at the AGM.

2 Details relate to appointment as Non-Executive Chairman, original appointment as Non-Executive Director was September 2016.

Governance  Speedy Hire Plc Annual Report and Accounts 2020   89   

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Remuneration Report continued

Annual Remuneration Report

Remuneration Committee role and membership

The Remuneration Committee comprises four members: Rob Barclay (Chairman), Bob Contreras, Rhian Bartlett and David Garman,  
all of whom are considered by the Board to be independent Non-Executive Directors. Biographies of the members of the Remuneration 
Committee are set out on pages 62 and 63. Details of the attendance at Remuneration Committee meetings are set out below.

Remuneration Committee members and meetings attended

Name 

Rob Barclay  
(Chairman)

Bob Contreras 

Rhian Bartlett1 

David Garman 

Position  

Meetings attended

Non-Executive Director 

5/5 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

5/5

4/4

5/5

1 Rhian Bartlett was appointed on 1 June 2019 as member of the Remuneration Committee.

At the invitation of the Remuneration Committee Chairman, 
other members of the Board and senior management may attend 
meetings of the Remuneration Committee, except when their own 
remuneration is under consideration. No Directors are involved  
in determining their own remuneration. The Company Secretary 
acts as the secretary to the Remuneration Committee. The 
members of the Remuneration Committee can, where they 
judge it necessary to discharge their responsibilities, obtain 
independent professional advice at the Group’s expense.

The Remuneration Committee’s duties include:

•  to make recommendations to the Board on the Group’s 

framework and policy for the remuneration of the Executive 
Directors, Company Secretary and senior executives;

•  to review and determine, on behalf of the Board, executive 

During FY2020, the Remuneration Committee reviewed the 
following matters at its meetings:

•  determination of FY2019 bonuses for the Executive Directors 

and senior managers;

• Directors’ Remuneration Policy for FY2021 to FY2023;

•  determination of executive remuneration structure and 

application of the policy for FY2020 and FY2021;

• Executive Director post-employment shareholding requirement;

•  interim and final progress of employee share plan performance 

measures against targets and consequent approval of any 
vesting of awards;

• grant of awards to be made under the performance share plan;

• progress of bonus achievement for FY2020 executive bonuses;

remuneration and incentive packages to ensure such packages 
are fair and reasonable;

•  approval of 25-year long service awards for eligible employees 

and consideration of other awards based on long-service; 

• to review Directors’ expenses;

•  terms of reference for, and effectiveness of, the Remuneration 

•  to review Executive and Non-Executive Director shareholding 

Committee;

guidelines;

•  to determine the basis on which the employment of executives 

is terminated;

•  to design the Group’s share incentive schemes and other 
performance related pay schemes, and to operate and 
administer such schemes;

•  ongoing appropriateness and effectiveness of remuneration 
and benefits policies for Executive Directors and employees 
generally; 

• performance of external remuneration advisers; 

•  use of equity for employee share plans in relation to dilution 

headroom limits;

•  to determine whether awards made under performance related 

• review of the Non-Executive Chairman’s fee; and

and share incentive schemes should be made, the overall 
amount of the awards, the individual awards to executives  
and the performance targets to be used;

•  to ensure that no Director is involved in any decisions as to  

his/her own remuneration; and

•  to review regularly the ongoing appropriateness and 

effectiveness of all remuneration policies.

•  determining remuneration arrangements for senior management 

joiners and leavers.

The Remuneration Committee’s terms of reference are published 
on the Company’s website at speedyservices.com/investors  
and are also available in hard copy on application to the  
Company Secretary.

90   Governance  Speedy Hire Plc Annual Report and Accounts 2020

 
Remuneration Report continued

Advisers

Pension 

During the year, the Remuneration Committee received 
independent advice from the Executive Compensation practice 
of Aon plc, in connection with remuneration matters including 
the provision of general guidance on market and best practice, 
the preparation of the Directors’ Remuneration Policy at pages 
81 to 86 and the production of this report. Aon plc has no other 
connection or relationship with the Group and provided no 
other services to the Group during FY2020. Aon is a member of 
the Remuneration Consultants Group and is a signatory to its 
Code of Conduct. Fees paid to Aon for FY2020 totalled £58,745 
(excluding VAT) in respect of advice provided to the Remuneration 
Committee and for related matters. The Remuneration Committee 
also sought advice from the Group’s legal advisers, Pinsent Masons 
LLP, in connection with the production of this report, the 2014 
Performance Share Plan and the all employee share scheme (‘SAYE’). 

Implementation of the Remuneration Policy for FY2021 

The sections of the Annual Remuneration Report that have been 
audited by KPMG LLP are page 91 from ‘Non-Executive Directors’ 
to page 95 up to and including ‘Directors’ interests in the share 
capital of the Company’, but excluding paragraphs concerning 
‘Details of long-term incentive plan awards outstanding’, 
‘Dilution’, and ‘Shareholder voting at AGM’; and also including 
‘Pay ratio of the Chief Executive to average employee’ on page 97.

Base salary 

The salary for Russell Down and Chris Morgan will be held at 
£387,700 and £254,700 respectively. As a result of the COVID-19 
outbreak, the Company’s annual salary review normally due on 
1 April has been deferred. In addition, all Directors have agreed 
to a 20% reduction in salary and fees for a three-month period 
commencing 1 April 2020.

The Company pension allowance level for new Executive Director 
appointments will be aligned to those available to the majority of 
the UK workforce, from time to time, currently 3.0% of base salary. 

The maximum pension allowance in policy for incumbent 
Executive Directors will be reduced immediately on approval of 
the new Remuneration Policy, to 15% of base salary. The pension 
contribution levels for incumbent Executive Directors will further 
reduce to be fully aligned to the level of the majority of the UK 
workforce by the end of the policy.

Performance related annual bonus

The decision on whether to operate the annual bonus plan for 
Executive Directors for FY2021, will be deferred, until there is 
some greater clarity on the current COVID-19 pandemic and the 
wider implications for the Group. In any event, the maximum 
bonus opportunity for FY2021 will be held at the level for the 
previous financial year: 100% of salary. Performance measures 
and targets will be disclosed in the Directors’ Remuneration 
Report for the relevant year.

Long-term incentive plans 

The 2014 Performance Share Plan (‘PSP’) will continue to operate 
as the Company’s primary long-term incentive arrangement, 
whereby awards over shares will normally vest three years 
from grant, subject to continued employment and performance. 
Awards have historically been made in May however, the decision 
as to whether any awards will be made, and if so, the level of 
award and the relevant performance metrics and targets will be 
delayed, in response to the current market volatility as a direct 
result of the global COVID-19 pandemic.

To the extent awards are made for FY2021, the award levels will 
not exceed 125% of salary.

Non-Executive Directors

Current annual fee levels for Non-Executive Directors are as follows: 

David Shearer 

Bob Contreras 

Rob Barclay 

Rhian Bartlett2 

David Garman 

Role 

Non-Executive Chairman 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

Non-Executive Director 

 Committee 
chair role   

Nomination 

Audit & Risk 

Remuneration 

– 

– 

  1 April 20201 

    £132,500 

  1 April 2019

  £132,500

£54,500 

£49,500 

£42,500 

£42,500 

£54,500

£49,500

–

£42,500

1  The policy reflects a base Board fee of £42,500; additional fees for the Chairman of the Audit & Risk and Remuneration Committees of £7,000 and an additional fee for the Senior 

Independent Director of £5,000. Annual review of salary and fees normally effective 1 April has been deferred. All Directors, including the Non-Executive Directors, agreed to a three  
month 20% reduction in salaries and fees from 1 April 2020 due to the outbreak of COVID-19.

2  Rhian Bartlett’s annual fee on appointment as Non-Executive Director with effect from 1 June 2019 was £42,500 p.a. 

Governance  Speedy Hire Plc Annual Report and Accounts 2020   91   

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Directors’ remuneration for FY2020

The emoluments of the Directors of the Company for the year under review were as follows:

Executive Directors 

Russell Down 

Chris Morgan 

Non-Executive Directors 

David Shearer 

Bob Contreras 

Rob Barclay 

Rhian Bartlett5 

David Garman 

Totals 

Financial 
year 

2020 

2019 

2020 

2019 

2020 

2019 

2020 

2019 

2020 

2019 

2020 

2019 

2020  

2019 

2020 

2019 

Fees/basic 
salary 
£’000s 

Benefits 
£’000s 1 

Pension 
£’000s2 

388 

380 

255 

250 

133 

 86 

55 

53 

50 

48 

35 

– 

43 

41 

959 

858 

13 

14 

13 

14 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

58 

57 

38 

37 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

26  

28 

96 

94 

Annual 
bonus 
£’000s3 

– 

209 

– 

137 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

346 

Value of 
long-term 
Total 
incentives  remuneration 
£’000s 

£’000s4 

224 

618 

154 

372 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

683

1,278

460

810

133

86

55

53

50

48 

35

– 

43

41 

378 

990 

1,459 

2,316

1  Taxable benefits comprise a car or cash alternative, health insurance, and life insurance, including 0.48 pence per share for the SAYE 2019 awards granted in December 2019  

(being the value of the discount under the scheme). 

2  Russell Down and Chris Morgan received £58,155 and £38,208 respectively in lieu of pension contributions which are included in the Pension column above together with any actual 

pension contributions made.

3  For FY2020 the maximum bonus opportunity for the Executive Directors was 100% of salary, with 70% of the opportunity based on Group adjusted profit before tax and 30% based on 

ROCE, both on a pre-IFRS 16 basis. Details of actual performance against targets is set out below.

4  For FY2019 this reflects the TSR element of the 2015 award cycle of £75,000, the share price on the date of vesting was 59.40p. It also includes both the EPS and TSR elements of the  

2016 award cycle of £915,000. 

5 Rhian Bartlett was appointed as Non-Executive Director on 1 June 2019. 

Annual bonuses awarded in respect of FY2020 performance

Russell Down and Chris Morgan were eligible to receive bonuses with a maximum opportunity of 100% of salary in respect of financial 
and operational performance in FY2020. Details of the performance targets and resulting bonus outcome are set out in the table below: 

Measure 

Weighting 

Threshold/Target 

Stretch 

Result

Group adjusted profit before tax  
 (‘adjusted PBT’) before impact of IFRS 16 

70% 

£37.70m 

£41.47m 

Return on capital employed 
(‘ROCE’) before impact of IFRS 16 

30% 

13.50% 

14.18% 

100% 

Bonus achieved  
for FY2020 

0% of salary 
(based upon adjusted PBT    
before impact of IFRS 16 of £32.8m)

0% of salary  
(based upon ROCE of 12.0%  
before impact of IFRS 16)

0% of salary 

In addition to the above financial measures, when assessing the extent to which any bonus should become payable, the Committee  
is also able to take into account the impact of major health, safety and environmental incidents during the year (there were none)  
and the performance of the individual Director.

92   Governance  Speedy Hire Plc Annual Report and Accounts 2020

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report continued

Performance share awards granted in 2017 and vesting in 2020
The performance share awards granted in 2017 are due to vest in June 2020. Details of the performance targets set for the award  
and actual/estimated achievement against them are set out in the table below. No discretion to override the formulaic calculation  
of outcomes or share price movement was exercised:

Performance 
period end 

Threshold  
performance 
hurdle 
(25% vesting) 

Stretch  
performance
hurdle 
(100% vesting) 

31 March 2020 

5.41p 

6.95p 

Weighting 

50% 

Actual 

5.21p 

% vesting for this 
part of the award 

0% 

Performance measure 

Adjusted earnings  
per share before the  
impact of IFRS 16 

Total shareholder return 

50% 

31 March 2020  Median 

Upper Quartile 

Upper Quartile  100%

Earnings per share performance for FY2020 was 5.21 pence on a pre-IFRS 16 basis and therefore this part of the award will not vest. 
Relative Total Shareholder Return (‘TSR’) performance was upper quartile and therefore this part of the award will vest in full. The TSR 
condition is based on the Company’s performance against FTSE 250 companies (excluding investment trusts) as at the date of grant. 
25% of this part of the award vests if the Company’s TSR is at a median of the ranking of the TSRs of the comparator group, with full 
vesting of this part of the award for upper quartile performance or better. A sliding scale operates between these points. 

The value of the shares included in the Directors’ remuneration for FY2020 table for the Executive Directors is based on the vesting 
level set out above and has been valued using the average share price over the period 1 January 2020 to 31 March 2020 (71.3p).  
The estimated value of the shares at vesting is £378,000 of which approximately £89,000 is attributable to share price growth.

Long-term incentive plan awards granted in the year

Russell Down and Chris Morgan were granted the following awards under the 2014 Performance Share Plan on 24 May 2019 as set out below:

Executive Director 

Date of grant 

Basis of award 

Maximum shares 
under award 

Face value 
of awards 1 

Performance 
period 2 

Vesting 
period 

Russell Down 

24/05/2019  100%  

617,947 

£387,700 

of salary 

Chris Morgan 

24/05/2019  100%  

405,961 

£254,700 

of salary 

Three years 
ending 31 
March 2022 
Three years  
ending 31 
March 2022 

% vesting
at threshold 

25% of 
an award 

Three years 
from grant 

Three years 
from grant 

25% of 
an award 

1  Determined using the average mid-market closing share price of the Company for the 5 days preceding the date of grant.

2  50% of the award is subject to an EPS condition. 25% of this part of the award vests for EPS (before amortisation and exceptional costs) of 6.82 pence on a pre-IFRS 16 basis, with full 

vesting of this part of the award for EPS of 8.34 pence on a pre-IFRS 16 basis or better. A sliding scale operates between these points. 50% of the award is subject to a TSR condition based 
on the Company’s performance against FTSE 250 companies (excluding investment trusts) measured over three financial years ending 31 March 2022. 25% of this part of the award vests 
if the Company’s TSR is at a median of the ranking of the TSRs of the comparator group, with full vesting of this part of the award for upper quartile performance or better. A sliding scale 
operates between these points. Regardless of the preceding performance conditions, the number of shares which may vest under an the award may be reduced (including to zero) where 
the Remuneration Committee determines that exceptional circumstances exist which mean that the vesting would be inappropriate taking into account such factors as it considers relevant 
(including, but not limited to, the overall performance of the Company, any Group member or the relevant Executive Director).

Governance  Speedy Hire Plc Annual Report and Accounts 2020   93   

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Remuneration Report continued

Details of long-term incentive plan awards outstanding

Details of the Executive Directors’ interests in share-based awards are as follows:

Options/ 
awards 
granted 
during 
the year 

Options/ 
awards 
exercised 
during 
the year 

Options/ 
awards 
lapsed 
during 
the year 

Interest at 
31 March  
2020 

Exercise 
price 
(pence) 

Normal date 
from which 
exercisable/vested 
to expiry date 
(if appropriate)

Executive Director 

Russell Down 
PSP 2015 1,2 

PSP 2016 1,2 

PSP 20171,2 

PSP 20181,2 

PSP 20191,2,3 

SAYE 2016 4 

SAYE 2017 4 

SAYE 2018 4 

SAYE 2019 4 

Chris Morgan 
PSP 2016 1,2 

PSP 2017 1,2 

PSP 20181,2 

PSP 20191,2,3 

SAYE 2016 4 

SAYE 2017 4 

SAYE 2018 4 

SAYE 2019 4 

Interest at 
1 April 2019 

226,130 

978,336 

628,482 

638,608 

9,653 

5,040 

6,406 

– 

670,859 

430,959 

419,522 

13,260 

7,073 

2,578 

– 

Total 

2,492,655 

Total 

1,544,251 

– 

617,947 

– 

405,961 

– 

– 

– 

– 

– 

– 

– 

6,000 

623,947 

– 

– 

– 

– 

– 

– 

7,350 

413,311 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

226,130 

(35,221) 

943,115 

(314,241) 

314,241 

– 

– 

– 

– 

– 

– 

638,608 

617,947 

9,653 

5,040 

6,406 

6,000 

nil 

nil 

nil 

nil 

nil 

33.936 

44.280 

46.080 

48.000 

Aug 2018 – Aug 2025

Jun 2019  – Jun 2026

Jun 2020  – Jun 2027

May 2021 – May 2028

May 2024 – May 2031

Feb 2020 – Jul 2020

Feb 2021 – Jul 2021

Feb 2022 – Jul 2022

Feb 2023 – Jul 2023

(349,462) 

2,767,140 

– 

– 

(24,151) 

646,708 

(215,480) 

215,479 

– 

– 

– 

– 

– 

– 

419,522 

405,961 

13,260 

7,073 

2,578 

7,350 

nil 

nil 

nil 

nil 

33.936 

44.280 

46.080 

48.000 

Jun 2019  – Jun 2026

Jun 2020  – Jun 2027

May 2021 – May 2028

May 2024 – May 2031

Feb 2020 – Jul 2020

Feb 2021 – Jul 2021

Feb 2022 – Jul 2022

Feb 2023 – Jul 2023

(239,631) 

1,717,931 

– 

– 

1  The 2015, 2016, 2017, 2018 and 2019 Performance Share Plan awards, made under the 2014 Performance Share Plan, were granted as nil-cost options. No consideration was paid for the 

grant of these options.

2  50% of each 2015, 2016, 2017, 2018 and 2019 Performance Share Plan award is subject to an EPS condition. All EPS measures referenced in this footnote are quoted on a pre-IFRS 16 basis.  
25% of this part of the award vests in respect of the 2015 award: for EPS (before amortisation and exceptional costs) of 4.00 pence, with full vesting of this part of the award for EPS of 4.70 
pence or better; in respect of the 2016: award for EPS (before amortisation and exceptional costs) of 2.92 pence, with full vesting of this part of the award for EPS of 5.11 pence or better; and in 
respect of the 2017: award for EPS (before amortisation and exceptional costs) of 5.41 pence, with full vesting of this part of the award for EPS of 6.95 pence or better; and in respect of the 2018: 
award for EPS (before amortisation and exceptional costs) of 6.13 pence, with full vesting of this part of the award for EPS of 7.67 pence or better A sliding scale operates between the points. 
50% of each 2015, 2016, 2017 and 2018 Performance Share Plan award is subject to a TSR condition based on the Company’s performance against FTSE 250 companies (excluding investment 
trusts) as at the date of grant. 25% of this part of the award vests if the Company’s TSR is at a median of the ranking of the TSRs of the comparator group, with full vesting of this part of the award 
for upper quartile performance or better. A sliding scale operates between these points. Regardless of the Company’s TSR performance, no portion of the part of the award which is subject to TSR 
performance may vest unless the Committee is also satisfied that the Company’s TSR performance is reflective of its underlying performance over the performance period.

3  The performance conditions for the 2019 Performance Share Plan awards are set out in Note 2 under ‘Long-term incentive plan awards granted in the year’ on page 93.

4  All-employee scheme giving employees the opportunity to acquire shares at a discount of 20% of the market value of the shares at the time the invitation is issued.  

The maximum monthly contribution is £250.

The mid-market closing price of Speedy Hire Plc ordinary shares at 31 March 2020 was 49.2 pence and the range during the year  
was 34.6 pence to 88.0 pence per share. 

Dilution

The Performance Share Plan and SAYE share option schemes provide that overall dilution through the issuance of new shares for 
employee share schemes should not exceed an amount equivalent to 10% of the Company’s issued share capital over a rolling ten-year 
period. Within this 10% limit, dilution through the Performance Share Plan is limited to an amount equivalent to 5% of the Company’s 
issued share capital over a ten year period. Both limits are in line with The Investment Association Principles of Remuneration.

The Committee monitors the position prior to making awards under these schemes to ensure that the Company remains within  
these limits. As at the date of this report, 2.46% of the 5% limit and 5.31% of the 10% limit have been used.

94   Governance  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report continued

Termination payments

No Executive Director left in the year and no compensation for loss of office was paid. The principles governing compensation for  
loss of office payments are set out on pages 88 and 89.

Shareholder voting at AGM

At the 2019 AGM, the Directors’ Remuneration Report received the following votes from shareholders:

Remuneration Report 

For 

Against 

Total votes cast (for and against) 

Votes withheld 1 

Total votes cast (including withheld votes) 

1 A vote withheld is not a vote in law and is not counted in the calculation of the proportion of votes cast ‘For’ and ‘Against’ a resolution.

The Policy Report was approved by shareholders at the 2017 AGM and received the following votes.

Policy Report 

For 

Against 

Total votes cast (for and against) 

Votes withheld 1 

Total votes cast (including withheld votes) 

Total number 
of votes 

% of 
votes cast

417,446,410 

97.98

8,600,045 

426,046,455  

56,820 

426,103,275 

2.02

100

n/a

Total number 
of votes 

% of 
votes cast

420,503,951 

98.45

6,606,428 

427,110,379 

2,866,453 

429,976,832

1.55

100

n/a

1  A vote withheld is not a vote in law and is not counted in the calculation of the proportion of votes cast ‘For’ and ‘Against’ a resolution.

Directors’ interests in the share capital of the Company

The interests of the Directors (all of which were beneficial) who held office during FY2020, are set out in the table below:

 Legally owned 

 PSP Awards 

Sharesave 

Total 

31 March 
2019 

31 March 
2020 

Unvested 

Vested 

Unvested 

31 March 
2020 

Russell Down 

304,493 

304,493 

1,570,796  1,169,245 

 17,446 

1,473,738 

Chris Morgan 

250,713 

250,713 

1,040,962 

646,708 

17,001 

897,421 

David Shearer 

250,000 

450,000 

Bob Contreras  

Rob Barclay 

Rhian Bartlett 

40,000 

48,000 

– 

David Garman 

75,000 

40,000 

48,000 

74,744 

75,000 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

450,000 

40,000 

48,000 

74,744 

75,000 

Shareholding 
requirement1 

% of 
 salary/fee of   
requirement met 

% 

100 

100 

100 

100 

100 

100 

100 

% 

>100

>100

>100

52

69

>100

>100

Note that only legally owned shares and vested but unexercised PSP awards during the two-year post vesting holding period only (on a net of tax basis) count towards the shareholding requirement. 
Shareholdings are valued on the basis of the average daily closing share price (of the three months prior to the 31 March and tested against the Directors’ base salary/fee at 31 March). 

1  The shareholding requirement for Executive Directors increased to 200% of salary on 1 April 2020 to reflect the requirements proposed in the new Directors’ Remuneration Policy.  

Shares contributing to the shareholding percentage will include vested PSP shares, deferred bonus shares, shares subject to a holding period.

There have been no changes in the interests of any current Director in the share capital of Speedy Hire Plc between 1 April 2020  
and the date of this report.

Governance  Speedy Hire Plc Annual Report and Accounts 2020   95   

Strategic ReportCorporate  InformationFinancial  StatementsGovernance 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
  
 
Remuneration Report continued

Comparison of overall performance and pay

The chart below presents the total shareholder return for Speedy Hire Plc compared to that of the FTSE 250 and FTSE SmallCap  
(both excluding investment trusts). The values indicated in the graph show the share price growth plus reinvested dividends over  
a ten-year period from a £100 hypothetical holding of ordinary shares in Speedy Hire Plc and in the index. 

Total shareholder return

)
d
e
s
a
b
e
r
(

)
£
(
e
u
l
a
V

300

250

200

150

100

50

0

31/03/2010

31/03/2011

31/03/2012

31/03/2013

31/03/2014

31/03/2015

31/03/2016

31/03/2017

31/03/2018

31/03/2019

31/03/2020

Speedy Hire

FTSE 250 (excl. Investment Trusts) 

FTSE SmallCap (excl. Investment Trusts) 

This graph shows the value, by 31 March 2020, of £100 invested in Speedy Hire on 31 March 2010, compared with the value of £100  
invested  in the FTSE 250 (excl. Investment Trusts) and FTSE SmallCap (excl. Investment Trusts) Indices on the same date.

The other points plotted are the values at intervening financial year-ends.

Source: FactSet

The total remuneration figures for the Chief Executive during each of the last ten financial years are shown in the table below. The total 
remuneration figure includes the annual bonus based on that year’s performance (FY2011 to FY2020) and PSP awards based on three-
year performance periods ending just after the relevant year end. The annual bonus pay-out and PSP vesting level, as a percentage of 
the maximum opportunity, are also shown for each of these years.

  Steve Corcoran 

Mark Rogerson 

Russell Down

FY 
2011 

423 

FY 
2012 

421 

FY 
2013 

FY 
2014 

553 

707 

FY 
2014 

115 

FY 
2015 

593 

FY 
2016 

107 

FY 
2016 

409 

FY 
2017 

757 

FY 
2018 

FY 
2019 

6671 

1,2781 

FY 
2020

683 

– 

– 

– 

– 

37.0% 

– 

– 

60.0% 

– 

82.0% 

– 

– 

– 

– 

–  

97.4% 

54.8% 

54.9% 

– 

– 

– 

33.0%2 

96.4%2 

50.0% 

Single Total Figure   
of remuneration  
(£’000s) 

Annual bonus  
(% of max)

PSP vesting  
(% of max) 

Steve Corcoran stepped down and Mark Rogerson was appointed as Chief Executive during FY2014. Mark Rogerson stepped down  
and Russell Down was appointed as Chief Executive during FY2016.

1  Total remuneration for 2018 includes the EPS element of the 2015 PSP grant (of which 15% of the maximum vested). Total remuneration for 2019 includes the TSR element of 2015  

PSP grant (of which 18.51% of the maximum vested) and both the EPS and TSR element of the 2016 PSP grant (of which 96.41% vested).

2  The vesting percentage for 2018 shows the vesting of the 2015 PSP grant (EPS and TSR elements). The vesting percentage for 2019 shows the vesting of the 2016 PSP grant only.

96   Governance  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report continued

Percentage change in Chief Executive’s remuneration 

The table below shows the percentage change in the Chief Executive’s total remuneration (excluding the value of any long-term 
incentives and pension benefits receivable in the year) between FY2019 and FY2020 compared to that of the average for all UK  
and Ireland based employees of the Group.

Chief Executive 

Average employees 

% change from FY2019 to FY2020

Salary 

2.1% 

5.4% 

Benefits 

(7.1)% 

0.0% 

Bonus

(100.0)%

(55.2)%

Pay ratio of the Chief Executive to average employee  

The following table compares the ratio of Chief Executive’s pay at the 25th, median and 75th percentile as at 31 March 2020,  
and the pay details for the individuals at each percentile:

Year 

Method of  
calculation adopted 

25th percentile pay ratio 
(Chief Executive : UK employees) 

Median pay ratio 
(Chief Executive : UK employees) 

75th percentile pay ratio 
(Chief Executive : UK employees)

2020  Option B  

30 : 1 

29 : 1 

22 : 1

The median, 25th percentile and 75th percentile figures used to determine the above ratios were calculated by reference to option ‘B’ 
methodology prescribed under the UK Companies (Miscellaneous Reporting) Regulations 2018. This methodology uses the Company’s 
most recent data compiled from our gender pay gap reporting. The Committee selected this calculation methodology as it was felt to 
produce the most statistically accurate result.

A significant proportion of the Chief Executive’s pay is delivered in long term investment awards, which are linked to the Group’s 
performance and share price movement. The Committee considers that the median pay ratio disclosed above is consistent with the 
pay, reward and progression policies for the Company’s UK employees taken as a whole.

Pay details for the individuals whose 2019/20 remuneration is at the median, 25th percentile and 75th percentile amongst UK based 
employees are as follows:

Salary 

Total pay and benefits 

Chief Executive 

25th percentile 

£387,700 

£683,155  

£22,0001 

£23,141 

Median  

£22,0001 

£23,167 

75th percentile

£28,050

£30,514

1  Whilst base salaries are the same for these comparator employees, their position in the percentile ranking is defined on the basis of hourly pay, which includes items in addition to base salary.

Relative importance of spend on pay 

The following table shows the Company’s actual spend on pay (for all employees) relative to dividends.

Staff costs (£’m) 

Dividends (£’m) 

2019 

108.2 

9.1 

2020 

% change

117.0 

10.9 

8.1%

19.8%

£1.3m of the staff costs figures relate to pay for the Executive Directors. This is different from the aggregate of the single figures for the 
year under review due to the way in which the share-based awards are accounted for. The dividend figures relate to amounts paid in 
respect of the relevant financial year.

This report was approved by the Board on 22 June 2020.

Rob Barclay 
Chairman of the Remuneration Committee

Governance  Speedy Hire Plc Annual Report and Accounts 2020   97   

Strategic ReportCorporate  InformationFinancial  StatementsGovernance 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independent 
Independent 
Independent 
auditor’s report
auditor’s report
auditor’s report

to the members of Speedy Hire Plc  
to the members of Speedy Hire Plc  
to the members of Speedy Hire Plc  
1. Our opinion is unmodified
1. Our opinion is unmodified

1. Our opinion is unmodified

We have audited the financial statements of 
We have audited the financial statements of 
Speedy Hire Plc (“the Company”) for the year 
Speedy Hire Plc (“the Company”) for the year 
ended 31 March 2020 which comprise the 
We have audited the financial statements of 
ended 31 March 2020 which comprise the 
consolidated income statement, consolidated 
Speedy Hire Plc (“the Company”) for the year 
consolidated income statement, consolidated 
statement of comprehensive income, consolidated 
ended 31 March 2020 which comprise the 
statement of comprehensive income, consolidated 
balance sheet, consolidated statement of changes 
consolidated income statement, consolidated 
balance sheet, consolidated statement of changes 
in equity, consolidated cash flow statement, 
statement of comprehensive income, consolidated 
in equity, consolidated cash flow statement, 
company balance sheet, company statement of 
balance sheet, consolidated statement of changes 
company balance sheet, company statement of 
changes in equity, company cash flow statement 
in equity, consolidated cash flow statement, 
changes in equity, company cash flow statement 
and the related notes, including the accounting 
company balance sheet, company statement of 
and the related notes, including the accounting 
policies in note 1.
changes in equity, company cash flow statement 
policies in note 1.
and the related notes, including the accounting 
In our opinion:  
In our opinion:  
policies in note 1.
— the financial statements give a true and fair 
— the financial statements give a true and fair 
In our opinion:  
view of the state of the Group’s and of the 
view of the state of the Group’s and of the 
parent Company’s affairs as at 31 March 2020 
— the financial statements give a true and fair 
parent Company’s affairs as at 31 March 2020 
and of the Group’s profit for the year then 
view of the state of the Group’s and of the 
and of the Group’s profit for the year then 
ended;  
parent Company’s affairs as at 31 March 2020 
ended;  
and of the Group’s profit for the year then 
— the Group financial statements have been 
— the Group financial statements have been 
ended;  
properly prepared in accordance with 
properly prepared in accordance with 
International Financial Reporting Standards as 
— the Group financial statements have been 
International Financial Reporting Standards as 
adopted by the European Union (IFRSs as 
properly prepared in accordance with 
adopted by the European Union (IFRSs as 
adopted by the EU); 
International Financial Reporting Standards as 
adopted by the EU); 
adopted by the European Union (IFRSs as 
— the parent Company financial statements have 
— the parent Company financial statements have 
adopted by the EU); 
been properly prepared in accordance with 
been properly prepared in accordance with 
IFRSs as adopted by the EU and as applied in 
— the parent Company financial statements have 
IFRSs as adopted by the EU and as applied in 
accordance with the provisions of the 
been properly prepared in accordance with 
accordance with the provisions of the 
Companies Act 2006; and 
IFRSs as adopted by the EU and as applied in 
Companies Act 2006; and 
accordance with the provisions of the 
— the financial statements have been prepared in 
— the financial statements have been prepared in 
Companies Act 2006; and 
accordance with the requirements of the 
accordance with the requirements of the 
Companies Act 2006 and, as regards the Group 
— the financial statements have been prepared in 
Companies Act 2006 and, as regards the Group 
financial statements, Article 4 of the IAS 
accordance with the requirements of the 
financial statements, Article 4 of the IAS 
Regulation.
Companies Act 2006 and, as regards the Group 
Regulation.
financial statements, Article 4 of the IAS 
Basis for opinion  
Basis for opinion  
Regulation.

We conducted our audit in accordance with 
We conducted our audit in accordance with 
Basis for opinion  
International Standards on Auditing (UK) (“ISAs 
International Standards on Auditing (UK) (“ISAs 
(UK)”) and applicable law.  Our responsibilities are 
We conducted our audit in accordance with 
(UK)”) and applicable law.  Our responsibilities are 
described below.  We believe that the audit 
International Standards on Auditing (UK) (“ISAs 
described below.  We believe that the audit 
evidence we have obtained is a sufficient and 
(UK)”) and applicable law.  Our responsibilities are 
evidence we have obtained is a sufficient and 
appropriate basis for our opinion.  Our audit opinion 
described below.  We believe that the audit 
appropriate basis for our opinion.  Our audit opinion 
is consistent with our report to the audit 
evidence we have obtained is a sufficient and 
is consistent with our report to the audit 
committee. 
appropriate basis for our opinion.  Our audit opinion 
committee. 
is consistent with our report to the audit 
committee. 

98  

We were first appointed as auditor by the directors in 
We were first appointed as auditor by the directors in 
October 2000.  The period of total uninterrupted 
October 2000.  The period of total uninterrupted 
engagement is for the 20 financial years ended 31 
We were first appointed as auditor by the directors in 
engagement is for the 20 financial years ended 31 
March 2020.  We have fulfilled our ethical 
October 2000.  The period of total uninterrupted 
March 2020.  We have fulfilled our ethical 
responsibilities under, and we remain independent of 
engagement is for the 20 financial years ended 31 
responsibilities under, and we remain independent of 
the Group in accordance with, UK ethical requirements 
March 2020.  We have fulfilled our ethical 
the Group in accordance with, UK ethical requirements 
including the FRC Ethical Standard as applied to listed 
responsibilities under, and we remain independent of 
including the FRC Ethical Standard as applied to listed 
public interest entities.  No non-audit services 
the Group in accordance with, UK ethical requirements 
public interest entities.  No non-audit services 
prohibited by that standard were provided.
including the FRC Ethical Standard as applied to listed 
prohibited by that standard were provided.
public interest entities.  No non-audit services 
prohibited by that standard were provided.
Overview
Overview

£1.6m (2019:£1.4m)
£1.6m (2019:£1.4m)

Materiality: 
Materiality: 
Overview
Group financial 
Group financial 
statements as a 
Materiality: 
statements as a 
whole
Group financial 
whole
statements as a 
Coverage
Coverage
whole

4.8% (2019: 4.6%) of Profit before tax 
4.8% (2019: 4.6%) of Profit before tax 
£1.6m (2019:£1.4m)
normalised to exclude exceptional items
normalised to exclude exceptional items
4.8% (2019: 4.6%) of Profit before tax 
normalised to exclude exceptional items
86% (2019: 92%) of Group profit before 
86% (2019: 92%) of Group profit before 
tax
tax
86% (2019: 92%) of Group profit before 
Coverage
Key audit matters                                                   vs 2019
Key audit matters                                                   vs 2019
tax

◄►
◄►

Group – Carrying amount and 
Recurring 
Group – Carrying amount and 
Recurring 
Key audit matters                                                   vs 2019
existence of hire equipment
risks
existence of hire equipment
risks
Group – Carrying amount and 
Recurring 
Group – Recoverability of trade 
Group – Recoverability of trade 
existence of hire equipment
risks
receivables
receivables
Group – Recoverability of trade 
Parent - Recoverability of parent’s 
Parent - Recoverability of parent’s 
receivables
debt due from Group entities
debt due from Group entities
Parent - Recoverability of parent’s 
Group – Brexit
Group – Brexit
debt due from Group entities

◄►
◄►
◄►

◄►
▲
▲

▲
◄►
◄►

Event 
Event 
driven risks
driven risks
Event 
driven risks

Group – Brexit
Group – Going concern
Group – Going concern

Group – Going concern
Group – Geason: 
Group – Geason: 
contingent consideration,  
contingent consideration,  
impairment (increase) and claim 
Group – Geason: 
impairment (increase) and claim 
provision (new)
contingent consideration,  
provision (new)
impairment (increase) and claim 
provision (new)

◄►
▲
▲

▲

▲
▲
new
new
▲
new

2. Key audit matters: including our assessment of risks of material misstatement (continued)

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial 

statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by 

us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and 

directing the efforts of the engagement team.  We summarise below the key audit matters in arriving at our audit opinion 

above, together with our key audit procedures to address those matters and, as required for public interest entities, our results 

from those procedures.  These matters were addressed, and our results are based on procedures undertaken, in the context 

of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and 

consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.

The risk

Our response

The impact of uncertainties due 

Unprecedented levels of uncertainty

We

developed

a

standardised

firm-wide

to the UK exiting the European 

Union on our audit

All audits assess and challenge the 

reasonableness of estimates, in 

Refer to page 47 (principal risks), 

particular as described in carrying 

approach

to

the

consideration

of

the

uncertainties arising from Brexit in planning and

performing our audits. Our procedures included:

page 50 (viability statement) and 

amount of and existence of hire 

— Our Brexit knowledge: We considered the 

page 72 (Audit Committee 

Report).

equipment; recoverability of trade 

receivables;  Geason: contingent 

consideration and impairment and 

related disclosures; and the 

directors’ assessment of Brexit-related 

sources of risk for the Group’s business and 

financial resources compared with our own 

understanding of the risks. We considered 

appropriateness of the going concern 

the directors’ plans to take action to mitigate 

basis of preparation of the financial 

statements (see below). All of these 

depend on assessments of the future 

economic environment and the Group’s 

future prospects and performance.

the risks.

— Sensitivity analysis: When addressing 

Geason: contingent consideration and  

impairment, going concern and other areas 

that depend on forecasts, we compared the 

In addition, we are required to consider 

directors’ analysis to our assessment of the 

the other information presented in the 

full range of reasonably possible scenarios 

Annual Report including the principal 

resulting from Brexit uncertainty and, where 

risks disclosure and the viability 

forecast cash flows are required to be 

statement and to consider the directors’ 

discounted, considered adjustments to 

statement that the annual report and 

discount rates for the level of remaining 

financial statements taken as a whole is 

uncertainty.

fair, balanced and understandable and 

provides the information necessary for 

shareholders to assess the Group’s and 

parent company’s position and 

performance, business model and 

strategy.

Brexit is one of the most significant 

economic events for the UK and its 

— Assessing transparency: As well as 

assessing individual disclosures as part of 

our procedures on carrying amount of and 

existence of hire equipment; recoverability 

of trade receivables;  Geason: contingent 

consideration and impairment; and going 

concern we considered all of the Brexit 

related disclosures together, including those 

effects are subject to unprecedented 

in the strategic report, comparing the overall 

levels of uncertainty of consequences, 

picture against our understanding of the 

with the full range of possible effects 

risks.

unknown.

Our results

— As reported under carrying amount of and 

existence of hire equipment; recoverability 

of trade receivables;  Geason: contingent 

consideration and impairment, we found the 

resulting estimates and related disclosures 

of the above key audit matters and 

disclosures in relation to going concern to 

be acceptable. However, no audit should be 

expected to predict the unknowable factors 

or all possible future implications for a 

Company and this is particularly the case in 

relation to Brexit (2019: acceptable). 

2. Key audit matters: including our assessment of risks of material misstatement (continued)

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial 
statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by 
us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and 
directing the efforts of the engagement team.  We summarise below the key audit matters in arriving at our audit opinion 
above, together with our key audit procedures to address those matters and, as required for public interest entities, our results 
from those procedures.  These matters were addressed, and our results are based on procedures undertaken, in the context 
of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and 
consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.

The risk

Our response

The impact of uncertainties due 
to the UK exiting the European 
Union on our audit

Refer to page 47 (principal risks), 
page 50 (viability statement) and 
page 72 (Audit Committee 
Report).

Unprecedented levels of uncertainty

All audits assess and challenge the 
reasonableness of estimates, in 
particular as described in carrying 
amount of and existence of hire 
equipment; recoverability of trade 
receivables;  Geason: contingent 
consideration and impairment and 
related disclosures; and the 
appropriateness of the going concern 
basis of preparation of the financial 
statements (see below). All of these 
depend on assessments of the future 
economic environment and the Group’s 
future prospects and performance.

In addition, we are required to consider 
the other information presented in the 
Annual Report including the principal 
risks disclosure and the viability 
statement and to consider the directors’ 
statement that the annual report and 
financial statements taken as a whole is 
fair, balanced and understandable and 
provides the information necessary for 
shareholders to assess the Group’s and 
parent company’s position and 
performance, business model and 
strategy.

Brexit is one of the most significant 
economic events for the UK and its 
effects are subject to unprecedented 
levels of uncertainty of consequences, 
with the full range of possible effects 
unknown.

developed

firm-wide
We
approach
the
uncertainties arising from Brexit in planning and
performing our audits. Our procedures included:

standardised
consideration

a
the

of

to

— Our Brexit knowledge: We considered the 
directors’ assessment of Brexit-related 
sources of risk for the Group’s business and 
financial resources compared with our own 
understanding of the risks. We considered 
the directors’ plans to take action to mitigate 
the risks.

— Sensitivity analysis: When addressing 
Geason: contingent consideration and  
impairment, going concern and other areas 
that depend on forecasts, we compared the 
directors’ analysis to our assessment of the 
full range of reasonably possible scenarios 
resulting from Brexit uncertainty and, where 
forecast cash flows are required to be 
discounted, considered adjustments to 
discount rates for the level of remaining 
uncertainty.

— Assessing transparency: As well as 

assessing individual disclosures as part of 
our procedures on carrying amount of and 
existence of hire equipment; recoverability 
of trade receivables;  Geason: contingent 
consideration and impairment; and going 
concern we considered all of the Brexit 
related disclosures together, including those 
in the strategic report, comparing the overall 
picture against our understanding of the 
risks.

Our results

— As reported under carrying amount of and 
existence of hire equipment; recoverability 
of trade receivables;  Geason: contingent 
consideration and impairment, we found the 
resulting estimates and related disclosures 
of the above key audit matters and 
disclosures in relation to going concern to 
be acceptable. However, no audit should be 
expected to predict the unknowable factors 
or all possible future implications for a 
Company and this is particularly the case in 
relation to Brexit (2019: acceptable). 

99

2. Key audit matters: our assessment of risks of material misstatement

2. Key audit matters: including our assessment of risks of material misstatement (continued)
2. Key audit matters: including our assessment of risks of material misstatement (continued)

2. Key audit matters: our assessment of risks of material misstatement

2. Key audit matters: including our assessment of risks of material misstatement (continued)

2. Key audit matters: including our assessment of risks of material misstatement (continued)

The risk

Disclosure quality

The risk
The risk
The risk
Disclosure quality
Physical quantities
Physical quantities
The financial statements explain how the 
The Group has a large number of items
Board has formed a judgement that it is 
The Group has a large number of items
of hire equipment, and a high frequency 
appropriate to adopt the going concern 
of hire equipment, and a high frequency 
of movement in assets, through asset 
basis of preparation for the Group and 
The financial statements explain how the 
of movement in assets, through asset 
purchases, physical hires and disposals. 
parent Company.
Board has formed a judgement that it is 
purchases, physical hires and disposals. 
As such there is inherent difficulty in
appropriate to adopt the going concern 
As such there is inherent difficulty in
maintaining an accurate register of the 
That judgement is based on an evaluation 
basis of preparation for the Group and 
maintaining an accurate register of the 
Group’s hire equipment.
of the inherent risks to the Group’s and 
parent Company.
Group’s hire equipment.
Company’s business model and how 
Subjective estimate
those risks might affect the Group’s and 
That judgement is based on an evaluation 
Subjective estimate
Judgement is applied by the Group in 
Company’s financial resources or ability to 
of the inherent risks to the Group’s and 
Judgement is applied by the Group in 
the estimation of useful economic lives 
continue operations over a period of at 
Company’s business model and how 
the estimation of useful economic lives 
and residual values. These judgment are
least a year from the date of approval of 
those risks might affect the Group’s and 
and residual values. These judgment are
based on historical experience, industry 
the financial statements. 
Company’s financial resources or ability to 
based on historical experience, industry 
regulation, an assessment of the nature 
continue operations over a period of at 
The risk most likely to adversely affect the 
regulation, an assessment of the nature 
of the assets involved and the future 
least a year from the date of approval of 
Group’s and Company’s available financial 
of the assets involved and the future 
expected usage and market for the sale 
the financial statements. 
resources over this period was the impact
expected usage and market for the sale 
of assets.  The judgements made are
of Coronavirus on the economy as a whole 
The risk most likely to adversely affect the 
of assets.  The judgements made are
profit impacting and therefore there is 
leading to a significant decrease in 
Group’s and Company’s available financial 
profit impacting and therefore there is 
an incentive for management to 
revenue and cash inflows. 
resources over this period was the impact
an incentive for management to 
manipulate the judgements made.
of Coronavirus on the economy as a whole 
manipulate the judgements made.
There are also less predictable but realistic 
The effect of these matters is that, as 
leading to a significant decrease in 
second order impacts, such as the impact 
The effect of these matters is that, as 
part of our risk assessment, we 
revenue and cash inflows. 
of Brexit on the supply of assets, demand 
part of our risk assessment, we 
determined that the estimation of useful
for products and cost price inflation, which 
There are also less predictable but realistic 
determined that the estimation of useful
economic lives and residual values have
could result in a reduction of available 
second order impacts, such as the impact 
economic lives and residual values have
a high degree of estimation uncertainty, 
financial resources. 
of Brexit on the supply of assets, demand 
a high degree of estimation uncertainty, 
with a potential range of reasonable 
for products and cost price inflation, which 
with a potential range of reasonable 
outcomes greater than our materiality 
The risk for our audit was whether or not 
could result in a reduction of available 
outcomes greater than our materiality 
for the financial statements as a whole, 
those risks were such that they amounted 
financial resources. 
for the financial statements as a whole, 
and possibly many times that amount.
to a material uncertainty that may have 
and possibly many times that amount.
cast significant doubt about the ability to 
The risk for our audit was whether or not 
continue as a going concern.  Had they 
those risks were such that they amounted 
been such, then that fact would have been 
to a material uncertainty that may have 
required to have been disclosed. 
cast significant doubt about the ability to 
continue as a going concern.  Had they 
been such, then that fact would have been 
required to have been disclosed. 

Our response

Our procedures included: .

Our response
Our response
Our procedures included:
Our response
Our procedures included:
— Funding assessment: Assessed whether 
— Control design and re-performance: 
the directors’ view of the availability of 
— Control design and re-performance: 
Testing the design and operating
Our procedures included: .
borrowings and covenant terms is consistent 
Testing the design and operating
effectiveness of key controls including 
with our understanding of the facility 
— Funding assessment: Assessed whether 
effectiveness of key controls including 
authorisation of asset purchases. 
agreement and remains appropriate for the 
the directors’ view of the availability of 
authorisation of asset purchases. 
— Control operation: Testing the design of 
Group’s requirements.
borrowings and covenant terms is consistent 
— Control operation: Testing the design of 
controls operating over hire equipment 
with our understanding of the facility 
— Test of detail: Evaluated the models the 
controls operating over hire equipment 
asset counts. Testing the operating 
agreement and remains appropriate for the 
directors used in their assessment and 
asset counts. Testing the operating 
effectiveness of these controls by 
Group’s requirements.
whether the assumptions used are realistic, 
effectiveness of these controls by 
performing counts to test the accuracy of 
achievable and consistent with external 
— Test of detail: Evaluated the models the 
performing counts to test the accuracy of 
the counting for a sample of hire equipment 
information such as the latest Coronavirus 
directors used in their assessment and 
the counting for a sample of hire equipment 
assets. 
government initiatives and industry and 
whether the assumptions used are realistic, 
assets. 
— Test of details: Agreeing a statistical 
economic forecasts. Also assessed 
achievable and consistent with external 
— Test of details: Agreeing a statistical 
sample of assets acquired and disposed of 
assumptions against post period end actual 
information such as the latest Coronavirus 
sample of assets acquired and disposed of 
during the year to third party evidence and 
performance, our understanding of the 
government initiatives and industry and 
during the year to third party evidence and 
bank proceeds where applicable. Comparing 
business  as well as any other matters 
economic forecasts. Also assessed 
bank proceeds where applicable. Comparing 
the hire equipment register for the current 
identified in the audit.
assumptions against post period end actual 
the hire equipment register for the current 
year to prior year to determine any changes 
performance, our understanding of the 
— Historical comparisons: Evaluated the 
year to prior year to determine any changes 
made to useful economic lives and residual 
business  as well as any other matters 
reliability of the Group’s cash flow forecasts 
made to useful economic lives and residual 
values and challenging any changes to 
identified in the audit.
and growth rates by assessing previous 
values and challenging any changes to 
assess whether they are consistent with 
forecasts made by the Group against actual 
— Historical comparisons: Evaluated the 
assess whether they are consistent with 
accounting policies and reflective of the 
performance.
reliability of the Group’s cash flow forecasts 
accounting policies and reflective of the 
planned usage for those assets.  Reviewing 
and growth rates by assessing previous 
planned usage for those assets.  Reviewing 
profit or loss on disposal of hire equipment 
forecasts made by the Group against actual 
profit or loss on disposal of hire equipment 
to support the reasonableness of the useful 
sensitivities over the level of available 
performance.
to support the reasonableness of the useful 
economic lives and residual values applied. 
financial resources and headroom over debt 
economic lives and residual values applied. 
covenants indicated by the Group’s financial 
— Sensitivity analysis: We considered
— Test of details: Comparing the hire 
forecasts taking account of reasonably
sensitivities over the level of available 
— Test of details: Comparing the hire 
equipment register to hire revenue 
possible (but not unrealistic) adverse effects
financial resources and headroom over debt 
equipment register to hire revenue 
information to identify the quantity and net 
that could arise from the rapidly changing 
covenants indicated by the Group’s financial 
information to identify the quantity and net 
book value of assets not recently hired to 
and uncertain Coronavirus situation.
forecasts taking account of reasonably
book value of assets not recently hired to 
customers. Identifying from this analysis 
possible (but not unrealistic) adverse effects
customers. Identifying from this analysis 
those assets we consider to be at highest 
— Assessing transparency: Assessed the 
that could arise from the rapidly changing 
those assets we consider to be at highest 
risk of obsolescence, challenging the 
completeness and accuracy of the matters 
and uncertain Coronavirus situation.
risk of obsolescence, challenging the 
management team to provide evidence over 
covered in the going concern disclosure with 
management team to provide evidence over 
the existence and carrying amount of these 
reference to the outcome of the procedures 
— Assessing transparency: Assessed the 
the existence and carrying amount of these 
assets and inspecting this evidence. 
detailed above.
completeness and accuracy of the matters 
assets and inspecting this evidence. 
covered in the going concern disclosure with 
— Assessing transparency: Assessing the 
reference to the outcome of the procedures 
— Assessing transparency: Assessing the 
adequacy of the Group’s disclosures in 
detailed above.
— We found the going concern disclosure 
adequacy of the Group’s disclosures in 
respect of the judgements and estimates 
without any material uncertainty to be 
respect of the judgements and estimates 
involved in arriving at the carrying amount of 
Our results  
acceptable (2019: acceptable).
involved in arriving at the carrying amount of 
hire equipment.
— We found the going concern disclosure 
hire equipment.
Our results  
without any material uncertainty to be 
Our results  
acceptable (2019: acceptable).
— As a result of our work we found that the 
— As a result of our work we found that the 
carrying amount of hire equipment was 
carrying amount of hire equipment was 
acceptable (2019: acceptable).
acceptable (2019: acceptable).

— Sensitivity analysis: We considered

Our results  

The risk

The risk

Our response

Our response

Carrying amount of and 

Carrying amount of and 

existence of hire equipment

existence of hire equipment

(£227.1million; 2019: £216.9 

(£227.1million; 2019: £216.9 

million)

million)

Physical quantities

Physical quantities

The Group has a large number of items

Our procedures included:

Our procedures included:

— Control design and re-performance: 

The Group has a large number of items

of hire equipment, and a high frequency 

— Control design and re-performance: 

Testing the design and operating

of hire equipment, and a high frequency 

of movement in assets, through asset 

Testing the design and operating

effectiveness of key controls including 

of movement in assets, through asset 

purchases, physical hires and disposals. 

effectiveness of key controls including 

authorisation of asset purchases. 

Refer to page 71 (Audit 

purchases, physical hires and disposals. 

As such there is inherent difficulty in

Refer to page 71 (Audit 

Committee Report), page 118 

As such there is inherent difficulty in

maintaining an accurate register of the 

Committee Report), page 118 

(accounting policy) and page 136 

maintaining an accurate register of the 

Group’s hire equipment.

authorisation of asset purchases. 

— Control operation: Testing the design of 

— Control operation: Testing the design of 

controls operating over hire equipment 

(accounting policy) and page 136 

(financial disclosures).

(financial disclosures).

Group’s hire equipment.

Subjective estimate

Subjective estimate

Judgement is applied by the Group in 

Judgement is applied by the Group in 

the estimation of useful economic lives 

the estimation of useful economic lives 

and residual values. These judgment are

controls operating over hire equipment 

asset counts. Testing the operating 

asset counts. Testing the operating 

effectiveness of these controls by 

effectiveness of these controls by 

performing counts to test the accuracy of 

performing counts to test the accuracy of 

the counting for a sample of hire equipment 

the counting for a sample of hire equipment 

assets. 

assets. 

and residual values. These judgment are

based on historical experience, industry 

— Test of details: Agreeing a statistical 

based on historical experience, industry 

regulation, an assessment of the nature 

— Test of details: Agreeing a statistical 

sample of assets acquired and disposed of 

regulation, an assessment of the nature 

of the assets involved and the future 

sample of assets acquired and disposed of 

during the year to third party evidence and 

of the assets involved and the future 

expected usage and market for the sale 

during the year to third party evidence and 

bank proceeds where applicable. Comparing 

expected usage and market for the sale 

of assets.  The judgements made are

bank proceeds where applicable. Comparing 

the hire equipment register for the current 

of assets.  The judgements made are

profit impacting and therefore there is 

profit impacting and therefore there is 

an incentive for management to 

an incentive for management to 

manipulate the judgements made.

manipulate the judgements made.

The effect of these matters is that, as 

The effect of these matters is that, as 

part of our risk assessment, we 

part of our risk assessment, we 

determined that the estimation of useful

determined that the estimation of useful

economic lives and residual values have

economic lives and residual values have

a high degree of estimation uncertainty, 

a high degree of estimation uncertainty, 

with a potential range of reasonable 

with a potential range of reasonable 

outcomes greater than our materiality 

the hire equipment register for the current 

year to prior year to determine any changes 

year to prior year to determine any changes 

made to useful economic lives and residual 

made to useful economic lives and residual 

values and challenging any changes to 

values and challenging any changes to 

assess whether they are consistent with 

assess whether they are consistent with 

accounting policies and reflective of the 

accounting policies and reflective of the 

planned usage for those assets.  Reviewing 

planned usage for those assets.  Reviewing 

profit or loss on disposal of hire equipment 

profit or loss on disposal of hire equipment 

to support the reasonableness of the useful 

to support the reasonableness of the useful 

economic lives and residual values applied. 

economic lives and residual values applied. 

— Test of details: Comparing the hire 

outcomes greater than our materiality 

for the financial statements as a whole, 

— Test of details: Comparing the hire 

equipment register to hire revenue 

for the financial statements as a whole, 

and possibly many times that amount.

equipment register to hire revenue 

information to identify the quantity and net 

and possibly many times that amount.

information to identify the quantity and net 

book value of assets not recently hired to 

book value of assets not recently hired to 

customers. Identifying from this analysis 

customers. Identifying from this analysis 

those assets we consider to be at highest 

those assets we consider to be at highest 

risk of obsolescence, challenging the 

risk of obsolescence, challenging the 

management team to provide evidence over 

management team to provide evidence over 

the existence and carrying amount of these 

the existence and carrying amount of these 

assets and inspecting this evidence. 

assets and inspecting this evidence. 

— Assessing transparency: Assessing the 

— Assessing transparency: Assessing the 

adequacy of the Group’s disclosures in 

adequacy of the Group’s disclosures in 

respect of the judgements and estimates 

respect of the judgements and estimates 

involved in arriving at the carrying amount of 

involved in arriving at the carrying amount of 

hire equipment.

hire equipment.

Our results  

Our results  

— As a result of our work we found that the 

— As a result of our work we found that the 

carrying amount of hire equipment was 

carrying amount of hire equipment was 

acceptable (2019: acceptable).

acceptable (2019: acceptable).

Going concern

Going concern
Carrying amount of and 
Carrying amount of and 
existence of hire equipment
Refer to page 40 (principal risks), 
existence of hire equipment
page 50 (viability statement), page 
(£227.1million; 2019: £216.9 
72 (Audit Committee Report and 
(£227.1million; 2019: £216.9 
million)
page 114 (financial disclosures).
Refer to page 40 (principal risks), 
million)
page 50 (viability statement), page 
Refer to page 71 (Audit 
72 (Audit Committee Report and 
Refer to page 71 (Audit 
Committee Report), page 118 
page 114 (financial disclosures).
Committee Report), page 118 
(accounting policy) and page 136 
(accounting policy) and page 136 
(financial disclosures).
(financial disclosures).

100  

2. Key audit matters: our assessment of risks of material misstatement

2. Key audit matters: including our assessment of risks of material misstatement (continued)
2. Key audit matters: including our assessment of risks of material misstatement (continued)

The risk

Our response

Going concern

Disclosure quality

Our procedures included: .

Refer to page 40 (principal risks), 

The financial statements explain how the 

— Funding assessment: Assessed whether 

page 50 (viability statement), page 

Board has formed a judgement that it is 

the directors’ view of the availability of 

72 (Audit Committee Report and 

appropriate to adopt the going concern 

borrowings and covenant terms is consistent 

page 114 (financial disclosures).

basis of preparation for the Group and 

with our understanding of the facility 

parent Company.

That judgement is based on an evaluation 

agreement and remains appropriate for the 

Group’s requirements.

of the inherent risks to the Group’s and 

— Test of detail: Evaluated the models the 

Company’s business model and how 

directors used in their assessment and 

those risks might affect the Group’s and 

whether the assumptions used are realistic, 

Company’s financial resources or ability to 

achievable and consistent with external 

continue operations over a period of at 

information such as the latest Coronavirus 

least a year from the date of approval of 

government initiatives and industry and 

the financial statements. 

The risk most likely to adversely affect the 

Group’s and Company’s available financial 

resources over this period was the impact

of Coronavirus on the economy as a whole 

economic forecasts. Also assessed 

assumptions against post period end actual 

performance, our understanding of the 

business  as well as any other matters 

identified in the audit.

leading to a significant decrease in 

— Historical comparisons: Evaluated the 

revenue and cash inflows. 

There are also less predictable but realistic 

second order impacts, such as the impact 

of Brexit on the supply of assets, demand 

reliability of the Group’s cash flow forecasts 

and growth rates by assessing previous 

forecasts made by the Group against actual 

performance.

for products and cost price inflation, which 

— Sensitivity analysis: We considered

could result in a reduction of available 

sensitivities over the level of available 

financial resources. 

The risk for our audit was whether or not 

those risks were such that they amounted 

to a material uncertainty that may have 

cast significant doubt about the ability to 

continue as a going concern.  Had they 

required to have been disclosed. 

been such, then that fact would have been 

— Assessing transparency: Assessed the 

financial resources and headroom over debt 
covenants indicated by the Group’s financial 

forecasts taking account of reasonably

possible (but not unrealistic) adverse effects

that could arise from the rapidly changing 

and uncertain Coronavirus situation.

completeness and accuracy of the matters 

covered in the going concern disclosure with 
reference to the outcome of the procedures 

detailed above.

Our results  

— We found the going concern disclosure 

without any material uncertainty to be 

acceptable (2019: acceptable).

Carrying amount of and 
Carrying amount of and 
existence of hire equipment
existence of hire equipment
(£227.1million; 2019: £216.9 
(£227.1million; 2019: £216.9 
million)
million)
Refer to page 71 (Audit 
Refer to page 71 (Audit 
Committee Report), page 118 
Committee Report), page 118 
(accounting policy) and page 136 
(accounting policy) and page 136 
(financial disclosures).
(financial disclosures).

The risk
The risk
Physical quantities
Physical quantities
The Group has a large number of items
The Group has a large number of items
of hire equipment, and a high frequency 
of hire equipment, and a high frequency 
of movement in assets, through asset 
of movement in assets, through asset 
purchases, physical hires and disposals. 
purchases, physical hires and disposals. 
As such there is inherent difficulty in
As such there is inherent difficulty in
maintaining an accurate register of the 
maintaining an accurate register of the 
Group’s hire equipment.
Group’s hire equipment.
Subjective estimate
Subjective estimate
Judgement is applied by the Group in 
Judgement is applied by the Group in 
the estimation of useful economic lives 
the estimation of useful economic lives 
and residual values. These judgment are
and residual values. These judgment are
based on historical experience, industry 
based on historical experience, industry 
regulation, an assessment of the nature 
regulation, an assessment of the nature 
of the assets involved and the future 
of the assets involved and the future 
expected usage and market for the sale 
expected usage and market for the sale 
of assets.  The judgements made are
of assets.  The judgements made are
profit impacting and therefore there is 
profit impacting and therefore there is 
an incentive for management to 
an incentive for management to 
manipulate the judgements made.
manipulate the judgements made.
The effect of these matters is that, as 
The effect of these matters is that, as 
part of our risk assessment, we 
part of our risk assessment, we 
determined that the estimation of useful
determined that the estimation of useful
economic lives and residual values have
economic lives and residual values have
a high degree of estimation uncertainty, 
a high degree of estimation uncertainty, 
with a potential range of reasonable 
with a potential range of reasonable 
outcomes greater than our materiality 
outcomes greater than our materiality 
for the financial statements as a whole, 
for the financial statements as a whole, 
and possibly many times that amount.
and possibly many times that amount.

Our response
Our response
Our procedures included:
Our procedures included:
— Control design and re-performance: 
— Control design and re-performance: 
Testing the design and operating
Testing the design and operating
effectiveness of key controls including 
effectiveness of key controls including 
authorisation of asset purchases. 
authorisation of asset purchases. 

— Control operation: Testing the design of 
— Control operation: Testing the design of 
controls operating over hire equipment 
controls operating over hire equipment 
asset counts. Testing the operating 
asset counts. Testing the operating 
effectiveness of these controls by 
effectiveness of these controls by 
performing counts to test the accuracy of 
performing counts to test the accuracy of 
the counting for a sample of hire equipment 
the counting for a sample of hire equipment 
assets. 
assets. 

— Test of details: Agreeing a statistical 
— Test of details: Agreeing a statistical 

sample of assets acquired and disposed of 
sample of assets acquired and disposed of 
during the year to third party evidence and 
during the year to third party evidence and 
bank proceeds where applicable. Comparing 
bank proceeds where applicable. Comparing 
the hire equipment register for the current 
the hire equipment register for the current 
year to prior year to determine any changes 
year to prior year to determine any changes 
made to useful economic lives and residual 
made to useful economic lives and residual 
values and challenging any changes to 
values and challenging any changes to 
assess whether they are consistent with 
assess whether they are consistent with 
accounting policies and reflective of the 
accounting policies and reflective of the 
planned usage for those assets.  Reviewing 
planned usage for those assets.  Reviewing 
profit or loss on disposal of hire equipment 
profit or loss on disposal of hire equipment 
to support the reasonableness of the useful 
to support the reasonableness of the useful 
economic lives and residual values applied. 
economic lives and residual values applied. 

— Test of details: Comparing the hire 
— Test of details: Comparing the hire 
equipment register to hire revenue 
equipment register to hire revenue 
information to identify the quantity and net 
information to identify the quantity and net 
book value of assets not recently hired to 
book value of assets not recently hired to 
customers. Identifying from this analysis 
customers. Identifying from this analysis 
those assets we consider to be at highest 
those assets we consider to be at highest 
risk of obsolescence, challenging the 
risk of obsolescence, challenging the 
management team to provide evidence over 
management team to provide evidence over 
the existence and carrying amount of these 
the existence and carrying amount of these 
assets and inspecting this evidence. 
assets and inspecting this evidence. 
— Assessing transparency: Assessing the 
— Assessing transparency: Assessing the 
adequacy of the Group’s disclosures in 
adequacy of the Group’s disclosures in 
respect of the judgements and estimates 
respect of the judgements and estimates 
involved in arriving at the carrying amount of 
involved in arriving at the carrying amount of 
hire equipment.
hire equipment.

Our results  
Our results  
— As a result of our work we found that the 
— As a result of our work we found that the 
carrying amount of hire equipment was 
carrying amount of hire equipment was 
acceptable (2019: acceptable).
acceptable (2019: acceptable).

101

The risk

The risk (continued)

Subjective estimate:

Contingent consideration and impairment 

2. Key audit matters: our assessment of risks of material misstatement (continued)

Geason: contingent 
consideration, impairment 
and claim provision

Refer to page 72 (Audit 
Refer to page 72 (Audit 
Refer to page 72 (Audit 
Refer to page 72 (Audit 
Committee Report), page 123 
Refer to page 72 (Audit 
Committee Report), page 123 
Committee Report), page 123 
Committee Report), page 123 
(accounting policy) and pages 
Committee Report), page 123 
(accounting policy) and pages 
(accounting policy) and pages 
(accounting policy) and pages 
133 and 145 (financial 
(accounting policy) and pages 
133 and 145 (financial 
133 and 145 (financial 
133 and 145 (financial 
disclosures).
133 and 145 (financial 
disclosures).
disclosures).
disclosures).
disclosures).

2. Key audit matters: our assessment of risks of material misstatement (continued)
2. Key audit matters: our assessment of risks of material misstatement (continued)
2. Key audit matters: our assessment of risks of material misstatement (continued)
2. Key audit matters: our assessment of risks of material misstatement (continued)
The risk (continued)
The risk
The risk (continued)
The risk
The risk (continued)
The risk
The risk (continued)
The risk
Subjective estimate:
Geason: contingent 
Subjective estimate:
Geason: contingent 
Subjective estimate:
Geason: contingent 
consideration, impairment 
Subjective estimate:
Geason: contingent 
Contingent consideration and impairment 
consideration, impairment 
consideration, impairment 
and claim provision
Contingent consideration and impairment 
consideration, impairment 
Contingent consideration and impairment 
and claim provision
Contingent consideration and impairment 
and claim provision
In December 2018, the Group acquired the 
and claim provision
In December 2018, the Group acquired the 
£nil of contingent consideration 
In December 2018, the Group acquired the 
£nil of contingent consideration 
In December 2018, the Group acquired the 
entire issued shareholding of Geason 
£nil of contingent consideration 
In December 2018, the Group acquired the 
£nil of contingent consideration 
entire issued shareholding of Geason 
(2019: £10.9 million);
entire issued shareholding of Geason 
£nil of contingent consideration 
(2019: £10.9 million);
entire issued shareholding of Geason 
Holdings Limited and its subsidiary 
(2019: £10.9 million);
entire issued shareholding of Geason 
(2019: £10.9 million);
Holdings Limited and its subsidiary 
£18.5 million impairment of 
Holdings Limited and its subsidiary 
(2019: £10.9 million);
£18.5 million impairment of 
Holdings Limited and its subsidiary 
(Geason). The purchase price included a 
£18.5 million impairment of 
Holdings Limited and its subsidiary 
£18.5 million impairment of 
(Geason). The purchase price included a 
intangible assets (2019: £nil); 
(Geason). The purchase price included a 
£18.5 million impairment of 
intangible assets (2019: £nil); 
(Geason). The purchase price included a 
contingent consideration element of up to 
intangible assets (2019: £nil); 
(Geason). The purchase price included a 
intangible assets (2019: £nil); 
contingent consideration element of up to 
£3.0 million of claim provision 
contingent consideration element of up to 
intangible assets (2019: £nil); 
£3.0 million of claim provision 
contingent consideration element of up to 
£26.0m potentially payable dependent on 
£3.0 million of claim provision 
contingent consideration element of up to 
£3.0 million of claim provision 
£26.0m potentially payable dependent on 
(2019:£nil)
£26.0m potentially payable dependent on 
£3.0 million of claim provision 
(2019:£nil)
£26.0m potentially payable dependent on 
the combined performance of Geason and 
(2019:£nil)
£26.0m potentially payable dependent on 
(2019:£nil)
the combined performance of Geason and 
the combined performance of Geason and 
(2019:£nil)
the combined performance of Geason and 
Speedy’s training businesses in the three 
the combined performance of Geason and 
Speedy’s training businesses in the three 
Speedy’s training businesses in the three 
Speedy’s training businesses in the three 
years following acquisition.
Speedy’s training businesses in the three 
years following acquisition.
years following acquisition.
years following acquisition.
years following acquisition.
In the current financial year, the 
In the current financial year, the 
In the current financial year, the 
In the current financial year, the 
performance of Geason has fallen 
In the current financial year, the 
performance of Geason has fallen 
performance of Geason has fallen 
performance of Geason has fallen 
significantly below expectations and the 
performance of Geason has fallen 
significantly below expectations and the 
significantly below expectations and the 
significantly below expectations and the 
risks most likely to affect the financial 
significantly below expectations and the 
risks most likely to affect the financial 
risks most likely to affect the financial 
risks most likely to affect the financial 
statements in relation to this are:
risks most likely to affect the financial 
statements in relation to this are:
statements in relation to this are:
statements in relation to this are:
statements in relation to this are:
There is judgement involved in 
-
There is judgement involved in 
There is judgement involved in 
-
There is judgement involved in 
-
determining the value of contingent 
There is judgement involved in 
-
determining the value of contingent 
determining the value of contingent 
determining the value of contingent 
consideration to be recognised. The 
determining the value of contingent 
consideration to be recognised. The 
consideration to be recognised. The 
consideration to be recognised. The 
estimate is based on forecasted trading 
consideration to be recognised. The 
estimate is based on forecasted trading 
estimate is based on forecasted trading 
estimate is based on forecasted trading 
results. While this estimate becomes 
estimate is based on forecasted trading 
results. While this estimate becomes 
results. While this estimate becomes 
results. While this estimate becomes 
more certain over time, there is 
results. While this estimate becomes 
more certain over time, there is 
more certain over time, there is 
more certain over time, there is 
inherent uncertainty involved in 
more certain over time, there is 
inherent uncertainty involved in 
inherent uncertainty involved in 
inherent uncertainty involved in 
forecasting performance.
inherent uncertainty involved in 
forecasting performance.
forecasting performance.
forecasting performance.
forecasting performance.
The carrying value of the Training  Cash 
The carrying value of the Training  Cash 
The carrying value of the Training  Cash 
The carrying value of the Training  Cash 
Generating Unit (‘CGU’), of which 
The carrying value of the Training  Cash 
Generating Unit (‘CGU’), of which 
Generating Unit (‘CGU’), of which 
Generating Unit (‘CGU’), of which 
Geason is part of, is  at risk of 
Generating Unit (‘CGU’), of which 
Geason is part of, is  at risk of 
Geason is part of, is  at risk of 
Geason is part of, is  at risk of 
impairment due to the continued poor 
Geason is part of, is  at risk of 
impairment due to the continued poor 
impairment due to the continued poor 
impairment due to the continued poor 
performance of Geason. An impairment 
impairment due to the continued poor 
performance of Geason. An impairment 
performance of Geason. An impairment 
performance of Geason. An impairment 
charge to intangible assets of £18.5m 
performance of Geason. An impairment 
charge to intangible assets of £18.5m 
charge to intangible assets of £18.5m 
charge to intangible assets of £18.5m 
has been recorded. The impairment 
charge to intangible assets of £18.5m 
has been recorded. The impairment 
has been recorded. The impairment 
has been recorded. The impairment 
charge and resulting estimated 
has been recorded. The impairment 
charge and resulting estimated 
charge and resulting estimated 
charge and resulting estimated 
recoverable amount are subjective due 
charge and resulting estimated 
recoverable amount are subjective due 
recoverable amount are subjective due 
recoverable amount are subjective due 
to the inherent uncertainty involved in 
recoverable amount are subjective due 
to the inherent uncertainty involved in 
to the inherent uncertainty involved in 
to the inherent uncertainty involved in 
forecasting.
to the inherent uncertainty involved in 
forecasting.
forecasting.
forecasting.
forecasting.

-
-
-
-

-

-

Our response

Our procedures included: 

Contingent consideration and impairment 

Our response
Our response
Our response
Our response
Our procedures included: 
Our procedures included: 
Our procedures included: 
Our procedures included: 
Contingent consideration and impairment 
Contingent consideration and impairment 
Contingent consideration and impairment 
Contingent consideration and impairment 
— Historical comparison: Assessing the 
— Historical comparison: Assessing the 
— Historical comparison: Assessing the 
— Historical comparison: Assessing the 
reliability of management’s forecasting 
— Historical comparison: Assessing the 
reliability of management’s forecasting 
reliability of management’s forecasting 
reliability of management’s forecasting 
method by performing a retrospective 
reliability of management’s forecasting 
method by performing a retrospective 
method by performing a retrospective 
method by performing a retrospective 
review of forecasts set in the prior year 
method by performing a retrospective 
review of forecasts set in the prior year 
review of forecasts set in the prior year 
review of forecasts set in the prior year 
against actual results.
review of forecasts set in the prior year 
against actual results.
against actual results.
against actual results.
against actual results.

— Sensitivity analysis: Stress testing the key 
— Sensitivity analysis: Stress testing the key 
— Sensitivity analysis: Stress testing the key 
— Sensitivity analysis: Stress testing the key 
assumptions included within management’s 
— Sensitivity analysis: Stress testing the key 
assumptions included within management’s 
assumptions included within management’s 
assumptions included within management’s 
forecasts in particular those relating to 
assumptions included within management’s 
forecasts in particular those relating to 
forecasts in particular those relating to 
forecasts in particular those relating to 
forecast revenue growth and profit margins.
forecasts in particular those relating to 
forecast revenue growth and profit margins.
forecast revenue growth and profit margins.
forecast revenue growth and profit margins.
forecast revenue growth and profit margins.

— Test of details: Assessing the group’s 

— Test of details: Assessing the group’s 
— Test of details: Assessing the group’s 
— Test of details: Assessing the group’s 
assumptions used in the calculations of the 
— Test of details: Assessing the group’s 
assumptions used in the calculations of the 
assumptions used in the calculations of the 
assumptions used in the calculations of the 
contingent consideration liability and the 
assumptions used in the calculations of the 
contingent consideration liability and the 
contingent consideration liability and the 
contingent consideration liability and the 
impairment charge, including revenue 
contingent consideration liability and the 
impairment charge, including revenue 
impairment charge, including revenue 
impairment charge, including revenue 
growth and net margin, against past 
impairment charge, including revenue 
growth and net margin, against past 
growth and net margin, against past 
growth and net margin, against past 
performance, our understanding of the 
growth and net margin, against past 
performance, our understanding of the 
performance, our understanding of the 
performance, our understanding of the 
business  as well as any other matters 
performance, our understanding of the 
business  as well as any other matters 
business  as well as any other matters 
business  as well as any other matters 
identified in the audit.
business  as well as any other matters 
identified in the audit.
identified in the audit.
identified in the audit.
identified in the audit.

— Assessing transparency: We have 

— Assessing transparency: We have 
— Assessing transparency: We have 
— Assessing transparency: We have 
assessed the adequacy of the Group’s 
— Assessing transparency: We have 
assessed the adequacy of the Group’s 
assessed the adequacy of the Group’s 
assessed the adequacy of the Group’s 
disclosures in relation to the degree of 
assessed the adequacy of the Group’s 
disclosures in relation to the degree of 
disclosures in relation to the degree of 
disclosures in relation to the degree of 
estimation involved in arriving at the 
disclosures in relation to the degree of 
estimation involved in arriving at the 
estimation involved in arriving at the 
estimation involved in arriving at the 
contingent consideration liability and the 
estimation involved in arriving at the 
contingent consideration liability and the 
contingent consideration liability and the 
contingent consideration liability and the 
impairment of the Training CGU. 
contingent consideration liability and the 
impairment of the Training CGU. 
impairment of the Training CGU. 
impairment of the Training CGU. 
impairment of the Training CGU. 

Claim provision

Claim provision
Claim provision
Claim provision
Claim provision
— Test of details:  inspection of 
— Test of details:  inspection of 
— Test of details:  inspection of 
— Test of details:  inspection of 

— Test of details:  inspection of 

correspondence received from the funding 
correspondence received from the funding 
correspondence received from the funding 
correspondence received from the funding 
agency and Group’s lawyers to assess the 
correspondence received from the funding 
agency and Group’s lawyers to assess the 
agency and Group’s lawyers to assess the 
agency and Group’s lawyers to assess the 
appropriateness of the provision made. 
agency and Group’s lawyers to assess the 
appropriateness of the provision made. 
appropriateness of the provision made. 
appropriateness of the provision made. 
Detailed testing on revenue transactions 
appropriateness of the provision made. 
Detailed testing on revenue transactions 
Detailed testing on revenue transactions 
Detailed testing on revenue transactions 
recognised in the year to assess 
Detailed testing on revenue transactions 
recognised in the year to assess 
recognised in the year to assess 
recognised in the year to assess 
completeness of the claim provision 
recognised in the year to assess 
completeness of the claim provision 
completeness of the claim provision 
completeness of the claim provision 
recognised.
completeness of the claim provision 
recognised.
recognised.
recognised.
recognised.

Our results  

— Assessing transparency: We have 

— Assessing transparency: We have 
— Assessing transparency: We have 
— Assessing transparency: We have 
assessed the adequacy of the Group’s 
— Assessing transparency: We have 
assessed the adequacy of the Group’s 
assessed the adequacy of the Group’s 
assessed the adequacy of the Group’s 
disclosures in relation to the degree of 
assessed the adequacy of the Group’s 
disclosures in relation to the degree of 
disclosures in relation to the degree of 
disclosures in relation to the degree of 
estimation involved in arriving at the claim 
disclosures in relation to the degree of 
estimation involved in arriving at the claim 
estimation involved in arriving at the claim 
estimation involved in arriving at the claim 
provision.
estimation involved in arriving at the claim 
provision.
provision.
provision.
provision.
Our results  
Our results  
Our results  
Our results  
— We found the amount recognised for 
— We found the amount recognised for 
— We found the amount recognised for 
contingent consideration to be acceptable 
— We found the amount recognised for 
contingent consideration to be acceptable 
contingent consideration to be acceptable 
contingent consideration to be acceptable 
(2019: acceptable) and the amount 
contingent consideration to be acceptable 
(2019: acceptable) and the amount 
(2019: acceptable) and the amount 
(2019: acceptable) and the amount 
recognised for the impairment to be 
(2019: acceptable) and the amount 
recognised for the impairment to be 
recognised for the impairment to be 
recognised for the impairment to be 
acceptable (2019: not applicable). We found 
recognised for the impairment to be 
acceptable (2019: not applicable). We found 
acceptable (2019: not applicable). We found 
acceptable (2019: not applicable). We found 
the amount provided for the claim to be 
acceptable (2019: not applicable). We found 
the amount provided for the claim to be 
the amount provided for the claim to be 
the amount provided for the claim to be 
acceptable (2019: not applicable). 
the amount provided for the claim to be 
acceptable (2019: not applicable). 
acceptable (2019: not applicable). 
acceptable (2019: not applicable). 
acceptable (2019: not applicable). 

— We found the amount recognised for 

Claim provision

The effect of these matters is that, as part 
The effect of these matters is that, as part 
The effect of these matters is that, as part 
The effect of these matters is that, as part 
of our risk assessment, we determined 
The effect of these matters is that, as part 
of our risk assessment, we determined 
of our risk assessment, we determined 
of our risk assessment, we determined 
that both the valuation of contingent 
of our risk assessment, we determined 
that both the valuation of contingent 
that both the valuation of contingent 
that both the valuation of contingent 
consideration and the recoverable amount 
that both the valuation of contingent 
consideration and the recoverable amount 
consideration and the recoverable amount 
consideration and the recoverable amount 
of the Training CGU have high degrees of 
consideration and the recoverable amount 
of the Training CGU have high degrees of 
of the Training CGU have high degrees of 
of the Training CGU have high degrees of 
estimation uncertainty, with a potential 
of the Training CGU have high degrees of 
estimation uncertainty, with a potential 
estimation uncertainty, with a potential 
estimation uncertainty, with a potential 
range of reasonable outcomes greater than 
estimation uncertainty, with a potential 
range of reasonable outcomes greater than 
range of reasonable outcomes greater than 
range of reasonable outcomes greater than 
our materiality for the financial statements 
range of reasonable outcomes greater than 
our materiality for the financial statements 
our materiality for the financial statements 
our materiality for the financial statements 
as a whole and possibly many times that 
our materiality for the financial statements 
as a whole and possibly many times that 
as a whole and possibly many times that 
as a whole and possibly many times that 
amount. The financial statements disclose 
as a whole and possibly many times that 
amount. The financial statements disclose 
amount. The financial statements disclose 
amount. The financial statements disclose 
the range estimated by the Group in 
amount. The financial statements disclose 
the range estimated by the Group in 
the range estimated by the Group in 
the range estimated by the Group in 
relation to the valuation of the contingent 
the range estimated by the Group in 
relation to the valuation of the contingent 
relation to the valuation of the contingent 
relation to the valuation of the contingent 
consideration (note 22).
relation to the valuation of the contingent 
consideration (note 22).
consideration (note 22).
consideration (note 22).
consideration (note 22).
Claim provision
Claim provision
Claim provision
Claim provision
The group has received a claim from a 
The group has received a claim from a 
The group has received a claim from a 
The group has received a claim from a 
funding agency regarding repayment of 
The group has received a claim from a 
funding agency regarding repayment of 
funding agency regarding repayment of 
funding agency regarding repayment of 
funding. The amounts involved are 
funding agency regarding repayment of 
funding. The amounts involved are 
funding. The amounts involved are 
funding. The amounts involved are 
significant, and the application of 
funding. The amounts involved are 
significant, and the application of 
significant, and the application of 
significant, and the application of 
accounting standards to determine the 
significant, and the application of 
accounting standards to determine the 
accounting standards to determine the 
accounting standards to determine the 
amount, if any, to be provided as a liability, 
accounting standards to determine the 
amount, if any, to be provided as a liability, 
amount, if any, to be provided as a liability, 
amount, if any, to be provided as a liability, 
is inherently subjective. 
amount, if any, to be provided as a liability, 
is inherently subjective. 
is inherently subjective. 
is inherently subjective. 
is inherently subjective. 
The effect of these matters is that, as part 
The effect of these matters is that, as part 
The effect of these matters is that, as part 
The effect of these matters is that, as part 
of our risk assessment, we determined 
The effect of these matters is that, as part 
of our risk assessment, we determined 
of our risk assessment, we determined 
of our risk assessment, we determined 
that the liability has a high degree of 
of our risk assessment, we determined 
that the liability has a high degree of 
that the liability has a high degree of 
that the liability has a high degree of 
estimation uncertainty, with a potential 
that the liability has a high degree of 
estimation uncertainty, with a potential 
estimation uncertainty, with a potential 
estimation uncertainty, with a potential 
range of reasonable outcomes greater than 
estimation uncertainty, with a potential 
range of reasonable outcomes greater than 
range of reasonable outcomes greater than 
range of reasonable outcomes greater than 
our materiality for the financial statements 
range of reasonable outcomes greater than 
our materiality for the financial statements 
our materiality for the financial statements 
our materiality for the financial statements 
as a whole. 
our materiality for the financial statements 
as a whole. 
as a whole. 
as a whole. 
as a whole. 

102   

2. Key audit matters: including our assessment of risks of material misstatement (continued)

The risk

Our response

Recoverability of trade 

Subjective estimate:

Our procedures included: 

receivables

(£95.5 million; 2019: £95.1million)

in the construction market, which entails 

used to calculate the provision recorded 

The Group’s customers operate mainly 

— Test of details: Assessing the methodology 

Refer to page 73 (Audit 

a higher risk of non-recoverability of 

trade receivables as evidenced by a 

Committee Report), page 123 

number of liquidations over previous 

(accounting policy) and page 138 

years.

(financial disclosures).

against trade receivables, challenging the 

appropriateness of these provisions based 

on historical bad debt write-offs, collection 

rates and the forecasted impact of 

Coronavirus.

receivables has been heightened at least 

— Tests of detail: After analysing the level of 

The risk of recoverability of all trade 

in the short term by the impact of 

Coronavirus.

The International business’s customer

base in the Middle East increases the

risk associated with the recoverability of 

trade receivables as longer payment

terms are given in those jurisdictions,

which could delay the identification of

irrecoverable trade receivables.

The effect of these matters is that, as 

part of our risk assessment, we 

determined that the provision for 

doubtful debts has a high degree of 

estimation uncertainty, with a potential 

cash receipts post year end, identifying a 

risk based sample of receivables. For this 

sample, assessing the adequacy of the 

provision held by evaluating the payment 

status of the receivable balance and the 

customer’s likelihood of payment, including 

independently agreeing the customer's 

latest credit score and assessing the legal 

status of the balances.

— Assessing transparency: Assessing the 

adequacy of the Group’s disclosures in 

relation to the degree of estimation involved 

in arriving at the carrying amount of the 

trade receivables balance.

range of reasonable outcomes greater 

Our results  

than our materiality for the financial 

statements as a whole. 

— From the evidence obtained, we considered 

the level of provisioning to be acceptable 

(2019: acceptable). 

Recoverability of parent’s debt 

Low risk, high value:

Our procedures included: 

due from Group entities

(£319.8 million; 2019: 

£332.9million)

Refer to page 153 (accounting 

policy) and page 155 (financial 

disclosures).

The carrying amount of the intra-group 

— Tests of detail: Assessing 100% of Group 

debtor balance represents 71% (2019: 

debtors to identify, with reference to the 

76%) of the parent Company’s total 

assets. Their recoverability is not at a 

relevant debtors’ draft balance sheet, 

whether they have a positive net asset value 

high risk of significant misstatement or 

and therefore coverage of the debt owed, as 

subject to significant judgement.  

well as assessing whether those debtor 

However, due to their materiality in the 

companies have historically been profit-

context of the parent Company financial 

making.

statements, this is considered to be the 

area that had the greatest effect on our 

overall parent Company audit.

— Assessing subsidiary audits: Assessing 

the work performed by the subsidiary audit 

teams, and considering the results of that 

work, on those net assets, including 

assessing the liquidity of the assets and 

therefore the ability of the subsidiary to fund 

the repayment of the receivable.

Our results  

— We found the Group’s assessment of the 

recoverability of the Group debtor balance to 

be appropriate (2019: appropriate).

2. Key audit matters: including our assessment of risks of material misstatement (continued)

Recoverability of trade 
receivables

(£95.5 million; 2019: £95.1million)

Refer to page 73 (Audit 
Committee Report), page 123 
(accounting policy) and page 138 
(financial disclosures).

Recoverability of parent’s debt 
due from Group entities

(£319.8 million; 2019: 
£332.9million)

Refer to page 153 (accounting 
policy) and page 155 (financial 
disclosures).

The risk

Our response

Subjective estimate:

Our procedures included: 

The Group’s customers operate mainly 
in the construction market, which entails 
a higher risk of non-recoverability of 
trade receivables as evidenced by a 
number of liquidations over previous 
years.

The risk of recoverability of all trade 
receivables has been heightened at least 
in the short term by the impact of 
Coronavirus.

The International business’s customer
base in the Middle East increases the
risk associated with the recoverability of 
trade receivables as longer payment
terms are given in those jurisdictions,
which could delay the identification of
irrecoverable trade receivables.

The effect of these matters is that, as 
part of our risk assessment, we 
determined that the provision for 
doubtful debts has a high degree of 
estimation uncertainty, with a potential 
range of reasonable outcomes greater 
than our materiality for the financial 
statements as a whole. 

— Test of details: Assessing the methodology 
used to calculate the provision recorded 
against trade receivables, challenging the 
appropriateness of these provisions based 
on historical bad debt write-offs, collection 
rates and the forecasted impact of 
Coronavirus.

— Tests of detail: After analysing the level of 
cash receipts post year end, identifying a 
risk based sample of receivables. For this 
sample, assessing the adequacy of the 
provision held by evaluating the payment 
status of the receivable balance and the 
customer’s likelihood of payment, including 
independently agreeing the customer's 
latest credit score and assessing the legal 
status of the balances.

— Assessing transparency: Assessing the 
adequacy of the Group’s disclosures in 
relation to the degree of estimation involved 
in arriving at the carrying amount of the 
trade receivables balance.

Our results  

— From the evidence obtained, we considered 
the level of provisioning to be acceptable 
(2019: acceptable). 

Low risk, high value:

Our procedures included: 

The carrying amount of the intra-group 
debtor balance represents 71% (2019: 
76%) of the parent Company’s total 
assets. Their recoverability is not at a 
high risk of significant misstatement or 
subject to significant judgement.  
However, due to their materiality in the 
context of the parent Company financial 
statements, this is considered to be the 
area that had the greatest effect on our 
overall parent Company audit.

— Tests of detail: Assessing 100% of Group 
debtors to identify, with reference to the 
relevant debtors’ draft balance sheet, 
whether they have a positive net asset value 
and therefore coverage of the debt owed, as 
well as assessing whether those debtor 
companies have historically been profit-
making.

— Assessing subsidiary audits: Assessing 

the work performed by the subsidiary audit 
teams, and considering the results of that 
work, on those net assets, including 
assessing the liquidity of the assets and 
therefore the ability of the subsidiary to fund 
the repayment of the receivable.

Our results  

— We found the Group’s assessment of the 

recoverability of the Group debtor balance to 
be appropriate (2019: appropriate).

103

3. Our application of materiality and an overview of the 

3. Our application of materiality and an overview of the 

scope of our audit 

scope of our audit 

Materiality for the Group financial statements as a whole 
Materiality for the Group financial statements as a whole 
was set at £1.6m (2019: £1.4m), determined with 
was set at £1.6m (2019: £1.4m), determined with 
reference to a benchmark of Group profit before tax, 
reference to a benchmark of Group profit before tax, 
adjusted to exclude this year’s exceptional items as 
adjusted to exclude this year’s exceptional items as 
disclosed in note 3, of £12.9 m (2019: £2.0m), of which it 
disclosed in note 3, of £12.9 m (2019: £2.0m), of which it 
represents 4.8 % (2019: 4.6%).
represents 4.8 % (2019: 4.6%).

Materiality for the parent Company financial statements as 
Materiality for the parent Company financial statements as 
a whole was set at £1.1 m (2019: £1.0m), determined with 
a whole was set at £1.1 m (2019: £1.0m), determined with 
reference to a benchmark of Company total assets, of 
reference to a benchmark of Company total assets, of 
which it represents 0.2% (2019: 0.2%).
which it represents 0.2% (2019: 0.2%).

We agreed to report to the Audit Committee any corrected 
We agreed to report to the Audit Committee any corrected 
or uncorrected identified misstatements exceeding 
or uncorrected identified misstatements exceeding 
£0.08m (2019: £0.07m), in addition to other identified 
£0.08m (2019: £0.07m), in addition to other identified 
misstatements that warranted reporting on qualitative 
misstatements that warranted reporting on qualitative 
grounds.
grounds.

Of the Group’s sixteen (2019: twelve) reporting 
Of the Group’s sixteen (2019: twelve) reporting 
components, we subjected twelve (2019: nine) to full 
components, we subjected twelve (2019: nine) to full 
scope audits for Group purposes and none to specified 
scope audits for Group purposes and none to specified 
risk-focused audit procedures (2019: one, being a newly 
risk-focused audit procedures (2019: one, being a newly 
acquired subsidiary, performing specified risk-focused 
acquired subsidiary, performing specified risk-focused 
audit procedures  over hire equipment). The latter was not 
audit procedures  over hire equipment). The latter was not 
individually financially significant enough in the prior year to 
individually financially significant enough in the prior year to 
require a full scope audit for Group purposes, but was 
require a full scope audit for Group purposes, but was 
subjected to a full scope audit in the current period.
subjected to a full scope audit in the current period.

The work on five of sixteen (2019: two of twelve) 
The work on five of sixteen (2019: two of twelve) 
components was performed by the component auditors. 
components was performed by the component auditors. 
The work on the other seven (2019: ten) components, 
The work on the other seven (2019: ten) components, 
including the audit of the parent company, was performed 
including the audit of the parent company, was performed 
by the Group audit team. 
by the Group audit team. 

The Group team performed procedures on the exceptional 
The Group team performed procedures on the exceptional 
items excluded from normalised Group profit before tax.
items excluded from normalised Group profit before tax.

The components within the scope of our work accounted 
The components within the scope of our work accounted 
for the percentages illustrated opposite. The remaining 
for the percentages illustrated opposite. The remaining 
15% of group profit before tax is represented by four 
15% of group profit before tax is represented by four 
reporting components. For these residual components, we 
reporting components. For these residual components, we 
performed analysis at an aggregated group level to re-
performed analysis at an aggregated group level to re-
examine our assessment that there were no significant 
examine our assessment that there were no significant 
risks of material misstatement within these.
risks of material misstatement within these.

The Group team instructed the component auditors as to 
The Group team instructed the component auditors as to 
the significant areas to be covered, including the relevant 
the significant areas to be covered, including the relevant 
risks detailed above and the information to be reported 
risks detailed above and the information to be reported 
back. The Group team approved the component 
back. The Group team approved the component 
materialities, which ranged from £0.1m to £1.1m (2019: 
materialities, which ranged from £0.1m to £1.1m (2019: 
£0.1m to £1.0m ), having regard to the mix of size and risk 
£0.1m to £1.0m ), having regard to the mix of size and risk 
profile of the Group across the components. 
profile of the Group across the components. 

The Group audit team held telephone conference 
The Group audit team held telephone conference 
meetings with the component auditors. At these 
meetings with the component auditors. At these 
meetings, the findings reported to the Group audit team 
meetings, the findings reported to the Group audit team 
were discussed in more detail and any further work 
were discussed in more detail and any further work 
required by the Group audit team was then performed by 
required by the Group audit team was then performed by 
the component auditors. 
the component auditors. 

Profit before tax adjusted to 
Profit before tax adjusted to 
exclude exceptional items
exclude exceptional items
£33.6m (2019: £30.2m)
£33.6m (2019: £30.2m)

Group Materiality
Group Materiality
£1.6m (2019: £1.4m)
£1.6m (2019: £1.4m)

£1.6m
Whole financial
statements materiality
(2019: £1.4m)

£1.6m
Whole financial
statements materiality
(2019: £1.4m)

£1.1m
£1.1m
Range of materiality at twelve 
Range of materiality at twelve 
components (£0.1m-£1.1m) 
components (£0.1m-£1.1m) 
(2019: £0.1m-£1.0m)
(2019: £0.1m-£1.0m)

Profit before tax adjusted to
Profit before tax adjusted to
exclude exceptional items
exclude exceptional items
Group materiality
Group materiality

£0.08m
Misstatements reported to the 
audit committee (2019: 
£0.07m)

£0.08m
Misstatements reported to the 
audit committee (2019: 
£0.07m)

Group revenue

Group revenue

Group profit before tax

Group profit before tax

100%
100%

(2019 99%)

(2019 99%)

99

99

100

100

86%
86%

(2019 92%)

(2019 92%)

92

92

86

86

Group total assets 

Group total assets 

Group profit before exceptional 
Group profit before exceptional 
items and tax
items and tax

5.   We have nothing to report on the other information in 

the Annual Report

Under the Listing Rules we are required to review the 

Directors’ Viability Statement. We have nothing to report in 

3

3

100%
100%

(2019 97%)

(2019 97%)

94

94

100

100

91%
91%

(2019 92%)

(2019 92%)

92

92

91

91

4. We have nothing to report on going concern

Strategic report and directors’ report

The directors have prepared the financial statements on the 

Based solely on our work on the other information:  

— we have anything material to add or draw attention to in 

liquidity;

going concern basis as they do not intend to liquidate the 

Company or the Group or to cease their operations, and as 

they have concluded that the Company’s and the Group’s 

financial position means that this is realistic. They have also 

concluded that there are no material uncertainties that 

could have cast significant doubt over their ability to 

continue as a going concern for at least a year from the 

date of approval of the financial statements (“the going 

concern period”).  

Our responsibility is to conclude on the appropriateness of 

the directors’ conclusions and, had there been a material 

uncertainty related to going concern, to make reference to 

that in this audit report. However, as we cannot predict all 

future events or conditions and as subsequent events may 

result in outcomes that are inconsistent with judgements 

that were reasonable at the time they were made, the 

absence of reference to a material uncertainty in this 

auditor's report is not a guarantee that the Group and the 

Company will continue in operation.  

We identified going concern as a key audit matter (see 

section 2 of this report). Based on the work described in our 

response to that key audit matter, we are required to report 

to you if:

relation to the directors’ statement  in Note 1 to the 

financial statements on the use of the going concern 

basis of accounting with no material uncertainties that 

may cast significant doubt over the Group and 

Company’s use of that basis for a period of at least 

twelve months from the date of approval of the financial 

— the related statement under the Listing Rules set out on 

page 61 is materially inconsistent with our audit 

statements ; or

knowledge.

We have nothing to report in these respects.

The directors are responsible for the other information 

presented in the Annual Report together with the financial 

statements.  Our opinion on the financial statements does 

not cover the other information and, accordingly, we do not 

express an audit opinion or, except as explicitly stated 

below, any form of assurance conclusion thereon.  

Our responsibility is to read the other information and, in 

doing so, consider whether, based on our financial 

statements audit work, the information therein is materially 

misstated or inconsistent with the financial statements or 

our audit knowledge.  Based solely on that work we have 

not identified material misstatements in the other 

information.

— we have not identified material misstatements in the 

strategic report and the directors’ report; 

— in our opinion the information given in those reports for 

the financial year is consistent with the financial 

statements; and  

— in our opinion those reports have been prepared in 

accordance with the Companies Act 2006.

Directors’ remuneration report 

In our opinion the part of the Directors’ Remuneration 

Report to be audited has been properly prepared in 

accordance with the Companies Act 2006.

Disclosures of emerging and principal risks and longer-term 

viability 

Based on the knowledge we acquired during our financial 

statements audit, we have nothing material to add or draw 

attention to in relation to:

— the directors’ confirmation within the Directors’ Viability 

Statement on page 50 that they have carried out a 

robust assessment of the emerging and principal risks 

facing the Group, including those that would threaten its 

business model, future performance, solvency and 

— the Principal Risks disclosures describing these risks 

and explaining how they are being managed and 

mitigated; and  

— the directors’ explanation in the Directors’ Viability 

Statement of how they have assessed the prospects of 

the Group, over what period they have done so and why 

they considered that period to be appropriate, and their 

statement as to whether they have a reasonable 

expectation that the Group will be able to continue in 

operation and meet its liabilities as they fall due over the 

period of their assessment, including any related 

disclosures drawing attention to any necessary 

qualifications or assumptions.  

this respect. 

Our work is limited to assessing these matters in the 

context of only the knowledge acquired during our financial 

statements audit.  As we cannot predict all future events or 

conditions and as subsequent events may result in 

outcomes that are inconsistent with judgments that were 

reasonable at the time they were made, the absence of 

anything to report on these statements is not a guarantee 

as to the Group’s and Company’s longer-term viability.

Key: 

Key: 

Full scope for Group audit purposes 2020

Full scope for Group audit purposes 2020

Specified risk-focused audit procedures 2020

Specified risk-focused audit procedures 2020

Full scope for Group audit purposes 2019

Full scope for Group audit purposes 2019

Specified risk-focused audit procedures 2019

Specified risk-focused audit procedures 2019

Residual components

Residual components

104

4. We have nothing to report on going concern

Strategic report and directors’ report

The directors have prepared the financial statements on the 
going concern basis as they do not intend to liquidate the 
Company or the Group or to cease their operations, and as 
they have concluded that the Company’s and the Group’s 
financial position means that this is realistic. They have also 
concluded that there are no material uncertainties that 
could have cast significant doubt over their ability to 
continue as a going concern for at least a year from the 
date of approval of the financial statements (“the going 
concern period”).  

Our responsibility is to conclude on the appropriateness of 
the directors’ conclusions and, had there been a material 
uncertainty related to going concern, to make reference to 
that in this audit report. However, as we cannot predict all 
future events or conditions and as subsequent events may 
result in outcomes that are inconsistent with judgements 
that were reasonable at the time they were made, the 
absence of reference to a material uncertainty in this 
auditor's report is not a guarantee that the Group and the 
Company will continue in operation.  

We identified going concern as a key audit matter (see 
section 2 of this report). Based on the work described in our 
response to that key audit matter, we are required to report 
to you if:

— we have anything material to add or draw attention to in 
relation to the directors’ statement  in Note 1 to the 
financial statements on the use of the going concern 
basis of accounting with no material uncertainties that 
may cast significant doubt over the Group and 
Company’s use of that basis for a period of at least 
twelve months from the date of approval of the financial 
statements ; or

— the related statement under the Listing Rules set out on 

page 61 is materially inconsistent with our audit 
knowledge.

We have nothing to report in these respects.

5.   We have nothing to report on the other information in 

the Annual Report

The directors are responsible for the other information 
presented in the Annual Report together with the financial 
statements.  Our opinion on the financial statements does 
not cover the other information and, accordingly, we do not 
express an audit opinion or, except as explicitly stated 
below, any form of assurance conclusion thereon.  

Our responsibility is to read the other information and, in 
doing so, consider whether, based on our financial 
statements audit work, the information therein is materially 
misstated or inconsistent with the financial statements or 
our audit knowledge.  Based solely on that work we have 
not identified material misstatements in the other 
information.

Based solely on our work on the other information:  

— we have not identified material misstatements in the 

strategic report and the directors’ report; 

— in our opinion the information given in those reports for 

the financial year is consistent with the financial 
statements; and  

— in our opinion those reports have been prepared in 

accordance with the Companies Act 2006.

Directors’ remuneration report 

In our opinion the part of the Directors’ Remuneration 
Report to be audited has been properly prepared in 
accordance with the Companies Act 2006.

Disclosures of emerging and principal risks and longer-term 
viability 

Based on the knowledge we acquired during our financial 
statements audit, we have nothing material to add or draw 
attention to in relation to:

— the directors’ confirmation within the Directors’ Viability 
Statement on page 50 that they have carried out a 
robust assessment of the emerging and principal risks 
facing the Group, including those that would threaten its 
business model, future performance, solvency and 
liquidity;

— the Principal Risks disclosures describing these risks 
and explaining how they are being managed and 
mitigated; and  

— the directors’ explanation in the Directors’ Viability 

Statement of how they have assessed the prospects of 
the Group, over what period they have done so and why 
they considered that period to be appropriate, and their 
statement as to whether they have a reasonable 
expectation that the Group will be able to continue in 
operation and meet its liabilities as they fall due over the 
period of their assessment, including any related 
disclosures drawing attention to any necessary 
qualifications or assumptions.  

Under the Listing Rules we are required to review the 
Directors’ Viability Statement. We have nothing to report in 
this respect. 

Our work is limited to assessing these matters in the 
context of only the knowledge acquired during our financial 
statements audit.  As we cannot predict all future events or 
conditions and as subsequent events may result in 
outcomes that are inconsistent with judgments that were 
reasonable at the time they were made, the absence of 
anything to report on these statements is not a guarantee 
as to the Group’s and Company’s longer-term viability.

105

Corporate governance disclosures 

7.   Respective responsibilities

We are required to report to you if:

Directors’ responsibilities

— we have identified material inconsistencies between the 
knowledge we acquired during our financial statements 
audit and the directors’ statement that they consider 
that the annual report and financial statements taken as 
a whole is fair, balanced and understandable and 
provides the information necessary for shareholders to 
assess the Group’s position and performance, business 
model and strategy; or  

— the section of the annual report describing the work of 
the Audit Committee does not appropriately address 
matters communicated by us to the Audit Committee; 
or 

— a corporate governance statement has not been 

prepared by the company.

We are required to report to you if the Corporate 
Governance Statement does not properly disclose a 
departure from the provisions of the UK Corporate 
Governance Code specified by the Listing Rules for our 
review. 

We have nothing to report in these respects.  

Based solely on our work on the other information 
described above:  

— with respect to the Corporate Governance Statement

disclosures about internal control and risk management 
systems in relation to financial reporting processes and 
about share capital structures:
– we have not identified material misstatements 

therein; and  

– the information therein is consistent with the 

financial statements; and  

— in our opinion, the Corporate Governance Statement has 
been prepared in accordance with relevant rules of the 
Disclosure Guidance and Transparency Rules of the 
Financial Conduct Authority.

6. We have nothing to report on the other matters on 

which we are required to report by exception

Under the Companies Act 2006, we are required to report 
to you if, in our opinion:  

— adequate accounting records have not been kept by the 
parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or  

— the parent Company financial statements and the part of 
the Directors’ Remuneration Report to be audited are 
not in agreement with the accounting records and 
returns; or  

— certain disclosures of directors’ remuneration specified 

by law are not made; or  

— we have not received all the information and 

explanations we require for our audit.

We have nothing to report in these respects.

As explained more fully in their statement set out on page 
61, the directors are responsible for: the preparation of the 
financial statements including being satisfied that they give 
a true and fair view; such internal control as they determine 
is necessary to enable the preparation of financial 
statements that are free from material misstatement, 
whether due to fraud or error; assessing the Group and 
parent Company’s ability to continue as a going concern, 
disclosing, as applicable, matters related to going concern; 
and using the going concern basis of accounting unless 
they either intend to liquidate the Group or the parent 
Company or to cease operations, or have no realistic 
alternative but to do so.

Auditor’s responsibilities  

Our objectives are to obtain reasonable assurance about 
whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or other 
irregularities (see below), or error, and to issue our opinion 
in an auditor’s report.  Reasonable assurance is a high level 
of assurance, but does not guarantee that an audit 
conducted in accordance with ISAs (UK) will always detect 
a material misstatement when it exists.  Misstatements can 
arise from fraud, other irregularities or error and are 
considered material if, individually or in aggregate, they 
could reasonably be expected to influence the economic 
decisions of users taken on the basis of the financial 
statements.  

A fuller description of our responsibilities is provided on the 
FRC’s website at www.frc.org.uk/auditorsresponsibilities. 

Irregularities – ability to detect

We identified areas of laws and regulations that could 
reasonably be expected to have a material effect on the 
financial statements from our general commercial and 
sector experience, through discussion with the directors (as 
required by auditing standards) and discussed with the 
directors the policies and procedures regarding compliance 
with laws and regulations.  We communicated identified 
laws and regulations throughout our team and remained 
alert to any indications of non-compliance throughout the 
audit.  This included communication from the Group to 
component audit teams of relevant laws and regulations 
identified at Group level. 

The potential effect of these laws and regulations on the 
financial statements varies considerably.

The Group is subject to laws and regulations that directly 
affect the financial statements including financial reporting 
legislation (including related companies legislation), 
distributable profits legislation and taxation legislation and 
we assessed the extent of compliance with these laws and 
regulations as part of our procedures on the related financial 
statement items.

Whilst the Group is subject to many other laws and 
regulations, we did not identify any others where the 
consequences of non-compliance alone could have a 
material effect on amounts or disclosures in the financial 
statements.

106

Corporate governance disclosures 

7.   Respective responsibilities

We are required to report to you if:

Directors’ responsibilities

— we have identified material inconsistencies between the 

knowledge we acquired during our financial statements 

audit and the directors’ statement that they consider 

that the annual report and financial statements taken as 

a whole is fair, balanced and understandable and 

provides the information necessary for shareholders to 

assess the Group’s position and performance, business 

model and strategy; or  

As explained more fully in their statement set out on page 

61, the directors are responsible for: the preparation of the 

financial statements including being satisfied that they give 

a true and fair view; such internal control as they determine 

is necessary to enable the preparation of financial 

statements that are free from material misstatement, 

whether due to fraud or error; assessing the Group and 

parent Company’s ability to continue as a going concern, 

— the section of the annual report describing the work of 

disclosing, as applicable, matters related to going concern; 

the Audit Committee does not appropriately address 

and using the going concern basis of accounting unless 

matters communicated by us to the Audit Committee; 

they either intend to liquidate the Group or the parent 

or 

Company or to cease operations, or have no realistic 

— a corporate governance statement has not been 

prepared by the company.

We are required to report to you if the Corporate 

Governance Statement does not properly disclose a 

departure from the provisions of the UK Corporate 

Governance Code specified by the Listing Rules for our 

review. 

We have nothing to report in these respects.  

Based solely on our work on the other information 

described above:  

— with respect to the Corporate Governance Statement

disclosures about internal control and risk management 

systems in relation to financial reporting processes and 

about share capital structures:

– we have not identified material misstatements 

therein; and  

– the information therein is consistent with the 

financial statements; and  

— in our opinion, the Corporate Governance Statement has 

been prepared in accordance with relevant rules of the 

Disclosure Guidance and Transparency Rules of the 

Financial Conduct Authority.

6. We have nothing to report on the other matters on 

which we are required to report by exception

Under the Companies Act 2006, we are required to report 

to you if, in our opinion:  

— adequate accounting records have not been kept by the 

parent Company, or returns adequate for our audit have 

not been received from branches not visited by us; or  

alternative but to do so.

Auditor’s responsibilities  

Our objectives are to obtain reasonable assurance about 

whether the financial statements as a whole are free from 

material misstatement, whether due to fraud or other 

irregularities (see below), or error, and to issue our opinion 

in an auditor’s report.  Reasonable assurance is a high level 

of assurance, but does not guarantee that an audit 

conducted in accordance with ISAs (UK) will always detect 

a material misstatement when it exists.  Misstatements can 

arise from fraud, other irregularities or error and are 

considered material if, individually or in aggregate, they 

could reasonably be expected to influence the economic 

decisions of users taken on the basis of the financial 

statements.  

A fuller description of our responsibilities is provided on the 

FRC’s website at www.frc.org.uk/auditorsresponsibilities. 

Irregularities – ability to detect

We identified areas of laws and regulations that could 

reasonably be expected to have a material effect on the 

financial statements from our general commercial and 

sector experience, through discussion with the directors (as 

required by auditing standards) and discussed with the 

directors the policies and procedures regarding compliance 

with laws and regulations.  We communicated identified 

laws and regulations throughout our team and remained 

alert to any indications of non-compliance throughout the 

audit.  This included communication from the Group to 

component audit teams of relevant laws and regulations 

identified at Group level. 

— the parent Company financial statements and the part of 

The potential effect of these laws and regulations on the 

the Directors’ Remuneration Report to be audited are 

not in agreement with the accounting records and 

returns; or  

financial statements varies considerably.

The Group is subject to laws and regulations that directly 

affect the financial statements including financial reporting 

— certain disclosures of directors’ remuneration specified 

legislation (including related companies legislation), 

by law are not made; or  

— we have not received all the information and 

explanations we require for our audit.

We have nothing to report in these respects.

distributable profits legislation and taxation legislation and 

we assessed the extent of compliance with these laws and 

regulations as part of our procedures on the related financial 

statement items.

Whilst the Group is subject to many other laws and 

regulations, we did not identify any others where the 

consequences of non-compliance alone could have a 

material effect on amounts or disclosures in the financial 

statements.

Owing to the inherent limitations of an audit, there is an 

unavoidable risk that we may not have detected some 

material misstatements in the financial statements, even 

though we have properly planned and performed our audit 

in accordance with auditing standards. For example, the 

further removed non-compliance with laws and regulations 

(irregularities) is from the events and transactions reflected 

in the financial statements, the less likely the inherently 

limited procedures required by auditing standards would 

identify it. In addition, as with any audit, there remained a 
higher risk of non-detection of irregularities, as these may 
involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal controls. We 
are not responsible for preventing non-compliance and 
cannot be expected to detect non-compliance with all laws 
and regulations.

our responsibilities

Owing to the inherent limitations of an audit, there is an 
8. The purpose of our audit work and to whom we owe
unavoidable risk that we may not have detected some 
material misstatements in the financial statements, even 
though we have properly planned and performed our audit 
This report is made solely to the Company’s members, as a
in accordance with auditing standards. For example, the 
body, in accordance with Chapter 3 of Part 16 of the
further removed non-compliance with laws and regulations 
Companies Act 2006.  Our audit work has been undertaken
(irregularities) is from the events and transactions reflected 
so that we might state to the Company’s members those
in the financial statements, the less likely the inherently 
matters we are required to state to them in an auditor’s
limited procedures required by auditing standards would 
report and for no other purpose.  To the fullest extent
identify it. In addition, as with any audit, there remained a 
permitted by law, we do not accept or assume
higher risk of non-detection of irregularities, as these may 
responsibility to anyone other than the Company and the
involve collusion, forgery, intentional omissions, 
Company’s members, as a body, for our audit work, for this
misrepresentations, or the override of internal controls. We 
report, or for the opinions we have formed.
are not responsible for preventing non-compliance and 
cannot be expected to detect non-compliance with all laws 
and regulations.

8. The purpose of our audit work and to whom we owe

our responsibilities

Chris Hearld (Senior Statutory Auditor)  

1 St Peter’s Square

Chartered Accountants  

This report is made solely to the Company’s members, as a
for and on behalf of KPMG LLP, Statutory Auditor 
body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006.  Our audit work has been undertaken
so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s
report and for no other purpose.  To the fullest extent
permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the
Company’s members, as a body, for our audit work, for this
report, or for the opinions we have formed.

22 June 2020

Manchester

M2 3AE

Chris Hearld (Senior Statutory Auditor)  

for and on behalf of KPMG LLP, Statutory Auditor 

Chartered Accountants  

1 St Peter’s Square

Manchester

M2 3AE

22 June 2020

107

Financial 
Statements

Contents
Financial Statements  
Consolidated Income 
Statement 

109

Consolidated Statement of 
110
Comprehensive Income 
Consolidated Balance Sheet  111
Consolidated Statement  
of Changes in Equity  

112

Consolidated Cash  
Flow Statement 
Notes to the financial  
statements  
Company Balance Sheet 

113

114

150

Company Statement  
of Changes in Equity 

Company Cash Flow  
Statement 

Notes to the Company  
financial statements  

Five-year summary 

151

152

153

157

Corporate Information 
Shareholder Information 

158

Registered office 
and advisers 

160

108   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

Consolidated Income Statement

For the year ended 31 March 2020

Revenue 
Cost of sales 

Gross profit 
Distribution and administrative costs1 

Analysis of operating profit
Operating profit before amortisation  
and exceptional items 
Amortisation 
Exceptional items 

Operating profit 
Share of results of joint venture 

Profit from operations 
Net financial expense1 

Profit before taxation 
Taxation1 

Profit for the financial year 

Earnings per share
  Basic (pence)1 

  Diluted (pence)1 

Non-GAAP performance measures
EBITDA before exceptional items1 

Profit before tax, amortisation  
and exceptional items1 

Adjusted earnings per share (pence)1 

 Year ended March 2020 

 Year ended March 2019 
Restated1

Total 
£m 

406.7 
(182.5) 

224.2 
(210.2) 

39.1 
(1.3) 
(23.8) 

14.0 
2.8 

16.8 
3.9 

20.7 
(3.9) 

16.8 

3.23 

3.19 

Before 
exceptional 
items 
 £m 

Exceptional 
items 
£m 

– 
– 

– 
(23.8) 

– 
– 
(23.8) 

(23.8) 
– 

(23.8) 
10.9 

(12.9) 
2.0 

(10.9) 

406.7 
(182.5) 

224.2 
(186.4) 

39.1 
(1.3) 
– 

37.8 
2.8 

40.6 
(7.0) 

33.6 
(5.9) 

27.7 

107.4 

34.9 

5.54 

Note 

2 

12 
3 

13 

7 

8 

9 

9 

11 

11 

9 

Before 
exceptional  
items 
£m 

Exceptional 
items 
£m 

– 
– 

– 
(1.2) 

– 
– 
(1.2) 

(1.2) 
– 

(1.2) 
(0.8) 

(2.0) 
– 

(2.0) 

394.7 
(180.3) 

214.4 
(178.4) 

36.7 
(0.7) 
– 

36.0 
1.9 

37.9 
(7.2) 

30.7 
(5.5) 

25.2 

104.8 

31.4 

4.96 

Total   
£m 

394.7
(180.3)

214.4
(179.6)

36.7
(0.7)
(1.2)

34.8
1.9

36.7
(8.0)

28.7
(5.5)

23.2

4.47

4.43

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   109   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statement  
of Comprehensive Income

For the year ended 31 March 2020

31 March 
2020 

Year ended   Year ended 
31 March 
2019 
Restated1 
£m

£m 

Profit for the financial year1 

Other comprehensive income that may be reclassified subsequently to the Income Statement:
  Effective portion of change in fair value of cash flow hedges 
  Exchange difference on translation of foreign operations1 
  Tax on items 

Other comprehensive income, net of tax 

Total comprehensive income for the financial year 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

16.8 

23.2

(0.2) 
0.9 
0.1 

0.8 

17.6 

(0.6)
0.4
 0.1

(0.1)

23.1

110   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Balance Sheet

At 31 March 2020

Assets
Non-current assets
Intangible assets2 
Investment in joint venture 
Property, plant and equipment
  Hire equipment2 
  Non-hire equipment1 
Right of use assets1 
Deferred tax asset1 

Current assets
Inventories2 
Trade and other receivables2 
Cash 
Current tax asset 

Total assets 

Liabilities
Current liabilities
Borrowings1 
Lease liabilities1 
Other financial liabilities 
Trade and other payables2 
Provisions1,2 
Current tax liability 

Non-current liabilities
Borrowings1 
Lease liabilities1 
Provisions1,2 
Deferred tax liability1 

Total liabilities 

Net assets 

Equity
Share capital 
Share premium 
Merger reserve 
Hedging reserve 
Translation reserve 
Retained earnings1 

Total equity  

31 March 
2020 

Note 

£m 

31 March 
2019 
Restated1,2 
£m 

1 April 
2018 
Restated1 
£m

12 
13 

14 
14 
15 
23 

16 
17 
20 

20 
21 
19 
18 
22 

20 
21 
22 
23 

24 

23.1 
7.3 

227.1 
30.5 
64.7 
2.8 

355.5 

8.7 
102.3 
22.8 
1.5 

135.3 

490.8 

– 

(20.2) 
(0.5) 
(90.9) 
(5.9) 
– 

41.7 
5.8 

216.9 
32.2 
72.2 
3.0 

371.8 

9.1 
101.7 
11.5 
– 

122.3 

494.1 

(1.1) 
(22.3) 
(0.3) 
(83.6) 
(6.9) 
(4.7) 

10.5
5.1

203.7
34.2
68.4
3.7

325.6

7.9
97.0
9.8
–

114.7 

440.3 

(5.4)
(18.6)
– 
(81.6)
(1.6)
(1.4)

(117.5) 

(118.9) 

(108.6)

(102.1) 
(52.7) 
(1.2) 
(7.4) 

(163.4) 

(280.9) 

209.9 

26.4 
0.8 
1.0 
(0.9) 
0.4 
182.2 

209.9 

(99.5) 
(60.1) 
(6.5) 
(7.1) 

(173.2) 

(292.1) 

202.0 

26.3 
0.4 
1.0 
(0.7) 
(0.5) 
175.5 

202.0 

(73.5)
(62.3)
(0.4)
(8.2)

(144.4)

(253.0)

187.3

26.2
–
1.0
(0.1)
(0.9)
161.1

187.3

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

The Consolidated Financial Statements on pages 109 to 149 were approved by the Board of Directors on 22 June 2020 and were  
signed on its behalf by:

Russell Down 
Director 

Company registered number: 00927680

Thomas Christopher Morgan 
Director

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   111   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statement  
of Changes in Equity

For the year ended 31 March 2020

Share 
capital 

Share 
premium 

Merger 
reserve 

Hedging 
reserve 

Translation 
reserve 

£m 

£m 

£m 

£m 

£m 

At 1 April 2018 
IFRS 16 transition impact1 

At 1 April 20181 
Total comprehensive income1 
Dividends 
Tax on items taken directly to equity 
Equity-settled share-based payments 
Issue of shares under the Sharesave Scheme 
Purchase of own shares to satisfy share schemes 

At 31 March 20191 
Total comprehensive income 
Dividends 
Tax on items taken directly to equity 
Equity-settled share-based payments 
Issue of shares under the Sharesave Scheme 

At 31 March 2020 

26.2 
– 

26.2 
– 
– 
– 
– 
0.1 
– 

26.3 
– 
– 
– 
– 
0.1 

26.4 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

– 
– 

– 
– 
– 
– 
– 
0.4 
– 

0.4 
– 
– 
– 
– 
0.4 

0.8 

1.0 
– 

1.0 
– 
– 
– 
– 
– 
– 

1.0 
– 
– 
– 
– 
– 

1.0 

(0.1) 
– 

(0.1) 
(0.6) 
– 
– 
– 
– 
– 

(0.7) 
(0.2) 
– 
– 
– 
– 

(0.9) 

(0.9) 
– 

(0.9) 
0.4 
– 
– 
– 
– 
– 

(0.5) 
0.9 
– 
– 
– 
– 

0.4 

Retained 
earnings 
Restated1 
£m 

Total 
equity 
Restated1 
£m

171.6 
(10.5) 

197.8
(10.5)

161.1 
23.3 
(9.1) 
0.4 
0.9 
– 
(1.1) 

175.5 
16.9 
(10.9) 
0.2 
0.5 
– 

182.2 

187.3
23.1
(9.1)
0.4
0.9
0.5
(1.1)

202.0
17.6
(10.9)
0.2
0.5
0.5

209.9

112   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Cash Flow Statement

For the year ended 31 March 2020

Cash generated from operating activities
Profit before tax1 
Financial expense1 
Exceptional intangible asset impairment 
Exceptional financial (income)/expense 
Amortisation 
Depreciation1 
Share of profit from joint venture 
Termination of lease contracts 
Profit on disposal of hire equipment 
Profit on disposal of non-hire equipment 
Decrease/(increase) in inventories 
Increase in trade and other receivables1 
Increase/(decrease) in trade and other payables1 
Movement in provisions1 
Equity-settled share-based payments 

Cash generated from operations before changes in hire fleet 
Purchase of hire equipment  
Proceeds from sale of hire equipment  

Cash generated from operations 
Interest paid1 
Tax paid 

Net cash flow from operating activities 

Cash flow from investing activities
Purchase of non-hire property, plant and equipment 
Proceeds from sale of non-hire property, plant and equipment 
Acquisitions, net of cash acquired 
Investment in joint venture 

Net cash flow from investing activities 

Net cash flow before financing activities 

Cash flow from financing activities
Payments for the principle element of leases1 
Drawdown of loans 
Repayment of loans 
Proceeds from the issue of Sharesave Scheme shares 
Purchase of own shares to satisfy share schemes 
Dividends paid 

Net cash flow from financing activities 

Increase in cash and cash equivalents 

Net cash at the start of the financial year 

Net cash at the end of the financial year 

Analysis of cash and cash equivalents
Cash 
Bank overdraft 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

Year ended 
31 March 
2020 

Note 

£m 

Year ended 
31 March 
2019 
Restated1 
£m

20.7 
7.0 
18.5 
(10.9) 
1.3 
68.3 
(2.8) 
(1.3) 
(0.8) 
(3.9) 
0.4 
(0.6) 
5.4 
4.6 
0.5 

106.4 
(53.6) 
11.7 

64.5 
(6.5) 
(9.3) 

48.7 

(9.0) 
4.2 
– 
1.3 

(3.5) 

45.2 

(24.5) 
398.5 
(396.4) 
0.5 
– 
(10.9) 

(32.8) 

12.4 

10.4 

22.8 

22.8 
– 

22.8 

28.7
7.2
–
0.8
0.7
68.1
(1.9)
(1.0)
(1.2)
–
(0.9)
(0.7)
(2.7)
(0.3)
0.9

97.7
(54.3)
17.8

61.2
(6.7)
(4.7)

49.8

(6.5)
–
(30.9)
1.2

(36.2)

13.6

(23.7)
468.7
(442.9)
0.5
(1.1)
(9.1)

(7.6)

6.0

4.4

10.4

11.5
(1.1)

10.4

20 
20 

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   113   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements

1 Accounting policies

Speedy Hire Plc is a company incorporated and domiciled in the United Kingdom. The consolidated Financial Statements of the 
Company for the year ended 31 March 2020 comprise the Company and its subsidiaries (together referred to as the ‘Group’). 

The Group and Parent Company Financial Statements were approved by the Board of Directors on 22 June 2020.

Statement of compliance

Both the Group and Parent Company Financial Statements have been prepared and approved by the Board of Directors in  
accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS’).

Basis of preparation

The Financial Statements are prepared on the historical cost basis except that derivative financial instruments and contingent 
consideration are held at fair value. The accounting policies set out below have been applied consistently to all periods presented  
in these consolidated Financial Statements.

Further information on the Group’s business activities, together with the factors likely to affect its future development, performance 
and position, is set out in the Strategic Report. The financial position of the Group, its cash flows, liquidity position and borrowing 
facilities are described in the Financial Review. In addition, Note 19 to the Financial Statements includes the Group’s objectives, 
policies and processes for managing its capital, its financial risk management objectives, details of its financial instruments and 
hedging activities and its exposure to credit risk, liquidity risk and market risk.

The Group has a £180m asset based finance facility (‘the facility‘) which matures in October 2022 and has no prior scheduled 
repayment requirements. The undrawn availability on this facility as at 31 March 2020 was £70.2m (2019: £68.4m) based on the 
Group’s eligible hire equipment and trade receivables. Net debt had reduced from £79.3m at 31 March 2020 to £67.3m at 31 May 2020.

The Group meets its day-to-day working capital requirements through operating cash flows, supplemented as necessary by  
borrowings. The Directors have prepared a going concern assessment up to 30 June 2021 (and have presented a Viability Statement  
in the Strategic Report on page 50), which confirms that the Group is capable of continuing to operate within its existing loan facility 
and can meet the covenant requirements set out within the facility. The key assumptions on which the projections are based include an 
assessment of the impact of future market conditions on projected revenues and an assessment of the net capital investment required 
to support the expected level of revenues, including the impact of the recent increased economic uncertainty resulting from COVID-19. 
The Group responded quickly to assess the potential impact on revenues, costs and cash; actions implemented immediately included 
restricting discretionary spend, consolidating the depot network, temporarily closing sites and servicing customers from alternative 
locations. The Group’s base case for the 12 months to 30 June 2021 assumed an initial reduction in revenue of 40% on the prior 
year, recovering towards prior year levels by the end of March 2021. The Board has considered various severe but possible downturn 
scenarios including a prolonged period of reduced activity, with revenues for June 2020 reduced by 50% from the prior year, a further 
three month period of lockdown from November 2020 and a slower recovery than in the base case. Mitigations applied in these 
downturn scenarios include the use of the Government Coronavirus Job Retention Scheme, delays to certain tax payments,  
and a reduction in planned capital expenditure. Despite the severity of the assumptions applied in these scenarios, the Group 
maintains significant headroom against its available facility and covenant requirements.

Whilst the Directors consider that there is a degree of subjectivity involved in their assumptions, on the basis of the above the 
Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational 
existence for a period of at least 12 months from the date of approval of these Financial Statements. Accordingly, they continue  
to adopt the going concern basis of accounting in preparing the Financial Statements.

114   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

Notes to the financial statements continued

1 Accounting policies continued

Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Company. The Group controls an entity when it is exposed to variable returns and has  
the ability to use its power to alter its returns from its involvement with the entity. The Financial Statements of subsidiaries are 
included in the consolidated Financial Statements from the date that control commences until the date that control ceases.

Intra-group balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions,  
are eliminated in preparing the consolidated Financial Statements. 

Joint ventures

A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the 
arrangement, rather than rights to its assets and obligations for its liabilities.

Interest in joint ventures are accounted for using the equity method. They are initially recognised at cost. Subsequent to initial 
recognition, the consolidated Financial Statements include the Group’s share of the profit or loss and other comprehensive income  
of equity-accounted investees, until the date on which significant influence or joint control ceases.

New accounting standards and accounting standards not yet effective 

The following new standards, amendments to standards and interpretations issued by the International Accounting Standards  
Board (‘IASB’) became effective during the year:

IFRS 16 
IFRIC 23 
Amendments to IFRS 4 
Amendments to IFRS 9 
Amendments to IAS 28 
Amendments to IAS 19 
Various standards 

Leases
Uncertainty over Income Tax Treatments
Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
Prepayment Features with Negative Compensation
Long Term Interests in Associates and Joint Ventures
Plan Amendment, Curtailment or Settlement
Annual Improvements to IFRS Standards 2015-2017 Cycle 

The implementation of IFRS 16 has had a material impact on the financial statements, and is discussed in further detail below.  
The other amendments to standards and interpretations noted above had no significant impact on the financial statements.

The IASB and International Financial Reporting Interpretations Committee (‘IFRIC’) have also issued the following standards and 
interpretations at 31 March 2020 with an effective date of implementation after the date of these Financial Statements:

International Accounting Standards (IAS)/IFRS 

Amendments to IFRS 31 
Amendments to IAS 1 and IAS 8 
IFRS 171 
Amendments to IAS 11 
Amendments to IFRS 9, IAS 39 and IFRS 17 
Various standards 

1 Not yet endorsed by the EU

Definition of a Business 
Definition of Material 
Insurance Contracts 
Classification of Liabilities as Current or Non-current 
Interest Rate Benchmark Reform 
Amendments to References to the  
Conceptual Framework in IFRS Standards 

Effective date 
  (periods beginning on or after)

1 January 2020
1 January 2020
1 January 2021
1 January 2020
1 January 2020

1 January 2020

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   115   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

1 Accounting policies continued

Transition to IFRS 16 ‘Leases’

In January 2016, the IASB issued IFRS 16 which applies to an entity’s first annual statements beginning on or after 1 January 2019, 
and is therefore applicable to the Group for the year ending 31 March 2020. The main principle of the standard is to eliminate the 
dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet 
operating leases, and to provide a single model for lessee accounting. IFRS 16 requires lessees to recognise right of use assets and 
lease liabilities for leases. Accounting requirements for lessors are substantially unchanged from IAS 17.

The standard represents a significant change in the accounting and reporting of leases for lessees and impacts the Income  
Statement and Balance Sheet as well as statutory and alternative performance measures used by the Group.

The Group has applied the fully retrospective transition approach to these financial statements, and therefore has restated 
comparative amounts as at 1 April 2018 and for the year ended 31 March 2019. Under IFRS 16, the Group will experience a different 
pattern of expense within the Income Statement, with the IAS 17 operating lease expense replaced by depreciation and interest 
expense. The interest expense is weighted towards the earlier years of the leases and as a result a reduction in Retained Earnings  
of £10.5m has been recognised upon transition. There is no impact on the Group’s underlying cash flows.

The financial impact of the transition on the Group’s reported results is set out below:

Income statement impact 

Operating profit 
EBITDA 
EBITA 
Financial expense (before exceptional items) 
Profit before tax, amortisation and exceptional items 
Profit before tax 
Taxation 
Basic EPS 
Diluted EPS 
Adjusted EPS 

Year ended 
 31 March 2020 

Year ended 
 31 March 2019

Excluding 
IFRS 16 
£m 

IFRS 16 
impact 
£m 

Reported 
£m 

Excluding 
IFRS 16 
£m 

IFRS 16 
impact 
£m 

Reported 
£m

9.1 
78.3 
33.8 
(3.8) 
32.8 
19.0 
(3.5) 
2.98 
2.94 
5.21 

4.9 
29.1 
5.3 
(3.2) 
2.1 
1.7 
(0.4) 
0.25 
0.25 
0.33 

14.0 
107.4 
39.1 
(7.0) 
34.9 
20.7 
(3.9) 
3.23 
3.19 
5.54 

29.8 
78.7 
32.7 
(3.7) 
30.9 
27.2 
(5.1) 
4.26 
4.22 
4.90 

5.0 
26.1 
4.0 
(3.5) 
0.5 
1.5 
(0.4) 
0.21 
0.21 
0.06 

  31 March 2020 

  31 March 2019 

34.8
104.8
36.7
(7.2)
31.4
28.7
(5.5)
4.47
4.43
4.96

1 April 
2018

Balance sheet impact 

Right of use assets 
Non-hire equipment 
Deferred tax assets 
Lease liabilities 
Trade and other receivables 
Trade and other payables 
Provisions 

Excluding 
IFRS 16 
£m 

IFRS 16 
impact 
£m 

Reported 
£m 

Excluding 
IFRS 16 
£m 

IFRS 16 
impact 
£m 

Reported 
£m 

Restated 
for IFRS 16 
£m

– 
30.9 
1.3 
– 
105.1 
(92.6) 
(7.4) 

64.7 
(0.4) 
1.5 
(72.9) 
(2.8) 
1.7 
0.3 

64.7 
30.5 
2.8 
(72.9) 
102.3 
(90.9) 
(7.1) 

– 
32.8 
1.1 
(0.3) 
104.4 
(84.8) 
(14.3) 

72.2 
(0.6) 
1.9 
(82.1) 
(2.7) 
1.2 
0.9 

72.2 
32.2 
3.0 
(82.4) 
101.7 
(83.6) 
(13.4) 

68.4
34.2
3.7
(80.9)
97.0
(81.6)
(2.0)

116   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

1 Accounting policies continued

Accounting for leasing activities under IFRS 16

The Group holds leases for a number of properties and vehicles. Rental contracts are typically entered into for fixed periods of  
one to ten years but may have break options or extension options as set out below. Such leases can contain a wide range of  
different terms and conditions. On transition to IFRS 16 the Group also reassessed its other contracts to identify whether they 
contained a lease.

Until 31 March 2018, leases of property, plant and equipment were classified as either operating leases or finance leases.  
Payments made under operating leases (net of any incentives received from the lessor) were charged to the Income Statement  
on a straight-line basis over the lease term. 

From 1 April 2018, leases are recognised as a right of use asset and a corresponding liability at the date at which the leased asset  
is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged  
to the Income Statement over the lease period. The right of use asset is depreciated over the lease term on a straight-line basis. 

Lease liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present  
value of fixed payments (including in-substance fixed payments) and variable lease payments that are based on a specified index  
or rate. A separate provision for onerous leases is therefore no longer required. The lease payments are discounted using the  
Group's incremental borrowing rate (if the interest rate implicit in the lease is not readily determinable). This rate is the interest  
rate the Group would have to pay to borrow the funds necessary to obtain an asset of similar value over a similar term and with  
similar security to the right of use asset in a similar economic environment.

Right of use assets are measured at cost comprising the amount of the initial measurement of the lease liability, any initial direct  
costs, any restoration costs, and any lease payments made at or before the commencement date. Payments associated with short  
term leases and leases of low value assets are recognised on a straight-line basis as an expense in the Income Statement. Short  
term leases are certain leases with a lease term of 12 months or less. Low value assets comprise certain small items of IT  
equipment and office furniture where the cash value when new is considered immaterial.

Extension and termination options are included in a number of leases across the Group. These terms are used to maximise  
operational flexibility in terms of managing contracts. In determining the lease term applicable for accounting purposes,  
management considers all facts and circumstances that create economic incentive to exercise an extension option, or not to  
exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be  
extended (or not terminated). The assessment is reviewed if a significant event or significant change in circumstances occurs  
which affects this assessment and that is within the control of the Group. 

Revenue

Revenue is measured based on the consideration specified in a contract with a customer net of returns, trade discounts and  
volume rebates. Customer invoicing is typically performed multiple times a month on standard payment terms. The Group  
reports three revenue categories:

   i)  Hire and related activities

The Group recognises revenue for hire services on a straight-line basis over the period of hire, adjusted for rebates.  
Revenue is recognised for transport services provided at the point at which delivery or collection is completed.  
Revenue for repairs is recognised when damage is identified.

 ii) Services revenue

The Group recognises revenue for rehire services on a straight-line basis over the period of hire, adjusted for rebates.  
The Group recognises revenue for training services over time as the service is provided to the customer. Revenue for testing  
is recognised at a point-in-time once certification is provided. The Group recognises revenue on the sale of consumables  
(including fuel) on a point-in-time basis when control is transferred to the customer.

iii) Disposals revenue

The Group recognises revenue on planned asset disposals on a point-in-time basis when control is transferred  
to the customer.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   117   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsNotes to the financial statements continued

1 Accounting policies continued

Property, plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes 
expenditure that is directly attributable to the acquisition or the refurbishment of the asset where the refurbishment extends the 
asset’s useful economic life.

Depreciation of property, plant and equipment is charged to the income statement so as to write off the cost of the assets over their 
estimated useful economic lives after taking account of estimated residual values. Residual values and estimated useful economic 
lives are reassessed at least annually. Land is not depreciated. Hire equipment assets are depreciated so as to write down to their 
residual value over their normal useful lives, which range from three to fifteen years depending on the category of the asset.

The principal rates and methods of depreciation used are as follows:

Hire equipment

Tools and general equipment 

Between three and seven years straight-line

Access equipment 

Surveying equipment 

Power equipment 

Non-hire assets

Between five and fifteen years straight-line

Five years straight-line

Between five and ten years straight-line

Freehold buildings and long leasehold improvements 

Over the shorter of the lease period and 50 years straight-line

Short leasehold property improvements 

Over the period of the lease

Fixtures and fittings and office equipment (excluding IT) 

25%-45% per annum straight-line

IT equipment and software 

Between three and five years straight-line, or over the period  
of the software licence (if shorter)

Motor vehicles 

25% per annum straight-line

Planned disposals of hire equipment are transferred, at net book value, to inventory prior to sale, with the sale included in revenue. 
Profit or loss on other disposals is taken to operating profit as shown in Note 4.

Financing income and costs

Financing costs comprise interest payable on borrowings and lease liabilities, and gains and losses on financial instruments that  
are recognised in the income statement.

Interest income is recognised in the income statement as it accrues, using the effective interest rate.

Interest payable on borrowings includes a charge in respect of attributable transaction costs and non-utilisation fees, which are 
recognised in the income statement over the period of the borrowings on an effective interest basis. 

118   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
Notes to the financial statements continued

1 Accounting policies continued

Income tax

Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity,  
in which case it is recognised in equity. Income tax comprises current and deferred tax. Current tax is the expected tax payable  
on the taxable income for the year, using tax rates substantively enacted at the balance sheet date, and any adjustment to tax  
payable in respect of previous years.

Deferred tax is recognised using the balance sheet liability method, providing for temporary differences between the carrying  
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following  
temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities 
affecting neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they  
will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of 
realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted  
at the balance sheet date.

IAS 12 ‘Income Taxes’, does not require all temporary differences to be provided for. In particular, the Group does not provide  
for deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and  
the temporary difference created is not expected to reverse in the foreseeable future.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against  
which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it  
is no longer probable that the related tax benefit will be realised. 

Segment reporting

The Group determines and presents operating segments based on the information that is provided internally to the Board,  
which is the Group’s ‘chief operating decision-maker’. 

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and  
incur expenses, including revenues and expenses that relate to transactions with any other member of the Group and for which 
discrete financial information is available. An operating segment’s operating results are reviewed regularly by the Board to make 
decisions about resources to be allocated to the segment and to assess its performance. 

Segment results that are reported to the Board include items directly attributable to a segment as well as those that can be  
allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters)  
and head office expenses.

Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment,  
and intangible assets other than goodwill. 

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   119   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsNotes to the financial statements continued

1 Accounting policies continued

Intangible assets

Goodwill

All business combinations are accounted for by applying the purchase method. The Group measures goodwill at the  
acquisition date as:

•  The fair value of the consideration transferred; plus 
•  The recognised amount of any non-controlling interests in the acquiree; plus
•  The fair value of the existing equity interest in the acquiree; less
•  The net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. 

When the excess is negative, a bargain purchase gain is recognised immediately in the income statement.

Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified 
as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the 
contingent consideration are recognised in the income statement.

Goodwill is stated after any accumulated impairment losses and is included as an intangible asset. It is allocated to cash-generating 
units and is tested annually for impairment and at each reporting date to the extent that there are any indicators of impairment. 

Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Other intangible assets

Intangible assets other than goodwill that are acquired by the Group are stated at cost less accumulated amortisation and  
impairment losses (Note 12). 

Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.

Amortisation

Amortisation is charged to the income statement on a straight-line basis over the estimated useful economic lives of identified 
intangible assets. Intangible assets excluding goodwill are amortised from the date that they are available for use. For a number of  
its acquisitions, the Group has identified intangible assets in respect of customer lists and brands. The values of these intangibles are 
recognised as part of the identifiable assets, liabilities and contingent liabilities acquired. The useful lives are estimated as follows:

Customer lists 
Brands 

Dividend distribution

Over the period of the expected benefit, up to ten years
Over the period of use in the business, up to ten years

Dividend distributions to the Company’s shareholders are recognised as a liability in the Group’s financial statements in the  
period in which the dividends are declared.

Trade and other payables

Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised  
cost using the effective interest method.

Impairments 

The carrying amounts of the Group’s non-financial assets, other than deferred tax, are reviewed at each reporting date to determine 
whether there is any impairment. If any such indication exists, then the asset’s recoverable amount is estimated, being the higher of 
net realisable value and value in use, and if there is an impairment loss then this loss is recognised such that the carrying amount is 
reduced accordingly.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill 
allocated to the units and then to reduce the carrying amount of the other assets in the unit (or group of units) on a pro-rata basis.

120   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
Notes to the financial statements continued

1 Accounting policies continued

Own shares held by Employee Benefits Trust

Transactions of the Company-sponsored Employee Benefits Trust are treated as being those of the Company and are therefore 
reflected in the Company and Group Financial Statements. In particular, the Trust’s purchases of shares in the Company are  
charged directly to equity.

Inventories

Inventories are measured at the lower of cost and net realisable value. Assets transferred from the hire fleet are measured  
at the lower of cost less accumulated depreciation and impairment at the date of transfer, or net realisable value. The cost of 
inventories is based on the first-in, first-out principle. In the case of manufactured inventories and work in progress, cost includes  
an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling  
price in the ordinary course of business, less the estimated costs of completion and selling expenses.

Derivative financial instruments 

The Group uses derivative financial instruments to hedge its exposure to interest rate risks arising from financing activities.  
In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes;  
however derivatives that do not qualify for hedge accounting are accounted for as trading instruments and the movement in  
fair value is recognised in the income statement.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised in the income statement when  
incurred. Subsequent to initial recognition, changes in the fair value of the derivative hedging instrument designated as a cash  
flow hedge are recognised directly in equity to the extent that the hedge is effective. To the extent that the hedge is ineffective, 
changes in fair value are recognised in the income statement.

If the hedging instrument expires, no longer meets the criteria for hedge accounting, is sold, is terminated or is exercised, then  
hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognised in equity remains there until  
the forecast transaction occurs. When the hedged item is a non-financial asset, the amount recognised in equity is transferred  
to the carrying amount of the asset when it is recognised. In other cases the amount recognised in equity is transferred to the  
income statement in the same period that the hedged item affects the income statement. 

Intra-group financial instruments

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within the  
Group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect the Company  
treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required  
to make a payment under the guarantee.

Trade and other receivables

Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition, they are measured at amortised  
cost using the effective interest method, less any impairment losses.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and overnight deposits.

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs. Subsequent to initial 
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value  
being recognised in the income statement over the period of the borrowings on an effective interest basis.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   121   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsNotes to the financial statements continued

1 Accounting policies continued

Translation of foreign currencies

Transactions in foreign currencies are initially recorded at the rate of exchange prevailing at the transaction date. Monetary assets  
and liabilities denominated in foreign currencies are retranslated at the rates of exchange ruling at the balance sheet date. Exchange 
gains and losses arising on settlement or retranslation of monetary assets and liabilities are included in the income statement.

Assets and liabilities of overseas subsidiaries are translated at the rate of exchange ruling at the balance sheet date. The results of 
overseas subsidiary undertakings are translated into sterling at the average rates of exchange during the period. Exchange differences 
resulting from the translation of the results and balances of overseas subsidiaries are charged or credited directly to the foreign 
currency translation reserve. 

Gains and losses on intercompany foreign currency loans that are long-term in nature, and which the Company does not intend to 
settle in the foreseeable future, are also recorded in the foreign currency translation reserve. 

Employee benefits

Pension schemes

The Group has automatically enrolled UK employees in a defined contribution pension plan and makes contributions to personal 
pension schemes for these UK employees and certain other non-UK employees. Obligations for contributions to these defined 
contribution pension plans are recognised as an expense in the income statement as incurred. In addition, a requirement exists in 
United Arab Emirates, where the Group operates, to pay terminal gratuities to employees based on their length of service when  
they leave the Group’s employment.

Share-based payment transactions

The Group operates a number of schemes that allow certain employees to acquire shares in the Company, including the Performance 
Share Plan and the all-employee Sharesave Schemes. The fair value of options granted is recognised as an employee expense with 
a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees 
become unconditionally entitled to the options. The fair value of the options granted is measured, using an appropriate option-pricing 
model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is 
adjusted to reflect the actual number of share options that vest, except where it is related to market based performance conditions.  
For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to 
reflect such conditions and there is no adjustment for differences between expected and actual outcomes.

Start-up expenses 

Legal and start-up expenses incurred in respect of new depots are written off as incurred. 

Provisions and contingent liabilities

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past 
event, the obligation can be measured reliably, and it is probable that an outflow of economic benefits will be required to settle the 
obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that 
reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Contingent 
liabilities are disclosed for possible obligations whose existence will be confirmed by uncertain future events, or where settlement 
values cannot be measured reliably.

Exceptional items

Exceptional items are those material items that, by virtue of their size or incidence, are presented separately in the income statement 
to give a full understanding of the Group’s underlying financial performance. Transactions that may give rise to exceptional items 
include the restructuring of business activities, changes to the fair value of contingent consideration and impairments within  
cash generating units.

Translation reserve

The translation reserve comprises foreign exchange differences arising from the translation of the financial statements  
of foreign operations.

122   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

Notes to the financial statements continued

1 Accounting policies continued

Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments 
related to hedged transactions that have not yet occurred.

Merger reserve

The merger reserve was created in prior periods in accordance with merger accounting principles as a result of Group restructuring.

Significant judgements and estimates 

The preparation of Financial Statements requires management to make judgements, estimates and assumptions in applying the 
accounting policies that affect the reported amounts of assets and liabilities, income and expense. The estimates and associated 
assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances,  
the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily 
apparent from other sources. Actual results may differ from these estimates.

The judgements, estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised  
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future  
periods if the revision affects both current and future periods. The following accounting policies are limited to those items that  
would be most likely to produce materially different results were the underlying judgements, estimates and assumptions changed.

The following are significant sources of estimation uncertainty that management has made in the process of applying the  
accounting policies and that have the most significant risk of resulting in a material adjustment within the next financial year. 

Hire equipment 

In relation to the Group’s hire equipment (Note 14), useful economic lives and residual values of assets have been established  
using historical experience and an assessment of the nature of the assets involved. At 31 March 2020, the carrying value of hire 
equipment was £227.1m (2019: £216.9m), representing 88.2% (2019: 87.1%) of the total property, plant and equipment.  
The hire equipment depreciation charge for the year ended 31 March 2020 was £34.9m (2019: £36.1m), which represents  
8.8% (2019: 9.6%) of the average original cost of hire equipment. Both useful economic lives and residual values are reviewed  
on a regular basis. 

Valuation of trade receivables

The Group monitors the risk profile of trade receivables regularly and makes a provision for amounts that may not be recoverable  
on the basis of expected portfolio losses, including the impact of recent economic conditions. When a trade receivable is not 
collectable it is written off against the bad debt provision. At 31 March 2020, the provision for bad debt was £3.9m (2019: £3.7m) 
against a total debtor book of £99.4m (2019: £98.8m). Further detail is provided in Note 17, including an ageing analysis of 
unprovided debt.

Contingent consideration

Contingent consideration may be payable by the Group in relation to the acquisition of Geason Holdings Limited (“Geason  
Training”). The consideration depends on the combined performance of Geason Training and the Group’s training business in the  
three years post acquisition. The fair value of this consideration has been estimated using forecast cash flows for an equivalent  
period, discounted at a risk-adjusted rate. Total fair value of contingent consideration as at year end is £nil (2019: £10.9m).  
There have been significant assumptions applied regarding the amount and timing of payments, and the discount rate applied  
in calculating this fair value.

Impairment of intangible assets

The carrying amounts of the Group’s non-financial assets, other than deferred tax, are reviewed at each reporting date to determine 
whether there is any impairment. Such reviews require applying significant assumptions, as described further in Note 12.

Training provision

A provision has been created in the period for potential funding repayments required by Geason Training. Significant assumptions  
have been applied regarding the amount and timing of payments, as described further in Note 22.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   123   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsNotes to the financial statements continued

2 Segmental analysis

The segmental disclosure presented in the Financial Statements reflects the format of reports reviewed by the ‘chief operating 
decision-maker’ (‘CODM’). UK and Ireland delivers asset management, with tailored services and a continued commitment to 
relationship management. International principally delivers projects and facilities management contracts by providing a  
managed site support service.

For the year ended 31 March 2020 

Revenue 
Segment result:
EBITDA before exceptional items 
Depreciation 

Operating profit/(costs) before amortisation and exceptional items 
Amortisation 
Exceptional items 

Operating profit/(costs) 
Share of results of joint venture 

Trading profit/(costs) 

Financial expense 
Exceptional financial credit 

Profit before tax 
Taxation 

Profit for the financial year  

Intangible assets 
Investment in joint venture 
Hire equipment 
Non-hire equipment 
Right of use assets 
Taxation assets 
Current assets 
Cash 

Total assets 

Lease liabilities 
Other liabilities 
Borrowings 
Taxation liabilities 

Total liabilities 

 UK and Ireland 
£m 

International 
£m 

Corporate 
items 
£m 

Total 
£m

371.5 

35.2 

– 

406.7

102.7 
(65.4) 

37.3 
(1.3) 
(23.5) 

12.5 
– 

12.5 

21.9 
– 
215.7 
28.4 
62.2 
– 
94.5 
– 

422.7 

(68.8) 
(82.4) 
– 
– 

8.2 
(2.5) 

5.7 
– 
(0.3) 

5.4 
2.8 

8.2 

– 
7.3 
11.4 
2.1 
2.5 
– 
14.9 
– 

38.2 

(3.5) 
(0.4) 

(3.9) 
– 
– 

(3.9) 
– 

(3.9) 

1.2 
– 
– 
– 
– 
4.3 
1.6 
22.8 

29.9 

107.4
(68.3)

39.1
(1.3)
(23.8)

14.0
2.8

16.8

(7.0)
10.9

20.7
(3.9)

16.8

23.1
7.3
227.1
30.5
64.7
4.3
111.0
22.8

490.8

(4.1) 
(12.1) 

– 
– 

– 
(4.0) 
(102.1) 
(7.4) 

(72.9)
(98.5)
(102.1)
(7.4)

(151.2) 

(16.2) 

(113.5) 

(280.9)

124   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

2 Segmental analysis continued

Corporate items comprise certain central activities and costs that are not directly related to the activities of the operating segments.

The financing of the Group’s activities is undertaken at head office level and consequently net financing costs cannot be analysed by 
segment. The unallocated net assets comprise principally working capital balances held by the support services function that are not 
directly attributable to the activities of the operating segments, together with net corporate borrowings and taxation.

For the year ended 31 March 2019 

Revenue 
Segment result:
EBITDA before exceptional items1 
Depreciation1 

Operating profit/(costs) before amortisation and exceptional items 
Amortisation 
Exceptional items1 

Operating profit/(costs) 
Share of results of joint venture 

Trading profit/(costs) 

Financial expense1 
Exceptional financial expense 

Profit before tax 
Taxation1 

Profit for the financial year  

Intangible assets2 
Investment in joint venture 
Hire equipment2 
Non-hire equipment1 
Right of use assets1 
Taxation assets1,2 
Current assets1,2 
Cash 

Total assets 

Lease liabilities1 
Other liabilities1,2 
Borrowings1 
Taxation liabilities2 

Total liabilities 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2Restated for fair value adjustments relating to acquisitions made in the prior year – see Note 26

 UK and Ireland 
Restated1,2 
£m 

International 
Restated1 
£m 

Corporate 
items 
Restated1 
£m 

Total 
Restated1,2 
£m

358.6 

36.1 

– 

394.7

100.5 
(64.3) 

8.5 
(2.6) 

36.2 
(0.7) 
(1.2) 

34.3 
– 

34.3 

5.9 
– 
– 

5.9 
1.9 

7.8 

(4.2) 
(1.2) 

(5.4) 
– 
– 

(5.4) 
– 

(5.4) 

41.7 
– 
209.8 
29.7 
69.4 
– 
97.9 
– 

448.5 

(77.9) 
(81.8) 
– 
– 

(159.7) 

– 
5.8 
7.1 
2.5 
2.8 
– 
12.0 
– 

30.2 

(4.5) 
(11.4) 
– 
– 

(15.9) 

– 
– 
– 
– 
– 
3.0 
0.9 
11.5 

15.4 

– 
(4.1) 
(100.6) 
(11.8) 

(116.5) 

104.8
(68.1)

36.7
(0.7)
(1.2)

34.8
1.9

36.7

(7.2)
(0.8)

28.7
(5.5)

23.2

41.7
5.8
216.9
32.2
72.2
3.0
110.8
11.5

494.1

(82.4)
(97.3)
(100.6)
(11.8)

(292.1)

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   125   

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Notes to the financial statements continued

2 Segmental analysis continued

Geographical information

In presenting geographical information, revenue is based on the geographical location of customers. Assets are based on the 
geographical location of the assets. 

UK 
Ireland 
United Arab Emirates 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2Restated for fair value adjustments relating to acquisitions made in the prior year – see Note 26

Revenue by type

Revenue is attributed to the following activities:

Hire and related activities 
Services 
Disposals 

Major customers

Year ended 
 31 March 2020 

Year ended   
 31 March 2019

Revenue 

£m 

361.3 
10.2 
35.2 

406.7 

Total 
assets 

£m 

438.4 
14.2 
38.2 

490.8 

Revenue 

£m 

347.8 
10.8 
36.1 

394.7 

Total 
assets 
Restated1,2 
£m

449.9
14.0
30.2

494.1

Year ended 
 31 March 2020 
£m 

240.5 
162.0 
4.2 

406.7 

Year ended  
 31 March 2019 

£m

236.4
152.8
5.5

394.7

No one customer represents more than 10% of revenue, reported profit or combined assets of the Group.

126   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

3 Exceptional items 

For the year ended 31 March 2020 

Changes to fair value of contingent consideration 
Impairment of Training CGU 
Training provision 

Exceptional items relating to Training CGU 

Sale of surplus land 
Acquisition integration costs 
Property related costs 
COVID-19 related costs 
International contract costs 

  Recognised in 
 distribution and 
  administrative 
expenses 
£m 

Recognised  
in net  
financial 
expenses 
£m 

– 
(20.1) 
(3.0) 

(23.1) 

3.9 
(1.7) 
(2.0) 
(0.6) 
(0.3) 

10.9 
– 
– 

10.9 

– 
– 
– 
– 
– 

Total 
£m

10.9
(20.1)
(3.0)

(12.2)

3.9
(1.7)
(2.0)
(0.6)
(0.3)

(23.8) 

10.9 

(12.9)

An exceptional financial credit of £10.9m has been recognised in relation to changes in the fair value of contingent consideration  
no longer expected to be paid in respect of Geason Training. An exceptional impairment charge of £20.1m for the Speedy Training  
CGU has been recognised, which comprises impairment of £13.7m against goodwill and £4.8m against other intangible assets  
(see Note 12), and a provision of £1.6m against trade and other receivables.

In April 2020 Speedy were notified that a funding agency was suspending payments, and seeking repayment of funding from  
Geason Training. £3.0 million has been provided as an exceptional charge including legal and verification costs. Further detail is 
provided in Note 22. 

On 29 October 2019, the Group sold a plot of surplus land. Consideration of £4.0m was paid in cash in full at completion.  
The land had a book value £0.1m and the resultant profit of £3.9m has been recognised as an exceptional item.

Following the acquisitions of Geason Training and Lifterz made in the prior year, integration expenses of £1.7m have been incurred 
relating to property provisions, redundancy and project management costs. 

An exceptional provision of £2.0m has been made for specific non-recurring identified repairs required to properties within the  
depot network as a result of potential landlord claims.

Exceptional costs of £0.6m related to COVID-19, including bad debt and staff related costs were provided for at March 2020.

Exceptional costs of £0.3m incurred relating to the renewal of the major contract in the International division have been  
recognised in the year. 

For the year ended 31 March 2019

Prior period – restatement for IFRS 16 

Under previous accounting policies for the year ended 31 March 2019, net exceptional items of £2.2m (comprising £1.2m property 
related costs, £0.2m of people costs, £0.9m of transaction costs and a credit of £0.1m for released provisions) were charged to 
operating profit. On transition to IFRS 16, an additional exceptional credit of £1.0m was recognised for the year ended 31 March  
2019 in relation to a gain on termination of a distribution centre lease. 

An exceptional financial expense of £0.8m was recognised in relation to changes in the fair value of contingent consideration  
between the date of the Geason Training acquisition and 31 March 2019.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   127   

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Notes to the financial statements continued

4 Operating profit

Operating profit is stated after charging/(crediting):

Amortisation of intangible assets 
Depreciation of owned property, plant and equipment1 
Depreciation of right of use assets 
Profit on disposal of hire equipment 
Profit on disposal of non-hire equipment 
Impairment of intangible assets 
Auditor’s remuneration 
  Audit of these Financial Statements 
  Audit of financial statements of subsidiaries 

Total audit fees 
Non-audit fees: audit-related services − interim review fee of £31,200 (2019: £31,200) 

Total fees 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

5 Employees

The average number of people employed by the Group (including Directors) during the year was as follows:

UK and Ireland  
International  
Central 

The aggregate payroll costs of these employees (including bonuses) were as follows:

Wages and salaries 
Social security costs 
Pension costs 
Share-based payments 

2020 

£m 

1.3 
44.5 
24.9 
(0.8) 
(3.9) 
18.5 

0.2 
0.1 

0.3 
– 

0.3 

2019 
Restated1 
£m

0.7
46.0
22.1
(1.2)
–
–

0.1
0.1

0.2
–

0.2

 Number of employees

2020 

3,212 
610 
249 

4,071 

2020 
£m 

103.5 
9.9 
3.1 
0.5 

117.0 

2019

3,069
571
233

3,873

2019 
£m

96.3
8.8
2.2
0.9

108.2

128   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

6 Directors’ remuneration

Directors’ emoluments
Basic remuneration, including benefits 
Value of long-term incentives 
Performance related bonuses 
Company pension contributions  

Emolument of the highest paid Director
Basic remuneration, including benefits 
Value of long-term incentives 
Performance related bonuses 
Company pension contributions 

2020 
£’000s 

2019 
£’000s

985 
378 
– 
96 

959
990
346
94

1,459 

2,389

401 
224 
– 
58 

683 

394
618
209
57

1,278

Further analysis of Directors’ remuneration can be found in the Remuneration Report. All the Directors’ remuneration is paid  
by Speedy Support Services Limited, a wholly-owned subsidiary of Speedy Hire Plc.

7 Financial expense

Financial expense
Interest on bank loans and overdrafts 
Amortisation of issue costs 

Total interest on borrowings 

Interest on lease liabilities 
Hedge interest payable 
Other finance (income)/costs 
Exceptional financial (credit)/ expense (see Note 3) 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2020 

£m 

2019 
Restated1 
£m

3.4 
0.4 

3.8 

3.2 
0.1 
(0.1) 
(10.9) 

(3.9) 

2.9
0.4

3.3

3.5
0.1
0.3
0.8

8.0

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   129   

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Notes to the financial statements continued

8 Taxation

Tax charged in the Income Statement
Current tax
UK corporation tax on profit at 19% (2019: 19%) 
Adjustment in respect of prior years 

Deferred tax (Note 23)
UK deferred tax at 19% (2019: 17%) 
Adjustment in respect of prior years 
Effect of change in rates 

Total deferred tax 

Total tax charge 

Tax (credited)/charged in equity
Current tax
Current tax  

Deferred tax (Note 23)
Deferred tax  

Total tax credited to equity 

2020 

£m 

2019 
Restated1 
£m

4.1 
(0.6) 

(0.3) 
0.2 
0.5 

0.4 

3.9 

7.4
–

(1.4)
(0.5)
–

(1.9)

5.5

(0.2) 

(0.4)

0.1 

(0.1) 

(0.1)

(0.5)

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

The adjusted tax rate of 17.2% (2019: 17.5%) is lower than the standard rate of UK corporation tax of 19% (2019: 19%).

The tax charge in the Income Statement for the year is equal to (2019: equal to) the standard rate of corporation tax in the UK  
of 19% (2019: 19%) and is explained as follows:

Profit before tax 

Accounting profit multiplied by the standard rate of corporation tax at 19% (2019: 19%) 
Expenses not deductible for tax purposes 
Share-based payments 
Overseas profits not subject to tax 
Share of joint venture income already taxed 
Change in deferred tax rates 
Adjustment to tax in respect of prior years 

Tax charge for the year reported in the Income Statement 

Tax (credited)/charged in equity
Current tax  

Deferred tax (Note 23) 

Tax credited to equity 

2020 

£m 

20.7 

2019 
Restated1 
£m

28.7

3.9 
0.9 
0.1 
(0.6) 
(0.5) 
0.5 
(0.4) 

3.9 

(0.2) 

0.1 

(0.1) 

5.5
1.3
0.4
(0.8)
(0.4)
–
(0.5)

5.5

(0.4)

(0.1)

(0.5)

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

A UK corporation rate of 19% (effective 1 April 2020) was substantively enacted on 17 March 2020, reversing the previously enacted 
reduction in the rate from 19% to 17%. This will increase the company's future current tax charge accordingly. The deferred tax asset 
and liability at 31 March 2020 has been calculated at 19% (2019: 17%).

130   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

9 Earnings per share

The calculation of basic earnings per share is based on the profit for the financial year of £16.8m (2019: £23.2m) and the weighted 
average number of 5 pence ordinary shares in issue, and is calculated as follows:

Profit (£m)
Profit for the year after tax – basic earnings 
Intangible amortisation charge (after tax) 
Exceptional items (after tax) 

Adjusted earnings (after tax) 

Weighted average number of shares in issue (m)
Number of shares at the beginning of the year 
Exercise of share options 
Movement in shares owned by the Employee Benefit Trust 

Weighted average for the year – basic number of shares 
Share options 
Employee share scheme 

Weighted average for the year – diluted number of shares 

Earnings per share (pence)
Basic earnings per share 
Amortisation 
Exceptional items 

Adjusted earnings per share 

Basic earnings per share 

Diluted earnings per share 

Adjusted earnings per share 
Share options 

Adjusted diluted earnings per share 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2020 

2019 
Restated1 

16.8 
1.1 
10.9 

28.8 

519.5 
0.3 
0.2 

520.0 
5.2 
1.1 

526.3 

3.23 
0.21 
2.10 

5.54 

3.23 

3.19 

5.54 
(0.07) 

5.47 

23.2
0.5
2.0

25.7

519.6
0.3
(1.4)

518.5
4.4
1.2

524.1

4.47
0.10
0.39

4.96

4.47

4.43

4.96
(0.05)

4.91

Total number of shares outstanding at 31 March 2020 amounted to 526,773,177 (2019: 525,281,026), including 5,472,206  
(2019: 5,802,223) shares held in the Employee Benefit Trust, which are excluded in calculating earnings per share. 

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   131   

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Notes to the financial statements continued

10 Dividends

The aggregate amount of dividend comprises:

2018 final dividend (1.15 pence on 523.7m shares) 
2019 interim dividend (0.60 pence on 523.7m shares)  
2019 final dividend (1.40 pence on 525.3m shares) 
2020 interim dividend (0.70 pence on 525.4m shares)  

2020 
£m 

– 
– 
7.3 
3.6 

10.9 

2019 
£m

6.0
3.1
–
–

9.1

The Directors have recommended no further dividend for the year (2019: 1.40 pence per share). The total amount payable in  
respect of the 2020 year is 0.70 pence (2019: 2.00 pence). 

The Employee Benefit Trust, established to hold shares for the Performance Share Plan and other employee benefits, waived its  
right to the interim dividend. At 31 March 2020, the Trust held 5,472,206 ordinary shares (2019: 5,802,223). 

11 Non-GAAP performance measures

The Group believes that the measures below provide valuable additional information for users of the Financial Statements in assessing 
the Group’s performance by adjusting for the effect of exceptional items and significant non-cash depreciation and amortisation. 
The Group uses these measures for planning, budgeting and reporting purposes and for its internal assessment of the operating 
performance of the individual divisions within the Group. 

Operating profit 
Add back: amortisation 
Add back: exceptional items 

Adjusted operating profit (‘EBITA’) 
Add back: depreciation 

EBITDA before exceptional items 

Profit before tax  
Add back: amortisation 
Add back: exceptional items 

Adjusted profit before tax 

1Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2020 

£m 

14.0 
1.3 
23.8 

39.1 
68.3 

2019 
Restated1 
£m

34.8
0.7
1.2

36.7
68.1

107.4 

104.8

20.7 
1.3 
12.9 

34.9 

28.7
0.7
2.0

31.4

132   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

12 Intangible fixed assets

Cost
At 1 April 2018 
Additions1 

At 31 March 20191 
Additions 

At 31 March 2020 

Amortisation
At 1 April 2018 
Charged in year 

At 31 March 2019 
Charged in year 
Impairment 

At 31 March 2020 

Net book value
At 31 March 2020 

At 31 March 20191 

At 31 March 2018 

Goodwill 
£m 

Customer 
lists 
£m 

IT 
Brands  development 
£m 

£m 

103.1 
23.2 

126.3 
– 

126.3 

95.1 
– 

95.1 
– 
13.7 

108.8 

17.5 

31.2 

8.0 

38.3 
6.8 

45.1 
– 

45.1 

36.7 
0.5 

37.2 
0.9 
3.7 

41.8 

3.3 

7.9 

1.6 

5.1 
1.9 

7.0 
– 

7.0 

4.2 
0.2 

4.4 
0.4 
1.1 

5.9 

1.1 

2.6 

0.9 

– 
– 

– 
1.2 

1.2 

– 
– 

– 
– 
– 

– 

1.2 

– 

– 

Total 
£m

146.5
31.9

178.4
1.2

179.6

136.0
0.7

136.7
1.3
18.5

156.5

23.1

41.7

10.5

1 Adjusted for fair value adjustments, see Note 26

The amount of goodwill that is tax-deductible is £nil (2019: £nil).

All goodwill has arisen from business combinations. On transition to IFRS, the balance of goodwill as measured under UK GAAP  
was allocated to cash-generating units (CGUs). These are independent sources of income streams, and represent the lowest level 
within the Group at which the associated goodwill is monitored for management purposes. The Group’s reportable CGUs comprise 
UK and Ireland (excluding Training), Training and International. All intangible assets are held in the UK. Goodwill arising on business 
combinations after 1 April 2004 has been allocated to the CGU that is expected to benefit from those business combinations.  
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.  
No impairment test has been performed in respect of the International CGU as there are no intangible assets allocated to the CGU.

The recoverable amounts of the assets allocated to the UK and Ireland (excluding Training) and Training CGUs are determined by  
a value-in-use calculation. The value-in-use calculation uses cash flow projections based on five-year financial forecasts approved 
by management. The key assumptions for these forecasts are those regarding revenue growth and discount rate, which management 
estimates based on past experience adjusted for current market trends and expectations of future changes in the market. To prepare 
the value-in-use calculation, the Group uses cash flow projections made up of the FY2021 budget, adjusted for the impact of 
COVID-19, and a subsequent four-year period using the Group’s business plan, together with a terminal value using long-term  
growth rates. The resulting forecast cash flows are discounted back to present value, using an estimate of the Group’s weighted 
average cost of capital, adjusted for risk factors associated with each individual CGU and market-specific risks.

The Training CGU has performed below expectations during the year due to lower than expected learner enrolments, the setup  
of a number of regional training centres which have yet to reach critical mass and compliance related issues. More recently the 
business has been further affected by market conditions due to COVID-19. As a consequence an impairment charge has been 
recognised of £18.5m in the year against goodwill (£13.7m) and other intangibles (£4.8m). The remaining recoverable value of 
Goodwill in this CGU is £nil, and total recoverable amount of the CGU is £0.7m. A corresponding release has been made of the  
fair value of contingent consideration (£10.9m, see Note 3).

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   133   

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Notes to the financial statements continued

12 Intangible fixed assets continued

The pre-tax discount rates and terminal growth rates applied are as follows:

UK and Ireland (excluding Training) 
Training 

 31 March 2020 

 31 March 2019

Pre-tax 
discount 
rate 

Terminal 
value 
growth 
rate 

Pre-tax 
discount 
rate 

Terminal 
 value 
growth  
rate

9.2% 
11.7% 

2.5% 
2.5% 

10.1% 
– 

2.5%
–

Impairment calculations are sensitive to changes in key assumptions of revenue growth and discount rate. The forecast cash flows 
used included an impact on revenue, costs and cash for a prolonged period of reduced activity as a result of COVID-19, with trading 
conditions likely to recover towards the end of 2021. The forecast cash flows for the Training CGU also include an assessment of the 
possible impact on revenue from the outcome of the funding agency claims (see Note 22).

A change of 1% in the pre-tax discount rate, with all other assumptions held constant, would impact discounted cash flows in the UK 
and Ireland (excluding Training) CGU by £25.9m. A decrease of 1% in the forecast revenue growth, with all other assumptions held 
constant, would reduce discounted cash flows in the UK and Ireland (excluding Training) CGU by £32.6m. In both cases, this would  
not result in an impairment charge to the UK and Ireland (excluding Training) CGU.

Other intangible assets of £1.1m remain within the Training CGU. An increase in the relevant pre-tax discount rate to c.25% or a 
reduction in forecast revenues for that CGU of c.15% would result in these other intangible assets being fully impaired. 

134   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

13 Investment in joint venture

Cost 
At 1 April 2018 
Effect of movement in foreign exchange rates 

At 31 March 2019 
Effect of movement in foreign exchange rates 

At 31 March 2020 

Share of post-acquisition results
At 1 April 2018 
Share of results for the year after tax 
Share of other comprehensive income 
Dividend received 
Loan advance 

At 31 March 2019 
Share of results for the year after tax 
Share of other comprehensive income 
Dividend received 
Loan repayment  

At 31 March 2020 

Net book value
At 31 March 2020 

At 31 March 2019 

At 31 March 2018 

Equity 
investment 
£m 

Loan 
advances 
£m 

3.3 
0.3 

3.6 
0.2 

3.8 

1.0 
1.9 
(0.3) 
(1.7) 
– 

0.9 
2.8 
– 
(1.2) 
– 

2.5 

6.3 

4.5 

4.3 

1.9 
– 

1.9 
0.1 

2.0 

(1.1) 
– 
– 
– 
0.5 

(0.6) 
– 
– 
– 
(0.4) 

(1.0) 

1.0 

1.3 

0.8 

Total 
£m

5.2
0.3

5.5
0.3

5.8

(0.1)
1.9
(0.3)
(1.7)
0.5

0.3
2.8
–
(1.2)
(0.4)

1.5

7.3

5.8

5.1

On 11 November 2013, Speedy acquired 50% of the share capital of Turner and Hickman Limited, a joint venture company that 
controls the operations of Speedy Zholdas LLP. Speedy Zholdas LLP provides asset management and equipment rental services  
to the oil and gas sector in Kazakhstan. Total cash consideration for the purchase of shares in Turner and Hickman Limited  
was US$4.3m. 

In addition to the investment in share capital, Speedy provided a loan of US$2.5m to the joint venture with an equivalent amount 
provided by the joint venture partner. A repayment of £0.4m ($0.5m) (2019: advance of £0.5m ($0.6m)) was received during the  
year. This joint venture is not considered to be individually material.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   135   

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Notes to the financial statements continued

14 Property, plant and equipment

Cost  
At 1 April 20181 
Foreign exchange 
Acquisition through business combinations2 
Additions 
Disposals 
Transfers to inventory 

At 31 March 20191,2 
Foreign exchange 
Additions 
Disposals 
Transfers to inventory 

At 31 March 2020 

Depreciation 
At 1 April 20181 
Foreign exchange 
Charged in year 
Disposals 
Transfers to inventory 

At 31 March 20191 
Foreign exchange 
Charged in year 
Disposals 
Transfers to inventory 

At 31 March 2020 

Net book value 
At 31 March 2020 

At 31 March 20191,2 

At 31 March 20181 

Land and 
buildings 
£m 

Hire 
equipment 
£m 

Other 
£m 

Total 
£m

50.5 
0.1 
0.3 
1.4 
(0.1) 
– 

52.2 
0.3 
2.4 
(0.1) 
– 

54.8 

29.9 
0.1 
3.2 
(0.1) 
– 

33.1 
– 
3.4 
– 
– 

36.5 

18.3 

19.1 

20.6 

364.0 
(0.2) 
10.7 
55.1 
(25.5) 
(18.3) 

385.8 
0.7 
55.3 
(21.6) 
(12.1) 

408.1 

160.3 
– 
36.1 
(14.7) 
(12.8) 

168.9 
– 
34.9 
(14.3) 
(8.5) 

181.0 

227.1 

216.9 

203.7 

71.6 
– 
0.9 
5.3 
– 
– 

77.8 
– 
5.5 
(0.2) 
– 

83.1 

58.0 
– 
6.7 
– 
– 

64.7 
– 
6.2 
– 
– 

70.9 

12.2 

13.1 

13.6 

486.1
(0.1)
11.9
61.8
(25.6)
(18.3)

515.8
1.0
63.2
(21.9)
(12.1)

546.0

248.2
0.1
46.0
(14.8)
(12.8)

266.7
–
44.5
(14.3)
(8.5)

288.4

257.6

249.1

237.9

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Adjusted for fair value adjustments, see Note 26

The net book value of land and buildings comprises freehold properties of £nil (2019: £nil) and improvements to short leasehold 
properties of £18.3m (2019: £19.1m). 

An impairment review has been completed during the year on the basis set out in Note 12.

136   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

15 Right of use assets

Cost 
At 1 April 2018 
Foreign exchange 
Additions 
Disposals 

At 31 March 2019 
Foreign exchange 
Additions 
Disposals 

At 31 March 2020 

Depreciation
At 1 April 2018 
Foreign exchange 
Charged in year 
Disposals 

At 31 March 2019 
Foreign exchange 
Charged in year 
Disposals 

At 31 March 2020 

Net book value
At 31 March 2020 

At 31 March 2019 

At 31 March 2018 

Land and 
buildings 
£m 

Other 
£m 

Total 
£m

119.2 
0.3 
14.5 
(6.0) 

128.0 
0.4 
9.5 
(10.1) 

127.8 

71.5 
0.3 
10.8 
(5.4) 

77.2 
0.2 
13.2 
(10.0) 

80.6 

47.2 

50.8 

47.7 

41.7 
– 
13.7 
(5.5) 

49.9 
– 
8.5 
(6.5) 

51.9 

21.0 
– 
11.3 
(3.8) 

28.5 
– 
11.7 
(5.8) 

34.4 

17.5 

21.4 

20.7 

160.9
0.3
28.2
(11.5)

177.9
0.4
18.0
(16.6)

179.7

92.5
0.3
22.1
(9.2)

105.7
0.2
24.9
(15.8)

115.0

64.7

72.2

68.4

Included within depreciation charged in the year on right of use assets was £1.1m relating to exceptional impairments (see Note 3).

16 Inventories

Work in progress 
Finished goods and goods for resale1 

2020 

£m 

1.1 
7.6 

8.7 

2019 
Restated1 
£m

1.1
8.0

9.1

1 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

The amount of inventory expensed in the year amounted to £34.7m (2019: £36.7m) and is included within cost of sales.  
A £0.2m (2019: £0.4m) provision is recorded in respect of inventory held at the year end. 

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   137   

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Notes to the financial statements continued

17 Trade and other receivables

Trade receivables2 
Other receivables2 
Prepayments and accrued income1 

2020 

£m 

95.5 
6.5 
0.3 

2019 
Restated1,2 
£m

95.1
6.2
0.4

102.3 

101.7

There are £37.7m (2019: £34.7m) of trade receivables that are past due at the balance sheet date that have not been provided  
against. There is no indication as at 31 March 2020 that customers will not meet their payment obligations in respect of trade 
receivables recognised in the balance sheet that are past due and unprovided. The ageing of trade receivables (net of impairment 
provision) at the year end was as follows:

═════  ═════

Not past due 
Past due 0-30 days 
Past due 31-120 days 
More than 120 days past due 

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

At 1 April 
Impairment provision charged/(credited) as exceptional to the Income Statement 
Impairment provision within subsidiaries acquired2 
Impairment provision charged to the Income Statement 
Written off in the year 

At 31 March 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

18 Trade and other payables

Trade payables2 
Other payables 
Accruals1,2 

Non-current 
Current 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

138   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

2020 

£m 

57.8 
22.7 
11.3 
3.7 

95.5 

2019 
Restated2 
£m

60.4
22.1
9.3
3.3

95.1

2020 

£m 

3.7 
0.7 
– 
3.6 
(4.1) 

3.9 

2019 
Restated2 
£m

4.2
(0.1)
1.8
2.3
(4.5)

3.7

2020 

£m 

52.3 
10.0 
28.6 

90.9 

– 
90.9 

90.9 

2019 
Restated1,2 
£m

45.9
8.3
29.4

83.6

–
83.6

83.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

19 Financial instruments

The Group holds and uses financial instruments to finance its operations and to manage its interest rate and liquidity risks.  
The Group primarily finances its operations using share capital, retained profits and borrowings. The main risks arising from the  
Group’s financial instruments are credit, interest rate, foreign currency and liquidity risk. The Board reviews and agrees the policies  
for managing each of these risks on an annual basis. A full description of the Group’s approach to managing these risks is  
set out below.

The Group does not engage in trading or speculative activities using derivative financial instruments. A Group offset arrangement 
exists in order to minimise the interest costs on outstanding debt.

Fair value of financial assets and liabilities

The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:

════════════════════ ════════════════════ 

Level 1
Trade and other receivables1,2 
Cash 
Bank overdraft 
Secured bank borrowings 
Trade and other payables1,2 

Level 2
Interest rate swaps and caps, used for hedging 

Level 3
Contingent consideration (see Note 22) 
Lease liabilities1 

Unrecognised gain/(loss) 

 31 March 2020 

 31 March 2019 

Restated1,2

Carrying 
amount 
£m 

Fair value 
£m 

Carrying 
amount 
£m 

Fair value 
£m

102.3 
22.8 
– 
(102.1) 
(62.3) 

102.3 
22.8 
– 
(102.1) 
(62.3) 

101.7 
11.5 
(1.1) 
(99.5) 
(54.2) 

101.7
11.5
(1.1)
(99.5)
(54.2)

(0.5) 

(0.5) 

(0.3) 

(0.3)

– 
(72.9) 

– 
(72.9) 

(10.9) 
(82.4) 

(10.9)
(82.4)

(112.7) 

(112.7) 

(135.2) 

(135.2)

– 

–

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

Basis for determining fair values

The following summarises the principal methods and assumptions used in estimating the fair value of financial instruments  
reflected in the table above:

(a) Derivatives – Broker quotes are used for all interest rate swaps.

(b)  Interest-bearing loans and borrowings – Fair value is calculated based on discounted expected future principal and  

interest cash flows.

(c)  Trade and other receivables and payables – For receivables and payables with a remaining life of less than one year, the notional 

amount is deemed to reflect the fair value. All other receivables and payables are discounted to determine the fair value.

(d)  Lease liabilities – Fair value is calculated based on expected future principal and interest cash flows, discounted at the  

incremental borrowing rate for the lease.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   139   

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Notes to the financial statements continued

19 Financial instruments continued

Fair value hierarchy

The Group’s financial assets and liabilities are principally short-term in nature and therefore their fair value is not materially  
different from their carrying value. The valuation method for the Group’s financial assets and liabilities can be defined as follows  
in accordance with IFRS 13:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly  
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable  
market data.

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations and arises principally from the Group’s receivables from customers. The exposure to credit risk is monitored on an ongoing 
basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented 
by the carrying amount of each financial asset, including derivative financial instruments, in the balance sheet. No individual customer 
accounts for more than 10% of the Group’s sales transactions and the Group’s exposure to outstanding indebtedness follows this 
profile. No collateral is held as security in respect of amounts outstanding; however, in a number of instances, deposits are held against 
the value of hire equipment provided. The extent of deposit taken is assessed on a case-by-case basis and is not considered significant 
in comparison to the overall amounts receivable from customers. 

Transactions involving derivative financial instruments are undertaken with counterparties within the syndicate of banks that provide 
the Group’s asset based finance facility. Given their high credit ratings, management does not expect any counterparty to fail to  
meet its obligations. 

The Group establishes an allowance for impairment that is based on historical experience of dealing with customers with the same  
risk profile. 

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to 
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under 
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group uses both short and long-term cash forecasts to assist in monitoring cash flow requirements. Typically, the Group uses short-
term forecasting to ensure that it has sufficient cash on demand to meet operational expenses and to service financing obligations for 
a period of 12 weeks. Longer-term forecasts are performed on a regular basis to assess compliance with bank covenants on existing 
facilities, ensuring that activities can be managed within reason to ensure covenant breaches are avoided. 

At 31 March 2020, the Group had a banking facility amounting to £180.0m (2019: £180.0m), as detailed in Note 20. The undrawn 
availability on this facility as at 31 March 2020 was £70.2m (2019: £68.4m) based on the Group’s eligible hire equipment and  
trade receivables. 

The Group monitors available facilities against forward requirements on a regular basis and, where necessary, obtains additional 
sources of financing to provide the Group with the appropriate level of headroom against the required borrowing. The Group maintains 
close contact with its syndicate of banks.

The following analysis is based on the undiscounted contractual maturities on the Group’s financial liabilities including estimated 
interest that will accrue. 

140   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

Notes to the financial statements continued

19 Financial instruments continued

At 31 March 2020 

Asset based finance facility  
Lease liability (principal and interest) 
Bank interest payments 
Trade and other payables 
Contingent consideration (see Note 22) 

At 31 March 2019 

Asset based finance facility  
Lease liability (principal and interest) 
Bank interest payments 
Trade and other payables 
Contingent consideration (see Note 22) 

 Undiscounted cash flows – 31 March 2020

2021 
£m 

– 
22.7 
2.7 
62.3 
– 

87.7 

2022 
£m 

102.1 
16.1 
1.4 
– 
– 

119.6 

2023 
£m 

– 
13.4 
– 
– 
– 

13.4 

2024 
 and later 
£m 

– 
28.4 
– 
– 
– 

28.4 

═════ 

═════ 

═════ 

═════ 

═════

 Undiscounted cash flows – 31 March 2019

2020 
£m 

– 
25.7 
2.7 
54.2 
5.2 

87.8 

2021 
£m 

– 
17.9 
2.7 
– 
7.0 

27.6 

2022 
£m 

99.5 
13.5 
1.4 
– 
4.0 

118.4 

2023 
and later 
£m 

– 
35.2 
– 
– 
– 

35.2 

Total 
£m

102.1
80.6
4.1
62.3
–

249.1

Total 
£m

99.5
92.3
6.8
54.2
16.2

269.0

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Group’s  
income or the value of its holdings of financial instruments. Generally, the Group seeks to apply hedge accounting in order to  
manage volatility in profit.

Foreign exchange risk

With over 5% of the Group’s revenue generated in currencies other than sterling, the Group’s Balance Sheet and Income Statement 
are affected by movements in exchange rates. The revenue and costs of overseas operations normally arise in the same currency and 
consequently the exposure to exchange differences is not normally significant and consequently not hedged. Overseas operations 
maintain local currency bank facilities, which provide partial mitigation against balance sheet risk. 

At 31 March 2020, if sterling had weakened or strengthened by 10% against the US dollar (to which key Middle Eastern currencies  
are linked) with all other variables held constant, post-tax profit for the year would have been £0.7m (2019: £0.7m) higher or  
lower respectively.

Interest rate risk

The Group is exposed to a risk of a change in cash flows due to changes in interest rates as a result of its use of variable rate 
borrowings. The Group’s policy is to review regularly the terms of its borrowing facilities, to assess and manage the long-term 
borrowing commitment accordingly, and to put in place interest rate hedges to reduce the Group’s exposure to significant  
fluctuations in interest rates. The Group adopts a policy of ensuring that between 40% and 80% of its net borrowings are  
covered by hedging instruments.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   141   

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Notes to the financial statements continued

19 Financial instruments continued

The principal derivative financial instruments used by the Group are interest rate swaps. The notional contract amount and the related 
fair value of the Group’s derivative financial instruments can be analysed as follows:

Designated as cash flow hedges
Fixed interest rate swaps 

 31 March 2020 

 31 March 2019

Fair 
value 
£m 

Notional 
amount 
£m 

Fair 
value 
£m 

Notional 
amount 
£m

(0.5) 

60.0 

(0.3) 

60.0

Future cash flows associated with the above instruments are dependent upon movements in the London Inter Bank Offered Rate 
(LIBOR) over the contractual period. Interest is paid or received under the instruments on a quarterly basis, depending on the 
individual instrument, referenced to the relevant prevailing UK LIBOR rates.

The weighted average interest rate on the fixed interest rate swaps is 1.02% (2019: 1.06%) and the instruments are for a weighted 
average period of 20 months (2019: 19 months). The maximum contractual period is 36 months (2019: 36 months).

Contingent consideration

Contingent consideration may be payable by the Group in relation to the acquisition of Geason Holdings Limited. The consideration 
depends on the combined performance of the acquired business and the Group’s training business in the three years post acquisition. 
The fair value of this consideration has been estimated using forecast cash flows for an equivalent period, discounted at a risk-
adjusted rate of 25%. Total fair value of contingent consideration as at year end is £nil.

Sensitivity analysis

In managing interest rate and currency risk, the Group aims to reduce the impact of short-term fluctuation on the Group’s earnings. 
Over the longer term, however, permanent changes in foreign exchange and interest rates would have an impact on consolidated earnings.

At 31 March 2020 it is estimated that an increase of 1% in interest rates would decrease the Group’s profit before tax by approximately 
£0.7m (2019: £0.4m). Interest rate swaps have been included in this calculation.

Capital management

The Group requires capital for purchasing hire equipment to replace the existing asset base when it has reached the end of its useful 
life, and for growth, by establishing new depot locations, completing acquisitions and refinancing existing debts in the longer term.  
The Group defines gross capital as net debt (cash less borrowings) plus shareholders’ funds, and seeks to ensure an acceptable return 
on gross capital. The Board seeks to maintain a balance between debt and equity funding such that it maintains a sound capital 
position relevant for the prevailing economic environment.

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future 
development of the business. The Board of Directors monitors the demographic spread of shareholders in order to ensure that the 
most attractive mix of capital growth and income return is made available to investors.

The Group encourages ownership of Speedy Hire Plc shares by employees at all levels within the Group, and has developed this 
objective through the introduction of long-term incentive plans and SAYE schemes.

There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries 
are subject to externally imposed capital requirements.

142   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

20 Borrowings

Current borrowings
Bank overdraft 
Lease liabilities 

Non-current borrowings
Maturing between two and five years
  Asset based finance facility 
  Lease liabilities 

Total non-current borrowings 

Total borrowings 
Less: cash 
Exclude lease liabilities 

Net debt 

═════ 

═════

2020 

£m 

2019 
Restated1 
£m

– 
20.2 

20.2 

1.1
22.3

23.4

102.1 
52.7 

154.8 

175.0 
(22.8) 
(72.9) 

79.3 

99.5
60.1

159.6

183.0
(11.5)
(82.4)

89.1

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

The Group has a £180m asset based finance facility which is sub divided into:

(a)  A secured overdraft facility, provided by Barclays Bank Plc, which secures by cross guarantees and debentures the bank deposits 

and overdrafts of the Company and certain subsidiary companies up to a maximum of £5m.

(b)  An asset based finance facility of up to £175m, based on the Group’s hire equipment and trade receivables balance. The undrawn 
availability of this facility as at 31 March 2020 was £70.2m (2019: £68.4m), based on the Group’s eligible hire equipment and  
trade receivables.

The facility amounts to £180m, but is based on the Group’s hire equipment and trade receivables balance, reduced to the extent  
that any ancillary facilities are provided, and is repayable in October 2022, with no prior scheduled repayment requirements.  
An additional uncommitted accordion of £220m remains in place through to October 2022.

Interest on the facility is calculated by reference to the LIBOR applicable to the period drawn, plus a margin of 150 to 250 basis points, 
depending on leverage and on the components of the borrowing base. During the period, the effective margin was 1.84% (2019: 1.80%).

The facility is secured by fixed and floating charges over the UK and Ireland assets.

Analysis of consolidated net debt

Cash at bank and in hand 
Bank overdraft 
Bank borrowings 

31 March 
2019 
£m 

Non-cash 
movement 
£m 

Cash flow 
£m 

11.5 
(1.1) 
(99.5) 

(89.1) 

– 
– 
(0.4) 

(0.4) 

11.3 
1.1 
(2.2) 

10.2 

31 March 
2020 
£m

22.8
–
(102.1)

(79.3)

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   143   

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Notes to the financial statements continued

21 Lease liabilities

At 1 April 2018 
Foreign exchange 
Additions 
Repayments 
Unwinding of discount rate 
Terminations 

At 31 March 2019 
Foreign exchange 
Additions 
Repayments 
Unwinding of discount rate 
Terminations 

At 31 March 2020 

Land and 
buildings 
£m 

59.9 
0.3 
14.4 
(14.9) 
2.6 
(1.5) 

60.8 
0.2 
9.5 
(15.1) 
2.4 
(2.5) 

55.3 

Other 
£m 

21.0 
– 
13.6 
(12.2) 
0.9 
(1.7) 

21.6 
– 
8.4 
(12.6) 
0.8 
(0.6) 

17.6 

Total 
£m

80.9
0.3
28.0
(27.1)
3.5
(3.2)

82.4
0.2
17.9
(27.7)
3.2
(3.1)

72.9

Included within terminations in the year was £0.7m relating to exceptional terminations of property leases (see Note 3).

Amounts payable for lease liabilities (discounted at the incremental borrowing rate of each lease) fall due as follows:

Payable within one year 
Payable in more than one year 

At 31 March  

2020 
£m 

20.2 
52.7 

72.9 

2019 
£m

22.3
60.1

82.4

144   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

22 Provisions

At 1 April 2018 
Created in the year 
Provision utilised in the year 
Net changes in fair value 

At 31 March 2019 
Created in the year 
Provision utilised in the year 
Net changes in fair value 

At 31 March 2020 

Contingent 
  Dilapidations  consideration 

Training 
provision 

Restated1 
£m 

2.0 
0.8 
(0.3) 
– 

2.5 
3.1 
(1.5) 
– 

4.1 

£m 

– 
10.1 
– 
0.8 

10.9 
– 
– 
(10.9) 

– 

£m 

– 
– 
– 
– 

– 
3.0 
– 
– 

3.0 

Total 

£m

2.0
10.9
(0.3)
0.8

13.4
6.1
(1.5)
(10.9)

7.1

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

Of the £7.1m provision at 31 March 2020, £5.9m (2019: £6.9m) is due within one year and £1.2m (2019: £6.5m) is due after  
one year. The dilapidations provision is calculated based on estimated dilapidations at current market rates. The total liability is 
discounted to current values. 

In April 2020 Speedy were notified that a funding agency was suspending payments, and seeking repayment of £2.6m from  
Geason Training, based on an extrapolation of errors found in a small sample of learner documentation over a three year period  
from August 2017. The Group has engaged external lawyers who have responded to the agency. At this time it is not possible to make 
an accurate estimate of the timing or amount that may be repayable from this or other potential claims we may receive. £3.0 million 
has been provided as an exceptional charge including legal and verification costs. The provision is made without any admission of 
liability. The Group is investigating what mitigations may be available to it in relation to this matter.

Contingent consideration of between £nil and £26.0m may be payable by the Group in relation to the acquisition of Geason  
Training. The consideration depends on the combined performance of the acquired business and the Group’s training business in  
the three years post acquisition. The fair value of this consideration has been estimated using forecast cash flows for an equivalent 
period, discounted at a risk-adjusted rate of 25%. Total fair value of contingent consideration as at year end is £nil. Information  
on the change in fair value is included in Note 12.

23 Deferred tax

At 1 April 20181 
Acquisition through business combinations2 
Recognised in income1 
Recognised in equity 

At 31 March 2019 
Recognised in income 
Recognised in equity 

At 31 March 2020 

Property, 
plant and 
equipment 

£m 

8.2 
0.6 
(2.6) 
– 

6.2 
1.2 
– 

7.4 

Intangible  Share-based 

assets 

£m 

(0.6) 
1.4 
0.1 
– 

0.9 
(0.9) 
– 

– 

payments  Other items 
Restated1,2 
£m 

£m 

(0.2) 
– 
0.1 
(0.4) 

(0.5) 
– 
0.1 

(0.4) 

(2.9) 
– 
0.5 
(0.1) 

(2.5) 
0.1 
– 

(2.4) 

Total   

£m

4.5
2.0
(1.9)
(0.5)

4.1
0.4
0.1

4.6

1 Restated as a result of the adoption of IFRS 16 – see Note 1 (Accounting policies)

2 Restated for fair value adjustments relating to acquisitions made in the prior year, see Note 26

The Group has gross trading losses carried forward at 31 March 2020 amounting to approximately £9.4m (2019: £10.6m). No deferred 
tax asset has been recognised in respect of these losses. The Group also has gross capital losses carried forward at 31 March 2020 
amounting to approximately £1.7m (2019: £3.3m). No deferred tax asset has been recognised in respect of these losses.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   145   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

24 Share capital

Allotted, called-up and fully paid
526.8m (2019: 525.3m) ordinary shares of 5 pence each 

2020 
£m 

2019 
£m

26.4 

26.3

During the year, 1.5m ordinary shares of 5 pence were issued on exercise of options under the Speedy Hire Sharesave Schemes  
(2019: 1.6m).

An Employee Benefits Trust was established in 2004 (the ‘Trust’). The Trust holds shares issued by the Company in connection with 
the Performance Share Plan. No shares were acquired by the Trust during the year and 330,017 shares were transferred to employees 
during the year. At 31 March 2020, the Trust held 5,472,206 (2019: 5,802,223) shares.

The movement in issued share capital was as follows:

At 1 April 2018 
Exercise of Sharesave Scheme options 

At 31 March 2019 
Exercise of Sharesave Scheme options 

At 31 March 2020 

25 Share incentives

Number (m) 

523.7 
1.6 

525.3 
1.5 

526.8 

£m

26.2
0.1

26.3
0.1

26.4

At 31 March 2020, options and awards over 14,465,265 shares (2019: 13,138,115) were outstanding under employee share schemes. 
The Group operates two share incentive schemes. During the year a weighted average 269,953 ordinary shares of 5 pence were issued 
on exercise of options under the Speedy Hire Sharesave Schemes (2019: 1,036,611). 

As at 31 March 2020, options to acquire 6,522,196 (2019: 6,423,437) Speedy Hire Plc shares were outstanding under the Speedy Hire 
Sharesave Schemes. These options are exercisable by employees of the Group at prices between 34 and 48 pence (2019: 27 and 46 
pence) at dates between April 2020 and July 2023 (2019: April 2019 and July 2022). At 31 March 2020, options to acquire 7,943,070 
shares (2019: 6,714,679) under the Performance Share Plans were outstanding. These options are exercisable at nil cost between June 
2020 and May 2029 (2019: June 2019 and June 2028). 

The number and weighted average exercise price (‘WAEP’) of share options and awards under all the share incentive schemes  
are as follows:

Outstanding at 1 April 
Granted 
Exercised 
Lapsed 

Outstanding at 31 March 

Exercisable at 31 March 

2020 

2019

 WAEP pence 

Number 

 WAEP pence 

Number

20 
26 
27 
28 

21 

3 

  13,138,115 
4,776,231 
(1,772,531) 
(1,676,550) 

  14,465,265 

2,938,928 

20 
24 
29 
21 

20 

8 

  13,069,649
5,055,910
(1,036,611)
(3,950,833)

  13,138,115

404,513

146   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

25 Share incentives continued

Options and awards outstanding at 31 March 2020 have weighted average remaining contractual lives as follows:

Exercisable at nil pence 
Exercisable at 34 pence 
Exercisable at 44 pence 
Exercisable at 46 pence 
Exercisable at 48 pence 

2020 
Years 

1.3 
– 
0.8 
1.8 
2.8 

2019 
Years

1.0
0.7
1.8
2.8
–

The fair value of services received in return for share options granted and shares awarded is measured by reference to the fair  
value of those instruments. The pricing models and inputs used for the outstanding options (on a weighted average basis where 
appropriate) are as follows:

Speedy Hire Sharesave Schemes

Pricing model used 
Exercise price 
Share price volatility 
Option life 
Expected dividend yield 
Risk-free interest rate 

Performance Share Plan

Pricing model used 
Exercise price 
Share price volatility 
Option life 
Expected dividend yield 
Risk-free interest rate 

December 
2019 

Stochastic 
48p 
28.8% 
3.25 years 
2.9% 
0.5% 

 May 2019 

Stochastic 
Nil 
27.1% 
3 years 
Nil 
0.7% 

December 
2018 

Stochastic 
46p 
36.4% 
3.25 years 
3.2% 
0.7% 

 June 2018 

Stochastic 
Nil 
30.8% 
3 years 
Nil 
0.8% 

December 
2017 

Stochastic 
44p 
41.0% 
3.25 years 
2.0% 
0.6% 

 June 2017 

Stochastic 
Nil 
49.5% 
3 years 
Nil 
0.3% 

December   

2016 

Stochastic
34p
46.9%
3.25 years
1.4%
0.3%

 July 2016 

Stochastic 
Nil 
47.5% 
3 years 
Nil 
0.5% 

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   147   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

26 Prior year acquisition of subsidiaries

In December 2018, the Group acquired 100% of the share capital of Geason Holdings Limited (“Geason Training”). The fair values 
disclosed as provisional in the 2019 Financial Statements in respect of this acquisition have been finalised during the year at the end 
of the measurement period. As a result, the opening balance sheet has been restated to account for an additional £1.3m reduction to 
the fair value of receivables previously recognised, and a £0.4m decrease in the fair value of payables previously recognised. This has 
resulted in £1.7m additional goodwill being recognised.

Intangible assets 
Tangible fixed assets 
Receivables1 
Cash 
Current payables1 
Non-current payables 

Goodwill capitalised1 

Cash consideration 
Contingent consideration 

Total consideration 

1 Restated to show the fair value adjustments to the acquired values

  Book value at 
acquisition 
£m 

Fair value 
adjustment 
£m 

Fair value 
£m

– 
0.1 
2.2 
0.2 
(0.9) 
– 

1.6 

6.7 
– 
(1.3) 
– 
(0.4) 
(1.2) 

3.8 

6.7
0.1
0.9
0.2
(1.3)
(1.2)

5.4

13.7

9.0
10.1

19.1

148   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements continued

26 Prior year acquisition of subsidiaries continued

In March 2019, the Group acquired 100% of the share capital of Lifterz Holdings Limited (‘Lifterz’). The fair values disclosed as provisional 
in the 2019 Financial Statements in respect of this acquisition have been finalised during the year at the end of the measurement period. 
As a result, the opening balance sheet has been restated to account for a £1.3m increase in the fair value of intangible assets, a £0.6m 
reduction to the fair value of tangible fixed assets, a £0.2m reduction to the fair value of inventories, a £0.4m decrease in the fair value 
of receivables, a £0.6m increase in the fair value of current payables, and a £0.6m decrease in the fair value of non-current payables 
previously recognised. This has resulted in a reduction of £0.1m goodwill recognised. 

The customer relationship intangible asset of £1.0m has been valued using the ‘excess earnings’ method and is based on income forecast 
to be generated by the business acquired. Capital asset charges have been applied using a risk adjusted weighted average cost of capital 
in respect of fixed assets, working capital and the workforce. Other assumptions used in the valuation include an assumed growth in income 
from customers of 5.0% per annum, and a discount rate applied to the resulting income stream of 10.7%. The customer list intangible is being 
amortised over ten years, which is considered to be the period over which the majority of the benefits are expected to arise.

The brand intangible asset of £0.6m has been valued using the ‘relief-from-royalty’ method, using a royalty rate of 0.5% of income, discounted 
at a rate of 10.7%. The intangible is being amortised over a period of ten years, which is estimated to be the useful life within the business.

Intangible assets1 
Tangible fixed assets1 
Inventory1 
Receivables1 
Current payables1 
Non-current payables1 

Goodwill capitalised1 

Total consideration 

1 Restated to show the fair value adjustments to the acquired values

27 Contingent liabilities

  Book value at 
acquisition 
£m 

Fair value 
adjustment 
£m 

– 
12.3 
0.5 
3.5 
(3.0) 
(0.4) 

12.9 

1.6 
(0.6) 
(0.2) 
(0.4) 
0.3 
(1.2) 

(0.5) 

Fair value   

£m

1.6
11.7
0.3
3.1
(2.7)
(1.6)

12.4

9.2

21.6

In the normal course of business, the Company and certain subsidiaries have given performance bonds issued on behalf of Group 
companies and parental guarantees have been given in support of the contractual obligations of Group companies on both a joint  
and a several basis.

The Directors do not consider any provision is necessary in respect of guarantees and bonds.

28 Commitments

The Group had contracted capital commitments amounting to £0.9m (2019: £4.4m) at the end of the financial year for which no 
provision has been made. 

29 Post-balance sheet events

No post-balance sheet events have occurred.

30 Related party disclosures

Key management remuneration

The Group’s key management personnel are the Executive and Non-Executive Directors as identified in the Remuneration Report.

In addition to salaries, the Group also provides non-cash benefits to Executive Directors, and contributes to approved pension  
schemes on their behalf. Executive Directors also participate in the Group’s share option schemes. 

Non-Executive Directors receive a fee for their services to Speedy Hire Plc.

Full details of key management personnel compensation and interests in the share capital of the Company as at 31 March 2020  
are given in the Remuneration Report.

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   149   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company Balance Sheet

At 31 March 2020

Assets
Non-current assets
Investments 
Deferred tax asset 

Current assets
Trade and other receivables 
Current tax receivable 
Cash 

Total assets 

Liabilities
Current liabilities
Bank overdraft 
Trade and other payables 
Other financial liabilities 

Non-current liabilities
Borrowings 

Total liabilities 

Net assets 

Equity   
Share capital 
Share premium 
Merger reserve 
Hedging reserve 
Retained earnings 

Total equity 

31 March 
2020 
£m 

31 March   

2019 
£m

Note 

32 
37 

33 

36 

36 
34 
35 

36 

38 

93.5 
0.1 

93.6 

320.8 
16.0 
21.4 

358.2 

451.8 

– 
(102.6) 
(0.5) 

(103.1) 

(113.6) 

(216.7) 

235.1 

26.4 
0.8 
2.3 
(0.9) 
206.5 

235.1 

93.5
–

93.5

335.0
7.6
4.4

347.0

440.5

–
(97.0)
(0.3)

(97.3)

(101.5)

(198.8)

241.7

26.3
0.4
2.3
(0.7)
213.4

241.7

The Company Financial Statements on pages 150 to 156 were approved by the Board of Directors on 22 June 2020 and were signed  
on its behalf by:

Russell Down 
Director 

Company registered number: 00927680

Thomas Christopher Morgan 
Director

150   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company Statement  
of Changes in Equity

For the year ended 31 March 2020

Share 
capital 
£m 

Share 
premium 
£m 

Merger 
reserve 
£m 

Hedging 
reserve 
£m 

Retained 
earnings 
£m 

At 1 April 2018 
Profit for the financial year 
Effective portion of change in fair value of cash flow hedges 
Dividends 
Tax on items taken directly to equity 
Equity-settled share-based payments 
Purchase of own shares to satisfy share scheme 
Issue of shares under the Sharesave Scheme 

At 31 March 2019 
Profit for the financial year 
Effective portion of change in fair value of cash flow hedges 
Dividends 
Tax on items taken directly to equity 
Equity-settled share-based payments 
Issue of shares under the Sharesave Scheme 

At 31 March 2020 

26.2 
– 
– 
– 
– 
– 
– 
0.1 

26.3 
– 
– 
– 
– 
– 
0.1 

26.4 

– 
– 
– 
– 
– 
– 
– 
0.4 

0.4 
– 
– 
– 
– 
– 
0.4 

0.8 

2.3 
– 
– 
– 
– 
– 
– 
– 

2.3 
– 
– 
– 
– 
– 
– 

2.3 

(0.1) 
– 
(0.6) 
– 
– 
– 
– 
– 

(0.7) 
– 
(0.2) 
– 
– 
– 
– 

(0.9) 

216.7 
5.6 
– 
(9.1) 
0.4 
0.9 
(1.1) 
– 

213.4 
3.4 
– 
(10.9) 
0.1 
0.5 
– 

206.5 

Total 
equity 
£m

245.1
5.6
(0.6)
(9.1)
0.4
0.9
(1.1)
0.5

241.7
3.4
(0.2)
(10.9)
0.1
0.5
0.5

235.1

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   151   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company Cash Flow Statement

For the year ended 31 March 2020

Cash generated from operating activities
Profit before tax  
Financial income 
Decrease/(increase) in trade and other receivables 
Increase in trade and other payables 
Equity-settled share-based payments 

Cash generated from operations 
Interest received 
Tax paid 

Net cash flow from operating activities 

Cash flow from financing activities
Drawdown of loans 
Payment of loans 
Proceeds from the issue of Sharesave Scheme shares 
Purchase of own shares to satisfy share schemes 
Dividends paid 

Net cash flow from financing activities 

Increase in cash and cash equivalents 
Cash/(overdraft) at the start of the financial year 

Cash at the end of the financial year 

Year ended 
31 March 
2020 
£m 

Year ended   
31 March 
2019 
£m

4.0 
(6.2) 
14.2 
5.6 
0.5 

18.1 
6.6 
(8.7) 

16.0 

398.5 
(387.1) 
0.5 
– 
(10.9) 

1.0 

17.0 
4.4 

21.4 

6.2
(6.2)
(13.5)
0.4
0.9

(12.2)
6.6
(4.4)

(10.0)

468.6
(443.1)
0.5
(1.1)
(9.1)

15.8

5.8
(1.4)

4.4

═════ 

═════ 

152   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Company  
financial statements 

31 Accounting policies

The Company Financial Statements have been prepared in accordance with the accounting policies set out in Note 1,  
supplemented as below. The Company is taking advantage of the exemption in Section 408 of the Companies Act 2006 not to  
present its individual income statement or statement of comprehensive income and related notes that form part of the approved 
Financial Statements. The amount of the profit for the financial year dealt with in the Financial Statements of the Company is  
disclosed in the Company Statement of Changes in Equity.

Investments in subsidiary undertakings are stated at cost less any provisions for permanent diminution in value. Dividends  
received and receivable are credited to the Company’s Income Statement to the extent that they represent a realised profit for the 
Company. The Company monitors the risk profile of intercompany receivables regularly and provides for amounts that may not 
be recoverable on the basis of expected portfolio losses. During the year, a provision for expected credit losses on intercompany 
receivables has been recognised of £2.2m.

The Company does not have any employees. Directors are paid by other Group companies.

32 Investments 

Cost
At 1 April 2018, 31 March 2019 and 31 March 2020 

Provisions
At 1 April 2018, 31 March 2019 and 31 March 2020 

Net book value
At 1 April 2018, 31 March 2019 and 31 March 2020 

Investments 
in related 
  undertakings 
£m

113.3

(19.8)

93.5

Following the impairment testing performed in accordance with IAS 36 (see Note 12), the Company’s carrying value of investment  
in related undertakings has been reviewed and no impairment has been made (2019: £nil).

The Company’s related undertakings are as follows:

Allen Contracts Limited1 
Allen Investments Limited1 
Bucks Access Rentals Limited1,2 
Chestview (North East) Limited1 
Crewe Plant Hire Limited1,2 
Drain Technology (1985) Limited2 
Drain Technology Limited3 
Geason Holdings Limited2,3 
Geason Apprenticeships Limited2,3 
Hire-A-Tool Limited1 
Ian Kilpatrick Limited2,3 
Lifterz Holdings Limited1,2 
Lifterz Limited1,2 
Lifterz (Scot) Limited1,2 
OHP Limited1,2 
Platform Sales & Hire Limited1,2 
Prolift Access Limited1,2 
Prospects Training International Limited2,3 
Rail Hire (UK) Limited1,2 

Incorporation 
  and operation 

UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 

Principal 
activity 

Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Holding company 
Training services 
Dormant 
Dormant 
Holding company 
Hire services 
Hire services 
Holding company 
Dormant 
Dormant 
 Training services 
Dormant 

Ordinary 
share  
capital 
held

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   153   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Company financial statements continued

32 Investments continued

SHH 501 Limited1,2 
Speedy Asset Leasing Limited1 
Speedy Asset Services Limited1 
Speedy Engineering Services Limited1 
Speedy Hire (Ireland) Limited4 
Speedy Hire (Ireland) Limited1,5 
Speedy Hire (UK) Limited1 
Speedy Hire Centres (Midlands) Limited1 
Speedy Hire Centres Limited1 
Speedy Hire Direct Limited1,2 
Speedy Industrial Services Limited1 
Speedy International Asset Services (Holdings) Limited1 
Speedy International Asset Services Equipment Rental LLC2,6,7 
Speedy International Asset Services LLC (Egypt)2,8 
Speedy International Asset Services LLC (Qatar)2,6,9 
Speedy International Leasing Limited1,2 
Speedy LCH Generators Limited3 
Speedy LGH Limited1 
Speedy Lifting Limited1 
Speedy Plant Hire Limited1 
Speedy Power Limited1 
Speedy Pumps Limited1 
Speedy Rail Services Limited1 
Speedy Safemaker Limited1,2 
Speedy Services Limited1 
Speedy Space Limited1 
Speedy Support Services Limited1 
Speedy Survey Limited1 
Speedy Transport Limited1 
Speedy Zholdas LLP1,10 
Speedyloo Limited1 
Stockton Investments (North East) Limited1 
Tidy Group Limited1 
Turner & Hickman Limited1,11 
Waterford Hire Services Limited1,12 

Incorporation 
  and operation 

UK 
UK 
UK 
UK 
UK 
Ireland 
UK 
UK 
UK 
UK 
UK 
UK 
UAE 
Egypt 
Qatar 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
  Kazakhstan 
UK 
UK 
UK 
UK 
Ireland 

Ordinary 
share  
capital 
held

Principal 
activity 

Dormant 
Dormant 
Hire services 
Dormant 
Hire services 
Hire services 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Holding company 
Hire services 
Dormant 
Dormant 
Leasing services 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Dormant 
Provision of group services 
Dormant 
Provision of group services 
Hire services 
Dormant 
Dormant 
Dormant 
Holding company 
Dormant 

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
49%
100%
49%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

100%
100%
100%
50%
100%

1 Registered office: Chase House, 16 The Parks, Newton-le-Willows, Merseyside, WA12 0JQ.

2 Indirect holding via a 100% subsidiary undertaking.

3 Registered office: 13 Queen's Road, Aberdeen, United Kingdom, AB15 4YL.

4 Registered office: Unit 2 Duncrue Pass, Duncrue Road, Belfast, Antrim, Northern Ireland, BT3 9DL.

5 Registered office: Unit 2, Glen Industrial Estate, Broombridge Road, Glasnevin, Dublin 11, Republic of Ireland.

6 Although the Group holds less than half of the voting rights, it is able to govern the financial and operating policies of the company. The Group therefore consolidates the company.

7 Registered office: Sector # MW5, Inside ESNAAD Base, ICAD-1, Musafah Industrial Area, Near National Petroleum Construction Company, PO Box 127149, Abu Dhabi, UAE.

8 Registered office: City Light Tower A3, Third Floor, Office No. 303, 1 Makram Ebeid Street, Nasr City, Cairo, Egypt. 

9 Registered office: PO Box 4619, Doha, Qatar.

10  The Group has a 50% investment in Turner & Hickman Limited, which has a 90% investment in Speedy Zholdas LLP. The registered office of Speedy Zholdas LLP is Building 276,  

Traffic Atyrau – Dossor, Atyrau City, Kazakhstan. 

11 Registered office: 19 Woodside Crescent, Glasgow, G3 7UL. 

12 Registered office: Kingsmeadow Retail Park, Ring Road, Waterford, Republic of Ireland.

The Company holds voting rights in each related undertaking in the same proportion to its holdings in the ordinary share  
capital of the respective undertakings. 

154   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Company financial statements continued

33 Trade and other receivables

Amounts owed by Group undertakings 
Other receivables 

34 Trade and other payables

Amounts owed to Group undertakings 
Accruals 

2020 
£m 

319.8 
1.0 

320.8 

2020 
£m 

101.8 
0.8 

102.6 

2019 
£m

332.9
2.1

335.0

2019 
£m

96.0
1.0

97.0

35 Financial instruments

The Company financial instruments are stated in accordance with Note 19.

The fair values of financial assets and liabilities, together with the carrying amounts shown in the Balance Sheet, are as follows:

Trade and other receivables 
Cash 
Secured bank borrowings 
Interest rate swaps and caps, used for hedging 
Trade and other payables 

Unrecognised gain/(loss) 

 31 March 2020 

 31 March 2019

Carrying 
amount 
£m 

320.8 
21.4 
(113.6) 
(0.5) 
(101.8) 

Fair value 
£m 

320.8 
21.4 
(113.6) 
(0.5) 
(101.8) 

126.3 

126.3 

– 

Carrying 
amount 
£m 

335.0 
4.4 
(101.5) 
(0.3) 
(96.0) 

141.6 

Fair value 
£m

335.0
4.4
(101.5)
(0.3)
(96.0)

141.6

–

═════ 

═════

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   155   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Company financial statements continued

36 Borrowings

Non-current borrowings
Maturing between two and five years 
  Asset based finance facility 

Total borrowings 
Less: cash 

Net debt 

2020 
£m 

2019 
£m

113.6 

113.6 
(21.4) 

92.2 

101.5

101.5
(4.4)

97.1

The Company borrowings are stated in accordance with Note 20.

Both the overdraft and asset based finance facility are secured by a fixed and floating charge over all the assets of the Group  
and are rated pari passu. 

Analysis of net debt

Cash 
Borrowings 

37 Deferred tax

Company asset 

At 1 April 2018 
Recognised in income 

31 March 
2019 
£m 

Non-cash 
movement 
£m 

4.4 
(101.5) 

(97.1) 

– 
0.4 

0.4 

Cash flow 
£m 

17.0 
(12.5) 

4.5 

31 March 
2020 
£m

21.4
(113.6)

(92.2)

Total 
£m

–
0.1

0.1

At 31 March 2019 and 31 March 2020 

38 Share capital and share incentives

The Company share capital is stated in accordance with Note 24.

39 Contingent liabilities and commitments

The Company contingent liabilities and commitments are stated in accordance with Notes 27 and 28.

40 Post-balance sheet events

The Company post-balance sheet events are stated in accordance with Note 29.

41 Related party disclosures

The Company related party disclosures are stated in accordance with Note 30.

156   Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Five-year Summary

Income Statement
Revenue  

Gross profit 

Analysis of operating profit/(loss)
Operating profit before amortisation and exceptional items 
Amortisation 
Exceptional items 

Operating profit/(loss) 
Share of results of joint ventures 
Net financial expense  
Net financial income/(expense) – exceptional 

Total net financial income/(expense) 

Profit/(loss) before taxation 

2020 

£m 

2019 
Restated1,2 
£m 

2018 

2017 

2016   

£m 

£m 

£m

406.7 

224.2 

394.7 

214.4 

373.0 

204.7 

369.4 

191.7 

329.1

184.2

39.1 
(1.3) 
(23.8) 

14.0 
2.8 
(7.0) 
10.9 

3.9 

20.7 

36.7 
(0.7) 
(1.2) 

34.8 
1.9 
(7.2) 
(0.8) 

(8.0) 

28.7 

29.2 
(0.2) 
(7.2) 

21.8 
0.8 
(4.1) 
(0.5) 

(4.6) 

18.0 

19.3 
(1.8) 
– 

17.5 
1.7 
(4.8) 
– 

(4.8) 

14.4 

10.0
(2.7)
(59.9)

(52.6)
0.7
(5.7)
–

(5.7)

(57.6)

Non-GAAP performance measures
EBITDA before exceptional items 
Adjusted profit before tax, exceptional items and amortisation 

107.4 
34.9 

104.8 
31.4 

73.0 
25.9 

63.1 
16.2 

53.1
5.0

Balance sheet 
Hire equipment – original cost2 
Hire equipment – net book value2 
Total equity 

Cash flow 
Cash generated from operations 
Free cash flow 
Purchase of hire equipment  
Profit/(loss) on disposal of hire equipment 

In pence  
Dividend per share (interim and final dividend in year)  
Adjusted earnings per share3 
Net assets per share 

In percentages
Gearing 
Return on capital employed3 
EBITDA margin3 

In ratios
Net debt/EBITDA3 (excluding impact of IFRS 16) 
Net debt/net tangible fixed assets2 

In numbers
Average employee numbers 
Depot numbers 

1 Restated as a result of the adoption of IFRS 16 – see Note 1 

2 Adjusted for fair value adjustments, see Note 26 

3 Before amortisation and exceptional items 

408.1 
227.1 
209.9 

385.8 
216.9 
202.0 

364.0 
203.7 
197.8 

350.7 
194.8 
189.6 

378.5
219.9
178.4

64.5 
45.2 
(53.6) 
0.8 

61.2 
13.6 
(54.3) 
1.2 

0.70 
5.54 
39.8 

37.8 
12.0 
26.4 

1.0 
0.31 

2.00 
4.96 
38.5 

44.1 
11.7 
26.6 

1.1 
0.35 

37.2 
17.4 
44.8 
0.7 

1.65 
4.04 
37.7 

35.1 
11.5 
19.3 

1.0 
0.29 

48.9 
35.0 
40.5 
(1.5) 

1.00 
2.45 
36.2 

37.7 
7.7 
17.1 

1.1 
0.30 

25.9
8.6
57.8
0.7

0.70
0.79
34.1

57.2
3.2
16.1

1.9
0.39

4,071 
216 

3,873 
222 

3,738 
217 

3,641 
210 

3,657
208

Financial Statements  Speedy Hire Plc Annual Report and Accounts 2020   157   

Strategic ReportCorporate  InformationGovernanceFinancial  Statements 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholder Information

Annual General Meeting

Electronic communications

The Annual General Meeting (‘AGM’) will be held on 10  
September 2020 and further details regarding location and 
attendance will be announced at the time of issuing the Notice  
of Meeting, allowing consideration of the UK Government’s 
guidance and restrictions on travel and public gatherings in 
relation to COVID-19 in place at that time. 

Details of the business of the AGM and the resolutions to be 
proposed will be sent to those shareholders who have opted  
to continue receiving paper communications, which is also 
available to other shareholders and the public on our website  
at speedyservices.com/investors.

Shareholders will be asked to approve the Directors’ 
Remuneration Report, the Directors’ Remuneration Policy  
and the re-election of all Directors.

Other resolutions will include proposals to renew, for a  
further year, the Directors’ general authority to allot shares  
in the Company, to allot a limited number of shares for cash  
on a non-pre-emptive basis and to buy back the Company’s  
own shares.

Share price information/performance

The latest share price is available at speedyservices.com/
investors.

You can elect to receive shareholder communications 
electronically by signing up to Equiniti’s portfolio service at 
shareview.co.uk. This will save on printing and distribution  
costs, creating environmental benefits. When you register, 
you will be sent a notification to say when shareholder 
communications are available on our website and you  
will be provided with a link to that information.

Enquiries on shareholdings

Any administrative enquiries relating to shareholdings in the 
Company, such as dividend payment instructions or a change of 
address, should be notified direct to the registrar, Equiniti Limited, 
at Aspect House, Spencer Road, Lancing, West Sussex, BN99 
6DA. Your correspondence should state Speedy Hire Plc and the 
registered name and address of the shareholder. Information  
on how to manage your shareholdings can be found at  
help.shareview.co.uk.

If your question is not answered by the information provided, 
you can send your enquiry via secure email from this webpage. 
You will be asked to complete a structured form and to provide 
your shareholder reference, name and address. You will also need 
to provide your email address, if this is how you would like to 
receive your response.

Boiler room fraud

By selecting share price information under the investor 
information section, shareholders can check the value of their 
shareholding online or review share charts illustrating annual 
share price performance trends.

Share scams are often run from ‘boiler rooms’ where fraudsters 
cold-call investors offering them worthless, overpriced or even 
non-existent shares. While such scams promise high returns, 
those who invest usually end up losing their money.

Shareholders can download copies of our Annual Report  
and Accounts and interim accounts from speedyservices.com/
investors.

Dividend reinvestment plan (DRIP)

You can choose to reinvest dividends received to purchase 
further shares in the Company through a DRIP. A DRIP  
application form is available from our registrar, whose contact 
details are 0371 384 2769, or from overseas +44 (0)121 415 
7047. Lines are open 9.00am to 5.00pm (UK time), Monday 
to Friday (excluding public holidays in England and Wales). 
Alternatively you can write to our registrar at Equiniti Limited, 
Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA. 

If you are offered unsolicited investment advice, discounted 
shares, a premium price for shares you own, or free company or 
research reports, you should take these steps before handing 
over any money:

• get the name of the person and organisation contacting you;

•  search the list of unauthorised firms to avoid at fca.org.uk/ 

consumers/scams to ensure they are authorised;

•  only use the details on the FCA Register to contact the firm; and

•  call the Consumer Helpline on 0800 111 6768 if you suspect 

the caller is fraudulent.

REMEMBER: if it sounds too good to be true, it probably is!

158   Corporate Information  Speedy Hire Plc Annual Report and Accounts 2020

Shareholder Information continued

Forward-looking statements

Contact details

This Annual Report and Accounts includes statements that are 
forward-looking in nature. Forward-looking statements involve 
known and unknown risks, assumptions, uncertainties and 
other factors which may cause the actual results, performance 
or achievements of the Group to be materially different from 
any future results, performance or achievements expressed or 
implied by such forward-looking statements. Except as required 
by the Listing Rules, the Disclosure Guidance and Transparency 
Rules and applicable law, the Company undertakes no obligation 
to update, revise or change any forward-looking statements to 
reflect events or developments occurring on or after the date  
of this Annual Report and Accounts.

We are happy to answer queries from current and potential 
shareholders. Similarly, please let us know if you wish to  
receive past, present or future copies of the Annual Report  
and Accounts. Please contact us by telephone, email or  
via the website.

Speedy Hire Plc

Chase House  
16 The Parks  
Newton-le-Willows 
Merseyside WA12 0JQ

Telephone

01942 720 000

Email

investor.relations@speedyservices.com

Website

speedyservices.com/investors

Corporate Information  Speedy Hire Plc Annual Report and Accounts 2020   159   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsRegistered office and advisers

Registered office

Speedy Hire Plc 

Chase House  
16 The Parks 
Newton-le-Willows 
Merseyside  
WA12 0JQ

Telephone

01942 720 000

Email 

investor.relations@speedyservices.com

Website

speedyservices.com/investors

Registered number: 00927680

Company Secretary

Neil Hunt

Financial advisers

NM Rothschild & Sons Limited

1 King William Street 
London  
EC4N 7AR

Stockbrokers

Liberum Capital Limited 

Ropemaker Place, Level 12  
25 Ropemaker Street  
London  
EC2Y 9LY

Panmure Gordon (UK) Limited

1 New Change  
London  
EC4M 9AF

Legal advisers 

Pinsent Masons LLP 

1 Park Row 
Leeds  
LS1 5AB

Addleshaw Goddard LLP 

One St Peter's Square  
Manchester  
M2 3DE

Auditors

KPMG LLP

One St Peter’s Square  
Manchester  
M2 3AE

160   Corporate Information  Speedy Hire Plc Annual Report and Accounts 2020

Registered office and advisers continued

Bankers

Barclays Bank PLC

1st Floor 
3 Hardman Street  
Spinningfields  
Manchester  
M3 3AP

Bank of America Merrill Lynch

2 King Edward Street 
London  
EC1A 1HQ

HSBC Invoice Finance (UK) Ltd

21 Farncombe Road  
Worthing 
West Sussex  
BN11 2BW

HSBC Bank Plc

8 Canada Square  
Canary Wharf  
London  
E14 5HQ

RBS Invoice Finance Limited

250 Bishopsgate 
London  
EC2M 4AA

Wells Fargo Capital Finance (UK) Limited

Bow Bells House 
1 Bread Street 
London  
EC4M 9BE

Public relations

MHP Communications

60 Great Portland Street  
London  
W1W 7RT

Registrars and transfer office

Equiniti Limited

Aspect House  
Spencer Road 
Lancing 
West Sussex  
BN99 6DA

Insurance brokers 

Marsh Ltd

Belvedere 
12 Booth Street 
Manchester  
M2 4AW

Corporate Information  Speedy Hire Plc Annual Report and Accounts 2020   161   

Strategic ReportCorporate  InformationGovernanceFinancial  StatementsNotes
Notes

Visit our website to find out more  
speedyservices.com/investors

Sign up for our RNS alerts 
speedyservices.com/investors/alert-subscribe

162   Corporate Information  Speedy Hire Plc Annual Report and Accounts 2020

Who we are 
Speedy is the UK’s leading provider of tools and 
equipment hire, and services to the construction, 
infrastructure and industrial markets. Our hire and 
services business operates from over 200 locations  
in the UK and Ireland. 

We also operate internationally, providing equipment 
and manpower primarily for national government 
clients in the oil and gas markets, on long term 
framework contracts in the UAE and Kazakhstan.

Our network

Depots

Superstores

Multi Service Centres

National Distribution Centre

Contents
Strategic Report 
Who we are 

IFC
 01
Why invest in Speedy 
What we do and how we do it  02
04
Where we operate  

Company facts 

Chairman’s statement 

Chief Executive’s Review 

A digital business 

Sustainability 

Customer service 

Business development  

Services 

06

08

10

14

16

18

20

22

24
People 
Safety and sustainability report  28
Financial and non-financial KPIs   34
36
Financial Review  
Principal risks and uncertainties   40
50
Viability Statement  

Board engagement with  
our stakeholders  

What we do in more detail 

Governance 
Chairman’s letter  
to shareholders 

Directors’ Report 

Statement of Directors’  
Responsibilities 
Board of Directors 

51

54

57

58

61

62

64
Corporate Governance 
Audit & Risk Committee Report   70
Nomination Committee Report  75
77
Remuneration Report  
Independent auditor’s report   98

Financial Statements  
Consolidated Income 
Statement 

109

Consolidated Statement of 
110
Comprehensive Income 
Consolidated Balance Sheet  111
Consolidated Statement  
of Changes in Equity  

112

Consolidated Cash  
Flow Statement 
Notes to the financial  
statements  

Company Balance Sheet 

Company Statement  
of Changes in Equity 

Company Cash Flow  
Statement 

Notes to the Company  
financial statements  

Five-year summary 

113

114

150

151

152

153

157

Corporate Information 
Shareholder Information 

158

Registered office 
and advisers 

160

Our vision 
Our vision is to become the best 
company in our sector to do business 
with and the best to work for.

Our mission 
Our mission is to provide safe, reliable 
hire equipment and services to enable 
successful delivery of customer projects.

Our values 

'Safe' the first priority in everything we do

' As One' working together to collectively  
achieve our goals

'Innovative' to continuously improve

' Driven' to deliver a first class  
customer experience

Our customer  
value proposition 
We provide our customers with a single 
destination for the latest, most innovative,  
safe, and compliant tools and equipment.

As a result we protect our customers against 
commercial risk, enable the successful delivery 
of their projects and ensure their people are 
operating safely on site. 

Providing a first class customer experience  
is core to our service offering. 

We achieve this through a combination  
of our people, nationwide depot network  
and digital propositions.

WHERE TO 
FIND US
Why invest in Speedy?

Stores

Superstores

Multi Service 
Centres

National Sales 
Distribution 
Centre

   We supply large national customers,  
including 87 of the UK’s top 100 contractors, 
as well as local trades and industries
   Safety is our number one priority and we  
actively work with our suppliers to deliver award 
winning, sustainable solutions for customers
   We innovate to make our customers’ projects 
more successful by taking advantage of 
technological advancements
   We have high levels of customer advocacy,  
with a 92%* customer satisfaction score
   We provide an industry leading unique  
All paper from sustainable and controlled sources.
national four-hour delivery promise on  
our most popular products
Designed by MHP Design  |  mhpc.com

This Annual Report is available at speedyservices.com/investors

   We are improving asset availability,  
which is fundamental to ensuring that  
we provide great customer service
   We have a strong balance sheet and significant 
banking facility headroom, which means 
that we can continue to grow the business 
organically and through value enhancing 
acquisitions
   We aim to grow our services businesses faster 
than hire; this diversification will result in us 
being more resilient to economic downturn
   We have successful oil and gas businesses  
in the UAE and Kazakhstan 

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*Based on average monthly responses to customer surveys

Realising our  
potential

Speedy Hire Plc
Annual Report and Accounts 2020

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Speedy Hire Plc
Chase House 
16 The Parks
Newton-le-Willows 
Merseyside WA12 0JQ

speedyservices.com/investors

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