Growing
sustainably
Speedy Hire Plc
Annual Report and Accounts 2022
trust us to deliver
Strategic Report
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
approximately 200 locations in
the UK and Ireland, including
within selected B&Q stores
and on-site facilities at client
locations. We also operate
internationally through a joint
venture in Kazakhstan.
CONTENTS
Strategic Report
Who we are
What we do
Our network
Markets we operate in
Our customer value proposition
Why invest in Speedy
Our ESG strategy
Chairman’s Statement
Chief Executive’s Review
Financial KPIs
Our strategy
Increasing market share
Retail and trade
Digital
Sustainability
People
ESG Report
Financial Review
Principal risks and uncertainties
Viability Statement
Board engagement with our stakeholders
Governance
Chairman’s letter to shareholders
Directors’ Report
Statement of Directors’ Responsibilities
Board of Directors
Corporate Governance
Audit & Risk Committee Report
Nomination Committee Report
Remuneration Report
Independent auditor’s report to the
members of Speedy Hire Plc
Financial Statements
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
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
Corporate Information
Shareholder Information
Registered office and advisers
03
04
07
08
10
12
15
16
18
22
24
25
29
31
33
36
39
80
84
92
93
100
101
105
106
108
115
122
125
148
158
159
160
161
162
164
200
201
202
203
208
210
212
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 1
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
2 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Who we are
Our vision
To inspire and innovate
the future of hire.
Our mission
Speedy is the UK and
Ireland’s leading provider
of tools, specialist
equipment and services.
We provide exceptional
customer experience,
accelerating collective
success towards a
sustainable future.
Our values – People First
Ambitious
We lead with bravery to make anything possible.
Innovative
We nurture a culture where new methods, ideas,
and products emerge.
Inclusive
We are all unique, and we all belong.
Together
We are family; proud to work as one to make
great things happen.
Trusted
Company facts
3,554
total employees
32%
of our revenue is
generated from ECO
products, providing a range
of environmental benefits
2,270
hire product lines and
approximately 300,000
itemised assets for hire
c.40,000
consumable
products in our
extensive range
c.57,000
customers in the UK and
Ireland, ranging from large
national contractors to
local trades
92%
customer satisfaction
score, showing that
we have high levels of
customer advocacy*
2.5 miles
If we placed our fleet of
cut-off saws end-to-end,
they would stretch the
length of New York’s
Central Park (2.5 miles)
7.65 miles
Our fleet of Event Staging
Platforms would reach the
length of Ullswater in the
Lake District shore to-shore
(7.65 miles)
Our full range of hoists
could take you up the
Eiffel Tower 32 times
(combined mast height
of 9,700m)
If we connected all of our
welding extensions together,
we could run them up and
back down Mount Everest
and still have some to spare
The pressure produced by
all of our press fitting tools
combined, is greater than
the force produced from the
thrust of a space shuttle
main engine at lift off
If we combined the heat that
all of our welding sets have
the potential to produce,
it would be as hot as the
surface of the sun
We are responsible and do the right thing, always.
* Based on average monthly responses to customer surveys
during FY2022
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 3
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
What we do
Services
Hire
36%*
64%*
Our services revenues fall
into the following categories:
We hire approximately 2,270
product lines through our core
tools and specialist businesses.
Rehire
We provide a single hire destination service for customers,
offering a complete plant, accommodation and equipment range
through our partnerships with the industry’s leading suppliers.
Testing, inspection and certification
Through our Lloyds British business we ensure our
customers remain compliant by providing testing, inspection
and certification services for a broad range of market sectors.
Tools
The latest hand tools and accessories including our extensive
range of environmental next generation ECO products.
Lifting
A broad range of equipment for any lifting requirements,
including hoists, winches, hydraulic cylinders and jacks
supported by our Lloyds British business.
Survey
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
An industry leading fleet of the latest energy efficient hybrid and
solar generators, compressors and pumps for every size of project.
Rail
RISQS accredited, providing a range of industry compliant
assets that are supported by a project management service.
Powered access
Our ‘Speedy Powered Access’ division provides an industry
leading range of equipment including sustainable hybrid
boom lifts, specialist platforms and cherry pickers.
*Approximate percentage of Group revenue
Powered access specialist servicing and refurbishment
Through our national Speedy Powered Access division,
we provide specialist servicing and refurbishment services
for powered access equipment.
Retail sales
We offer c.40,000 consumable products in our extensive
range both through a centrally managed procurement team,
and at a local level through our network of Speedy Service
Centres and within selected B&Q stores across the UK.
Fuel Management
Speedy is the only UK plant hire company with its own
fully integrated fuel division, providing a competitive fuel
supply service. This includes low emission Green D+ HVO
(Hydrotreated Vegetable Oil) fuel through a fully managed
service, including products that can help customers reduce
consumption, minimise deliveries and reduce overall costs.
Training
We provide a comprehensive range of industry leading safety
and skills training along with other progressive end-to-end
training courses.
4 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 5
Corporate InformationGovernanceFinancial Statements
Innovation Centre
During FY2022 we opened our
pioneering Innovation Centre
incorporating our Milton Keynes
Regional Service Centre as part of
a network upgrade programme,
providing the blueprint for our future
low carbon Service Centre network.
6 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
6 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Our network
Our aim is to make it easy for
customers to do business with us,
through providing a choice of different
contact options to suit their needs:
Customer
Relationship Centre
Through our central hub in
South Wales, dedicated to
servicing our SME customers
Online
Through our website
and mobile app
Regional Hubs
Our regional call centres are
located throughout the country,
with dedicated staff servicing
our regional customer base
Customer
contact
options
B&Q outlets
We operate within
selected B&Q stores
across the UK and on
B&Qs website; diy.com
Service Centre
Network
Through approximately
200 operational centres
across the UK and Ireland
Speedy Direct
Through our central call
centre in the North West,
with dedicated desks for
our major customers
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 7
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Markets we operate in
37%*
Support Services and Other RMI**
• Facilities Management, Manufacturing and Production,
Environmental Services, Engineering Services, Defence and Media
29%*
Infrastructure
• New Build Highways, Rail, Energy, Harbours and Airports
• Frameworks in Water and Sewerage (AMP7), Roads
(Highways England), Rail (CP6) and Tele-communications
16%*
Non-Residential Construction
• New Build Offices, Shops, Education, Hospitals, Warehouses
and Factories, Hotels, Stadiums and Prisons
10%*
Residential Construction
• New Build Housing
5%*
Industrial Services RMI**
• Power, Petrochemicals and Steel
3%*
Residential RMI**
• DIY and Home Improvement
*Approximate percentage of Group revenue
**Repair Maintenance Improvement (housing and construction)
8 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 9
Corporate InformationGovernanceFinancial Statements
Our customer value proposition
Providing a first class
customer experience is
core to our service offering.
We offer customers a single destination to access the
most innovative, safe, sustainable and compliant tools
and equipment to hire or buy. In addition we have
the ability to test and inspect products to maintain
compliance, and provide expert training.
As a result, we protect customers against commercial
risk, enable the successful delivery of their projects
and ensure their people are operating safely on-site.
Product
Customer benefit
Hire
No capital outlay
We make life easy for our customers with the industry’s leading hire product
range and nationwide delivery options, ensuring we can support them with all
their project needs, wherever they are working.
• 2,270 product lines, including the latest in sustainable ECO tools and equipment
• Specialist plant and equipment hire
• Available from our retail network across the UK and selected B&Q stores
• Four-hour nationwide delivery on 350 of our most popular products
Product
Customer benefit
We provide our customers with quality retail products, tools and accessories
from market leading brands.
• c.40,000 products in our extensive range
• 450 essential hire accessories held nationally
• Available from our retail network across the UK and selected B&Q stores
• Central distribution function for bulk orders
Buy
Long-term
ownership
10 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Product
Customer benefit
Train
People competence
We provide a wide range of training programmes ensuring our customers
are confident their people are working effectively and safely.
• More than 30 training locations across the UK, audited by a range of
organisations including IPAF and PASMA
• Flexible delivery for on-site, off-site and remote learning
• Bespoke short-course training design and development
• More than 200 off the shelf accredited and certified courses
• The only UK hire company to offer portable virtual reality training for
working at height
Product
Customer benefit
Test
Regulatory needs
We ensure equipment remains safe to use and is legally compliant through the
provision of testing, inspection and certification services by Lloyds British.
• Testing and inspection including structural and proof load
• Height safety testing, certification and installation
• Examination of equipment covering regulatory bodies LOLER, PSSR, COSHH, PUWER
• Crane services including installation, repairs and breakdown
Product
Customer benefit
From helping our customers reduce their on-site carbon emissions, to providing
expertise on complex lifting activities, we create solutions to a whole range
of customer challenges through providing expert consultancy alongside the
provision of core hire and services.
Solutions
Beyond simply
hire and services
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 11
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Why invest in Speedy
We are a market leading hire
and services company.
We have a clear customer focused growth strategy
underpinned by an ambitious award winning Environmental,
Social, Governance (ESG) programme that drives innovation
and sustainability in our sector.
1
2
3
A strong balance sheet
We have a strong balance sheet and
significant banking facility headroom, with
which to grow the business organically and
through value enhancing acquisitions.
UK Infrastructure sector
We have significant exposure to the
UK Infrastructure sector that the UK
government is increasingly committed
to supporting.
UK retail sector
We have accelerated our penetration of the
growing consumer DIY market through the
launch of our dedicated consumer website and
partnership with B&Q including on diy.com.
4
Support services
We operate in RMI* and Support Services
that create a visible, resilient, less cyclical
revenue stream.
6
7
8
9
Unique delivery promise
We provide a unique industry leading
national four-hour delivery promise on our
350 most popular products to both trade
and consumers.
ESG programme
Our ESG strategy drives our commitment
to keeping colleagues and customers safe,
reducing our impact on the environment,
supporting our people and local
communities and operating as an industry
leading sustainable company.
Innovation
We embrace state of the art technology
through digital and product innovation,
actively working with our suppliers through
our ESG strategy to deliver award winning,
sustainable solutions for customers.
Customer satisfaction
We have high levels of customer advocacy,
with a 92%** customer satisfaction score,
and an ‘Excellent’ rating on Trustpilot.
*Repair Maintenance Improvement (housing and construction)
** Based on average monthly responses to customer surveys
during FY2022
5
Diversification
We aim to grow our services businesses;
this diversification will ensure we are
more resilient to an economic downturn.
10
Industry leading
We are continually improving asset utilisation
and availability year-on-year which is
fundamental to ensuring that we provide
great customer service.
12 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
We supply large national
customers, including 88 of the
UK’s top 100 contractors, as well
as local trades and industries.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 13
Corporate InformationGovernanceFinancial Statements
GOING GREENER FASTER
The Decade To Deliver
14 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Our ESG strategy
At Speedy, we are proud to be at the forefront of
sustainability and innovation. During the year we
developed a new strategy to accelerate our environmental
and social agenda; we call it the Decade to Deliver.
In order to truly create a positive impact we are the first hire
company to commit to science based targets, publishing ambitious
targets for the next 10 years.
Our ESG programme is sponsored by our Chief Executive, Russell
Down. I Chair our ESG Committee which is made up of senior managers
from across the business. We meet regularly to drive continuous
improvement in our ESG KPIs which are aligned with the United
Nations Sustainable Development Goals 2030 (UNSDGs).
Our ESG framework aligns with the vision to inspire and innovate the
future of hire.
• We are committed to operating efficiently as an industry leading
sustainable company building on a strong track record of safety and
carbon-saving innovation.
• We support our people and local communities, from looking after
their wellbeing and boosting diversity, equality and inclusivity, to
supporting charity and community projects wherever we operate.
We operate safely and ethically, and maintain a Code of Conduct,
robust audit functions and processes.
For full details of what we have achieved in the last year, and
our ambitious plans and targets for the future, please see our
comprehensive ESG Report.
Amelia Woodley,
ESG Director
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 15
Chairman's statement
David Shearer, Chairman
“ I am pleased with the
Group’s performance this
year and that revenues
are now ahead of the
pre-COVID-19 period.
We have a strong market
position allowing us to
take advantage of positive
end markets and deliver
continued sustainable
growth. The Board looks
forward with confidence
for the year ahead”.
16 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
The results we are reporting
today show significant year
on year profit growth. In
addition, I am pleased to
report that both revenue and
adjusted profit before tax on
continuing operations are
ahead of FY2020, the last full
year pre-COVID-19. We have
a strong balance sheet and
have invested significantly in
the innovative, market leading
sustainable products that
our customers demand while
launching a share buyback
programme during the year.
Results
Group revenue increased by 16.4% to £386.8m (FY2021:
£332.3m) with a number of new contract wins and renewals
reflecting our market leading customer service proposition. Our
partnership with B&Q was formalised during the year growing our
market share with trade and retail customers both in stores and
through their website, diy.com.
The Group sold its operations in the Middle East in March 2021,
continuing to operate internationally through a joint venture in
Kazakhstan. Share of profits increased to £3.2m (FY2021: £1.2m),
as a result of increased activity following new contract awards.
We have invested c.£70m in our hire fleet this year to meet
increased demand and to mitigate the effect of increased
supplier lead times. Notwithstanding the increased investment
utilisation rates have increased to 57.0% and our net debt /
EBITDA remains low.
Carol Kavanagh joined the Board and Remuneration Committee
on 1 June 2021 as an Independent Non-executive Director.
After allowing time for Carol to settle into her role, Rhian
Bartlett stepped down from the Remuneration Committee on 16
November 2021 in keeping with the Company's current policy
of staffing its Board Committees with three Independent Non-
executive Directors.
During March 2022 the Board agreed to set up a new
Sustainability Committee to assist the Board in its oversight of
the Group’s ESG strategy including the Group’s performance in
reducing its carbon footprint.
On behalf of the Board I would like to take this opportunity to
thank all of my colleagues for their continued hard work and
dedication, which has enabled our performance over the last year.
Future
I am pleased with the Group’s performance this year and that
revenues are now ahead of the pre-COVID-19 period. We have a
strong market position allowing us to take advantage of positive
end markets and deliver continued sustainable growth. The Board
looks forward with confidence for the year ahead.
David Shearer, Chairman
We have enhanced our ESG proposition following the
appointment of an ESG Director in April 2021. Our new
strategy ‘The decade to deliver’ sets out plans to reduce our
carbon footprint, as well as helping our customers reduce their
environmental impact through the operation of a sustainable
fleet of hire assets.
Dividend
In line with our capital allocation policy we will continue to invest
in organic growth and acquisitions whilst maintaining regular
returns to shareholders. Following a review of the medium-term
capital needs of the Group the Board implemented a £30 million
share buyback programme in January 2022. To date c£10m of
shares have been purchased under this programme.
The Board is pleased with the strong performance of the business
and has therefore recommended a final dividend of 1.45pps
for the year (FY2021: 1.40pps). If approved at the forthcoming
Annual General Meeting the dividend will be paid on 23
September 2022 to shareholders on the register at close of
business on 12 August 2022.
Board and people
As previously announced, Russell Down has advised the Board of
his intention to retire. Russell will remain with the business until
a successor is in place, to ensure a smooth and orderly transition.
The recruitment process for a replacement is underway.
I would like to thank Russell both personally and on behalf of
the Board for his significant contribution as Chief Executive over
the last seven years. Under his leadership, the business has been
transformed and is now well positioned for future growth with an
ambitious management team. We wish him well for the future.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 17
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Chief Executive’s Review
I am pleased with the results that we
have reported today which are in line
with our expectations. Our revenue and
profits have grown significantly, demon-
strating the strength of our customer
value proposition.
Revenues have recovered post COVID-19 and for the UK and
Ireland business are now ahead of the year ended 31 March
2020. Total revenue is 16.4% ahead of FY2021 reflecting
increased market activity and new customer wins and renewals.
Whilst the macro-economic environment is uncertain, our end
markets are positive with significant growth projected in major
infrastructure and energy projects including HS2 and nuclear. Our
rail business has continued to expand through winning market
share from new and existing customers on HS2, CP6 and more
widely. In the housebuilding market we continued to see strong
demand and growth in the year.
The Group has implemented price increases, following product
and customer reviews, to offset inflationary cost pressures
on both overheads and new equipment purchases. We have
improved our governance and reporting in this area which will
facilitate improved margins and the ability to implement more
dynamic pricing models.
Our investment in developing a retail business in partnership with
B&Q has continued. We were pleased to formalise an agreement
with B&Q in September 2021 and now have a presence in 36 of
their stores and online at B&Q's website, diy.com.
Asset utilisation was 57.0% after significant investment in the
Group's hire fleet to satisfy customer demand and mitigate
longer supply chain lead times. The strength of our supply chain
relationships and advanced planning using artificial intelligence
have been key to achieving strong asset utilisation rates on our
enlarged hire fleet.
Service revenues increased by 13.7% with particularly
strong performance in our rehire business which had a record
year. Following the phasing out of red diesel supplies to the
construction industry we have also seen strong growth in our fuel
management business and particularly for HVO fuel which now
accounts for 12.3% (FY2021: 1.3%) of our fuel sales.
Russell Down, Chief Executive
“ I am pleased to report
results that reflect the
strong performance we have
achieved this year. We have
continued to progress our
strategic goals by taking
market share, developing a
first class digital customer
experience, prioritising
our people and leading on
ESG. This performance is
testament to the hard work
and dedication of all
my colleagues”.
18 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
The Group sold its Middle East equipment fleet, stock and other
fixed assets to its principal customer, ADNOC, in March 2021.
The Group entered into a Transitional Services Agreement with
ADNOC, which was extended until 30 September 2021, to
support the transfer of the assets, during which time the Group's
c.600 UAE-based employees' contracts were terminated and all
colleagues offered re-employment by ADNOC. Actions are now
underway to liquidate our trading entities in the region.
We are continuing to trade internationally through a joint venture
in Kazakhstan. During the year the JV has performed well with
increased activity levels and contract wins. A new temporary
power contract, which is expected to run throughout 2022, has
increased revenue and profits significantly. Share of profits from
the JV increased to £3.2m (FY2021: £1.2m).
Financing and liquidity
The business generated operating cash flow of £28.6m (FY2021:
£72.9m) reflective of increased capital expenditure. At 31 March
2022 net debt, excluding IFRS16 lease liabilities, increased to
£67.5m (2021: £33.2m). The Group has significant headroom
against its committed banking facilities of £180m; leverage at 31
March 2022 was 0.9 times.
Share buyback
The Board reviewed the capital allocation policy and medium-
term capital needs of the Group in January 2022 and considered
that a £30 million share buyback programme was appropriate.
The buyback reflects the cash generative ability of the Group and
its strong balance sheet with significant facility headroom. To date
c.£10m of shares have been purchased under this programme.
Results
Results and commentary are presented on a continuing
operations basis unless otherwise noted, reflecting the disposal
of the Middle East business in March 2021 which was treated as
discontinued. Revenue increased by 16.4% to £386.8m (FY2021:
£332.3m) reflecting a strong performance in core and partnered
services hire and an improved H2 performance in services. Group
revenues, excluding disposals, increased by 16.3% to £381.7m
(FY2021: £328.1m).
Adjusted profit before tax increased 72.0% to £30.1m
(FY2021: £17.5m). Adjusted earnings per share were 4.24 pence
(FY2021: 2.68 pence). Profit before tax increased to £29.1m
(FY2021: £8.3m).
The Group has a 45% share in a joint venture in Kazakhstan
servicing the oil and gas market. Share of profits increased to
£3.2m (FY2021: £1.2m), following new contract wins and the
resultant increase in activity.
Dividend
The Board is committed to a progressive dividend policy
with a pay-out ratio of between 33% and 50% of underlying
profit after tax.
The Board is pleased with the performance of the business and
given its strong balance sheet has recommended a final dividend
of 1.45pps for the year ended 31 March 2022 (FY2021: 1.40pps).
The full year dividend will amount to 2.20pps which represents
c.50% of adjusted EPS (FY2021: 1.40pps).
Strategy and operational review
Our vision is to inspire and innovate the future of hire. As the
UK and Ireland’s leading provider of tools, specialist equipment
and services, we provide exceptional customer experience,
accelerating mutual success with our customers working towards
a sustainable future.
We serve approximately 57,000 customers in the UK and Ireland,
including 88 of the UK’s 100 largest contractors. Our customers
include major infrastructure contractors, housebuilders,
industrials, SMEs, and consumers. During the year we have won
and extended major contracts with large contractors operating
nationally including Costain, the Home Office, MGroup and
Redrow Homes whilst also growing our retail business in
partnership with B&Q. We are further penetrating our
addressable markets through cross-selling products and services
to achieve a higher share of wallet. Customer service is key to
our value proposition, driving retention and loyalty whilst
increasing market share.
The Group implemented price increases in April 2022 on list
prices and new contract renewals to offset the effects of cost
inflation on both overheads and new equipment purchases.
Customers have largely been receptive to the price increases
which will take effect as framework contracts and hire contracts
are renewed.
We have increased our share of the SME market through
continued growth in our Customer Relationship Centre (CRC)
in South Wales. Our partnership with B&Q has been extended
to 36 B&Q stores across the UK, and with the launch of our
B2C website we are bringing the hire proposition to consumers
through a significant national marketing campaign. The in-store
B&Q outlets give retail and trade customers the option to hire
tools and equipment from Speedy as part of their B&Q shopping
experience enabling customers to order and collect Speedy
products seven days a week for the first time. Hiring a wide
range of tools and equipment enables homeowners to be more
confident and ambitious with their DIY and provides them with
a convenient and accessible way of completing improvement
projects where buying bigger ticket DIY tools may not be feasible.
To maximise sales opportunities, the Speedy concessions are
located next to the TradePoint areas so as to promote the option
of hire to both retail and trade customers.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 19
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Chief Executive’s Review continued
Our customers’ key priorities are quality, availability, speed and
a first class customer experience. We offer an industry leading
guaranteed four-hour delivery service on our most popular
products nationally. This unique customer value proposition is
driven by our service-led culture and is made possible by the
strategic investment we have made in the tools and equipment
our customers demand, and the back-end digital systems and
processes that enable it. During the year we invested £10 million
in new products for our four-hour guaranteed delivery promise,
to meet rising customer demand for quick site deliveries. The
investment added 25,000 new assets to the Company’s most
popular products.
Services revenues are less capital intensive, have greater visibility
and are more recurring in nature than hire revenues. As a result,
they are ROCE enhancing for the Group. Our Services categories
consist of: rehire; training; testing, inspection and certification;
product and consumable sales; and fuel management services.
Services revenue has performed strongly due to our ability to
cross-sell our complete customer proposition to larger customers.
Our rehire business, Partnered Services, has grown strongly this
year and expanded the range of products on offer. We lead the
market in the provision of sustainable hydrotreated vegetable
oil (HVO) fuel and fuel management services and consequently
revenues have increased significantly.
We have enhanced our omni-channel proposition, which enables
customers to trade in the way it suits them; online, on the app,
by phone, in-store or through our retail concessions within
selected B&Q stores, providing an industry leading and unique
set of trading channels. The developments we have made in the
last year within digital, on-boarding and customer experience
have made it easier to do business with us. We have introduced
an online availability checker which enables customers to check
availability on a product before going through the checkout
process and makes it easier for them to see if the products they
want to hire are located nearby for collection. The results include
both Speedy Service Centres, as well as our retail locations in
B&Q. For customers with a MySpeedy account, we have made
significant back-end technical improvements which enable
customers to combine our digital ordering process with their own
internal approval processes to submit approved orders. These
developments are attracting and retaining customers whilst
reducing the overall cost-to-serve. They represent a significant
step forward in our web and app functionality. We have recently
appointed a Chief Digital Officer and further enhancements are
planned in FY2023 to ensure we continue to provide an industry
leading digital customer experience.
Our use of artificial intelligence to optimise our asset holdings
produces a dynamic forecast. Optimal stocking levels are set
to ensure we have the right assets, at the right locations, at the
right time to satisfy customer demand in the most efficient way.
Artificial intelligence is enabling better decision making to further
enhance our utilisation rates and service to customers.
During the year we successfully upgraded our ERP (Enterprise
Resource Planning) system, Microsoft AX12, to the cloud based
Microsoft Dynamics365. The new system simplifies some of
our key business processes and significantly improves the
user experience, increasing productivity and improving the
customer experience.
ESG
We are committed to reaching net zero emissions before 2050,
aligned to the new SBTi Net Zero Standard. During the year we
have set science based targets to reduce our Scope 1 and 2
emissions by 50% before 2030. Our Scope 3 emissions account
for c.90% of our overall carbon footprint, largely due to emissions
from customer use of our hired assets. During FY2023 we will
undertake science based modelling to create a pathway for the
reduction of our Scope 3 emissions.
Our carbon emissions in the UK and Ireland have reduced from
22,309 tonnes, in the baseline year of 2019, to 16,775 tonnes
in FY2022. This reduction has been achieved through the
procurement of renewable energy, a more efficient vehicle fleet
and the use of HVO fuel in our larger vehicles. This equates to
a 23% reduction on a CO2 per employee basis to 4.94 tonnes
(2019 continuing operations: 6.45 tonnes).
Our principal carbon emissions are from our vehicle fleet which is
used for delivery and collection of hire assets and business travel.
We aim to lead the industry in running a low carbon vehicle fleet,
with a target of ensuring that the majority of our vehicles are
electric or hybrid by 2025. This commitment will play a key role in
meeting our carbon reduction targets, and the commitment to our
customers as a key part of their supply chain.
In the last year we invested in 64 new hybrid transit vans and
are trialling a number of additional electric vehicles. We also
launched the first all-electric 27 tonne vehicle used in the
construction industry to deliver our powered access products.
Our company car list now comprises entirely electric and hybrid
vehicles. We have a fleet of c.500 company cars and estimate
future savings of up to 260 tonnes of CO2 annually from replacing
diesel and petrol models. Our aim is for all company cars to be
hybrid or electric by 2023. To support the transition we have
continued to install electric vehicle charging points across our UK
Regional Service Centre network.
20 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
business and are working towards having 5% of our employees
on earn and learn programmes within 5 years as part of our
commitment to the ‘5% club’. To recognise the considerable
experience and expertise we have within the business, we have
also introduced a ‘late careers’ mentor programme. This ensures
the skills we need for the future are retained whilst passing them
on to new colleagues.
The Board is committed to supporting colleagues, new and
established who are participating in the long-term success of
the business.
I have recently advised the Board of my intention to retire. I am
proud to have been Chief Executive at Speedy for the last seven
years and of all we have achieved during this period. I would like
to take this opportunity to thank all of my exceptionally talented
colleagues, our customers and suppliers for their support and
wish them well for the future.
Summary and outlook
I am pleased to report results that reflect the strong performance
we have achieved this year. We have continued to progress our
strategic goals by taking market share, developing a first class
digital customer experience, prioritising our people and leading
on ESG. This performance is testament to the hard work and
dedication of all my colleagues.
We have made an encouraging start to FY2023 with volume
growth and price increases more than offsetting cost pressures.
Against a backdrop of positive end-markets and our unique
leading service and ESG customer propositions, the Board
remains confident that we will meet its FY2023 expectations.
Russell Down, Chief Executive
We are modernising our depot footprint and in November 2021
we launched our new Innovation Centre in Milton Keynes. It
showcases net-zero equipment and provides an extensive
ECO hire range including electric, solar and hydrogen powered
technologies. All commercial vehicles operating out of the site
are electric or fuelled by HVO, which emits up to 90% less CO2e
when compared to diesel, minimising our environmental impact.
The centre is powered by 670 solar panels and utilises pioneering
bespoke energy efficient lighting and climate control technology.
It is also home to a wellbeing and wildflower garden, an 18-metre
living wall and beehives made from repurposed hard hats. The
site uses furniture, from desks to garden benches, made from
recycled materials to help further lower its environmental impact.
We have been delighted to welcome many of our major, regional
and local customers for site tours to demonstrate its sustainability
credentials and inspire our customers with ideas that they have
taken back to their businesses. The Innovation Centre acts as a
blueprint for our network plans going forward, and adds to the
list of larger new Regional Service Centres launched during the
year including sites at Reading, Swindon, Doncaster, Leicester,
Aberdeen and Edinburgh. The brand new sites also create an
improved experience for our colleagues through an enhanced
and technically optimised working environment.
In taking action to minimise our carbon footprint we are actively
procuring more sustainable assets into our hire fleet including
those with solar, hybrid, electric and hydrogen technology. During
FY2022 we invested £68.4m in our hire fleet, of which 56% was
on sustainable equipment. We anticipate investing a significant
proportion of capex during FY2023 in sustainable products in line
with customer demand to help drive down carbon emissions.
We have undertaken an initial evaluation of our Scope 3
emissions and during FY2023 will be undertaking further detailed
analysis and evaluating strategies with our supply chain to reduce
these as quickly as possible.
During FY2022 colleagues raised over £75,000 for charities and
community groups, contributing to a range of worthy causes. We
supported a colleague led ‘As One’ challenge to raise money for
charity Mind and raise awareness of mental health issues. The
distance-based challenge saw Speedy teams collectively run,
walk, swim or cycle over 63,000 miles, raising a total of £25,000.
People
We launched our People First strategy during the year that
prioritises personal and professional development, wellbeing and
equality, diversity and inclusion within the workplace. We have
increased the number of graduates and apprentices within the
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 21
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Financial KPIs
KPI
Why this KPI is important
to our strategy
How we have done
FY2021 performance
Revenue £m
A measure of the work we
are undertaking.
£386.8m
£363.6m
Revenue
(excluding
disposals) £m
A measure of our
underlying activity with
customers having removed
planned hire fleet asset
disposal income.
£381.7m
£359.4m
EBITA1 £m
A measure of the profit we
generate from our revenue.
£32.6m
£25.4m
EBITA1 margin %
EBITDA1 £m
EBITDA1 margin %
Highlights how successful
Speedy is in maximising
its return from the revenue
generated.
A measure of operating
return before depreciation
and amortisation.
Highlights value generated
either through operational
efficiency or the quality of
the revenue.
Adjusted profit
before tax1 £m
A measure of profit we
generate adjusted to
exclude amortisation and
exceptional items.
8.4%
7.0%
£99.5m
£90.5m
25.7%
24.9%
£30.1m
£20.7m
Profit before tax
A measure of profit we
generate from our revenue
activity having accounted
for all costs before taxation.
£29.1m
£8.3m
22 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
KPI
Why this KPI is important
to our strategy
How we have done
FY2021 performance
Utilisation %
ROCE2 %
A measure of how many
of our assets are on hire
to customers by net
book value.
A measure of how well
Speedy is delivering a
return from the capital
invested.
57%
54%
13.1%
8.4%
Net debt3 £m
A measure of the
Company’s borrowings.
£67.5m
£33.2m
Net debt3 to
EBITDA1 x
A measure of how leveraged
the balance sheet is.
0.9x
0.5x
NBV of property,
plant and
equipment £m
As assets are our core
revenue generator, this
effectively measures the
scale of investment to
support revenue.
£257.7m
£233.1m
Adjusted earnings
per share4 pence
A measure of the return
generated for the holder of
each of our ordinary shares.
4.24p
3.22p
Explanatory notes:
1
2
Before exceptional items, see Note 12 to the
Financial Statements
3
4
See Note 21 to the Financial Statements
See Note 10 to the Financial Statements
Return on Capital Employed: Profit before tax, interest,
amortisation and exceptional items divided by the
average capital employed (where capital employed
equals shareholders’ funds and net debt3), for the
last 12 months
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 23
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Our strategy
We have a clear
customer focused
growth strategy
underpinned by our
ambitious award winning
Environmental, Social,
Governance (ESG)
programme.
Key strategic priorities for FY2023
Increasing market share
Retail and trade
Digital
Sustainability
People
24 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Increasing market share
We aim to continuously improve our
service, such that a first class customer
experience comes as standard.
Our aim is that whenever and wherever
our customers do business with us,
they can expect a consistent level of
quality standards, and receive the
same level of experience from point
of order through to delivery and
collection. During FY2022 we have
made significant steps in further
improving our business to achieve this.
We are focusing on further penetrating our addressable markets
through cross-selling products and services to achieve an increased
share of revenue with major customers in the infrastructure
markets including rail, utilities and highways. This enables
customers to take advantage of supply chain efficiencies, and by
ensuring service sits at the heart of our full customer proposition,
we aim to drive loyalty whilst increasing market share.
We are also winning contracts with new customers through the
provision of our integrated proposition that includes both our core
hire and services offering, combined with our partnered services
division enabling customers to utilise Speedy as a one-stop-shop
for all of their hire needs.
We are continuing to grow our SME customer base, and are
growing our share of the consumer market through a robust
investment in marketing the Speedy DIY brand to customers
nationally. In April 2022 we launched a national marketing
campaign. The campaign is driving awareness targeting both
SME and consumers across terrestrial television, national
radio and through outdoor and online digital channels to drive
both awareness of our brand in the market and sales through
increasing footfall through our network and driving traffic to
our trade and DIY website.
To fuel this growth we have invested £68.4m in growing our
fleet during FY2022 to provide customers with the products they
need across both B2B and B2C markets.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 25
Increasing market share continued
" We have a long standing trusted relationship
with Speedy to supply a number of product
categories and were delighted to extend this
relationship with them to supply our powered
access needs at our manufacturing facility in
Knaresborough. Key to selecting Speedy was
the clear investment in their fleet and their
ability to pre-fuel and supply HVO fuel to run
the machines, reducing our carbon footprint."
Peter Wickes, Strategic Category Manager
Strategy in action:
Securing a new powered
access contract with
Ilke Homes
In January 2022 we secured a new contract
with national customer Ilke Homes. The new
contract replaces the incumbent supplier
at their factory facilities in Knaresborough.
We are now supplying a fleet of 28 powered
access units, all of which are running on
green HVO fuel which was a key factor for the
customer’s targets in reducing carbon on-site.
Outside of the renewal of the hire agreement
we are developing our relationship further
with Ilke Homes by tendering for a range of
services including testing and inspection
through our Lloyds British brand, supplying
PPE consumables and the provision of
industry training.
26 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Our unique four-hour delivery promise
We are the only UK hire company to promise
four-hour delivery, which applies to our 350
most popular products nationwide.
In July 2021 we invested £10 million in
new products for our four-hour guaranteed
delivery promise, to meet an increasing level
of customer demand for faster site deliveries.
25,000 new assets were added to the
company’s most popular 350 products through
this strategic investment.
We fulfilled over 6,800 four-hour deliveries
during FY2022, representing a significant year-
on-year increase in demand from customers for
this unique service.
350
of our most popular products available with
four-hour delivery
£10m
invested in our new products for our four-hour
guaranteed delivery promise
6,800
four-hour deliveries fulfilled during FY2022
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 27
Corporate InformationGovernanceFinancial Statements
Increasing market share continued
Strategy in action: On site at
Hinkley Point C
We first started working on Hinkley Point C nuclear power
station (HPC) in 2014, providing products and services from
every division within Speedy, including tools; lifting; survey;
safety; plant; fuel; testing; inspection and certification through
our Lloyds British brand, training, powered access, consumable
sales and partnered services.
Our HPC service centre takes ownership for all orders to site,
working closely with our regional depot network and facilitating
the site booking process on their behalf. This enables us to offer
a smooth, reliable, efficient service to the HPC site.
We have a dedicated on-site team that ensure existing
relationships are maintained and developed further. Since
2014, site relationships have evolved considerably. In just
the past two years we have supplied over 130 different sub-
contracting companies on site, and we continue to develop this
approach as the project moves through each phase.
Our aim is not just to continue to grow relationships as new
contractors arrive on site, but with contractors before they
even arrive to the project, through working internally with
our team of national account managers to engage with those
customers in advance.
" Speedy not only provide an efficient
service to site, they also have the
capability to back this service with
a dedicated fitter and technical
support team. Their site team are very
customer focused and have developed
strong, long lasting relationships
with key contacts on HPC. We are
looking forward to continuing to
drive innovation by working closely
with strategic suppliers and the
client Nuclear New Build Generation
Company (NNB GenCo)."
Alan Wiltshire , Operations Director, Efinor
28 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Retail and trade
We continue to grow our SME customer
base through digital marketing activities
and tele-sales channels through our
central hub in South Wales, dedicated
to servicing our SME customers.
During 2020 we developed our
strategy to begin proactively targeting
consumers, and in July 2020 we
commenced a trial to open Speedy
outlets within a number of B&Q stores.
Following the initial success, we extended the trial and opened
more outlets in January 2021, formally extending our partnership
in October last year. We have now rolled out more Speedy outlets
and have a presence in 36 B&Q stores across the UK.
The in-store B&Q outlets give retail and trade customers the
opportunity to hire tools and equipment from Speedy during their
B&Q shopping experience.
The offer in the B&Q concessions includes a wide range of DIY
and trade products, including Speedy’s four-hour national delivery
promise. Through B&Q’s extended opening hours, for the first time
our customers can now order and collect Speedy products seven
days a week.
The Speedy concessions are strategically located alongside
the TradePoint areas to promote the opportunity of hire to
both retail and trade customers. The product range on offer
complements B&Q’s own range and includes more specialist tools
and equipment for the trade and DIYer, including mobile access
platforms, tower scaffolds, mini diggers and dumpers,
plate compactors, floor sanders, mixers and heaters.
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Pictured: Graham Bell, CEO B&Q UK and Ireland and
Russell Down, Chief Executive Speedy
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 29
Corporate InformationGovernanceFinancial Statements
Retail and trade continued
" At B&Q we’re committed to testing new
initiatives and we were delighted to
cement our partnership to offer a tool
and equipment hire service in our stores
with Speedy. Customers want speed
and convenience when it comes to DIY,
and the partnership with Speedy makes
it quicker and easier to get the tools
and equipment they need, when they
need them. Tool hire is a cost effective
solution that cuts waste from unnecessary
purchases, and we’re pleased to offer it
to more and more customers across the
UK and we’re excited by the potential
of offering this hire service in store and
the positive response we’re seeing from
our customers."
Chris Bargate, Strategy and Development Director, B&Q
Introducing the potential of hiring a wide range of tools and
equipment empowers homeowners to be more ambitious with
their DIY projects. It provides them with a convenient and
accessible way of completing larger home improvements that
require bigger ticket DIY tools that are otherwise unaffordable
to purchase.
With sustainability high on the agenda, hiring tools that if
purchased may only be used a handful of times and then
stored also benefits the environment, reflecting a more circular
economy in the re-use of DIY tools and equipment.
Our existing customers will also have access to the new
trade counters seven days a week to order and collect
products, adding to our existing 200-strong national service
centre network.
We have launched a retail website targeting DIY customers.
Using consumer research and online shopping analysis, the new
website area has been developed to feature rich, consumer
friendly content such as skills and project blogs and ‘how-to’
videos for equipment use. A key development has been to
ensure that all pricing include VAT, whereas on our traditional
trade area of the website which promotes prices ex-VAT.
In April our retail website links went live as an official partner
on B&Q's website diy.com which will significantly enhance our
reach into B&Q's online customer base.
30 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Digital
We are utilising technology to improve
the customer and user experience through
closely reviewing the customer journey,
including on a digital basis, from point of
enquiry through to delivery, collection,
invoicing and cash collection.
We have created a new post of Chief
Digital Officer to accelerate change in
this area. We have simplified internal
processes through new technology that
makes us more efficient. State of the art
systems and increasing use of artificial
intelligence is enabling better decision
making to further enhance our service
to customers through improved product
availability to meet demand.
Implementation of a new ERP system
During the year we successfully undertook the replacement of
our ERP (Enterprise Resource Planning) system, Microsoft AX12,
upgrading to the cloud based Microsoft Dynamics365. The
project included support from colleagues across the operational,
sales and support functions to ensure all risks and issues
were captured and addressed through robust testing. The new
system went live in October 2021 and brings the benefits of
simplifying some of our key business processes and significantly
improving the user experience, which increases our colleague’s
productivity and improves our customers’ in-store, telephone
and digital experience.
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 31
Corporate InformationGovernanceFinancial Statements
Digital continued
Enhancing the digital customer experience
As technology advances and customer’s demands change,
we continually develop our digital platforms to improve the
digital customer experience on our websites and mobile app.
During the year we introduced two major improvements to
the digital customer experience. We introduced an online
availability checker. This enables our customers to check
availability on a product before going through the checkout
process, so that they can identify if the products they want to
hire are located nearby for collection, and for the dates they
select. The results that are returned include both Speedy
Service Centres and our retail locations in B&Q.
For customers with a MySpeedy account, we have also made
significant back-end technical improvements within the order
approval workflow, which enables customers to combine
our digital ordering process with their own internal approval
processes to submit approved orders.
These developments are a significant step forward in our web
and App functionality, with further enhancements planned
during FY2023 to ensure we continue to provide an industry
leading digital customer experience.
Watch our video detailing our digital customer
offering at speedyservices.com/digital
Balanced scorecards improving performance
Implementing improved dynamic management information
during the year has enhanced the performance of our teams
around the business. We have introduced a balanced scorecard
for all our operational centres, measuring and publishing
performance against key measures including revenue, efficiency
and service levels. This has raised the bar and delivered
improved performance during the year.
32 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Sustainability
During FY2022 we have invested £68.4m in
our asset fleet, 56% of which into sustainable
options for customers incorporating solar,
electric and hybrid technologies.
We have implemented a policy to
ensure that we invest a minimum 50%
of capex in sustainable products to
support customer demand and to
ensure we meet our own ESG targets
in reducing carbon.
Responding to this customer demand that helps drive down
their carbon emissions has enabled us to win new contracts
throughout the year whilst retaining and developing existing
customer relationships.
We have continued to modernise our vehicle fleet and service centre
network which will significantly reduce our carbon emissions.
The largest contributor to our carbon footprint is the emissions
generated by our commercial vehicle fleet. To mitigate this our
target is to ensure that the majority of our vehicles are electric
or hybrid by 2025, demonstrating our commitment to improving
the environment through this industry leading initiative. Whist
this will play a key role in meeting our own carbon reduction
targets, it also demonstrates our commitment to our customers
as a key part of their supply chain.
We invested in 64 new hybrid transit vans and are trialling a
number of additional electric vehicles: Mercedes Canter; 7.5t
Maxus E-delivery 3; and the Maxus E-Delivery 9 chassis cab.
During the year we also launched the first all-electric 27
tonne vehicle used in the construction industry to deliver
our powered access products.
In 2021 we reviewed our company car list which now comprises
entirely of electric and hybrid vehicles. We have a fleet of c.500
company cars and estimate future savings of up to 260 tonnes
of CO2 annually from replacing diesel and petrol models. Our
aim is for our company car fleet to be 100% hybrid/electric by
2023. To ensure an effective transition of the car fleet, we are
continuing to install electric vehicle charging points across our
UK Regional service centre network.
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 33
Corporate InformationGovernanceFinancial Statements
Sustainability continued
During FY2022 we have invested in sustainable products including:
Dingli zero-emission battery powered
scissor lifts and mast lifts
Niftylift hybrid powered access boom units
Electric SkyJack scissor and boom lifts
200
of the industry’s
first V20 plug-
in hybrid
outdoor lighting
tower through
an exclusive
partnership with
Generac
1,800
HS2
The development
of an industry first
retrofitted Stage V
generator for use
on HS2
new Hilti cut off
saws which have
a disposal rate of
99.7%, meaning
almost all the product
can be recycled and
reused at its end of
life or incinerated to
generate energy
Industry first Innovation Centre
In November we launched our new Innovation Centre in Milton
Keynes; an industry-first low carbon facility that showcases
net-zero equipment and provides an extensive ECO hire range
including electric, solar and hydrogen powered technologies. This
innovative equipment will help to lower contractors’ environmental
impact from suppliers including Hilti, Milwaukee and Generac at
the new 100,000 sq ft site. The centre’s energy is currently being
supplied by the solar photovoltaics installed on the roof, making it
a fully renewable net zero building.
All commercial vehicles operating out of the site are electric
or fuelled by hydrotreated vegetable oil (HVO), which emits
up to 90% less CO2e when compared to red diesel. This not
only improves air quality on the site, but also minimises the
environmental impact of deliveries to, and on our customer’s
sites. The centre is powered by 670 solar panels and utilises
pioneering bespoke energy efficient lighting and climate
control technology. The Innovation Centre also features a
wellbeing and wildflower garden, providing a positive outdoor
environment for our people to use when on lunch or during
breaks, an 18-metre living wall that improves air quality
around the site, and beehives made from repurposed hard
hats. The site uses furniture, from desks to garden benches,
made from recycled materials to help further lower its
environmental impact.
The site is a blueprint for our network plans going forward,
and adds to the list of larger new Regional Service Centre’s
launched during the year including sites at Reading, Swindon,
Doncaster, Leicester, Aberdeen and Edinburgh. These sites
are all located to be accessible to the local and regional
markets, and equipped to service our national customers
with a comprehensive range of specialist and core hire tools,
equipment, plant and powered access, as well as state of the
art training facilities under one roof.
34 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
The brand new sites also create an enhanced experience for
both our customers who visit the facilities and for colleagues
through an enhanced and technically optimised working
environment. Throughout the year we have held a large
number of major customer tours to demonstrate the positive
environmental impact of the site, inspiring them to take back
ideas that will benefit their own businesses.
A strategic partner to major customers
We are a strategic supplier to Balfour Beatty. Our values are
aligned with them ensuring innovation is at the forefront of
enabling a responsible approach to customer projects, focusing
on environmental sustainability through emerging technology
that reduces carbon emissions.
In November 2021 we were delighted to support Balfour
Beatty's COP26 event where we showcased the latest in
environmental and sustainable products, as well as sustainable
delivery solutions including our brand-new battery operated
electric truck.
PICTURED: Balfour Beatty CEO Leo Quinn with Speedy Account Director
Alan Jones
Strategy in action: Providing
bespoke sustainable solutions
on HS2
We first started working with HS2 in 2014 to commence
enabling works with Costain Skanska Joint Venture in the
South and Fusion Joint Venture in the home-counties. Initially
supporting a broad range of tool and equipment hire, the range
of services has expanded to include training, testing, inspection
and certification through our Lloyds British brand, consumable
sales and fuel management.
We assist in enabling the delivery of their projects through
working as one team across our operations, sales, transport,
health and safety, commercial and supply chain teams to focus
on a personal service level delivered through a national network.
Since the introduction of an ‘Implanted’ on-site model when
enabling works on the Costain Skanska JV in 2014, we have
provided a physical presence at site level in the form of an
implant manager who is trained to understand HS2’s complex
needs, providing the operatives and management on-site expert
advice to deliver the right service or product solution.
© HS2
As the relationship has moved into the Main Works programme
over the past three years we have focused on the key areas of
community, innovation and reducing carbon to deliver social,
environmental and economic value. We now have deep and
strong relationships across nine different joint ventures working
on HS2. We have further developed the core areas of our hire
products and related services by assisting in the client’s logistical
and on-site wellbeing agendas to create a positive, collective
impact both on-site and in the local environments.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 35
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Corporate InformationGovernanceFinancial Statements
People
The core to successful and sustainable
growth is the wellbeing and development
of our people. Therefore, putting people
first is at the heart of our growth strategy.
To do this we are focused on
personal and professional development
from cradle to cradle, involving the
recruitment of bright new graduates
and apprentices to developing early
and late career programmes for our
existing colleagues.
Colleague engagement
As a people focused business, colleague engagement is central
to our success. During the year we have set up a number of
forums and committee’s that focus on specific areas that our
people are passionate about with the collective objective of
making Speedy the best company to work for in our sector.
The forums and committees are sponsored by Executive Board
members, with progress against action plans reviewed regularly
at Executive Board meetings and the ESG Steering Group.
Successful recruitment programmes
In January 2021 we joined the 5% Club, a group of employers
working to create a shared prosperity across the UK, committed
to raising the number of apprentices, graduates and sponsored
students on formal programmes to 5% of the total workforce
by 2025.
This commitment is helping us ensure that the business has
a sustainable future, creating opportunities for young people
with new skills that will become the leaders of tomorrow.
During the year we have taken on new graduates on a two
year programme. This 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 learn relevant skills, knowledge
and behaviours to develop a successful career, assisting in
effective succession planning for the future growth of the
Company. We also operate a Rotational Graduate Scheme.
This three year programme leads on a specialist area with
graduates completing six x six month placements made up of
core, mandatory placements and optional placements that the
graduate themselves can select. It includes all the benefits
of the two year programme, and through the exposure and
experience of working across the business, identifies which
area each participant can start building their Speedy career.
36 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
Personal and professional development
Personal and professional development is at the heart of our
people strategy. We are committed to investing in our people
throughout their career with Speedy.
To this end, during FY2022 we have invested in early careers
roles and introduced a ‘late careers’ mentor programme.
This ensures we have the talent coming into and through
the business with the skills we need for the future, whilst
harnessing the exceptional skills we already have in the
business to pass down to new colleagues.
Our ‘Career Line of Sight’ scheme which launched in the
prior year and supports the learning and development of our
people at all levels of seniority has been extremely successful,
creating a clear vision for colleagues to follow in developing
their career’s at Speedy.
G
o
v
e
r
n
a
n
c
e
Rewards and benefits
We aim to provide competitive reward and benefits packages
that attract, motivate and retain people in the most efficient
manner. During FY2022 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 also regularly review and update our employee benefits
package as we recognise that salary is not the only component
that motivates employees.
We are committed to the People’s Charter with the Supply Chain
Sustainability School, which we are audited against annually.
More information about our People First strategy can be found
within the ESG Report.
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 37
PICTURED: Chief People Officer Ellie Armour was joined by co-signatory
Colonel Paul Gilby alongside veteran colleagues from across the company
to sign the covenant.
Additionally we have 82 colleagues participating in
apprenticeship schemes across the business made up of a
mix of new apprentices, who are primarily in engineer based
roles, and existing colleagues who are using apprenticeships to
up-skill and progress their careers. Our apprentices range from
16-40+ years old and follow various pathways; we don’t have a
one size fits all approach.
In November 2021 we committed to creating equal
opportunities for ex-servicemen and women and their families
after signing the Armed Forces Covenant, a promise by the
nation ensuring that those who serve or who have served in
the armed forces, and their families, are treated fairly. Under
the agreement, we have pledged to establish a tailored
employment pathway for veterans by working with not-for-
profit service Career Transition Partnership, and by recognising
military skills and qualifications in interview processes. Speedy
joins other major employers in the construction industry
including some of the UKs largest contractors in signing the
covenant. This signals to ex-service men and women that they
are armed forces friendly organisations at a time when almost
one in five (17%) veterans in work say that finding the right
job is very difficult*.
*Veterans work moving on report, 2018, Deloitte
Corporate InformationGovernanceFinancial Statements
38 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
38 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Environmental Social
Governance Report
The Decade to Deliver
Responsibility and sustainability have always
been at the heart of everything we do at Speedy.
Russell Down,
Chief Executive
The need to accelerate how we can collectively reduce our impact on the planet
as an industry and across society has never been more critical. We believe that
the next ten years will define the next hundred.
For over 45 years customers have trusted us to enable the successful delivery
of their projects. Hire is already a sustainable business model, but it could be
even better. That’s why we are accelerating our ESG programme with ambitious
targets to ensure that the next ten years defines the next hundred. It’s why
we’ve called our new strategy The Decade to Deliver.
We’re rolling out our plan to make hire, and the services, solutions and
equipment that make it all possible, even more sustainable than it already is.
That means less carbon, more innovation and serving our people, communities,
investors and the environment better than ever.
Our aim is that every project big or small that involves the hire of our
equipment, or the utilisation of our services will be sustainable. This way we
can focus on making Speedy a more sustainable business, and our customers
successful by helping them achieve their sustainability targets.
For our trade customers, from major contractors through to sole traders, we
want to ensure that both our products and logistical operations are designed to
drive down carbon, through developing new technologies and processes with
our suppliers.
For households and DIYers too many tools spend their time in sheds,
warehouses and garages getting old instead of getting used. It’s the same for
equipment too. Hire can be a sustainable way to solve that problem. And we’re
making it our mission to ensure consumers are aware of a more sustainable way
of completing their projects through hire.
The famous Speedy Spirit that our people display means they’ll always go the
extra mile to get things done, but we can’t do this alone. We’ve learnt that you
go furthest, fastest when you go together. The Speedy family will be working
even harder with its customers, suppliers and communities to have the biggest
positive impact we can.
We’re going to start a revolution that changes the way people see hire, bringing
this great sustainable choice to more people, places and products than ever
before. The faster we can make that happen, the sooner we can make this the
decade of sustainable hire.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 39
Environmental Social Governance
Report continued
Speeding up on sustainability
The Decade to Deliver
We have always been at the
forefront of sustainability and
innovation. During FY2022
we developed our new ESG
strategy ‘The Decade to
Deliver’, inspiring people to
make hire their first choice. Our
strategy focuses on four pillars:
40 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Accelerating Innovation
Hire is already built for sustainability.
But this decade, we’re going to make hire
even more sustainable than it already is
by working even harder with our
customers, suppliers and innovators.
Climate Solutions
When it comes to climate change,
we’re all facing the heat. We’re going
net zero carbon fast and we are helping
our customers do the same. That means
accelerating towards low carbon
delivery vehicles and innovative products
and services to help our customers
respond rapidly.
Including Everyone
Delivering on the promise of a sustainable
future, Speedy requires great people
working together on shared goals. At
Speedy we look out for one another and
help each other grow. By welcoming
everyone into the Speedy family and
helping them be the best they can be,
we can really make this decade count.
Part of the Community
Speedy people are part of local
communities all over the country. It is
in our nature to join in, help solve the
challenges we face today and get ready
for the future. A decade of supporting
our communities will help make a
meaningful difference.
Our sustainability strategy framework
Our ESG (Environmental, Social, and Governance) programme
is sponsored by Chief Executive, Russell Down. The ESG
Committee made up of senior members from across the
business, meet regularly to drive continuous improvement in
our ESG KPIs, which are aligned with the United Nations
Sustainable Development Goals 2030 (UNSDGs).
The commitment to operating efficiently as an industry leading
sustainable company builds on our strong track record of safety
and carbon-saving innovation. It re-enforces our commitment to
people and local communities, from looking after their wellbeing
and boosting diversity, equality and inclusivity, to supporting
charity and community projects wherever we operate.
The ESG framework aligns with our vision ‘To inspire and
innovate the future of hire’ and our mission that ‘Speedy is the
UK and Ireland’s leading provider of tools, specialist equipment
and services. We provide exceptional customer experience,
accelerating collective success towards a sustainable future.
It underpins our commitment to strong governance, trading
safely and ethically, and supports our Code of Conduct,
robust audit functions and processes.
During FY2022, through the continued development of our
ESG programme, building it into every aspect of our business
strategy to focus on sustainable growth, we were recognised
as an industry leader in ESG practices by the Institutional
Shareholder Services group of companies (ISS).
The Decade to Deliver
A HIRE REVOLUTION:
Inspiring people to make hire their first choice
WORKING TOGETHER
Accelerating
innovation
Climate
solutions
Part of the
community
Including
everyone
Hire is built for
When it comes to
sustainability. This
climate change,
Speedy people
are part of local
Delivering on
the promise of a
decade, we’re going
we’re all facing the
communities all over
sustainable Speedy
to make hire even
heat. We’re going
the country. It’s in
requires great people
more sustainable
net zero carbon, fast
our nature to join
working together
than it already is
by working even
harder with our
and we are helping
in, help solve the
on shared goals.
our customers do
challenges we face
At Speedy we look
the same. That
today and get ready
out for one another
customers, suppliers
means accelerating
for the future. A
and help each other
and innovators to
towards low carbon
decade of supporting
grow. By welcoming
push for even better
delivery vehicles and
our communities
everyone into the
designed products:
innovative products
will help make
Speedy family and
built to last, designed
and services to
a meaningful
to be repaired and
help our customers
difference.
made to be recycled.
respond rapidly.
helping them be the
best they can be, we
can really make this
decade count.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 41
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Climate Solutions
We have a long track record in providing the energy efficient
equipment, logistics and progressive ways of working to aid
the construction industry in its quest for a net zero carbon-
built environment. In FY2022, our key carbon reduction
achievements include:
•
•
A reduction in carbon output from 26,606 tonnes in 2015
to 16,775 tonnes in FY2022 which equates to a 55%
(calculated as 4.94/11.0-1) reduction per employee.
A carbon reduction on a per capita basis from
approximately 11 tonnes in 2015 to 4.94 tonnes
in FY2022.
Most of our carbon emissions are related to our fuel
consumption in our commercial fleet and company cars.
We have already implemented several initiatives to reduce
these emissions, which include:
•
•
•
•
Our company car fleet list is now completely made up of
Ultra Low Emission Vehicles (ULEVs), with the aim of all
company cars being 100% electric/hybrid vehicles by 2023.
Offering 300 existing company car users the
opportunity to change any non-electric or hybrid
vehicles early to encourage our colleagues to reduce
their carbon emissions.
Commencing the roll out of a low carbon commercial
vehicle fleet to achieve a 50% carbon reduction by 2030.
This has included introducing electric vehicles to our fleet
with a further 150 planned for FY2023.
Switching from diesel to HVO D+, a standard low emission
fuel, across our highest fuel consuming HGVs and tankers
saving 794T of CO2e.
42 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Science based carbon reduction targets
Climate change is one of the biggest challenges we face
today. At Speedy we are going net zero fast both as a
business and for our customers. As part of our commitment to
significantly reduce our carbon emissions we are the first UK
hire company to sign up to the Science Based Targets (SBT)
under the Science Based Targets Initiative (SBTi) to achieve
net zero carbon before 2050, in line with climate science and
government policy. Our move to commit to a SBT reinforces our
commitment to be a market leader in sustainability.
A science based target (SBT) provides a clearly defined
pathway for Speedy to reduce its greenhouse gas emissions,
in line with the Paris Agreement to limit climate warming by
1.5oC by 2050, thereby helping to prevent the impacts of
climate change and ensuring sustainable business growth.
As a sustainability leader we believe it is important to align
our net zero carbon commitment to the latest climate
science, so we are re-modelling our net zero plans to the
new SBTi's Corporate Net Zero Standard, the words first
framework for corporate net zero target setting.
Our focus is on rapid, deep emission cuts across our value
chain (Scope 1, 2 and 3 emissions) as this is the most
effective and scientifically sound way of limiting global
temperature rise to 1.5oC. Scope 1 and 2 includes the
emissions we generate from our own activities such as the
fuel we use in our vehicles and the electricity and heat we
purchase. Scope 3 includes the emissions generated by
suppliers and end users such as our customers.
In FY2022 we partnered with consultancy carbon Intelligence to
set our near and long-term targets and decarbonisation roadmap.
Scope 1 and 2 emissions near term targets
We will make rapid emission cuts now, so that by FY2031 our
absolute Scope 1 and Scope 2 emissions are reduced by 50%
from a 2019 baseline. We are taking a leadership position by
setting our ambition slightly higher than 1.5oC thus encouraging
investment in innovation and future proofing our future
business growth.
Our Scope 1 emissions make up most of our scope 1 and 2
footprint of which diesel use in our company owned/controlled
vehicles accounts for 88%. We are therefore focusing our
immediate efforts on decarbonising our company cars and
commercial vehicle fleet through alternative sustainable fuels,
low carbon technologies and fuel-efficient driving.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 43
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
By the end of 2023 100% of our company cars will be electric/
hybrid. By 2030 we will transition the commercial fleet to HVO
D+ or electric vehicles whilst in parallel working with vehicle
manufacturers on hydrogen technologies.
For our larger vehicles such as HGVs and tankers we have
already replaced diesel with HVO D+ to reduce carbon
emissions whilst we work with manufacturers on electric vehicle
and hydrogen technologies. In FY2022 we saved a total 794T of
CO2e by replacing diesel with HVO D+.
For our smaller vehicles we have started to transition to electric
and will be introducing a further 150 electric vehicles into the
commercial fleet in FY2023.
A small proportion of our scope 1 emissions is related to our gas
usage where we will transition from natural gas to alternative
fuels and technologies by 2030.
For our Scope 2 emissions we will continue to prioritise
renewable energy procurement. In FY2022 88% of the
electricity procured was renewable and we are continuing to
work with our property team and landlords to transition the
remaining 12% so that 100% of our electricity is renewable
by 2027 in UK/IR.
Scope 3 emissions near term targets
As part of our net zero commitment, we have undertaken a scope
3 screening assessment to map the carbon footprint across
our value chain and set near term reduction targets. Our initial
scope 3 screening has identified three hotspots to focus carbon
reduction efforts;
•
•
Downstream leased assets such as the use of electricity and
fuel in the equipment we hire to our customers, which forms
over half of our scope 3 carbon footprint.
Use of Sold Products such as the fuel that we sell to
our customers.
•
Capital Goods such as the tools we purchase.
Our scope 3 assessment and near-term targets will be finalised
during 2022.
Working together with the value
chain to achieve net zero carbon
Under our Supply Chain Policy we are working with our people,
customers and suppliers to ensure sustainability sits at the
heart of everything they do and want.
But we are taking our supply chain one step further. We have
already started a transformation programme to align our supply
chain to the ISO20400 sustainable procurement standard, to
embed sustainability across our procurement processes and to
mobilise the value chain towards net zero carbon. We recognise
we cannot achieve this alone so our focus is deep collaboration
with our suppliers and customers so that our transition to net
zero carbon is orderly and cost efficient.
In FY2023 we will be focusing on our three key hotspots;
downstream leased assets, use of sold products and capital
goods. We will work across our value chain to improve our
Scope 3 data to reduce our carbon emissions.
We are a Gold Member of the Sustainability Supply Chain
School (SSCS) supporting a common approach to addressing
sustainability across the supply chain. Our Chief Operating
Officer, Dan Evans, sits on the board of the SSCS.
Long term net zero target
In FY2023 we will continue to work with Carbon Intelligence to
set our long-term target of reducing our emissions by 90-95%
before 2050. Any limited emissions that cannot be eliminated
will be neutralised through carbon removals. Only at this point
will Speedy claim to be net zero carbon, which aligns to the
latest climate science and frameworks.
In FY2023 we will submit our SBT and decarbonisation
roadmap to the SBTi for verification.
" In choosing to pursue both
short-term and long-term
science-based emissions
reductions targets, Speedy
is demonstrating leadership
and determination to reduce
its impact on the planet and
manage its business transition
to a net zero world."
Jonathan Sykes,
Executive Chair of Carbon Intelligence
44 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Strategy in action: Low carbon
vehicles and logistics
HVO D+ emits up to 90% less carbon compared to red diesel
and the switch will save the equivalent CO2 of heating 1,820 UK
homes for a year.
We are proud to have become the first hire provider to deliver
low-emission fuel and equipment in vehicles also run on
biofuels, helping to cut emissions in the construction supply
chain. The initiative is part of the first major phase to transition
to a fully low-carbon fleet by 2030.
The first all-electric 27 tonne vehicle
During the year we added an electric powered access delivery
vehicle in an industry first as part of our programme in
decarbonising our fleet.
The new Electra 27t all electric beavertail truck has the potential
to save up to 59,541kg of CO2e annually when compared to
diesel, which will also positively impact supply chain emissions
for customers.
The vehicle is specially designed to transport powered access
equipment, including scissor lifts, boom lifts and mast booms.
It is based at our Innovation Centre in Milton Keynes - a net zero
facility built to service the region’s customers and showcase our
range of net zero tools and equipment for contractors, and will
support the first building phase of the HS2 line between London
and Birmingham.
We aim to lead the industry in running a low carbon fleet, with
a target of ensuring that most of our vehicles are either running
on sustainable fuels such as HVO D+ or have transitioned to
carbon friendly technologies such as electric and/or hydrogen
by 2030.
This commitment will play a key role in meeting our own science
based carbon reduction targets, and our commitment to our
customers as a key part of their supply chain.
During the year we launched the first all-electric 27 tonne
vehicle used in the construction industry to deliver our powered
access products.
We invested in 64 new hybrid transit vans and have introduced
several additional electric vehicles: Mercedes Canter; 7.5t Maxus
E-delivery 3; and the Maxus E-Delivery 9 chassis cab. We are
also introducing a further 150 Ford E electric transits to our
commercial fleet in FY2023.
95% of our fleet now meets the EuroCat6 standard with the
aim to reach 100% by FY2023 helping to reduce air pollutant
emissions from our vehicles and improve air quality.
Our company car list now consists entirely of Ultra Low
Emission Vehicles (ULEVs). We have a fleet of c.500 company
cars and estimate future savings of up to 260 tonnes of CO2
annually from replacing diesel and petrol models. Our aim is
for our live company car fleet to be 100% hybrid/electric
by the end of 2023. To support the transition we have also
continued to install electric vehicle charging points across our
UK Nation and Regional Service Centre network.
Industry first fleet
decarbonisation initiative
During November 2021 we began fuelling our delivery fleet
with hydrotreated vegetable oil (HVO D+) in an industry-first
that will save between 2,500 to 5,000 tonnes of CO2e over
12 months.
The initiative covers heavy goods vehicles (HGVs) and tankers
at 21 of our largest operational locations across the country,
representing 92% of our HGV fleet.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 45
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Strategy in action: Net zero
Innovation Centre
In FY2022 we launched our new Innovation Centre at Milton
Keynes designing energy efficient features throughout the
building from LED lighting, a building management system and
photo-voltaic (PV) cells. Our Innovation Centre recently went
carbon zero as the small energy the centre was using is now
being supplied by the photo-voltaic cells with the remaining
energy being exported back to the electricity grid.
We have also set a new sustainability standard for our
properties and are working on a programme to retrofit our
existing buildings with more energy efficient features.
Energy usage
Speedy is committed to reducing its energy usage and
improving energy efficiency across our property estate as
detailed in our Energy Policy. We continue to roll out many
energy saving initiatives 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.
Speedy was first awarded ISO 50001 accreditation in 2015
and certified to the 2018 standard in 2020, as a result of our
robust energy management systems. Regular energy audits
are conducted on an annual basis as required for the ISO
50001 certification.
The annual quantity 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
FY2022 was 15,861 tonnes.
The annual quantity of carbon dioxide equivalent resulting
from the purchase of electricity, heat, steam or cooling by the
company for its own use during FY2022 was 256 tonnes, with
88% of our energy coming from renewable sources.
The methodologies used to calculate the information provided
on emissions and energy consumption adopted by Speedy to
calculate carbon emissions for FY2022 was provided using the
DEFRA calculation for UK and IEA for international figures.
Total CO2e emissions per employee for FY2022 was 4.94te. This
represents a 23% reduction from the baseline year of 2019.
46 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
The Innovation Centre team at Milton Keynes.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 47
Environmental Social Governance
Report continued
Accelerating innovation
Hire is built for sustainability. This decade, we’re going to make
hire even more sustainable than it already is by working even
harder with our customers, suppliers and innovators to push
for even better designed products: built to last, designed to be
repaired and made to be recycled.
We already have a long track record in providing the energy
efficient equipment, logistics and progressive ways of working
to aid the construction industry in its quest to be net
zero carbon.
During the last year we have worked with our supply
chain partners to develop new cordless, hybrid, solar
and hydrogen technologies to meet these needs, along
with providing renewable fuel to minimise pollution. Key
achievements include:
• We were the first UK hire company to develop and launch
a new line of high-performance outdoor battery powered
lighting towers with Hilti.
•
Partnering with Generac, we developed and introduced to
market the V20 lighting tower, the first outdoor lighting
tower that can be powered by battery, electricity, solar
panels or green HVO fuel.
In addition, we made significant investments in sustainable
products, and introduced new sustainable initiatives including:
•
•
•
Investment of over £10m in new electric and hybrid
powered access products.
Investment of over £2.5 million in our lighting fleet to
boost our low emission offering.
Supplied c.6 million litres of HVO D+ to our customers
reducing our customers and our Scope 3 emissions by
17,000T CO2e.
Our ECO products represent approximately 30% of our
itemised equipment fleet, providing our customers with
innovative solutions to reduce carbon. Our aim is for ECO
products to account for most of our itemised equipment fleet
by 2027.
48 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Strategy in action:
Introducing an industry-first
ECO hybrid lighting tower
During September 2021 we brought to market the industry’s
first plug-in hybrid outdoor lighting tower. 200 new Speedy
V20 Eco Hybrid units were introduced into our lighting range
through an exclusive sole supply partnership with Generac.
The four-in-one units can run directly from the mains, an
internal battery, a solar panel hired separately, or on green
HVO D+ (hydrotreated vegetable oil) fuel and they can
operate automatically in reaction to changing light levels. An
external battery pack can power the towers for up to five days
at 10 hours per day.
In addition we invested in a wider range of sustainable
products including 225 new MX Fuel Lighting Towers, 200
X-Eco Lighting Towers, 100 VB9+ Lighting Towers and 100
solar powered lights for contractors to hire across the UK.
The 825 new towers from Generac, Trime and Milwaukee are
helping our customers to reduce carbon emissions through
electric-only operation, while offering users options which
run on HVO D+ if projects require.
Many of the towers will be used to support major rail
development projects across the country, with a large
quantity already earmarked for HS2 delivery partners.
" The new, sustainable products will
enable contractors to reduce carbon
footprints across their projects. Working
closely with Generac on the launch of
the Speedy V20 ECO Hybrid towers
is an excellent example of how we’re
using our intermediary position in the
construction supply chain to introduce new,
transformative technology to the market.
The investment represents a significant
expansion of our fleet, giving contractors
greater access to high-performance and
versatile lighting that’s capable of
meeting the varied demands of live sites."
Andy Connor, Group Innovation and Supply Chain Director
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 49
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
ECO product development roadmap
Our roadmap to growing our ECO product range:
2021/22
A focus on cordless technology
2022/23
A focus on solar technology
•
Our target is that 30% of products will be ECO
in design and operation by the end of 2022
which we have already achieved.
• We’re developing fuel cell technology with key
partners and reviewing alternative options.
• We will market and promote alternative fuel
options for diesel (HVO).
•
Introduce cordless tools to improve technology
that replaces small engine driven products.
•
Our target is that 40% of product range will be
ECO friendly by the end of 2023.
• We will further invest in solar technology (Speedy
lighting range).
•
•
Implement Stage V engines across existing range
and invest in new product.
Create a circular economy and a cradle-to-cradle
strategy for key fast moving and recyclable products.
50 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
2023/24
A focus on hydrogen technology
2025 and beyond
A focus on recycling
•
•
•
•
•
Our target is that 50% of our product range will
be ECO friendly by the end of 2024.
Develop fuel cell technology - Hydrogen product
development established.
Optimise the infrastructure that will support
hydrogen both internally and externally.
Phase out of fossil fuels by the development
of substitute fuels that will work with existing
ICE (Internal Combustion Engine) technology.
Take advantage of carbon capture technology
for vehicles and plant.
•
•
•
•
•
Our target is that 70% of our product range will
be ECO friendly by the end of 2027.
All products will be delivered from suppliers in
ECO friendly packaging.
110v will be replaced by cordless across the full
range of products.
Full ECO product offering will be made up of solar,
hydrogen, battery and recycled options.
Introduce carbon reporting via telematics in place
via Speedy APP.
6,200
During the year we were proud to light up the
perimeter of the COP26 climate summit in
Glasgow with a sustainable lighting system that
saved an estimated 6,200 litres of diesel and 16
tonnes of CO2e.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 51
Environmental Social Governance
Report continued
Strategy in action: Working in
partnership with Keltbray
In December 2021 Keltbray, a leading UK specialist
engineering business, announced it had swapped 80% of its
red diesel demand for Hydrotreated Vegetable Oil (HVO) and its
commitment to completely removing red diesel from across all
of its projects by the end of the year.
The decision followed a successful trial using the fuel supplied
by Speedy and analysis on two identical Caterpillar 25tonne
machines, one on standard red EN590 diesel and one on
HVO fuel.
Earlier in the year, Keltbray announced it was the first major
construction firm to trial HVO fuel. Before the announcement,
the fuel was yet to enter Keltbray’s excavator fleet and was
being trialled to assess whether it could reduce the impact
from construction plant operations.
Following analysis of the results and verification by Imperial
College London (UCL), the local air quality benefits calculated
saw an 8% reduction in CO2 when testing newer machines.
There was a 20% reduction in CO2 when Keltbray carried out
tests on older machines.
To further reduce the carbon emissions, the fuel is stored
on site in bowsers with telematics which communicate with
Speedy, to indicate when the tanks need topping up. This in
turn reduces the frequency of fuel deliveries to site.
52 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Improving air quality
In helping customers reduce project carbon emissions and improve
air quality, we have supplied several major projects with Green D+
Hydrotreated Vegetable Oil (HVO D+) fuel, Speedy’s standard low
emission fuel which is the only HVO fuel approved for use in
Speedy equipment.
HVO D+ is a renewable fuel that has been produced from vegetable
fats, oil and a by-product of the waste and fish industry. It 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. For every 500 litres of Green D+ HVO
fuel used, one tonne of CO2 is saved versus fossil fuel. Green D+
HVO fuel is now provided as our standard low emission fuel.
In support of the UK Government commitment to reduce emissions
from transport to improve air quality and to support our customers
air quality objectives, HVO D+ also helps to reduce NOx (Nitrous
Oxides) levels by up to 30% and PM (Particulate Matter, PM25 and
PM10) by over 86% helping to improve air quality.
Going circular
Hire is already built for sustainability, but we are taking
the principle of circular economy further. Working within our
business and across our supply chain we are designing out waste
and pollution and keeping products and materials in use thus
reducing resource use, carbon emissions and increasing re-use
and recycling and minimising waste disposal.
Repair, reuse, recycle
In FY2022 we partnered with Oxford Plastics to recycle end
of use hard plastics barriers into new products such as the
LowPro trench covers and road plates eliminating waste,
maximising recycling and reducing whole life cycle carbon by
80%. By replacing steel road plates with the LowPro 23/05
we removed 39T of carbon from the product lifecycle.
In partnership with CargoStop International we set up a
collaboration to recycle CargoStraps. When CargoStraps are no
longer useable they are returned to CargoStop who separate
the metal clasps and rachets from the webbing. The metal
is sent for processing and smelting where they can be used
again. The webbing responsibly recycled making the whole
product completely recyclable.
We have also increased our refurbishment facilities to
maximise the use of our assets thus reducing resource use,
carbon emissions and waste. We have adopted the circular
economy principles to maintain, repair and refurbish
products as well as upgrading products to ECO solutions.
This has included;
•
•
Hybridising our diesel lighting fleet to reduce fuel usage
and emissions by 50% and extending the life of the
product by 7 years.
Retrofitting our Stage 3a generators with the Eminox
retrofit technology so existing plant can be operated at
Stage V equivalent to meet the London LEZ (London Low
Emissions Zone) for Non-Road Mobile Machinery (NRMM),
a key requirement for projects such as HS2.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
How much carbon is in a drill?
Working in partnership with Hilti we completed our first life
cycle assessment to carbon footprint the lifecycle of a TE70
Rotary Hammer. The aim of the assessment was to identify the
carbon hotspots to focus carbon reduction efforts and to provide
carbon data to our customers to enable them to make
sustainable choices.
In FY2023 we will be continuing our work to carbon footprint
our top products working collaboratively with our supply chain
to reduce emissions and our customers to influence sustainable
hiring choices.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 53
Environmental Social Governance
Report continued
Waste and recycling
We reduce our waste through
applying the waste hierarchy of
prevention, reduction, recycling
and re-use for our key waste
streams such as cardboard, wood,
metal, plastic, paper, waste oils,
and food waste.
We achieved zero waste
to landfill in FY2022.
Working in partnership with our suppliers, waste mapping
exercises and audits have been undertaken to identify our
key waste streams to maximise waste reduction and increase
recycling and reuse.
We are also reducing our paper use across the service centre
network through the introduction of electronic PDAs and
transacting electronically. We also encourage customers to
use the MySpeedy App for paperless transactions.
We achieved zero waste to landfill in FY2022. All our general
waste is sent to transfer stations for further processing and the
non-recyclables are transported to Refuse-Derived Fuel (RDF)
plants for incineration. Incineration from RDF plants is not
harmful to the environment as the steam heats houses in the
areas (district heating).
In FY2023 we will be working with our waste broker and
suppliers to further integrate circular economy principles to
reduce waste and maximise recycling and reuse. We have set
targets to achieve 80% recycling by 2024. In addition, we will
be launching new waste initiatives throughout the business
with site by site monitoring and comparison of recycling rates.
Sending packaging packing
We work with our suppliers to reduce or, in some cases,
eliminate packaging which would otherwise be passed on to
us to dispose of. As part of our supply chain collaboration to
ISO20400 we will be working closely with our suppliers to
eliminate packaging across our supply chain. Where packing is
required it will be reusable, recyclable, or compostable.
54 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Speedy Hire Plc Corporate Greenhouse Gas (GHG) Report
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
business and includes the business travel and waste disposal
activities of our UK Mainland offices and depots.
Combustion of Fuel and Operation of Facilities
Over FY2022 Speedy reduced its fuel use and carbon
emissions across its commercial vehicles and company
cars. Our company car list is 100% electric/hybrid and we have
offered 300 existing company car users the opportunity to
change any non-electric or hybrid vehicles early to encourage
our colleagues to reduce their carbon emissions. We have
transitioned our HGVs and tankers across our NSCs (National
Support Centre's) and powered access depots from diesel
fuel to HVO D+ to reduce our emissions by up to 90% saving
794T of CO2e in FY2022. We have continued to roll out electric
vehicles across our commercial vehicle fleet with a further 150
vehicles due in FY2023.
Electricity, Heat, Steam and Cooling purchased for own use
In FY2022 88% of the electricity we procured was renewable
energy significantly reducing our carbon emissions. Our
innovation centre at Milton Keynes has energy efficient
features designed throughout from LED lighting, a building
management system and photo-volatic (PV) cells. Our
innovation centre recently became a fully renewable net zero-
facility as the small amount of energy the centre is using is
now supplied by the photo-voltaic cells.
Scope 3 Business Travel – Rail and Air
There has been a significant reduction in the use of rail and
air travel due to the introduction of hybrid working following
the global pandemic. As a business we are continuing to
encourage our colleagues to reduce travel where possible
through optimising videoconferencing and when required to
use rail more frequently as a more sustainable source of travel.
Scope 3 – Waste
Our Scope 3 emissions from waste has slightly increased in
FY2022 due to greater collaboration with our waste providers
in collating data across multiple waste streams. We have
expanded our waste data from general waste, recycling and
confidential waste to include oily rags, filters, waste absorbent
materials, waste water from wash down activities, sludges,
waste oil and fuel along with battery waste.
The overall CO2 emitted per employee has reduced to 4.94te in
line with our objective of reducing our carbon footprint.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 55
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
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 the
UK Government’s GHG Conversion Factors for Company Reporting FY2022. 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.
Carbon emissions from our Middle East operations are not included in our carbon data for FY2022 and comparison
year of 2019 as the business was sold in March 2021. This is to enable like for like comparisons.
Data confidence
The data used to report the GHG emissions was reviewed and examined and gives a ‘High’ level of confidence
+/- 4.1. 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
The GHG emissions are from 1st April 2021 to 31st March 2022. We have seen a reduction in our CO2e per
employee of 23%. A detailed breakdown is provided in the table below compared against the prior year:
Emissions From
Current Reporting Year FY2022 Current Reporting Comparison 2019*
Tonnes of CO2e
Combustion of Fuel and Operation of Facilities
Electricity, Heat, Steam and Cooling purchased for own use
Refrigerants
Total Scope 1 and 2 Emissions
Scope 3 Business Travel – Rail and Air
Scope 3 Waste
Scope 3 Transmission and Distribution of Electricity
Total Scope 3 Emissions
Tonnes CO2e per employee
56 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
16,125.98
236.48
20.11
16,382.57
153.36
55.94
183.00
392.30
4.94
18,676.52
2,938.62
13.17
21,628.31
373.33
40.57
267.05
680.95
6.45
*Comparison to baseline calendar year
Task Force on Climate-Related
Financial Disclosures report
In accordance with Listing Rule LR 9.8.6
(8), the following outlines Speedy’s
response to Recommendations and
Recommended Disclosures of the
Taskforce for Climate-Related Financial
Disclosures (TCFD).
The findings in this disclosure are based on an in-depth study
which brought risk owners from across the Group together with
external climate risk experts. This document summarises our
progress against the four core elements of the TCFD disclosures:
Governance
Our governance structure to provide effective oversight over
our climate-related risks and opportunities
Risk Management
How we identify, assess and manage climate-related risks
Strategy
The actual and potential impacts of climate-related risks and
opportunities on our business, strategy and financial planning
over the short, medium and long-term
Metrics and Targets
How we measure and manage our performance in addressing
these risks and opportunities
Speedy has already made significant progress in aligning
with the TCFD recommendations, identifying and assessing
climate-related risks and opportunities and ensuring robust
and effective governance is in place. As part of our roadmap
to reach full compliance with the recommendation in FY2023,
the next priority is to take our top climate-related risks and
opportunities through scenario analysis to assess and enhance
our resilience. Speedy has set near-term 2030 Science-
Based Target for Scopes 1 and 2 emissions (subject to SBTi
verification), in line with a 1.5°C scenario and work
is underway for Scope 3. Next, we plan to establish a
longer-term net-zero target.
Governance
Board-Level Oversight
The Board recognises the systemic threat posed by climate
change and the urgent need for mitigating measures. Ultimate
responsibility lies with the Board for ensuring that Speedy
effectively responds to climate-related risks and opportunities
and for approving the Company’s ESG strategy. The Board
discharges these responsibilities directly and through its
committees as follows:
•
•
•
The Audit & Risk Committee is responsible for overseeing
climate-related risk, reviewing the effectiveness of risk
management and internal control processes and ensuring
the Company’s compliance with its disclosure obligations.
The Committee ordinarily meets four times a year.
The newly established Sustainability Committee will
oversee how climate-related risks and opportunities are
managed. This is part of the Committee’s responsibility for
overseeing the Company’s ESG strategy and performance
against targets. The Committee will meet as required and
not less than twice a year.
The Remuneration Committee integrates Speedy’s
climate performance metrics into the Company’s
variable remuneration, where relevant, ensuring that
elements of bonuses are linked to the Company’s
decarbonisation progress.
Each Board Committee liaises directly with relevant Management
and Executive Directors and provides regular reports to the
Board. The Board also receives reports directly from Executive
Directors on matters judged material by them or the Executive
Board, which meets monthly. As a member of all three bodies,
the Chief Executive represents the link between the ESG Steering
Committee (see below), the Executive Board and the PLC
Board, where matters are reported or escalated as necessary in
accordance with governance and policy set by the PLC Board. The
Board also receives regular written updates for discussion.
Management-Level Oversight
At management level, the climate strategy and performance
of the Group is overseen by the ESG Steering Committee. This
broad-based group of senior leaders is chaired by the ESG
Director and sponsored by the Chief Executive.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 57
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
The ESG Steering Committee includes standing members or
periodic reports from leaders of the following functions: Risk
& Assurance; Finance; Operations, Logistics and Warehousing;
Fleet; Fuel; Sales; Property; Commercial; HSSEQ; ESG; Innovation
and Supply Chain; HR; Marketing and Communications. This
Committee meets not less than quarterly.
The ESG Director, via the Steering Committee, is responsible for
maintaining an up-to-date risk register covering each area of
the business. To do so, the ESG Director seeks climate-related
information from a variety of internal and external stakeholders,
as well as climate risk specialists. Climate-related risk is
consolidated into the Group risk register which is used by the
Board to assess our principal risks.
Plc Board
Chief Executive
Audit & Risk
Committee
Remuneration
Committee
Nominations
Committee
Sustainability
Committee
Executive Board
ESG
Committee
ESG Director
Risk Management
Identifying and Assessing Climate-Related Risks
To establish Speedy’s exposure to climate-related risk, a
comprehensive list of risks that includes both physical and
transition risks was developed with the support of specialist
advisors. Physical risks are acute (e.g. flooding and storms) or
chronic (e.g. rising temperatures) while transition risks relate to
the shift to a low-carbon economy. Transition risks can include
policy and regulatory, technological, market, reputational or
legal risks.
These risks and the broader requirements of TCFD have been
assessed by internal stakeholders and risk owners to evaluate
their materiality based on likelihood and impact. These ratings
encompass financial and non-financial factors. This approach,
which will be regularly reviewed and updated, is aligned
to our risk management framework and is based on current
expectations of climate trajectories and global action.
Managing Climate-Related Risks
The risks identified are refined according to their materiality.
These risks are then embedded by the ESG Steering Committee
into the risk management framework and a determination is
made whether to transfer, control or mitigate each one.
To further understand the impacts of our top risks, we are
preparing to take each risk through scenario analysis in
FY2023. This process will use three different climate scenarios,
including a 2°C or lower scenario. Analysing our top risks
across these scenarios will enable Speedy to better understand
how climate-related risk will impact the business.
Another priority for FY2023 is to review the controls we
have in place that support climate related risk management
processes, such as our business continuity, financial and
strategic planning. We will assess the effectiveness of these
processes in mitigating our climate-related risks and develop
improvement plans. Our goal is to ensure Speedy’s resilience,
enabling the Company to survive and flourish in any of the
multiple, plausible future climate scenarios that may unfold.
Integrating Climate-Related Risk into Overall Risk Management
The climate-related risks in the table opposite form part of
our ESG risk register which is managed by the ESG Steering
Committee. The ESG risk register is embedded into the
Group risk register in accordance with the Company’s risk
management policies and procedures. As we refine our
governance of climate-related risks, integrating them more
comprehensively into our overall risk management framework
and financial planning process will be a key focus in FY2023.
Speedy’s risk management policies and supporting risk
management processes help ensure that we swiftly identify,
assess and respond to risk. Our ESG policies underpin how we
manage climate-related risk in both our operations and our
supply chain.
58 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Strategy
Climate Risks, Opportunities & Impact
We have explored climate risks across every aspect of the Group’s
business: our products and services; our operations; our value
chain; our adaptation and mitigation activities; as well as our
investment in new innovative products. As a result, we identified
ten climate risks which are potentially material to the Group (Table
1). Of these, eight are transition risks and two are physical risks.
In addition, we identified three opportunities that are of strategic
importance to the Group (Table 2). These climate-related risks and
opportunities have been categorised by time horizons within which
we anticipate most of the impacts will occur.
Table 1. Material Climate-Related Risks
Transition Risks
Short term: 0-2 years (2022-2024)
Medium term: 2-5 years (2024-2027)
Long term: 5-10 years (2027-2032)
Very long term: 10-28 years (2032-2050)
During FY2023 we will undertake climate-related scenario analysis
to assess and enhance the resilience of our strategy. This exercise
will enable the Company to ensure that our strategy correctly
considers and addresses risks and uncertainties and capitalises
on opportunities presented under three plausible climate futures,
including a well below 2°C scenario.
Risk Type
Risk Description
Impact
Time Frame
Evolution of climate
technology may not keep
up with customer demand.
This could lead to unreliable
new technologies and
increasing costs which cannot
be recouped from customers.
Long-term
(5-10 years)
Technology
Technology
Fuel
Reputation
The higher-carbon
equipment in our hire assets
could become obsolete
based on changing customer
demand and/or legislation.
Increasingly limited
supply of fossil fuels may
lead to greater instability
in fuel prices.
The Company may not
stay on track to meet our
Science Based Target.
Customer
demands
Speedy's provision of low-
emission fuel alternatives
may be insufficient to meet
customer demand.
These assets could
become obsolete.
Medium-term
(2-5 years)
This could expose Speedy
to cost increases.
Short-term
(0-2 years)
This could lead to
reputational repercussions
with customers, other
stakeholders and external
ESG rating agencies.
This could risk losing
customers to competitors
or straining customer
relationships due to cost or
supply negotiations.
Medium-term
(2-5 years)
Short-term
(0-2 years)
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 59
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Transition Risks (cont'd)
Risk Type
Risk Description
Impact
Time Frame
Regulation
Data
Without regular and
thorough horizon scanning,
the Company may not
fully comply with climate
regulation across its
operations.
There may be significant
challenges in obtaining
accurate Scope 3 data.
Infrastructure
Plans to increase use
of electric vehicles may
be hindered by a lack of
infrastructure to support
electric vehicles.
This could lead to
reputational damage, fines
and/or obsolete assets.
Short-term
(0-2 years)
Inaccurate or incomplete
data could mean that Speedy
fails to satisfy reporting
requirements and rising
stakeholder expectations.
Customer satisfaction could
be affected if this impacts
how quickly Speedy service
customers.
Short-term
(0-2 years)
Medium-term
(2-5 years)
Physical Risk
Risk Type
Risk Description
Impact
Time Frame
Extreme
weather events
Business operations and
human capital may be
significantly affected by the
increasing frequency and
severity of storms.
This could negatively impact
operating efficiency.
Medium-term
(2-5 years)
Extreme
weather events
Storms and extreme wind
speeds may cause physical
damage to Speedy's sites
and assets.
This could negatively impact
operating efficiency and
increase costs e.g. insurance
premiums and capacity
constraints.
Medium-term
(2-5 years)
60 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
For many of these risks, we have mitigating controls in place.
As technology evolves, for example, we are investing in various
solutions to avoid higher-carbon equipment becoming obsolete
assets. Some products, such as power generation and lighting
towers, can be retrofitted with the latest technology. For our
diesel assets, HVO can help to reduce emissions by up to 90%
compared to diesel.
Table 2. Material Climate-Related Opportunities
Opportunity Type
Opportunity Description
Impact
Time Frame
Products and
Services
Demand from customers for
low-emission equipment
and services may rise.
This could lead to new
revenue streams and greater
market shares.
Medium-term
(2-5 years)
In addition, Speedy’s hire
equipment could help
customers deal with the
negative impacts of floods,
storms and other extreme
weather events.
Investment in low-emissions
product technology may
help Speedy achieve its
climate targets.
Technology
In addition to meeting
Speedy’s climate targets,
this could lead to
increased efficiencies and
opportunities for business
partnerships.
Long-term
(5-10 years)
Reputation
There is opportunity for
Speedy to be seen as a
climate leader among all
stakeholder groups.
This could help Speedy
attract and retain
customers, as well as
new talent.
Medium-term
(2-5 years)
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 61
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
62 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
62 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Environmental Social Governance
Report continued
Metrics and targets
Speedy has set a near-term Science-Based Target (SBT) that will
reduce our Scope 1 and 2 emissions by 50% by 2030 (subject
to SBTi verification). We have also completed our initial Scope
3 assessment. We plan to develop a long-term Science Based
Target to reach net zero by 2050. Further information can be
found on pages 43 to 44.
Our decarbonisation pathway includes targets that cover every
aspect of the Speedy business: our product offering, operations,
fleet and supply chain. We are already taking key steps to
improve the environmental credentials of our hire and owned
fleet vehicles through product life cycle assessments, eco
product upgrades, alternate fuel provision, electric and electric
hybrid vehicle fleet and logistics improvements. For example,
100% of our company cars will be hybrid or electric by 2023.
We have also been increasing the proportion of renewable
electricity we purchase as a group. Currently this represents
87.6% of our overall electricity use and we have committed
that 100% of our electricity will be from renewable sources
by 2027. For further details on our initiatives to reduce carbon
please read on pages 42 to 53.
Another project underway is formalising the metrics and
targets used to monitor climate risk in Speedy’s overall risk
management strategy. These metrics and targets will measure
physical risk (e.g. number of sites at risk of extreme weather
events) and transition risk (e.g. revenue lost due to reputational
damage). These metrics will help track the magnitude of these
risks, the Company’s exposure and the effectiveness of our
controls. The work will also help us to capture and maximise
climate opportunities, further strengthening our resilience
during the transition to a low-carbon economy. We plan to
complete this work during FY2023, alongside our review of
current controls and processes to strengthen our management
of climate-related risks.
We use the Greenhouse Gas Protocol to calculate our
Greenhouse Gas (GHG) emissions. A full overview of our GHG
emissions and energy consumption data for FY2022 versus our
2019 base year can be found on pages 55 to 56.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 63
Environmental Social Governance
Report continued
Safety of our people
and communities
Our commitment to safety sits
at the heart of our business.
Our Health and Safety Policy is constructed with the clear
objective of eliminating accidents and injuries at work. This
is critical to all of our stakeholders, from our people to our
customers, which is why we adopt a ‘collective responsibility’
mind-set across our operations. This encompasses risk awareness,
protocols and training, and making the safety of the workplace
and our customers’ sites our colleagues’ responsibility.
Through our new Collective Responsibility safety programme,
we are delivering effective risk management and leading the
way in raising safety standards across the industry by:
•
•
•
Collaborating with suppliers to develop safe, innovative
products. This includes our new App functionality launched
with tool manufacturer Hilti, which advises users of the
most productive tool for specific tasks that would minimise
exposure to harmful vibration levels.
Increasing awareness of occupational hazards including
dust inhalation, hand-arm vibration syndrome and
musculoskeletal disorders, providing expert guidance in our
service centres and through our on-site Toolbox Talks.
Continuing to develop and promote the use of our new
safety management system ‘EcoOnline’, to manage safety
incidents, accidents, environmental incidents and hazardous
and near miss reporting. Alongside this, it enables us to drive
continual improvement through corrective action logging and
root cause analysis, in addition to the ability to manage our
carbon data and deliver reductions across the business.
• We have migrated our audit suites to our safety management
system “EcoOnline” to consistently be able to identify NCRs
raised as a result of audit or accident/incident.
•
•
•
•
•
Supported our safety initiatives with the roll out of Point of
Work Risk Assessments on mobile devices to all colleagues,
again through the use of EcoOnline.
Rolling-out new bespoke training courses in Manual
Handling and Certified Authorisation Professional (CAP) in
powered access.
Successfully delivered IOSH training courses to 50 of the
senior management team.
Introducing key messages and training through video
messaging delivered via the company intranet, The
Hub, signposted by QR codes on our bespoke iBoard
communications.
Established a new Speedy Safety committee which is chaired
by the HSSEQ Director and meets Quarterly to discuss key
concerns and suggestions raised throughout the business,
e.g. following the launch of the new committee, Speedy
is about to roll out a new safety campaign which was the
suggestion of a committee member who is based out of one
of Speedy’s on-site locations.
64 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Health and safety reporting
We have a robust reporting programme in place, which
includes regular audits, reviews and monitoring. This includes:
•
•
•
•
Setting annual health and safety performance targets for
both leading and lagging indicators
Providing monthly reports to the PLC and Executive Boards
on safety performance
Providing safety dashboards on our EcoOnline system for
the business
Reporting regularly to key stakeholders on safety
performance
It is recognised that our RIDDOR Injury Frequency Rate has
increased, whilst our Specified Injury Frequency Rate has stayed
the same. Post pandemic we have undertaken IOSH training for all
our Senior Leaders including the Executive Board. We have also
initiated a full Safety Survey for our colleagues to participate in,
the results of which will influence the next stages in our safety
journey. We have adopted and targeted leading indicators whilst
still reporting on the lagging indicators.
Recognition in safety
FY2022 was another successful year for Speedy. For the eighth
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.
• Monitoring safety performance standards through safety
During the last year our safety standards were recognised by:
inspections, audits and reviews
•
•
•
Recording and investigating accidents, dangerous
occurrences and near misses
Encouraging the reporting of hazards and positive
observations
Implementing effective measures to prevent the re-
occurrence of incidents
•
•
Network Rail – Route to Gold
RoSPA – Gold Award for Occupational Health and Safety
- eighth consecutive year
•
Fleet News – Excellence in Safety and Compliance Award
Safety standard
Recognised by Network
Rail and RoSPA
Key reporting measures
0.35
RIDDOR accidents per100,000
hours worked (FY2021: 0.22)
0.09
Specified Injury Frequency
Rate per 100,000 hours
worked (FY2021: 0.09)
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 65
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Strategy in action:
Collaborating to improve safety
During March 2022 we launched a brand new manual handling
innovation into the business; the AluTruk.
Collaborating with our colleagues, truck builders PPS, and
engineering firm BIL, the AluTruk is a piece of equipment for
safely moving heavy objects manually. The equipment has a
rounded handle for ease of movement and a rounded back
making it safer to move cylinders and gas bottles, that also
combines with struts for rectangular objects. The AluTruk has an
improved lifting capacity and can carry up to 300 kilogrammes.
In addition, we have introduced an undercarriage compartment
to our commercial fleet to house the AluTruk, negating the need
for our drivers to mount the back of the vehicle to retrieve this
piece of equipment.
We have ordered over 800 units of the AluTruk and the
undercarriage is being retro-fitted to our existing fleet and
will be fitted to all new fleet moving forward.
" This is a fantastic innovation and
example of collaboration between our
colleagues and our partners, helping
to make it safer for our people while
manual handling our products in
the workshops and while delivering
and collecting our products from
customer sites."
Andy Johnson, HSSEQ Director, Speedy
66 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Including Everyone
Delivering on the promise of a sustainable
Speedy requires great people working
together on shared goals. At Speedy we
operate like a family, supporting one
another’s personal development so we
can be the best we can be.
People First: Driving forward a progressive, inclusive culture
Our committed and highly trained people want to be part of a fair,
inclusive and respectful organisation. We aim to provide a good
work life balance and support the communities we work in.
Colleague engagement
As a people centric business, colleague engagement is
essential to our success. Our aim is to be the best company
to work for in our sector. Our, `People Matters’ survey was
very positive, with an engagement score of 76%. During the
year we have set up several forums and committees that focus
on specific areas that our people are passionate about. The
working groups are sponsored by Executive Board members,
with progress against action plans regularly reviewed at
Executive Board and ESG Steering Group meetings.
Equality, Diversity and Inclusion
We believe in providing fair and equitable reward and recognition
for our peoples’ contribution, no matter what part of our
business they work in, and in promoting equality and diversity,
to encourage inclusivity across every aspect of our business. Our
recruitment team works to attract applicants from a wide variety of
backgrounds, increasing diversity at all levels in the organisation.
Having established a new Equality, Diversity, and Inclusion
(EDI) working group in the prior year, we have seen increased
engagement within the business. The working group has driven
a series of educational and celebratory initiatives such as Pride
and Ramadan.
In June 2021 we supported Pride month by altering our brand
logo and pro-actively celebrating the diversity within our
business through our social media channels and on our internal
communications platform ‘The Hub’.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 67
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Gender Pay and Living Wage
Under The Equality Act 2010 (Gender Pay Gap Information)
Regulations 2017 we publish our 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 colleagues are rewarded
and recognised fairly for their contribution and that they have
equal access to opportunities within all areas of the business.
Speedy is also proud to be a Living Wage supporter as we believe
our people deserve a wage which meets everyday needs.
Below is 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:
Directors
25.0%
Female
Senior management team
18.0%
Female
75.0%
Male
82.0%
Male
All Speedy employees (UK and Ireland)
21.0%
Female
79.0%
Male
21% of our total headcount is female. Our objective is to
increase gender diversity across our business, including our
board. Our target is to have 30% female colleagues by 2030.
68 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
30%
We are committed to gender diversity,
aiming for 30% of our workforce to be
female by 2030.
Strategy in action:
PLUS (People Like Us)
Network
In FY2022 we set up our PLUS network
to support the improvement in gender
diversity at Speedy, to help us be more
attractive to women and to establish a
more supportive culture for the females
who currently work at Speedy. Our PLUS
network is made up of a number of
female and male Speedy colleagues.
PICTURED: Chief People Officer Ellie Armour was joined by
co-signatory Colonel Paul Gilby to sign the covenant.
Supporting veterans
through the armed
forces covenant
In November 2021 we committed to
creating equal opportunities for ex-
servicemen and women and their families
after signing the armed forces covenant,
a promise by the nation ensuring that
those who serve or who have served in
the armed forces, and their families, are
treated fairly.
Under the agreement, we have pledged to
establish a tailored employment pathway
for veterans by working with not-for-profit
service Career Transition Partnership,
and by recognising military skills and
qualifications in interview processes.
Colleagues at
our Innovation
Centre open
day.
" Signing this covenant formalises
the respect we have for those
that come from armed forces
backgrounds and underlines
our commitment to supporting
them in developing their
future careers. Our veteran
colleagues enrich our business
with the training and skills
they developed while serving
their country, from project
management to driving heavy
goods vehicles, and we recognise
our duty as a major employer
to give back to armed forces
communities nationwide.”
Ellie Armour, Chief People Officer
We already employ a number of ex-
service personnel and our aim is to
increase the number of colleagues from
armed forces backgrounds. Having signed
the Armed Forces Covenant we received
the Bronze Award in the Employee
Recognition Scheme, which evidences the
tangible support an organisation offers to
its armed forces community. We are now
progressing through silver towards its
gold standard.
Speedy joins other major employers in
the construction industry including some
of the UKs largest contractors in signing
the covenant, signalling to ex-service
men and women that they are armed
forces friendly organisations at a time
when almost one in five (17%) veterans
in work say that finding the right job is
very difficult.
The business has also committed to
support its colleagues with family in
the armed forces by upholding several
principles that include sympathetically
reviewing requests for leave surrounding
partners’ overseas deployment and
providing paid leave for colleagues who’s
loved ones are lost or injured in the
line of duty.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 69
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Rehabilitation of prisoners and ex-offenders
We have been active in the rehabilitation of prisoners since 2006.
We currently run a training workshop at HMP Garth in Lancashire
for up to 20 inmates with two full time Speedy engineers.
The CCC is a UK forum attended by members of the leadership
team, including Russell Down, Chief Executive, and Ellie Armour,
Chief People Officer and a range of colleague representatives
from across the business.
In FY2022 we signed up to Cleansheet, a national Criminal Justice
Charity founded in 2010 with the simple purpose to offer people
with convictions the hope of a better future by finding real,
permanent employment. Cleansheet are helping Speedy to fill their
vacancies across its National Service Centres through opening their
opportunities to talented people with convictions who are wanting
to move forward and start again. Partnering with Cleansheet
offers several benefits such as reducing the risk of reoffending,
contributing to an our sustainability objectives and creating a
safer society.
Colleague Consultative Committee
During the year we replaced our staff forums with the new
Colleague Consultative Committee (CCC). The aim is for
members to be actively involved in representing Speedy
colleagues in helping to make Speedy a great place to work.
It creates the opportunity for a representative group of
colleagues to receive and share information, explore views
and opportunities or alternatives for improvements and make
comments on behalf of the teams they represent.
The colleague representatives meet twice a year, ahead of the
CCC with their divisional sponsor to address local matters,
and at a UK level the representatives meet twice a year to
examine and discuss issues affecting colleagues across the
UK. This makes the CCC’s role a valuable part of a two-way
communication process around pertinent topics and critical
business decisions that need to be made. Rob Barclay,
Remuneration Committee Chairman and designated Non-
Executive Director for employee engagement, attended one of
the meetings during the year and spent some time discussing
the purpose of the Remuneration Committee.
In between the CCC meetings, informal `coffee’ meetings and
visits take place in operational sites and in head office led by
Executive Board and/or Senior Leadership Team members for
further feedback from frontline colleagues.
70 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Wellbeing Committee
We recognise that mental health and wellbeing is a key issue
within the construction industry.
• We have implemented a new hybrid working policy to
provide flexibility and improved work-life balance, and
introduced guidelines around managing meetings remotely.
Our people feel passionate about the mental health and
wellbeing of their colleagues. We have over 50 volunteer Mental
Health First Aiders throughout the business, trained to identify
potential mental health issues in the workplace, and proactively
promote strategies to support the wellbeing of our colleagues.
Further help is available to colleagues through our Employee
Assistance Programme.
• Maximising partnerships with external organisations and
our charity partners to create engaging content and online
events with a focus on wellbeing
• More ‘Lunch and Learn’ sessions online, and introducing
Wellbeing Roadshows to ensure all parts of our business
have access to the information and support available
Our Wellbeing Committee which is sponsored by our Chief
People Officer consists of colleagues from across the business
considers all aspects of employee welfare. During FY2022 the
committee have created campaigns and initiatives promoting a
healthy approach to mind and body. Here are just some of the
initiatives we’re delivering:
•
•
A busy calendar of wellbeing initiatives, with monthly
themes for people to decide which initiative or resource
they’d like to get involved with or tap into
Continue to promote a culture where it’s ok to talk
‘anytime’, including continuing with our monthly ‘Time to
Talk’ days.
•
•
•
•
•
Launching an easy-to-access Wellbeing Calendar
Providing guidance and coaching to colleagues and
managers regarding managing workload
Providing mental health and wellbeing training
for managers
Creating fresh wellbeing content on our internal
communications platform ‘The Hub’
Hosting lunch and learn sessions on a number of topics
including, stress, mental health awareness and domestic abuse.
Personal development
Personal and professional development is at the heart of our
people strategy. We are committed to investing in our people
throughout their career with Speedy.
During FY2022 we have invested in early careers roles and
introduced a ‘late careers’ mentor programme. The objectives of
the strategy are:
•
To support business growth and contribute directly into our
strategic pillars:
In October 2020, we conducted our first well-being employee
survey and have committed to running them periodically to check
how our people are feeling towards their physical and mental
health, and identify what more we can do to support them.
The COVID-19 pandemic presented all organisations with
physical and mental wellbeing challenges, both in the workplace
and at home. Twelve months after our first survey, in December
2021 we conducted the survey again to understand how our
colleagues are feeling as we emerge from the pandemic, and
understand how well the initiatives put in place after the first
survey are working, or where there is need for improvement.
Our new action plan includes:
•
•
Video messaging from the Executive Board to acknowledge
the importance that Speedy place on the mental health and
wellbeing of our people and what we are doing to help
Supporting managers to be more confident in approaching
the subject of mental health and wellbeing through
continuous training
•
•
•
•
•
•
People First Focus – our culture and commitment to the
5% club
•
ESG strategy – diversity and social contribution focus
Ensure we develop our people with the skills required for
the future
To harness the exceptional skills we already have in the
business and pass these down to new colleagues
To provide development opportunities for all and increase
internal mobility
Develop future leadership, and aid retention and engagement
– we want to ‘grow our own’ and support succession planning
Develop an innovative approach which will attract talent into
the business
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 71
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
During the year we have taken on new graduates on a two
year programme. This 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 learn relevant skills, knowledge and behaviours
to develop a successful career, assisting in effective succession
planning for the future growth of the Company. The scheme
provides on the job training which includes:
•
•
•
•
•
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
We also operate a Rotational Graduate Scheme. This three year
programme leads on a specialist area with graduates completing
six x six month placements made up of core, mandatory
placements and optional placements that the graduate themselves
can select.
It includes all the benefits of the two year programme, and through
the exposure and experience of working across the business,
identifies which area each participant can start building their
Speedy career.
We currently have 10 graduates on programmes both in our
rotational and specialist graduate schemes across the business.
Additionally, we have 82 colleagues participating in apprenticeship
schemes across the business made up of a mix of new apprentices,
who are primarily in engineer based roles, and existing colleagues
who are using apprenticeships to up-skill and progress their
careers. Our apprentices range from 16-40+ years old and follow
various pathways; we don’t have a one size fits all approach.
At 31 March 2022 we are on track to meet our 5% Club
objective with 2.7% of our people being apprentices, graduates
and sponsored students on formal programmes.
Our ‘Career Line of Sight’ scheme which launched in FY2021 and
supports the learning and development of our people at all levels
of seniority has been extremely successful, creating a clear vision
for colleagues to follow in developing their career’s at Speedy.
Career Line of Sight is our promise to colleagues that we will:
•
•
•
Provide a framework to demonstrate what good looks like.
Invest in people development through supporting colleagues
in progressing their career at Speedy.
Ensure colleagues who are happy in their current roles are
able to continually develop their skills to attain maximum
performance within their areas of responsibility.
By supporting and developing our people, we will further
strengthen our strategy to Simplify, Standardise and Grow the
business. The Career Line of Sight scheme is in place across our
operational, sales and HR teams.
High potential programme
Colleagues 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 programme ensure colleagues at all levels, and stages of
their career, have access to development which supports our
approach to succession planning for all roles. During FY2022,
91 colleagues took part in these programmes.
We operate a Senior Leadership Programme which is being
delivered by two external providers. The programme is being
attended by seven talented leaders from across the business.
The 12 month programme is closely linked to our business
strategy, and has been designed to enhance the skills,
knowledge and behaviours of those taking part. The programme
is made up of a number of modules around leadership and self-
awareness, and delegates are required to complete a business
project, the outcomes of which will be delivered to
the Executive Board.
Graduate and apprenticeship schemes
In January 2021 we joined the 5% Club, a group of
employers working to create a shared prosperity across the
UK, committing to raising the number of apprentices, graduates
and sponsored students on formal programmes to 5% of the
total workforce by 2025.
This commitment is helping us ensure that the business has a
sustainable future, creating opportunities for young people with
new skills that will become the leaders of tomorrow.
72 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
A focus on retail skills
We provide a retail offering within our service centre network,
and during FY2021 commenced a trial to open Speedy outlets
within a number of B&Q stores. During FY2022 we cemented the
partnership with B&Q, rolling out to 36 B&Q stores across the UK.
We have a successful bespoke people strategy for retail that is
attracting both full and part-time colleagues with a background
in sales.
We have implemented new ways of resourcing, revised contracts
of employment, benefits and pay scales to complement B&Q
arrangements. Flexible working hours are a key component to
this success, which has enabled part-time students, returning
parents and retirees to consider careers with Speedy. We have also
developed a bespoke digital on-boarding and training experience
for colleagues that join the retail business.
Working with the B&Q team we have been able to combine our
leadership values to ensure a one-team culture exists in stores.
Training
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
colleagues are carrying out their roles effectively and safely.
Our learning and development courses are designed to help our
colleagues reach their full potential, and also build the skills and
behaviours which will help support Speedy’s customer led culture.
All colleagues have access to a range of externally provided
courses, in the form of apprenticeships, which are funded using
either the apprenticeship levy or other government funding
across the UK. These courses are across Level 2 – Level 7 and
examples include:
New training portal launched
On 1 March 2022 we launched our new online training system
‘PeopleFluent’, which is accessed through our intranet platform
‘The Hub’.
The system was developed by gathering feedback and engaging
teams across the business with the objectives of making the
system easy to access, use and provide a single destination for
all individual mandatory training needs.
The system has generated extremely positive feedback from
colleagues, with the benefits of using a single sign in process,
and a ‘one-click’ experience to access training modules. It also
clearly identifies where training is expiring and what’s coming
up. It allows managers to effectively schedule their teams’
training without disrupting the operations.
PeopleFluent also provides more accurate training reports for
managers which are instantly available from the home screen
to improve management information and monitoring of training
needs within teams.
" I was excited to implement our
new training system. Developing
the system by gathering feedback
and engaging our colleagues in the
process has been key to its success,
and the way it offers them an
enhanced training experience"
Rebecca Sargent, Technical Training Manager, Speedy
• Management
•
•
•
•
Team Leading
Customer Service
Contact Centre Operations
Improvement Technician
In FY2022 we provided 41,588 training courses which was a
combination of e-learning and classroom-based training.
As a member of the Sustainability Supply Chain School we
also provide sustainability training as part of our High
Potential Programme and Graduate and Apprenticeship Training
Schemes. In FY2023 we will be rolling out a company wide
sustainability training programme to engage and upskill our
staff on sustainability.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 73
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Winners celebrate at the Speedy Excellence Awards
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.
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. 1,234
employees received an award during FY2022.
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. Having been unable to run the awards in the prior year
due to the COVID-19 pandemic, we were delighted to invite our
colleagues back for this most prestigious of nights to recognise
their outstanding individual and collective achievements.
Our long service recognition scheme celebrates loyalty for those
who have 10, 20 and 25 years’ service with the Company. 143
colleagues reached these milestones during this financial year.
74 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Rewards and benefits
We aim to provide competitive reward and benefits packages that
attract, motivate and retain people in the most efficient manner.
During FY2022 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
also regularly review and update our employee benefits package
as we recognise that salary is not the only component that
motivates employees.
We are committed to the People’s Charter with the Supply Chain
Sustainability School, which we are audited against annually.
Group headcount
3,554
(31 March 2021: 3,843)
Part of the community
Speedy people are part of local
communities all over the country.
It’s in our nature to join in, help solve
the challenges we face today and get
ready for the future.
Communities Committee
With c.3,500 colleagues spread across 200 UK locations, we
touch the lives of thousands of families and hundreds of local
communities. It’s a responsibility we don’t take lightly, and we
recognise our position as an opportunity to be a real force for good.
Our Charity Committee was set up in 2015. In the prior year we
altered the scope and launched the Communities Committee,
bringing together newly nominated ‘Community Ambassadors’
from across the business to shape our charity and community
agenda moving forward.
We are proud to support three nominated charity partners;
WellChild, The Lighthouse Club and the British Heart
Foundation. We support WellChild through its Helping Hands
programme, which renovates homes and gardens for sick
children, helping to make them fun and safe areas for the
whole family to enjoy.
To help tackle issues in the construction industry we support
The Lighthouse Club, the only charity dedicated to providing
financial and emotional support to the construction community
and their families.
During FY2022 our people helped to raise more £75,246
for c. 40 charities and community groups charities, while
contributing time and manpower to a wide range of worthy
community causes. We also relaunched our volunteering
policy to help our people to support charity and community
causes close to their hearts.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 75
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Strategy in action: New long
term partnership with the British
Heart Foundation
During FY2022 we partnered with The British
Heart Foundation, committing to help raise
funds for life-saving research into heart
conditions, whilst simultaneously installing
Automated External Defibrillators (AEDs)
at all of our operational locations UK wide.
The defibrillators could make a life-saving
difference for colleagues, customers, and local
communities across the country.
Our commitment to help raise funds for the
BHF is part of a long term partnership with the
charity. The money raised will help the BHF
to fund life-saving research into heart and
circulatory conditions such as coronary heart
disease, stroke, vascular dementia and risk
factors such as hypertension and diabetes.
Colleagues are also participating in a BHF-
supported health and wellbeing programme,
which includes health checks and personalised
advice on decreasing cardiovascular risk.
" The safety and wellbeing of our colleagues
and customers is our number one priority. By
installing AEDs at all of our sites, we can be
confident that if colleagues, customers or nearby
residents suffer a cardiac arrest, we have the
means to make a lifesaving difference as part
of a first medical response. We’re delighted to
partner with the BHF and support a cause we are
passionate about, while also helping to improve
the health of our colleagues"
Russell Down, Chief Executive
76 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
L-R: Iain
Lawrence, Aero
Healthcare;
Russell Down,
Speedy;
Hayley Gough,
British Heart
Foundation
The As One Charity Challenge
During FY2022 over 800 of our colleagues signed up for the
‘As One’ charity challenge to raise money for Mind and raise
awareness about the importance of mental health.
The challenge was for Speedy teams to collectively run, walk,
swim or cycle 698 miles; the distance from our furthest southern
depot in Camborne to our furthest northern depot in Inverness.
The engagement and from colleagues was incredible, with
63,857 miles covered collectively, and raising a total of £24,739
and generating £1,113,209 of social value through supporting
fitness and exercise amongst our 800 colleagues.
We are running the challenge again in 2022, with the money
raised being donated to our partner charities; WellChild, The
Lighthouse Club, and The British Heart Foundation.
During the next decade, we will be focusing our efforts on
widening the net to support our communities to help make a
meaningful difference.
Creating Social Value
Our work on the Including Everyone and Part of the Community
strategy pillars has made a significant difference on our social
impact. We use the HACT model, which provides a basic
assessment of social impact and evidence of value for money
to calculate the Social Value Impact (SVI) in the communities we
work, employ and train. Our SVI for FY2022 has increased from
£3,028,634 in FY2021, to £6,251,312.
£6,251,312
our Social Value Impact for FY2022
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 77
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Environmental Social Governance
Report continued
Governance
Operating as an industry leading
sustainable business
We work to leading industry certifications and accreditations
to ensure best practice, while maintaining the standards our
people, customers and suppliers demand.
Our current certifications include:
The United Nations’ Sustainable Development Goals 2030
(UNSDGs) act as a blueprint to achieve a better and more
sustainable future for all, with a view of addressing poverty,
inequality, climate change, environmental degradation, peace
and justice. For businesses, strong corporate governance plays
a vital role in this agenda, which is something that Speedy are
committed to.
As a business we strive to maintain high standards, reporting
with accuracy and transparency and maintaining compliance
with the laws, rules and regulations that govern our business,
which is also of key importance to us as a publicly
listed company.
Our business has robust governance controls and processes
in place covering structure and oversight, code of conduct,
reporting and the integrity and security of systems. This enables
us to make effective decisions, comply with relevant law, rules
and regulations whilst meeting the needs of our external
stakeholders. We also believe in promoting equality and
diversity within the workforce and we work hard to foster that
culture within all areas of our business.
•
•
•
•
•
ISO 9001 for quality management
ISO 14001 for environmental management
ISO 17020* for the operation of various types of bodies
performing inspections
ISO 27001 for information security
ISO 45001 for health & safety management (in June 21 we
migrated from OHSAS 18001 to ISO 45001)
•
ISO 50001 for energy management
*Lloyds British National Contracts
We also remain accredited to schemes that enable us to trade with
specific clients and sectors, including:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Achilles Building Confidence Gold
Achilles UVDB Silver Plus
Achilles Oil & Gas Silver Plus Supplier Verification & Audit Scheme
RISQS: Rail Supplier Qualification & Verification Scheme
LEEA: Lifting Engineers Equipment Association
SafeHire for standards in tool and equipment hire
CHAS Premium Plus: Advanced Assessment SSIP Scheme inc PAS91
Alcumus SafeContractor + SAFE PQQ
Constructionline Gold
IPAF Rental Plus
Acclaim SSIP Scheme
SMAS Worksafe SSIP Scheme
CQMS SSIP Scheme
Avetta Auditing: Sector & Customer Specific & SSIP Membership
PASMA: Prefabricated Access Suppliers & Manufacturers
Association
Altius Assured Vendor Award
Builders Profile Pre-Qualification Scheme
78 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Human rights and modern slavery
Our Human Rights Policy and Anti-Slavery and Human Trafficking
Policy applies to all employees and commits Speedy to
upholding the provision of basic human rights and eliminate
any discriminatory practices. These policies emphasise
our compliance with the Modern Slavery Act 2015 and 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.
Our policies are communicated to all our employees through
annual e-learning modules and cascaded to our supply chain.
As part of our ISO20400 sustainable procurement programme
we will be undertaking human rights mapping across our supply
chain to identify and manage any potential risks.
Integral to supporting good governance practices, all relevant
colleagues are required to complete Speedy Code of Conduct
and cyber security training to ensure working practices across
the business are robust and secure.
Similarly our practices regarding engagement with third parties
maintain a zero tolerance approach to modern slavery and
human trafficking. We have in place appropriate policies and
procedures to support ethical trading and regularly monitor and
audit our suppliers’ network, whilst also producing a modern
slavery statement each financial year in support of this.
Our Directors’ Remuneration Policy was last approved at our
2020 Annual General Meeting with the intention that it operates
for a three year period. The primary objective of this policy is to
promote the long-term success of the Group which is important
for good governance, however, our Remuneration Committee
continues to review the policy to ensure it takes due account of
remuneration best practice and that it remains aligned with our
shareholders’ interests. Our ESG performance is linked to the
remuneration of our executive board.
The business has a robust, independent internal audit function
in place and its tax strategy is well publicised.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 79
Financial Review
The start to the new financial year has been encouraging, with
underlying revenue for the year to date c.8% ahead of the
comparative period in FY2022.
Alongside our positive financial performance, we have invested in
the hire fleet with capex spend of £68.4m in FY2022. In response
to increasing demand from our major customers and in line with
our ESG strategy, our investment is focused on carbon efficient
ECO products. Focus on asset management using predictive
demand tools has further improved utilisation up to 57.0%.
The Group entered FY2022 with net debt at an appropriate level
given the significant economic and market uncertainties caused
by the COVID-19 pandemic. Increased capital expenditure and
the return of dividend payments increased net debt during the
year but it remained below the business cycle target of 1.5x
leverage. As such, in January 2022 the Company commenced
a share buyback programme. Net debt at the end of FY2022 of
£67.5m represents 0.9x leverage.
Group financial performance
Results and commentary are presented on a continuing
operations basis unless otherwise noted, reflecting the disposal
of the Middle East business in March 2021. Comparative amounts
in the income statement are to FY2021, which was affected by
the COVID-19 pandemic. To aid understanding of the underlying
performance, comparison to FY2020 is given where relevant.
Revenue (excluding disposals) for the year to 31 March 2022
increased by 16.3% versus FY2021 to £381.7m and 3.9% versus
FY2020. Revenue from disposals was £5.1m (FY2021: £4.2m);
total revenue for the year increased by 16.4% to £386.8m
(FY2021: £332.3m).
Gross profit was £221.1m (FY2021: £184.9m), an increase of
19.6%. The gross margin increased to 57.2% (FY2021: 55.6%),
reflecting the volume and rate increase in hire revenue with a
largely fixed depreciation charge, and Service margin impacted
by sales mix.
EBITA increased by 50.2% to £32.6m (FY2021: £21.7m) and profit
before taxation, amortisation and exceptional costs increased
to £30.1m (FY2021: £17.5m), reflecting the strong in year
performance versus FY2021 which was impacted by COVID-19.
The share of profit from the joint venture in Kazakhstan increased
to £3.2m (FY2021: £1.2m) as result of strong recovery following
COVID-19 pandemic and new contract wins.
The Group incurred no exceptional items in the year
(FY2021: £8.4m).
After taxation, amortisation and exceptional items, the Group
made a profit of £21.6m, compared to of £9.5m in FY2021.
James Bunn, Chief Financial Officer
Our financial results for
FY2022 demonstrate our
strong performance over
the year, underpinned by a
commitment to excellent
customer service. Market
conditions remained positive
and we delivered growth
through demand driven
volume improvements and
better rates.
Hire revenue has grown throughout the
year and was 17.9% ahead of FY2021
and 5.0% ahead of FY2020, which
is a more meaningful comparison.
We continued to increase our market
share, with recent contract wins and
renewals. The revenue performance
also benefited from our improved
digital offering, as well as the enhanced
Retail proposition in B&Q stores.
80 Strategic Report Speedy Hire Plc Annual Report and Accounts 2021
Revenue and margin analysis
The Group generates revenue through two categories, Hire and Services.
Revenue and margin by type
Year ended 31
March 2022
£m
Year ended 31
March 2021
£m
Hire:
Revenue
Cost of sales
Gross profit
Gross margin
Services:
Revenue
Cost of sales
Gross profit
Gross margin
243.3
(54.5)
188.8
77.6%
138.4
(107.8)
30.6
22.1%
206.4
(50.3)
156.1
75.6%
121.7
(93.5)
28.2
23.2%
Change
%
17.9%
20.9%
13.7%
8.5%
Hire revenue increased by 17.9% compared to FY2021 which
was significantly impacted by the national lockdown imposed
at the end of March 2020. Revenue showed progressive growth
throughout the year and was 5% ahead of the more meaningful
corresponding period in FY2020. A number of new and renewed
contracts with key customers were secured during the year,
reflecting the strength of our market position. The year closed
strongly, with hire revenue c.7% ahead of Q4 FY2021 which was
less impacted by COVID-19.
Services revenues increased by 13.7% in the year, with a record
performance from our rehire business, reflecting an expansion
of our product offering. Following the phasing out of red diesel
supplies to the construction industry on 1 April 2022, we have
seen strong growth in our fuel management business, particularly
for HVO fuel. Services revenue for the year was affected by the
decision to cease the provision of NVQs and Apprenticeships
from July 2021.
The Group implemented price increases in April 2022 to
offset the effects of cost inflation on both overheads and new
equipment purchases. The price increases will take effect as
framework agreements and hire contracts are renewed.
Gross margins increased from 55.6% to 57.2%. Hire margin
increased to 77.6% (FY2021: 75.6%) as volumes increased,
utilisation improved further and other direct costs remained
tightly controlled. Asset utilisation for the year increased to
57.0% on our enlarged hire fleet as a result of the continued use
of artificial intelligence and the asset replenishment programme
to connect customer demand with asset availability. Services
margin was impacted by sales mix with comparably stronger
revenue performance in lower margin services such as rehire and
fuel and a reduction in higher margin training revenues, reducing
overall margin to 22.1% (FY2021: 23.2%).
Overheads
Overheads remain well controlled with the increase versus
FY2021 supporting growth across the business. Improvements
have been made to simplify and standardise our operating
model, including the consolidation of a number of depots into
larger customer focused centres. The cost savings from these
initiatives have been reinvested in our people, ESG and
omni-channel capabilities.
The UK and Ireland headcount increased to 3,554, compared to
3,303 at 31 March 2021 to support business growth initiatives
including 162 colleagues are now employed in B&Q stores (31
March 2021: 50).
Inflationary pressures on overheads, particularly salaries, utilities
and fuel are expected in FY2023. The Group will continue to
control overheads to help reduce the impact of inflation on the
Group’s performance.
Interest
The Group’s net financial expense, including interest on lease
liabilities, increased to £5.7m (FY2021: £5.4m) reflecting higher
average gross borrowings throughout the year.
Net debt, excluding lease liabilities, as at 31 March 2022
increased to £67.5m (2021: £33.2m), reflecting increased capital
expenditure, the return of dividend payments and £6.0m for the
recently commenced share buyback programme.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 81
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Financial Review continued
The Group’s main bank facilities were renewed in July 2021
for a three year term. Borrowings under the facility are now
priced based on SONIA (LIBOR prior to renewal) plus a variable
margin, while any unutilised commitment is charged at 35% of
the applicable margin. During the year, the margin payable on
the outstanding debt fluctuated between 1.50% and 2.05%
dependent on the weighting of borrowings between receivables
and plant and machinery. The effective average margin in the
period was 1.73% (FY2021: 1.80%).
The Group utilises interest rate hedges to manage fluctuations in
SONIA with varying maturity dates to November 2024. The fair
value of these hedges was not material at 31 March 2022.
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.
The tax charge for the year was £7.7m (FY2021: £2.2m), with an
effective tax rate of 26.5% (FY2021: 26.5%). An increase in the
UK corporation tax rate to 25% for periods from 1 April 2023
was substantively enacted on 24 May 2021. This rate has been
used to calculate the deferred tax assets and liabilities and has
resulted in the effective rate of tax for the year being above the
current standard rate of 19%. The impact of the rate change is
an increase of £2.0m in the net deferred tax liability as at 31
March 2022; excluding the impact of this change in tax rate,
the effective rate would be 19.6%.
International segment
Following the disposal of the Middle East business on 1 March
2021, the Group successfully concluded the transitional services
arrangement in the year; the Group is in the process of formally
winding up its operations in the region.
Earnings per share
At 31 March 2022, 518,220,366 Speedy Hire Plc ordinary shares
were outstanding, of which 4,236,422 were held in the Employee
Benefits Trust. 11,114,363 shares were re-purchased by 31 March
2022 and cancelled as part of the share buyback programme.
Shares repurchased after 6 April 2022 have been placed in
Treasury. As at 26 May 2022 19,343,119 shares have been
repurchased of which 6,776,342 are held in Treasury, following
settlement of the transactions to that date.
Adjusted earnings per share from continuing operations was 4.24
pence (FY2021: 2.68 pence), an increase of 58.2%. Based on a
normalised tax rate (excluding the impact on deferred tax of the
increase in the UK corporation tax rate) adjusted earnings per
share was 4.62 pence. Basic earnings per share was 4.13 pence
(FY2021: 1.82 pence).
82 Strategic Report Speedy Hire Plc Annual Report and Accounts 2021
Capital expenditure and disposals
Total capital expenditure during the year amounted to £82.1m
(FY2021: £43.7m), of which £68.4m (FY2021: £36.0m) related to
equipment for hire. Our hire fleet investment is biased towards
carbon efficient ECO products. The strength of our supply
chain relationships and advanced planning have meant that we
received assets in a timely manner to support existing demand
and growth. Non-hire fleet capital expenditure increased to
£13.7m (FY2021: £7.7m) representing the investment in our
properties and IT capabilities.
As a result of the increased hire fleet investment during the year,
the average age of the fleet remains young in comparison to the
industry at 3.6 years. Proceeds from disposal of hire equipment
were £13.6m (FY2021: £12.2m).
During the year 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 Group expects to invest further in its hire fleet to support
revenue growth in FY2023, albeit at a more normalised level than
FY2022. Forward demand planning will continue to help mitigate
the potential risk from lead time delays and price inflation.
Balance sheet
The Group continues to maintain a strong balance sheet, which
reflects the decisive action taken during COVID-19, proactive
management of the asset fleet and effective control over
working capital.
Net assets at 31 March 2022 were £226.4m (2021: £220.8m),
equivalent to 43.7 (2021: 41.8) pence per share.
Net property, plant and equipment (excluding IFRS 16 right of use
assets) was £257.7m as at 31 March 2022 (2021: £233.1m), of
which equipment for hire represents 88.0% (2021: 88.9%).
Intangibles increased to £25.9m (2021: £24.7m), due to
increased IT development expenditure and in particular the core
system update to the latest cloud-based ERP application from
Microsoft Dynamics 365.
Right of use assets of £73.3m (2021: £59.1m) and
corresponding lease liabilities of £76.7m (2021: £63.2m) have
increased in part due to new vehicle leases to support the move
to a lower carbon fleet.
Throughout the year the business has continued to focus on cash,
in particular customer collections. The successful collaboration
between sales and credit control functions, leveraging strong
customer relationships, resulted in strong cash collections
throughout the year. Gross trade receivables totaled £104.9m at
31 March 2022 (2021: £93.4m). Bad debt provisions were £3.0m
as at 31 March 2022 (2021: £3.5m), equivalent to 2.9% of gross
trade receivables (2021: 3.8%). The FY2021 provision included
specific provisions for the training and international businesses
which are no longer required. Debtor days as at 31 March 2022
were 66.6, having returned to a more normal level following a
low of 58.9 at March 2021.
Trade payables as at 31 March 2022 were £45.3m (2021:
£49.8m). Creditor days were 55.9 (2021: 47.8).
Cash flow and net debt
Cash generation remained strong, with cash generated from
operations for the year of £28.6m reflecting increased capital
expenditure (FY2021: £72.9m). Free cash flow (being net
cash flow before financing activities) decreased to £5.5m
(FY2021: £69.7m).
Net debt increased by £34.3m from £33.2m at the beginning of
the year to £67.5m at 31 March 2022. Excluding the impact of
IFRS 16, leverage increased to 0.9x (FY2021: 0.5x). The Group
retained substantial headroom within its bank facility throughout
the year with cash and undrawn facility availability of £110.8m as
at 31 March 2022 (2021: £142.3m).
The Group's £180m asset based finance facility has been
renewed for three years, through to July 2024. In addition,
uncommitted options exist for a further two one-year extensions
until July 2026. The additional uncommitted accordion of £220m
remains in place through to July 2024. The terms of the facility
are broadly similar to the expired facility and give the Group
headroom with which to support organic growth and
acquisition opportunities.
The facility includes quarterly leverage and fixed charge cover
covenant tests which are only applied if headroom in the facility
falls below £18m. No covenant test was required during the year,
and the Group maintained significant headroom against these
measures throughout the year.
Dividend
The Board has proposed a final dividend for FY2022 of 1.45
pence per share (FY2021: 1.40 pence per share) to be paid on 23
September 2022 to shareholders on the register on 12 August
2022. The cash cost of this dividend is expected to be c.£7.6m.
This takes the total dividend for FY2022 to 2.20 pence per share
(FY2021: 1.40 pence per share) following an interim dividend of
0.75 pence per share (FY2021: nil pence per share).
Capital allocation policy
The Board intends to continue to invest in the business in order
to grow revenue, profit and ROCE. 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 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 share;
Acquisitions: the Board will continue to explore value
enhancing acquisition opportunities in specialist hire
and services businesses consistent with the Group’s
existing operations;
Gearing and treatment of excess capital: the Board is
committed to maintaining an efficient balance sheet. The
Board has adopted a target leverage of 1.5x 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.
During FY2022 the Board reviewed the medium-term capital
needs of the Group and as a result commenced a share buyback
programme from 28 January 2022, up to a maximum aggregate
consideration of £30 million. The programme is expected to
continue until the 2022 Annual General Meeting which is to be
held on 8 September 2022, when it will be reviewed.
Return on capital
ROCE is a key performance measure for the Group and increased
to 13.1%, now exceeding pre-COVID-19 levels for continuing
operations (FY2020: 12.4%). We are confident that our strong
market position, underpinned by pricing initiatives, operational
efficiency and focus on asset management will enable the Group
to achieve its ROCE aspirations of c.15% over the medium term.
James Bunn, Chief Financial Officer.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 83
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
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.
Description and potential impact
Strategy for mitigation
We continue to monitor Government guidance and
take action to ensure the safety of our colleagues, as
we support customers.
We have implemented COVID-19 safe ways of working
and a flexible working policy for employees who can
perform duties from home utilising our secure and
robust infrastructure and technology platforms.
Speedy operates one of the youngest hire fleets in
the industry and is well placed to flex capital
expenditure during this period, whilst maintaining
customer service.
Based on various revenue downturn scenarios, and the
measures outlined above, the Board remains confident
that the Group can withstand a prolonged period of
reduced trading activity, including in the event of a
further national lockdown.
COVID-19 pandemic
Trading performance
Whilst the Group performed well during the UK & Ireland
lockdown periods, the uncertainty from COVID-19 leads
to difficulty in forecasting. Although the restrictions
imposed by Government have almost all been lifted,
there remains a risk of future restrictions in the event of
new variants emerging. There are risks that the people
and supply chain risks described for the Group below
may also impact our customers’ businesses and reduce
our ability to achieve revenue targets.
People
The COVID-19 pandemic has led to shortages in the
workforce as a direct result of illness or isolation
measures, along with changes in holiday patterns. These
factors could 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 or there
may be delays introduced into the supply chains. This
may also result in an inability to effectively service our
customers’ requirements.
84 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Description and potential impact
Strategy for mitigation
Safety, health and environment
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.
Service
Provision of equipment
Speedy’s commitment is 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.
The Group is recognised for its industry-leading
position in promoting enhanced health and safety
compliance, together with a commitment to product
innovation. This is achieved by the Group’s health,
safety, and environmental teams measuring and
promoting employee understanding of, and compliance
with, procedures that affect safety and protection of
the environment.
We maintain systems that enable us to hold appropriate
industry recognised accreditations supported by a specialist
software platform for managing data and reporting in
relation to Health, Safety and Environment.
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.
We operate an industry leading four-hour service
promise under “Trust Speedy to Deliver” which covers a
wide range of our assets.
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.
We have introduced a Net Promoter Score metric into
our business to drive improvement through dashboard
reporting at depot level.
During the year we successfully concluded the
implementation of a new ERP system; Microsoft
Dynamics365. This provides opportunities for future
enhancements to customer service by utilising standard
and bespoke modules from the system.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 85
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Principal risks and uncertainties continued
Description and potential impact
Strategy for mitigation
Sustainability and Climate Change
Climate change
There is a risk that climate change may impact
Speedy’s operations or ability to trade. Conversely,
there is a risk that Speedy will fail to meet internal or
external targets designed to reduce the Group’s impact
on climate change.
This could arise from insufficient target setting,
inadequate progress of initiatives, or a failure to
capture relevant data accurately.
Sustainability
There is a risk that the Groups business model may
not be sustainable in the long term, for example if
assets reliant on fossil fuels are not replaced or if the
distribution network continues to be similarly reliant
on fossil fuels.
The result from either of the above may include loss
of customer confidence impacting revenue, or investor
and bank confidence leading to difficulty in obtaining
future funding.
Revenue and trading performance
Competitive pressure
The hire market is fragmented and highly competitive.
There is a risk that customers can readily change provider,
with minimal disruption to their own business activity.
There is a risk that the Group does not have an effective
route to market for consumer rentals and this could lead
to a missed opportunity that is capitalised upon by
our competition.
There is a risk that cost inflation may reduce margins if
customers resist price increases. This risk is higher in a
small number of cases where larger customers may be on
fixed term agreements with no inflation clause.
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.
86 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
The Group has built on its strong position of embracing
the ESG agenda with the creation of the Sustainability
Committee to oversee the development of the
sustainability and climate change response plan.
Robust science-based targets have been set and a
director has been appointed to lead the programme,
reporting directly to the Chief Executive.
Speedy has incorporated hybrid and fully electric
vehicles into both the commercial and company car
fleets to ensure we continue to reduce our emissions.
Further details of the risks, opportunities and
mitigating actions in relation to sustainability and
climate change are detailed in the Taskforce for
Climate-Related Financial Disclosures (TCFD) section
of this report from page 57.
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 addressed 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.
Whilst we develop and maintain strategic relationships
with larger customers, no single customer currently
accounts for more than 10% of revenue or receivables.
We have been successful in growing our SME and retail
customer base, which helps to mitigate this risk.
Description and potential impact
Strategy for mitigation
Revenue and trading performance (continued)
Project and change management
Acquisitions
Our strategy includes value enhancing acquisitions
that complement or extend our existing business in
specialised markets. There is a risk that suitable targets
are not identified, that acquired businesses do not
perform to expectations or they are not effectively
integrated into the existing Group.
We have opened 36 concessions within B&Q stores,
which allows the Group to directly access a marketplace
that represents significant potential for growth. This is
supported by a link from B&Q’s diy.com website directly
to the Speedy consumer online offering. The Group’s
operational management team includes a managing
director dedicated to retail based routes to market.
We have made a significant investment in the year to
improve our web-based offering to enable our customers
to transact digitally with us, enhancing the ease with
which our customers can do business with Speedy.
The Group has a defined process for monitoring and
filtering potential targets, with input from advisors
and other third parties.
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. This will include the use of specialists
to supplement the Groups capabilities. The results
of due diligence are presented to the Board prior to
formal approval being granted.
The use of a cross functional project team,
including specialists where necessary, will ensure
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.
An established Programme Management Office
function has clearly defined governance in place to
oversee all change initiatives. During the year this
capability has been improved with the adoption of
a change management methodology designed to
increase the success rate of projects.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 87
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Principal risks and uncertainties continued
Description and potential impact
Strategy for mitigation
The combined impacts of COVID-19 and BREXIT has
resulted in short term challenges, particularly in the
recruitment and retention of drivers and engineers. We
have reviewed our reward packages for these colleagues
and are actively seeking alternative routes to meet the
demand, such as our support for the 5% Club and the
Armed Services Covenant.
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.
Where practical, agreements with alternative suppliers
are in place for key ranges, diluting reliance on
individual suppliers.
People
Employee excellence
In order to achieve our strategic objectives, it is
imperative that we are able to recruit, retain, develop
and motivate employees who possess the right skills for
the Group, whilst also demonstrating our commitment
to equality, diversity and inclusivity.
Labour availability
There is a risk that with increased numbers of people
leaving the labour market, or salary inflation leading
to increased staff turnover, there will be shortages
of available employees for the Group, with greater
requirements for training.
Partner and supplier service levels
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.
The COVID-19 pandemic has resulted in some supply chain
delays which may increase the likelihood of this risk impacting
the Group.
It is possible that the war in Ukraine may result in disruption to
the supply chain.
Partner reputation
Significant revenues are generated from our rehire business,
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.
88 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Description and potential impact
Strategy for mitigation
Operating costs
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.
Fuel management
As a result of changes in the worldwide fuel supply
chain, the Group faces risks of both low supply volumes
and inflated prices for fuel.
This may impact both our own cost base and our ability
to supply fuel to our customers.
Cyber Security and data integrity
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 or incomplete
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.
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. This includes
a growing number of Electric and hybrid vehicles. 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 a greater proportion of
variable overheads.
Annual and medium-term planning provides 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.
Our successful move to Microsoft’s Dynamics 365, a
cloud based platform, has reduced the likelihood of
system unavailability and improved system performance.
Management information is provided in all key areas from
dashboards that are based on real time data drawn from
central systems. We have a dedicated data management
team which is responsible for putting in place procedures
to maintain accuracy of the information provided by data
owners across the business.
Mitigations for IT data recovery are described below
under business continuity as these risks are linked.
We have an established cyber security governance
committee which meets regularly to monitor our control
framework and reports on a routine basis to the Audit &
Risk Committee.
Speedy’s IT systems are protected against external
unauthorised access. These protections are tested
regularly by an independent provider. All mobile devices
have access restrictions and, where appropriate, data
encryption is applied.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 89
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Principal risks and uncertainties continued
Description and potential impact
Strategy for mitigation
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, along with
an additional uncommitted accordion of £220m, is
available through to July 2024, with two one-year
extensions available.
We have a defined capital allocation policy. This ensures
that 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.
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. The Board
oversees the importance of strategic clarity and
alignment, which is seen as essential for the setting and
execution of priorities, including resource allocation.
Our close relationships with our customers, coupled
with the differentiation allows us to adopt a partnership
approach to responding to cost inflation.
The Group implemented price increases in April 2022
on list prices and new contract renewals to offset the
effects of cost inflation on both overheads and new
equipment purchases.
Funding
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.
Economic vulnerability
Economy
Any changes in construction/industrial market conditions
could affect activity levels and consequently the
Group’s revenue.
As markets change and evolve, there is a risk that the
Group strategy will need to be aligned accordingly.
There is a risk of recession in the UK which could affect
the Group’s revenue.
Inflation
There is a risk of inflationary pressure on both material
and employee costs impacting margins that the Group is
able to generate, if customers resist price rises or are in
existing framework agreements for fixed terms.
War
There is a risk that a prolonged war in Ukraine, or an
increase in hostilities involving more countries, may
impact the global economy. This may result in a range
of impacts for the Group, including cost inflation, labour
availability and disruption to the supply chain.
90 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Description and potential impact
Strategy for mitigation
Business continuity
Business interruption
Any significant interruption to Speedy’s
operational capability, whether IT systems, physical
restrictions or personnel, 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.
Joint venture
The Group’s joint venture in Kazakhstan, Speedy
Zholdas, may be impacted by Russia’s invasion of
Ukraine. This may be a direct result of military activity
in the wider region, or there may be politically
motivated impacts as Kazakhstan has historically
maintained strong links with Russia. The main impact
that the Group has faced to date has been the impact
of fluctuations in exchange rates.
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 returns on deployed
capital, demand is balanced with the requirement to
hold a range of assets that is optimally utilised.
As described previously, the Group has continued
to operate effectively throughout 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 sites. Insurance cover is reviewed at regular
intervals to ensure appropriate coverage in the event of a
business continuity issue.
We continue to monitor the situation in Kazakhstan
through regular contact with the expat management team
and will take action as may be necessary to ensure the
safety of our colleagues.
We regularly monitor the status of our assets and use this
information to optimise our asset holdings.
This is based on our knowledge of customer
expectations of delivery timescales, which vary
by asset class. By structuring our depot network
accordingly, we can centralise low volumes of holdings
of specialist assets.
We constantly review our range of assets and introduce
innovative solutions to our customers as new products
come to market.
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 91
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
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 to the Group’s business model,
performance, solvency and liquidity as
set out above.
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 and
the effectiveness of any mitigating actions. These scenarios
include reduced levels of revenue across the Group and
inflationary pressures on the cost base. Mitigations applied in
these downturn scenarios include a reduction in planned
capital expenditure.
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 2025.
The going concern statement and further information can be
found in Note 1 of the financial statements.
The Directors have determined that three years is an appropriate
period over which to assess the Viability statement. The
strategic plan is 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 July 2024 with uncommitted extension
options for a further two years on the same terms. The Strategic
Plan assumes the facility will be extended to meet the Group’s
capital investment and acquisition strategies.
92 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Board engagement with our stakeholders
Stakeholder engagement
Engagement with relevant stakeholders is a key consideration
of the Board which varies depending on the subject at hand.
Pages 94 to 96 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.
Employee engagement
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 Colleague
Consultative Committee, formerly the Employee Forum
(attended annually by Non-Executive Director, Rob Barclay),
via its Excellence Awards and Chief Executive and Chief
Financial Officer ‘Up to Speed’ and ‘The Hub’ communications
and updates. Also in a typical year where COVID-19
restrictions do not apply engagement with employees would
additionally be via the Company’s annual Expo. Further
information on employee engagement can be found at
pages 64 to 77.
Board decisions and stakeholders
We set out on page 71 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. Speedy’s approach to connecting with our
people, customers and suppliers, is to build a sustainable
future, as detailed on pages 39 to 79 through the Company’s
ESG programme. Our mission is to provide exceptional
customer experience, accelerating mutual success towards a
sustainable future, and our vision to inspire and innovate the
future of hire.
Section 172(1) statement
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;
the desirability of the company maintaining a reputation
for 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 on pages 93 to 96 and
should be read in conjunction with information disclosed in
the Governance section, on pages 100 to 147.
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 Chief Financial Officer 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.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 93
Board engagement with our
stakeholders continued
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 tables on the following pages. Relevant information
from these interactions informs judgements and decision making.
Key stakeholder
Ways we engage
Areas discussed
Customers
1 During FY2022 the Speedy Expo
could not take place, however, this
is a key event in the annual calendar
which will be continued.
•
•
•
•
•
•
•
•
•
Availability of products and
services (including use of AI)
Improved customer service
Range of products and services
Value for money
Access to customer services e.g.
Speedy App and tracking
Four hour service commitment
to customers on our top selling
products (Capital Commitment)
‘One Speedy’ for first class
customer experience
Sustainability solutions
Product development
•
•
•
•
Face to face meetings (where
possible), video-conferencing
and calls
Speedy’s Trade and DIY websites
and mobile apps
Social media
Tendering and RfP processes
• Monitoring of hires, sales
and services
•
•
•
•
•
•
•
•
•
Customer service centres –
Speedy Direct
Regional Hubs – our regional
call centres are located
throughout the country, with
dedicated staff servicing our
regional customer base
Customer Relationship Centre –
through our central hub in South
Wales, dedicated to servicing
our SME customers
Service Centre network –
through 200 operational centres
across the UK and Ireland
B&Q – through a presence in a
growing number of stores across
the UK and on diy.com
Real time customer
satisfaction surveys
Product videos and peer reviews
Advertising campaigns
Speedy Expo1
94 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
Key stakeholder
Ways we engage
Areas discussed
•
Career opportunities
• Wellbeing (including
mental health)
•
•
•
Training and development
(including safety)
Pay and conditions
Colleague engagement
Employees
1 During FY2022 the Speedy Expo
could not take place, however, this
is a key event in the annual calendar
which will be continued.
•
•
Colleague Consultative
Committee meetings (including
NED attendance)
People Matters Survey and
pulse surveys
• Wellbeing surveys
•
•
•
•
Apprenticeship and graduate
programmes (Commitment to the
5% Club initiative)
Career Line of Sight
Benchmarking of key roles
within the business
‘The Hub’ communications
platform to enhance the employee
intranet and engagement
•
‘Up to Speed’ e-communications
• Mobile phone and PDA
text messaging
•
•
•
•
•
•
•
•
•
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 dinner
Long service recognition scheme
at 10, 20 and 25 years’ service
Speedy Expo1
Inclusion in cross functional
project teams to inform project
development
Diversity and Inclusion
Committee
PLUS – People Like Us, gender
balance group
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 95
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Board engagement with our
stakeholders continued
Key stakeholder
Ways we engage
Areas discussed
Suppliers
•
•
•
•
•
Quality management
Cost efficiency
Ethical Trading policy
Long-term relationships
Sustainability as part of our
ESG programme
•
Product development
•
•
•
•
•
•
•
•
Tendering processes
Visits and meetings (including
via video conference)
Supplier conferences
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
Speedy Expo1
Key stakeholder
Ways we engage
Areas discussed
Investors
•
•
•
•
•
•
•
•
Annual report
Annual General Meeting
RNS announcements
Investor presentations
and roadshows
Corporate website
One-on-one meetings
Information requests
Consultation letters
•
•
•
•
•
•
•
Financial and operating
performance
Dividends
Risk information
Access to Management
Strategy
Sustainability
Remuneration Policy
1 During FY2022 the Speedy Expo
could not take place, however, this
is a key event in the annual calendar
which will be continued.
96 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 97
98 Governance Speedy Hire Plc Annual Report and Accounts 2022
Governance
CONTENTS
Governance
Chairman’s letter to shareholders
Directors’ Report
Statement of Directors’ Responsibilities
Board of Directors
Corporate Governance
Audit & Risk Committee Report
Nomination Committee Report
Remuneration Report
Independent auditor’s report to the
members of Speedy Hire Plc
100
101
105
106
108
115
122
125
148
Governance Speedy Hire Plc Annual Report and Accounts 2022 99
GovernanceStrategic ReviewCorporate InformationFinancial Statements
Chairman’s letter to shareholders
On 11 May 2022 the Company announced that Russell Down
had notified the Board of his intention to retire once a suitable
successor has been found. Russell Reynolds Associates have
been appointed to undertake a comprehensive search for
a new Chief Executive and the process is being led by the
Nomination Committee under my chairmanship.
During the year Carol Kavanagh joined the Board as a new
Non-Executive Director and a member of the Remuneration
Committee on 1 June 2021 and was subsequently elected
at the 2021 Annual General Meeting. This has further
strengthened the skills and diversity at board level. After
allowing time for Carol to settle into her role, Rhian Bartlett
stepped down from the Remuneration Committee on 16
November 2021. This was in keeping with the Company’s
current policy of staffing its Board Committees with no more
than three Independent Non-Executive Directors.
This year the Board and Board Committees’ evaluations were
again undertaken internally led by our Senior Independent
Director, David Garman. I was pleased that the findings
indicated that the Board was generally effective. The process
followed and outcome are reported on page 111. This has
resulted in some changes to Non-Executive Director roles
which are detailed on page 123. The changes take advantage
of the increased diversity of the Board and balances director
responsibilities and the staffing of the new Board Sustainability
Committee amongst the Non-Executive Directors.
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 themselves for re-election.
The Annual General Meeting will be held at the offices of
Addleshaw Goddard LLP, Milton Gate, 60 Chiswell Street,
London, EC1Y 4AG on 8 September 2022 at 11:00am and I
would like to invite our shareholders to attend (subject to any
new UK Government COVID-19 guidance in place at the time of
the meeting).
David Shearer
Chairman
Dear Shareholder
On behalf of the Board, I am pleased
to present the Governance Report for
FY2022. This section of the Annual
Report highlights the Company’s
corporate governance processes
(alongside the work of the Board and
Board Committees).
During the year Speedy has operated in compliance with the
UK Government COVID-19 related guidance and its relaxation
of measures, to ensure the continued safety and support for all
staff, customers and our other stakeholders, and to facilitate
the increasing return to business as usual where possible. Our
staff have continued to show great commitment, flexibility and
resourcefulness to meet these challenges and help maintain
and promote the success of the Company. Throughout the
year the Board has maintained high standards of corporate
governance, completing its annual programme in full despite
the challenges of the pandemic. This has been achieved
through continued flexibility in the conduct of meetings
whether in person, via video conference or hybrid. I am
pleased to confirm, as noted on page 108, that we have been
in full compliance with the provisions of the UK Corporate
Governance Code 2018 throughout the year.
Speedy has long been committed to sustainable growth
and recognises the increasing stakeholder focus on climate
change and the related environmental, social and governance
considerations within its business. To support this a new
Sustainability Committee of the Board has been established
to assist the Board in its oversight of the Company’s ESG
strategy and support the Board on all sustainability matters.
This will include supporting the Board’s ongoing evaluation
of environmental risks and our reporting under the Taskforce
for Climate Related Financial Disclosures. Speedy’s initial
disclosures are detailed at pages 57 to 63 of the ESG report.
100 Governance Speedy Hire Plc Annual Report and Accounts 2022
Directors’ Report
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 16 and 17, the Strategic
Report on pages 3 to 96, the Corporate Governance review
on pages 108 to 113 and the reports of the Audit & Risk,
Nomination and Remuneration Committees on pages 115
to 147, 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 27 May 2022.
Results and dividends
The consolidated profit after taxation for the year was
£21.6m (2021: £9.5m). This includes profit from discontinued
operations and is after a taxation charge of £7.7m (2021:
£2.8m) representing an effective rate of 26.5% (2021:
22.8%). An interim dividend of 0.75 pence per share was paid
during the year. The Directors propose that a final dividend
of 1.45 pence per share be paid, which, if approved at the
forthcoming Annual General Meeting, would make a total
dividend distribution in respect of the year of 2.20 pence per
share (2021: 1.4 pence). The final dividend, if approved, will
be paid on 23 September 2022 to all shareholders on the
register at 12 August 2022.
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 9 September 2021,
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.
At the time of the half year results in November 2021, the
Board undertook to review the medium-term capital needs
of the Group and consider potential returns to shareholders.
The Company subsequently announced a share buyback
programme on 27 January 2022 of up to £30 million.
The Board considered that a £30 million share buyback
programme was prudent, reflected the cash generative
ability of the Group and maintained a strong balance sheet
consistent with its capital allocation policy. As at 26 May
2022, the latest practicable date before the publication of this
Annual Report and Accounts, 19,343,119 shares have been
purchased under that programme of which 12,566,777 have
been cancelled and 6,776,342 are held in Treasury (following
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
settlement of the transactions to that date). Shareholders will
be requested to renew the usual authority to make purchases
of up to 10% of its ordinary shares at the forthcoming Annual
General Meeting on 8 September 2022.
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 20
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 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.
Substantial shareholders
As at 25 May 2022, the latest practicable date before the
publication of this Annual Report and Accounts, 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
Percentage of voting rights
Schroders Plc
Polar Capital LLP
Lombard Odier Asset
Management (Europe) Limited
Abrdn Plc
Jupiter Fund Management Plc
Aberforth Partners LLP
12.56
7.62
6.48
6.36
5.04
4.00
Governance Speedy Hire Plc Annual Report and Accounts 2022 101
Directors’ Report continued
Directors
The Directors who served during the year and the interests of
Directors in the share capital of the Company are set out on pages
144 and 145.
In accordance with the Company’s Articles of Association and
in compliance with the UK Corporate Governance Code, all new
Directors submit for election at the first Annual General Meeting
following their appointment and all other Directors submit for
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 3,554 people in the UK and Ireland as at
31 March 2022.
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, and training provided, 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 pages 67 to 69 in the Strategic Report, along with
details of the gender balance of those personnel in senior
management and their reports.
Employee involvement
The Group actively promotes 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, updates on the Group’s performance (including factors
affecting performance) are provided to employees through Chief
Executive and Chief Financial Officer ‘Up to Speed’ and ‘The Hub’
communications. The Group has also established a Colleague
Consultative Committee (formerly the Employee Forum) in
which representatives from different business areas meet on a
six monthly basis with the Chief Executive and the Chief People
Officer. Rob Barclay in his capacity as the designated Non-
Executive Director for employee engagement annually attends
this meeting. His attendance helps ensure the employee voice is
heard in the boardroom. This enables a greater understanding of
workforce concerns and their consideration in Board decisions.
Further illustrations are on pages 93 to 95 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 125 to 147.
The Group has a people strategy in place aimed at being an
employer of choice, as can be seen on pages 36 and 37 and
pages 67 to 74 of the Strategic Report. The Group 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 and how it has regard for
their interests and views can be seen on pages 93 to 95 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 on pages 93 to 96. 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 the Board’s discussions and influence
its 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 provided
on pages 93 and 94 of the Strategic Report.
Disclosure of information to auditors
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.
102 Governance Speedy Hire Plc Annual Report and Accounts 2022
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.
Appointment and replacement of Directors
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 8 September 2022,
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, in each case capped
in line with current best practice.
Auditors
KPMG LLP was reappointed at the Annual General Meeting of
the Company held on 9 September 2021 and its appointment
expires at the conclusion of this year’s Annual General Meeting.
As previously announced, a formal audit tender process
was completed in order to comply with mandatory rotation
requirements, and, following this, the Board is recommending the
appointment of PricewaterhouseCoopers LLP (‘PwC’) as auditors
of the Group for FY2023. PwC has expressed its willingness to
take over as external auditors of the Group. Separate resolutions
proposing the appointment of PwC and to authorise the Directors
to determine the auditors’ remuneration will be put to the
forthcoming Annual General Meeting on 8 September 2022.
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 2022, the Company’s share capital comprised a
single class of ordinary shares of 5 pence each. As at 31 March
2022 the issued share capital was 518,220,366 comprising
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;
• 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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 103
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Research and Development
The Company undertakes research and development activities in
order to develop its information technology. Further details are
available on pages 31 and 32 of the Strategic Report.
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 ESG section of the
Strategic Report on pages 39 to 79.
Annual General Meeting
The Company’s Annual General Meeting will be held at the offices
of Addleshaw Goddard LLP, Milton Gate, 60 Chiswell Street,
London, EC1Y 4AG on 8 September 2022 at 11:00am. 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 27
May 2022.
Russell Down
Chief Executive
Directors’ Report continued
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.
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 27 May 2022 the Trust held 4,236,422 shares in the
Company (0.82% 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
and the Company's Articles of Association, 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
No political donations were made during the year (2021: nil).
104 Governance Speedy Hire Plc Annual Report and Accounts 2022
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 international
accounting standards in conformity with the requirements of
the Companies Act 2006 and applicable law and have elected
to prepare the parent Company financial statements on the
same basis. In addition the Group financial statements are
required under the UK Disclosure Guidance and Transparency
Rules to be prepared in accordance with International
Financial Reporting Standards in conformity with the
requirements of the Companies Act 2006 (“Adopted IFRS”).
In accordance with Disclosure Guidance and Transparency
Rule 4.1.14R, the financial statements will form part of the
annual financial report prepared using the single electronic
reporting format under the TD ESEF Regulation. The auditor's
report on these financial statements provides no assurance
over the ESEF format.
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 the Group’s 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;
• make judgements and estimates that are reasonable,
relevant and reliable;
•
•
•
state whether they have been prepared in accordance
with international accounting standards in conformity
with the requirements of the Companies Act 2006 and, as
regards the group financial statements, Adopted IFRS;
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.
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 the 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.
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 complies 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
the Strategic Report includes a fair review of the
development and performance of the business and the
position of the issuer 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.
Approved by the Board on 27 May 2022 and signed on its
behalf by:
David Shearer
Chairman
Russell Down
Chief Executive
Governance Speedy Hire Plc Annual Report and Accounts 2022 105
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Board of Directors
5
1
4
6
2
8 3
7
1. David Shearer
Non-Executive Chairman
2. Russell Down
N
Chief Executive
Appointed to the Board as Non-Executive Chairman on
Appointed to the Board as Group Finance Director in April 2015
1 October 2018. Prior to this appointment David was a Non-
and promoted to Chief Executive in July 2015. Russell is also a
Executive Director of Speedy from 9 September 2016. David is
member of the Sustainability Committee.
also Chairman of the Nomination Committee and has previously
been a member of each of Speedy’s Audit & Risk, Nomination,
Skills and experience
and Remuneration Committees.
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
David is an experienced independent director, corporate financier
a number of senior roles, including five years as Group Financial
and turnaround specialist. He is currently Executive Chairman of
Controller and six years as Regional Finance and Commercial Director
Esken Limited and Non-Executive Chairman of Amber River Group
for the Middle East operations based in Dubai. Russell is a Fellow of
Limited and the Scottish Edge Fund. David was previously senior
the Institute of Chartered Accountants in England and Wales, having
partner for Scotland & Northern Ireland and a UK Executive Board
qualified with KPMG LLP, and has previously worked for container
member of Deloitte LLP, Co-Chairman of Martin Currie (Holdings)
leasing company Cronos as Director of Accounting.
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
4. David Garman
businesses. He was also Non-Executive Chairman of Aberdeen New
Senior Independent Director
N, R
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.
Appointed to the Board in June 2017 as Non-Executive Director.
David is the Senior Independent Director and a member of the
Nomination and Remuneration Committees. David has previously
been a member of the Audit & Risk Committee.
3. James Bunn
Chief Financial Officer
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
Appointed to the Board as Chief Financial Officer on 14
industrial experience and was previously Chief Executive of TDG plc
September 2020.
Skills and experience
(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.
James was formerly Chief Financial Officer for the UK Digital division
He was also the Senior Independent Director at St Modwen Properties
of GVC Holdings PLC (‘GVC’) based in Gibraltar. He joined Ladbrokes
Plc and Phoenix IT plc, and a Non-Executive Director at Kewill plc
PLC in 2012 as Finance Director for its UK Digital business and has
and Victoria plc.
subsequently held senior finance positions within Ladbrokes Coral
PLC and then, following its acquisition, within GVC. Prior to this, James
was employed by TUI Travel PLC from 2001, including as Finance
Director: Commercial from 2008 to 2012. He is a member of the
Institute of Chartered Accountants in England and Wales.
106 Governance Speedy Hire Plc Annual Report and Accounts 2022
5. Rob Barclay
7. Shatish Dasani
Independent Non-Executive Director
R S
Independent Non-Executive Director
A
N
Appointed to the Board in April 2016 as Non-Executive Director.
Appointed to the Board on 1 February 2021 as Non-Executive
Rob is Chairman of the Remuneration and Sustainability Committees
Director. Shatish is Chairman of the Audit & Risk Committee and a
and a member of the Audit & Risk Committee. Rob has previously
member of the Nomination Committee.
been a member of the Nomination Committee.
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
Skills and experience
Shatish is currently Senior Independent Director and Audit
Committee Chair of Renew Holdings plc and a Non-Executive
Director and Audit Committee Chair of SIG plc. He is also a Trustee
and Chair of UNICEF UK, the children's charity. Shatish has over 25
years' experience in senior public company finance roles across
various sectors, including building materials, general industrial and
business services. He was Chief Financial Officer of Forterra plc from
2015 to 2019, during which the company successfully listed on the
Main Market in London. Prior to this, he was CFO at TT Electronics
plc and has also been alternate Non-Executive Director of Camelot
Group plc and Public Member at Network Rail plc. Shatish is a Fellow
of the Institute of Chartered Accountants in England and Wales, and
has extensive international experience including as regional CFO
based in South America.
where he originates.
6. Rhian Bartlett
Independent Non-Executive Director
A, N, S
Appointed to the Board on 1 June 2019 as Non-Executive
Director. Rhian is a member of the Audit & Risk, Nomination and
Sustainability Committees and has previously been a member of
the Remuneration Committee.
Skills and experience
Rhian is currently Food Commercial Director at J Sainsbury plc,
having previously held the position of Director of Fresh Foods. 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.
8. Carol Kavanagh
Independent Non-Executive Director
R
Appointed to the Board on 1 June 2021 as Non-Executive Director.
Carol is a member of the Remuneration Committee.
Skills and experience
Carol has over 20 years of experience working in senior public
company human resource roles across construction and retail sectors,
including as Group HR Director for Travis Perkins Plc from 2007 to
2020. Carol has also held senior positions at Home Retail Group
and Safeway Food Stores (now Morrisons). At Travis Perkins, Carol's
responsibilities extended across all of the Group’s businesses at that
time, which in addition to the recognised merchanting businesses
such as Travis Perkins and Toolhire, also included the Wickes and
Toolstation brands. She was Executive Chair for the Tile Giant
business unit from 2018. Her Non-Executive Director experience
began in the Financial Services sector with Leeds Building Society
where she was a member of the remuneration committee. Whilst at
Travis Perkins, Carol served as a Non-Executive Director with Verona
Stone, a tile procurement and supply business, which at the time was
part owned by the TP Group. Carol is also currently an independent
remuneration committee member for British Swimming.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Governance Speedy Hire Plc Annual Report and Accounts 2022 107
Corporate Governance
Governance progress
During the year the Company continued to build upon its
governance practices in light of the UK Corporate Governance
Code 2018 and the agreed key actions from its internal Board
evaluation in FY2021, to ensure they remain in line with
developing best practice and are suitable for a company of its
size. These key actions and their status following review during
the year and the outcome of this year’s internal evaluation are
reported on page 111.
The Board’s appointment of Carol Kavanagh as a Non-Executive
Director with effect from 1 June 2021, has further enhanced the
Board’s diversity and skills, and has helped to balance Board
tenure and succession planning. The gender balance of the
Board as at the end of FY2022 was 25% female representation.
The Board remains committed to maintaining and building on its
diversity as recruitment opportunities arise.
Speedy has long been committed to sustainable growth
and recognises the increasing stakeholder focus on climate
change and the related environmental, social and governance
considerations within its business. A new Sustainability
Committee of the Board has been established to assist the
Board in its oversight of the Company’s ESG strategy and
support the Board on all sustainability matters. This will include
supporting the Board’s ongoing evaluation of environmental
risks and our reporting under the Taskforce for Climate Related
Financial Disclosures.
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 report 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’). 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 2022, 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, two Executive
Directors and five independent Non-Executive Directors.
In the year ended 31 March 2022, the Board met eight times
across the annual scheduled programme. 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 scheduled Board meetings and Committee
meetings during the year ended 31 March 2022.
Carol Kavanagh was appointed to the Board on 1 June 2021 as
a Non-Executive Director and a member of the Remuneration
Committee. Additionally, during the year Rhian Bartlett stepped
down as a member of the Remuneration Committee effective
from 16 November 2021.
Board and Committee attendance at scheduled meetings
Board (8)
Audit & Risk
Committee (4)
Nomination
Committee (2)
Remuneration
Committee (4)
Executive Directors
Russell Down
James Bunn
Non-Executive Directors
David Shearer
David Garman
Rob Barclay
Rhian Bartlett1
Shatish Dasani
Carol Kavanagh2
7/8
8/8
8/8
8/8
8/8
8/8
8/8
7/7
0/0
0/0
4/4
4/4
4/4
0/0
2/2
2/2
0/0
2/2
2/2
0/0
0/0
4/4
4/4
3/3
0/0
3/3
1 Rhian Bartlett stepped down as a member of the Remuneration Committee effective from 16 November 2021
2 Carol Kavanagh was appointed as Non-Executive Director and a member of the Remuneration Committee on 1 June 2021
108 Governance Speedy Hire Plc Annual Report and Accounts 2022
108 Governance Speedy Hire Plc Annual Report and Accounts 2022
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
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
including 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 five independent Non-Executive Directors: David
Garman, Rob Barclay, Rhian Bartlett, Shatish Dasani and Carol
Kavanagh. The five Non-Executive Directors bring a strong
and independent non-executive element to the Board. The
Senior Independent Director is David Garman. The number
and respective experience of the independent Non-Executive
Directors, details of which are set out on pages 106 and 107,
clearly indicates that their views carry appropriate weight in
the Board’s decisions. The Board considers that each of David
Garman, Rob Barclay, Rhian Bartlett, Shatish Dasani and Carol
Kavanagh are independent on the basis of the criteria specified in
Provision 10 of the Code and are free from any business or other
relationship which could materially interfere with the exercise of
their independent judgement.
Board Committees
The Audit & Risk Committee is chaired by Shatish Dasani. Its
other members are Rob Barclay and Rhian Bartlett. Details of
its activities during the year are detailed in the Audit & Risk
Committee Report on pages 115 to 120.
The Remuneration Committee is chaired by Rob Barclay. The other
members are David Garman and Carol Kavanagh. The Committee
Chairman’s Statement, summary Directors’ Remuneration Policy
and Directors Remuneration Report are on pages 125 to 147.
Governance Speedy Hire Plc Annual Report and Accounts 2022 109
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Corporate Governance continued
Board Committees (continued)
The Nomination Committee is chaired by David Shearer. The
other members are David Garman, Rhian Bartlett and Shatish
Dasani. 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 122 to 124.
The Board has established a new Sustainability Committee
to assist the Board in its oversight of the Company’s ESG
strategy and support the Board on all sustainability matters.
The terms of reference of the Committee are published on the
Company’s website. Rob Barclay has been appointed Chair of
the Committee, the other members are Rhian Bartlett and Russell
Down. A report of the Committee’s activities will be included in
future annual reports.
The Chairman and other Non-Executive Directors meet after every
Board meeting without the Executive Directors present. In addition,
the Chairman regularly briefs the other Non-Executive Directors on
relevant developments regarding the Company as necessary. The
Senior Independent Director and the other Non-Executive Directors
meet after every Board meeting without the Chairman present, and
also undertake an annual appraisal of the Chairman’s performance
as part of the Board's 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.
The Companies Act 2006 allows non-conflicted directors of
public companies to authorise a situation in which a director
has, or could have, a direct or indirect interest that conflicts, or
possibly may conflict, with the interests of the company, 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 in
all its aspects is considered 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. Its activities are set out in more detail
in the Nomination Committee Report on pages 122 to 124. 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, election and
re-election to the Board for those candidates standing for annual
election or 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 106 having been 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.
110 Governance Speedy Hire Plc Annual Report and Accounts 2022
During the year Carol Kavanagh was appointed to the Board
as a Non-Executive Director. The search and selection of Carol
Kavanagh was supported by external recruitment consultants
Russell Reynolds Associates who have no other connection with
the Company or any of its Directors.
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 Chief Financial Officer 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.
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
This year the Board evaluation was conducted internally and was
led by the Senior Independent Director. Each of the Directors
completed a confidential evaluation questionnaire and the
results were reviewed by the Senior Independent Director in
a one-to-one meeting with the relevant Board member. The
Senior Independent Director presented his findings to the Board
for discussion led by the Chairman. The internal evaluation
concluded, as corroborated by the results of the questionnaires,
that overall the Board and its Committees were generally
effective and no material concerns had been raised. The Senior
Independent Director had noted the level of openness and
constructive self-criticism within the Board during the evaluation
had remained good. As the Company was not required to
undertake an external evaluation it has been agreed to continue
with an internal evaluation in FY2023 and review the position
again thereafter. The discussion following the Board evaluation
had considered the balance of Non-Executive Directors roles and
commitments on the Board and its Committees and the staffing
of the new Board Sustainability Committee which resulted in the
changes proposed by the Nomination Committee as detailed
on page 123.
The Chairman reviewed the performance and development
needs of each of the Executive and Non-Executive Directors.
The Non-Executive Directors, led by 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 these evaluations, and the Board is satisfied with the
Chairman’s commitment and performance.
Re-election
Pursuant to the Code and under the Company’s Articles of
Association all Directors must submit to re-election (or where
they are a new Director appointed to the Board since the last
Annual General Meeting they will retire and seek 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 election/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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 111
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Corporate Governance continued
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 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 FIT Remuneration Consultants
LLP (‘FIT’), reviews the Company’s Remuneration Policy on
a regular basis including 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 James Bunn 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 and details are reported in the
Directors’ Remuneration Report. The remuneration of other Non-
Executive Directors is dealt with by a Committee of the Board
specifically established for this purpose, normally comprising
the Chief Executive and the Chief Financial Officer, without the
presence of the Non-Executive Directors. The remuneration
of all Non-Executive Directors is ordinarily reviewed annually,
however no review had been undertaken for two years. The
remuneration of Non-Executive Directors was reviewed at the end
of FY2022. The conclusion was that the base fees be increased to
£45,000 and the Senior Independent Director fee be increased
to £7,000 both effective from 1 April 2022. Further details of the
remuneration of Non-Executive Directors are set out on page 139.
Procedure
The Board has constituted a Remuneration Committee which
met four 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,
David Garman and Carol Kavanagh 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 Chairman, Chief Executive and
Chief People Officer attend by invitation but are not present for
discussions relating to their own remuneration. The Remuneration
Committee has appointed FIT to advise it in relation to the design
of appropriate executive remuneration structures. FIT has no
other connection with the Company or any of its Directors.
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 and will be reviewed
during FY2023.
A more detailed summary of the work of the Remuneration
Committee during the year and the Group’s Remuneration Policy,
which was approved at the Company’s 2020 Annual General
Meeting and which will apply until its Annual General Meeting in
2023 is contained on pages 125 to 147.
Accountability and audit
Financial reporting
The Directors’ Report and independent auditor’s report appear on
pages 101 to 104 and pages 148 to 156 respectively and comply
with 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 comply with Provision 25 of the Code.
The Committee members are Shatish Dasani, Rob Barclay and
Rhian Bartlett 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, Chief Financial Officer, Director of Finance, Head
of Risk & Assurance and the external auditors attend by invitation.
The Board is satisfied that the Chairman of the Audit & Risk
Committee, Shatish Dasani, has appropriate recent
112 Governance Speedy Hire Plc Annual Report and Accounts 2022
Relations with shareholders
Dialogue with institutional shareholders
The Chairman, Chief Executive and Chief Financial Officer give
presentations regularly to analysts and investors, which include
the Company’s half and full-year results. The Chairman, Chief
Executive and Chief Financial Officer, 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,
David Garman, 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 Chief Financial Officer be considered
ineffective or inappropriate.
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 Chairpersons will be available for shareholders’
questions at the Annual General 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.
and relevant financial experience and that the Committee as
a whole has competence relevant to the sector in which the
Company operates.
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 119, 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 115 to 120.
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 Chief Financial Officer, 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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 113
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
114 Governance Speedy Hire Plc Annual Report and Accounts 2022
Audit & Risk Committee Report
Composition of the Audit & Risk Committee
The Audit & Risk Committee comprises three Non-Executive
Directors: Shatish Dasani (Chairman), Rob Barclay and Rhian
Bartlett. 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 page 107.
The Audit & Risk Committee is chaired by Shatish Dasani, a
chartered accountant with over 25 years’ experience in senior
public company finance roles across various sectors, including
building materials, general industrial and business services.
His biography is set out on page 107. The Board is satisfied
that Shatish Dasani 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 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
Shatish Dasani
(Chairman)
Rob Barclay
Rhian Bartlett
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
4/4
4/4
4/4
Shatish Dasani
Chairman of the Audit & Risk Committee
The Audit & Risk Committee presents
its report for the financial year ended
31 March 2022.
Objectives and terms of reference
The Audit & Risk Committee’s key objectives are to provide
oversight and governance over the effectiveness of the
Group’s financial reporting and internal controls, together with
the procedures for identification, evaluation and management
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, the Committee works
closely with management and external and internal auditors
to ensure a best practice approach to policies and controls.
In addition, a key objective of the 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 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 Committee and changes
proposed 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.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Governance Speedy Hire Plc Annual Report and Accounts 2022 115
Governance Speedy Hire Plc Annual Report and Accounts 2022 115
GovernanceStrategic ReviewCorporate InformationFinancial Statements
Audit & Risk Committee Report continued
Operation and responsibilities of the Audit & Risk Committee
The Chairman, Chief Executive and Chief Financial Officer,
together with 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
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 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 Committee if they consider it necessary. The Risk
and Assurance department carries out the Group’s internal
audit work. The Chairman of the Committee also holds private
meetings both with the Head of Risk and Assurance and the
external auditors on a regular basis.
The Company Secretary acts as secretary to the Audit & Risk
Committee. The members of the Committee can, where they
judge it necessary to discharge their responsibilities, obtain
independent professional advice at the Company’s expense.
The Committee undertakes its activities in line with an
annual programme of business. The Audit & Risk Committee’s
principal duties are:
Internal controls and risk
• monitoring the effectiveness and appropriateness of
internal controls;
•
•
•
•
•
evaluating the 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;
•
•
•
overseeing the rotation of the lead audit partner at
appropriate junctures;
considering and, if appropriate, approving the use of the
external auditors for non-audit work in line with its policy;
considering the independence of the external auditors,
taking into account: (i) non-audit work undertaken by
them; (ii) feedback from various stakeholders; and (iii) the
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 emerging accounting standards and reporting requirements,
and members are expected to participate personally in relevant
briefing and training sessions during the year.
116 Governance Speedy Hire Plc Annual Report and Accounts 2022
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 the available
headroom 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.
On 6 July 2021 the Group’s £180m asset-based finance
facility (the ‘facility’) was renewed for three years, through to
July 2024 with no prior scheduled repayment requirements.
Further uncommitted options exist for two one-year
extensions until July 2026. The additional uncommitted
accordion (£220m) remains in place through to July 2024.
The facility includes quarterly leverage and fixed charge
cover covenant tests which are only applied if headroom in
the facility falls below £18m. No covenant test was required
during the year, and the Group maintained significant
headroom against these measures.
Based on the expectations of future cash flows (including the
consideration of severe but plausible downside modelling)
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 Committee therefore considers
that it is appropriate to continue to adopt a going concern
basis in the preparation of the Financial Statements.
Significant areas considered during FY2022
During the year, the Audit & Risk Committee considered and
discussed with the external auditors and management the
following items:
•
•
•
•
the valuation of hire equipment;
the going concern basis for the preparation of the
Financial Statements;
the valuation of trade receivables; and
Cybersecurity.
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.
Valuation of hire equipment
The hire fleet comprises several million individual items,
represents the largest asset on the balance sheet, and
underpins the Group’s key revenue streams.
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 Committee requires internal audit to review the
asset management processes. The summary findings of these
reviews are provided to the Committee.
In addition to considering the appropriateness of the Group’s
depreciation policies, the Committee reviews the valuation
of hire equipment taking into consideration the 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 and in conjunction with
the assessment made by the external auditors, the Audit &
Risk Committee is satisfied that hire equipment assets are
appropriately valued.
Governance Speedy Hire Plc Annual Report and Accounts 2022 117
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Audit & Risk Committee Report continued
Valuation of trade receivables
The Group trades with a large number of customers across
a range 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 recoverable, and a provision for
this is reflected in the carrying value of those current assets.
The Audit & Risk Committee considers the overall level
of provision against receivables and any changes to the
provisioning policy recommended by management, taking into
account management’s assessment of the receivables balance
on a customer by customer basis, levels of historic credit loss
experienced by the business and the economic climate in
which the customers operate. It also reviews the findings from
the work carried out by the external auditors.
As a result of the work performed, the Committee is satisfied
that trade receivables are appropriately valued.
Cybersecurity
In common with most other businesses, due to changes in
the external threat environment, the Group is exposed to
increased risk from cyberattack which may cause disruption
to its operations. As the Group continues to expand its digital
offering online, the likelihood of becoming a target increases.
The Audit & Risk Committee has included in its routine
programme of business a review of the cybersecurity risk
and the actions that management have already taken and are
putting in place to mitigate these risks. During the year, the
Company commissioned an external specialist to review the
Group’s control framework measured against the industry
standard CIS Critical Security Controls. Whilst this showed
that there was overall a good level of control in place, the
review made a number of recommendations to strengthen the
robustness of the infrastructure. As a result management have
initiated a project to improve the control environment based
on a proportionate response for the size of the Group and the
market in which it operates.
As a result of the work performed, the Committee is satisfied
that the cybersecurity risk is being actively managed to an
appropriate level.
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 includes 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 Committee receives detailed reports from
the Risk and Assurance Department at each meeting.
The 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 maintained
by management, in addition to reports from both the internal
and external auditors. The Committee has concluded that
internal controls have operated effectively during FY2022.
Review of the work, effectiveness and independence 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 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 FY2022.
In accordance with Attribute Standard 1312 of the Chartered
Institute of Internal Auditors (‘CIIA’) International Professional
Practices Framework, an external quality assessment of internal
audit was undertaken during the year. The review concluded
that ‘the internal audit and risk function is effective in providing
independent assurance to the organisation and complies with
CIIA standards.’ It made some recommendations for improvement
to the approach undertaken, and these are being implemented by
the function. 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.
118 Governance Speedy Hire Plc Annual Report and Accounts 2022
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.
Section E24 of the CIIA Internal Audit Code of Practice requires
the Audit & Risk Committee to explicitly discuss annually the
Chair’s assessment of the independence and objectivity of the
Head of Risk and Assurance. The Committee is satisfied that the
Head of Risk and Assurance is independent and will robustly
challenge management appropriately.
Following the review, the 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, save for a change to clarify
the reporting line of the Head of Risk & Assurance.
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, a review of the scope
of their work, as well as their compliance with ethical,
professional and regulatory requirements. The 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 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 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 Committee
closely monitors the amount the Company spends with the
external auditors on non-audit services.
The only non-audit service provided by the auditors in the
year relates to the review of the Company’s half-year results
which the Committee accepted was work best undertaken
by the external auditors. These fees represented 10.2% of
the annual audit fees and the three-year average was 9.2%.
Details of the fees, split between audit and non-audit services,
payable to the external auditors are given in Note 5 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.
External Audit Tender
During the year, the Audit & Risk Committee has overseen
a competitive tender process for the appointment of a new
external auditor to commence with the audit for FY2023.
Following initial discussions, three firms were invited to
participate in the tender and the necessary independence
checks were carried out. KPMG LLP (‘KPMG’) was not invited
to re-tender as re-appointment would mean exceeding the
allowed maximum period in office. The appointment of new
auditors will bring KPMG’s 20 year tenure to an end and satisfy
the mandatory rotation requirements. The Board and the
Committee have remained satisfied with both KPMG’s quality
of service and their independence and objectivity throughout
their tenure. The audit partner responsible within KPMG has
been regularly rotated as required during the appointment.
The Committee created a tender panel led by the Committee
Chair which also included the Chief Financial Officer; Company
Secretary; Director of Finance; and the Group Finance Manager to
run the day-to-day tender process. As part of the formal tender
process a Request for Proposal, with the tender evaluation criteria
set out, was issued to the participating firms and they were given
access to a data room. Participating firms also attended site visits
and various meetings with management before submission of
their written proposals. Following submission and review of their
proposals the three firms were invited to present their proposal
to the tender panel followed by a question and answer session.
The tender panel reviewed the proposals against the agreed
criteria and selected two firms to take forward. Independent
references for each firm’s lead partner were provided and taken
up. The panel believed each of the two firms could perform
Governance Speedy Hire Plc Annual Report and Accounts 2022 119
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Audit & Risk Committee Report continued
Approval of Annual Report and Financial Statements
Having reviewed the Annual Report and Financial Statements
and made inquiries of management and the external auditors,
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 27 May 2022.
Shatish Dasani
Chairman of the Audit & Risk Committee
a quality audit of Speedy. Based on the evaluation criteria
the tender panel ranked the two firms and recommended
PricewaterhouseCoopers LLP (‘PwC’) to the Committee.
Following careful consideration of the recommendation and
the performance against the selection criteria the Committee
agreed to recommend PwC as auditor. The Board considered and
endorsed the Committee’s recommendation to appoint PwC as
the Group’s new auditors from FY2023, with the appointment
subject to Part 16 of the Companies Act 2006. PwC has
expressed its willingness to take over as external auditors of the
Group. Separate resolutions proposing PwC’s appointment and
the determination of its remuneration will be proposed at the
Annual General Meeting to be held on 8 September 2022. KPMG
will cease to hold office following the conclusion of the 2022
Annual General Meeting.
PwC, as the proposed external auditor, started undertaking
transitional activity from May 2022, in preparation for the
external audit cycle in FY2023, and attended the Committee
meeting in May 2022.
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 Chief Financial Officer manage the investor
relations programme and meet with major shareholders on a
regular basis. The Group’s Chairman also 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.
120 Governance Speedy Hire Plc Annual Report and Accounts 2022
Governance Speedy Hire Plc Annual Report and Accounts 2022 121
GovernanceStrategic ReviewCorporate InformationFinancial Statements Nomination Committee Report
Composition of the Nomination Committee
The Nomination Committee comprises the Chairman,
David Shearer, and three independent Non-Executive
Directors, David Garman, Rhian Bartlett and Shatish Dasani.
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 106 and 107.
The terms of reference of the Nomination Committee are
reviewed annually by the Committee and changes proposed 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 scheduled occasions
during the year but can meet more regularly if required.
Details of the attendance at scheduled 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 Chief People Officer may also be invited to attend,
particularly where discussions are taking place around
succession planning within the Group.
Nomination Committee members and scheduled meetings
attended during the year:
Name
Position
Meetings attended
David Shearer
(Chairman)
David Garman
Rhian Bartlett
Shatish Dasani
Non-Executive
Chairman
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
2/2
2/2
2/2
2/2
Operation of the Nomination Committee
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.
David Shearer
Chairman of the Nomination Committee
The Nomination Committee presents
its report in relation to the financial
year ended 31 March 2022.
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.
122 Governance Speedy Hire Plc Annual Report and Accounts 2022
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 at the AGM; and
•
overseeing the development of a diverse pipeline for
succession to the Board.
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 Directors and Non-Executive
Directors. The review included the identification of talented
individuals for key management roles and development across
the Group.
Board
During the year the Committee considered the size and
composition of the Board and its Committees and the balance
of skills, knowledge and experience across the Directors. The
Committee concluded that the structure, size and composition
of the Board was well balanced and operating effectively. The
Board Committees were all continuing to work effectively with
the reduced membership introduced during FY2021, with
Committee Chairs ensuring that matters were referred, and the
Board updated, as relevant. It was agreed that Rhian Bartlett
would step down from the Remuneration Committee on 16
November 2021 as previously envisaged. This was part of the
programme of reducing the number of Non-Executive Directors
on the Board Committees to balance director responsibilities
and strengthen engagement and challenge between the Board
and its Committees. The Committee recommended the one-year
extension of the term of appointment of Rob Barclay to expire
on 31 March 2023, providing continuity and an opportunity to
consider succession for the role of Chair of the Remuneration
Committee in advance of preparation for the triennial review
and approval of the Directors Remuneration Policy. Having
regard to the Company’s long commitment to sustainable
growth and the increased stakeholder focus on climate
change and the related environmental, social and governance
considerations within its business, the Board reviewed the need
for a Sustainability Committee to assist the Board in its oversight
of the Company’s ESG strategy and support the Board on all
sustainability matters. The Committee members participated
in the review and fully supported the decision to create a
Sustainability Committee of the Board.
Following year end the Nomination Committee also
recommended the three-year extension of the term of
appointment of Rhian Bartlett to expire on 31 July 2025.
Following the annual evaluation of the Board and its
Committees and further discussion of balancing Non-
Executive Directors roles and commitments on the Board
and its Committees and the staffing of the new Board
Sustainability Committee, the Nomination Committee
recommended the following which were approved by the
Board on 27 May 2022:
•
•
•
Rob Barclay (Chair), Russell Down and Rhian Bartlett to be
appointed to the Sustainability Committee. Russell being
appointed as it was agreed the Chief Executive would be
a standing member of that Committee;
Carol Kavanagh to take over as Chair of the Remuneration
Committee from Rob Barclay on 30 September 2022,
allowing Carol to lead the Remuneration Committee’s
review of the Directors Remuneration Policy in advance of
presentation for shareholder approval at the 2023 AGM.
Rob Barclay will remain on the committee; and
Rhian Bartlett to take over as the designated Non-
Executive Director for employee engagement from Rob
Barclay on 30 September 2022.
Governance Speedy Hire Plc Annual Report and Accounts 2022 123
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Nomination Committee Report continued
The Nomination Committee has recommended the re-election
of all Directors standing for re-election at the forthcoming
Annual General Meeting. This will include Russell Down, as
he will remain with the business until a successor is in place.
Russell is therefore required to submit to the usual annual
re-election with the rest of the Board and will then step down
from the Board at the end of the transition period.
This report was approved by the Board on 27 May 2022.
David Shearer
Chairman of the Nomination Committee
Chief Executive
Russell Down has advised the Board of his intention to
retire. Russell will remain with the business until a successor
is in place to ensure a smooth and orderly transition. As with
all Board appointments, the Nomination Committee is
leading the process for the appointment of his successor and
external search consultants Russell Reynolds Associates have
been retained.
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. The Board recognises the value of
diversity within the boardroom including across backgrounds,
experience, knowledge, skills and gender. The appointment
of Carol Kavanagh, from 1 June 2021, as an additional Non-
Executive Director, with her extensive experience in business
transformation and people related matters has further
strengthened the expertise of the Board in these areas and
further broadened its diversity. More generally the Group’s
approach to equality and diversity can be seen on pages 67
to 69 of the Strategic Report, along with details of the gender
balance of those personnel in senior management and their
direct reports.
124 Governance Speedy Hire Plc Annual Report and Accounts 2022
Remuneration Report
Rob Barclay
Chairman of the Remuneration Committee
The Remuneration Committee
presents its report in relation to the
financial year ended 31 March 2022.
Annual Statement
This year’s report has been split into three sections:
•
•
•
this Annual Chair’s Statement summarising major decisions
and any relevant changes to remuneration;
a summary of the Remuneration Policy Report, which sets
out the Group’s policy on the remuneration of the Executive
and Non-Executive Directors; and
the Annual Report on Remuneration outlining how the
Group’s Remuneration Policy was implemented in FY2022
and how it will be implemented in FY2023.
As the Committee is not proposing any changes to the
three-year Remuneration Policy (originally approved by the
Shareholders at the 2020 Annual General Meeting (‘AGM’)) only
this Annual Statement and the Annual Report on Remuneration
will be subject to an advisory vote at the 2022 AGM. As the
current Remuneration policy nears the end of its three-year
shareholder approved term, a new Remuneration Policy will be
subject to a vote at the 2023 AGM. Ahead of this, the Committee
will conduct a full policy review during FY2023 and will consult
as appropriate with our major shareholders and the main
representative bodies in advance of the 2023 AGM.
Performance for FY2022
The Group has performed well in FY2022 with profits increasing
significantly as compared to FY2021. Progress has been made
against our strategic priorities including digital, retail and ESG
which leaves us well positioned for future growth.
Implementation of the Remuneration Policy for FY2022
Executive Directors were awarded workforce aligned salary
increases from 1 April 2021. This equated to a 2% increase for
the Chief Executive and a 1% increase for the Chief Financial
Officer (reduced to reflect a start date part way through FY2021).
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
In respect of the variable pay out-turns for Executive Directors
for the year ended 31 March 2022:
•
•
In line with past practice the annual bonus opportunity
was limited to a maximum target of 100% of annual salary,
notwithstanding that the maximum opportunity in the
Remuneration Policy was increased to 125% of salary
at the 2020 AGM. Performance metrics were based on
Group PBT (70%), Strategic (15%) and ESG (15%) targets
for FY2022. As a result of the financial and operational
performance during the year, the Chief Executive and Chief
Financial Officer were each awarded annual bonuses of
66.9% of salary; and
The Performance Share Plan (‘PSP’) awards granted in 2019
lapsed on 24 May 2022 as a result of performance against
the EPS (50% of awards) and Total Shareholder Return
(50% of awards) targets, as measured over the three-year
performance period to 31 March 2022, being below the
relevant thresholds.
PSP awards for FY2022 were granted to Russell Down and
James Bunn on 14 June 2021 over shares equal to 100% of
salary (i.e. below the 150% of salary maximum) with 50% of
the awards subject to an EPS condition and the other 50%
subject to a relative TSR condition. Full details of the awards
granted, and the relevant performance targets, are set out in
the Annual Report on Remuneration.
The Committee is satisfied that total remuneration paid to the
Executive Directors in respect of FY2022 was appropriate.
Application of Discretion for FY2022
The Committee did not apply discretion (positive or negative)
during the year ended 31 March 2022.
Implementation of the Remuneration Policy in FY2023
Details of how the Committee intends to implement the
Remuneration Policy for the year ending 31 March 2023
are set out below. While the Remuneration Committee has
yet to finalise the remuneration arrangements in respect of
Russell Down’s retirement, the impact of the 11 May 2022
announcement on the implementation of the Remuneration
Policy, where known, is detailed below.
Base salary
As detailed in last year’s Directors’ Remuneration Report,
following a detailed review of Russell Down’s base salary in
advance of the normal 1 April 2021 review date (noting that
the 1 April 2020 review date was postponed and ultimately
cancelled), the Remuneration Committee concluded that
Russell Down’s base salary is significantly below market levels.
However, in light of the pandemic, rather than seek to address
this in 2021, the Committee agreed to: (i) award a workforce
aligned increase of 2% from 1 April 2021 (taking the salary to
Governance Speedy Hire Plc Annual Report and Accounts 2022 125
Remuneration Report continued
£395,454); and (ii) revisit this in 2022, with the intention of
moving Russell’s salary towards the market level (c.£500,000)
on a phased basis.
Following a further review, and reflecting Speedy’s strong
recovery from the Covid-19 pandemic, the Committee agreed
to increase Russell Down’s salary to £445,454 from 1 April
2022 (an increase of £50,000 on Russell’s previous salary).
Major shareholders were consulted in respect of the increase
and were supportive. While a second increase to £495,454
from 1 April 2023 was proposed, this will no longer be
implemented following the announcement of Russell’s
forthcoming retirement.
The salary for James Bunn, our Chief Financial Officer, was
increased in line with the workforce from 1 April 2022 by
3.5% to £340,000.
Pension
To the extent that Russell Down remains in employment
beyond 31 December 2022, his pension allowance of 15% of
salary will be reduced to 3% of salary to be fully aligned to the
level of the majority of the UK workforce from that date. The
pension allowance for James Bunn will continue to be set at
3% of salary.
Annual bonus
For the financial year beginning 1 April 2022, notwithstanding
that the maximum annual bonus opportunity in the
Remuneration Policy is set at 125% of salary, potential will be
limited to 100% of salary in line with past practice. Performance
metrics will continue to be based on group profit before
tax (70%), strategic (15%) and ESG (15%) targets to reflect
Speedy’s financial and strategic priorities for the year ahead.
Outstanding performance will be required for the maximum
bonus to become payable. The performance targets are deemed
to be commercially sensitive at the current time but full details
of the targets and the actual performance against those targets
will be disclosed on a retrospective basis in next year’s Annual
Report and Accounts.
PSP
The 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. PSP awards for
FY2023 will be granted to James Bunn over shares equal to no
more than 100% of salary (i.e. below the normal 150% of
salary maximum) and the Committee will consider the prevailing
share price at the time of grant. 50% of the awards will be
subject to an EPS condition and 50% of the awards will be
subject to a relative TSR condition based on the Group's
performance against the constituents of the FTSE 250 (excluding
investment trusts) measured over three years from 1 April 2022
to 31 March 2025. Details of the performance targets will be
set out in the RNS issued immediately after the grant date.
126 Governance Speedy Hire Plc Annual Report and Accounts 2022
Russell Down will not receive a PSP award for FY2023 given his
forthcoming retirement.
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 or
incentive scheme relevant to their role, ensuring all employees
are able to share in the success of the organisation. In addition,
alongside the annual Company wide salary review process,
which continues to ensure that all employees are paid above
the National Living Wage, 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. As required by the Regulations,
we have disclosed 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 on page 147.
Shareholder engagement
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. In this
regard, the Committee wrote to major shareholders and the
main shareholder representatives in advance of the 2021 AGM
in respect of its approach to fixed and variable remuneration
in light of the pandemic. In addition, following a 21.4% vote
against the resolution to approve the Directors’ Remuneration
Report at the 2021 AGM primarily in connection with the
payment of an annual bonus for the second half of FY2021,
the Committee wrote to those shareholders which abstained
or voted against to seek further feedback and provide the
opportunity for a call to discuss any residual concerns. Finally,
as noted above, major shareholders were consulted in respect
of the proposal to increase Russell Down’s base salary. We will
continue to take into account the views of our shareholders
as appropriate.
Conclusion
Our Directors’ Remuneration Policy continues to drive the
intended performance from the Executive Directors. 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 resolution at our 2022 AGM.
This report was prepared by the Remuneration Committee and
approved by the Board on 27 May 2022.
Rob Barclay
Chairman of the Remuneration Committee
Directors’ Remuneration Policy Report
The key principles of the policy are:
This part of the Directors’ Remuneration Report sets out
a summary of the Directors’ Remuneration Policy which
was approved at the 10 September 2020 AGM. The full
Remuneration Policy as approved by shareholders can be
found in the 2020 Annual Report.
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’).
•
•
•
•
•
•
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;
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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 127
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
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.
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.
128 Governance Speedy Hire Plc Annual Report and Accounts 2022
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
Pension
Purpose and link
to strategy
Operation
Maximum
N/A
Provide market competitive retirement benefits, to reward sustained contribution.
Defined contribution and/or pension allowance.
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%
of salary.
For incumbent Executive Directors the maximum pension is 15% of basic salary p.a. which will be
further reduced to be fully aligned to the level of the majority of the UK workforce by the end of the
policy period.
Performance
targets
N/A
Governance Speedy Hire Plc Annual Report and Accounts 2022 129
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
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.
The annual bonus policy maximum is 125% of salary in any financial year.
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.
Maximum
Performance
targets
130 Governance Speedy Hire Plc Annual Report and Accounts 2022
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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 131
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
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 applies 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 are not 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
132 Governance Speedy Hire Plc Annual Report and Accounts 2022
Directors’ Remuneration Policy table
Non-Executive Directors
Purpose and link
to strategy
To attract and retain high calibre Non-Executive Directors.
Operation
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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 133
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
How employees’ pay is taken into account
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. Speedy discloses the pay ratio for the Chief Executive,
compared to that of UK employees at the median, lower and upper
quartile and the year-on-year trends will be considered in the wider
context of employee pay at Speedy.
In addition, the Chairman of the Committee (the designated
employee Non-Executive Director) annually attends Colleague
Consultative Committee meetings (formerly the Employee
Forum) which are held every six months. In addition to the
normal agenda items and in accordance with provision 41 of the
Corporate Governance Code, the Chairman of the Committee
uses this forum to explain how executive remuneration aligns
with wider Company pay policy.
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.
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 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.
Details of engagement with major shareholders and the main
representative bodies during FY2022 are set out in the
Annual Statement.
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.
134 Governance Speedy Hire Plc Annual Report and Accounts 2022
Approach to recruitment and promotions (continued)
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
8 January 2015
(amended 14
September 2021*)
12 months
James Bunn
26 August 2020
9 months
*A small number of updates were made to Russell Down’s service contract
in 2021, primarily to reflect the alignment of pension provision to workforce
levels by 31 December 2022 and to update the restrictive covenants.
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.
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.
Governance Speedy Hire Plc Annual Report and Accounts 2022 135
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
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 20 days in
relation to David Garman, Rob Barclay, Rhian Bartlett, Shatish
Dasani and Carol Kavanagh.
Relevant appointment letter and term dates of Non-Executive
Directors are set out as follows:
Non-
Executive
Director
David
Shearer3
David
Garman
Appointment
letter date1
Month of last
election
Expected month
of expiry of
current term2
18 July
2018
September
2021
25 May
2017
September
2021
Rob Barclay
30 March
2016
September
2021
Rhian
Bartlett
Shatish
Dasani
14 May
2019
September
2021
22 January
2021
September
2021
Carol
Kavanagh4
30 April
2021
September
2021
July
2024
July
2023
April
2023
July
2025
July
2024
July
2024
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.
1 Appointment letter date is that of the original letter of appointment.
Appointment letters are varied and updated from time to time.
2 Subject to annual re-election by shareholders at the AGM.
3 Details relate to appointment as Non-Executive Chairman, original
appointment as Non-Executive Director was September 2016.
4 Appointed with effect from 1 June 2021.
136 Governance Speedy Hire Plc Annual Report and Accounts 2022
Annual Remuneration Report
The Remuneration Committee’s duties include:
The sections of the Annual Remuneration Report that have
been audited by KPMG LLP are page 139 from ‘Non-Executive
Directors’ to page 145 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’.
Remuneration Committee role and membership
The Remuneration Committee comprises three members:
Rob Barclay (Chairman), David Garman and Carol Kavanagh.
Rhian Bartlett also served during the year as detailed below.
All members are considered by the Board to be independent
Non-Executive Directors. Biographies of the members of
the Remuneration Committee are set out on pages 106 and
107. Details of the attendance at Remuneration Committee
meetings are set out below.
Remuneration Committee members and scheduled
meetings attended:
Name
Position
Meetings attended
Rob Barclay
(Chairman)
David Garman
Carol Kavanagh1
Former Member
Rhian Bartlett2
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
4/4
4/4
3/3
3/3
1 Carol Kavanagh was appointed on 1 June 2021 as a member of the
Remuneration Committee.
2 Rhian Bartlett stepped down as a member of the Remuneration Committee
on 16 November 2021.
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.
•
•
•
•
•
•
•
•
•
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 remuneration and incentive packages to
ensure such packages are fair and reasonable;
to review Directors’ expenses;
to review Executive and Non-Executive Directors against
the shareholding 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;
to determine whether awards made under performance
related 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.
During FY2022, the Remuneration Committee reviewed the
following matters at its meetings:
•
•
•
•
•
•
determination of FY2021 bonuses for the Executive
Directors and senior managers;
selection and appointment of a new all-employee share
scheme administrator;
determination of executive remuneration structure and
application of the policy for FY2022 and FY2023;
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;
Governance Speedy Hire Plc Annual Report and Accounts 2022 137
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
•
•
•
•
•
•
•
•
progress of bonus achievement for FY2022
executive bonuses;
approval of 25-year long service awards for eligible
employees and consideration of other awards based on
long-service;
terms of reference for, and effectiveness of, the
Remuneration Committee;
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;
review of the Non-Executive Chairman’s fee;
determining remuneration arrangements for senior
management joiners and leavers; and
• major shareholder engagement on Chief Executive
remuneration and FY2022 Remuneration Report.
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.
Advisers
During the year, the Remuneration Committee received
independent advice from FIT Remuneration Consultants LLP
(‘FIT’), in connection with remuneration matters including
the provision of general guidance on market and best
practice and the production of this report. FIT has no other
connection or relationship with the Group and provided no
other services to the Group during FY2022. FIT is a member
of the Remuneration Consultants Group and is a signatory
to its Code of Conduct. Fees paid to FIT for FY2022 totalled
£33,112 (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 FY2023
Base salary
As detailed in last year’s Directors’ Remuneration Report,
following a detailed review of Russell Down’s base salary in
advance of the normal 1 April 2021 review date (noting that
the 1 April 2020 review date was postponed and ultimately
cancelled), the Remuneration Committee concluded that
Russell Down’s base salary was significantly below market
levels. However, in light of the pandemic, rather than seek
to address this in 2021, the Committee agreed to: (i) award a
workforce aligned increase of 2% from 1 April 2021 (taking
the salary to £395,454); and (ii) revisit this in 2022, with the
intention of moving Russell’s salary towards the market level
(c.£500,000) on a phased basis.
Following a further review, and reflecting Speedy’s strong
recovery from the Covid-19 pandemic, the Committee
agreed to increase Russell Down’s salary to £445,454 from
1 April 2022 (an increase of £50,000 on Russell’s previous
salary). Major shareholders were consulted in respect of the
increase and were supportive. While a second increase to
£495,454 from 1 April 2023 was proposed, this will no longer
be implemented following the announcement of Russell’s
forthcoming retirement.
The salary for James Bunn, our Chief Financial Officer, was
increased in line with the workforce from 1 April 2022 by
3.5% to £340,000.
Pension
To the extent that Russell Down remains in employment beyond
31 December 2022, his pension allowance of 15% of salary
will be reduced to 3% of salary to be fully aligned to the level
of the majority of the UK workforce from that date. The pension
allowance for James Bunn will continue to be set at 3% of salary.
Annual bonus
For the financial year beginning 1 April 2022, notwithstanding
that the maximum annual bonus opportunity in the
Remuneration Policy is set at 125% of salary, potential
will be limited to 100% of salary in line with past practice.
Performance metrics will continue to be based on group profit
before tax (70%), strategic (15%) and ESG (15%) targets to
reflect Speedy’s financial and strategic priorities for the year
ahead. Outstanding performance will be required for the
maximum bonus to become payable. The performance targets
are deemed to be commercially sensitive at the current time
but full details of the targets and the actual performance
against those targets will be disclosed on a retrospective basis
in next year’s Annual Report and Accounts.
138 Governance Speedy Hire Plc Annual Report and Accounts 2022
PSP
The 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. PSP awards for FY2023 will be
granted to James Bunn over shares equal to no more than 100% of salary (i.e. below the normal 150% of salary maximum)
and the Committee will consider the prevailing share price at the time of grant. 50% of the awards will be subject to an EPS
condition and 50% of the awards will be subject to a relative TSR condition based on the Group's performance against the
constituents of the FTSE 250 (excluding investment trusts) measured over three years from 1 April 2022 to 31 March 2025.
Details of the performance targets will be set out in the RNS issued immediately after the grant date. Russell Down will not
receive a PSP award for FY2023 given his forthcoming retirement.
Non-Executive Directors
Current annual fee levels for Non-Executive Directors are as follows:
Non-Executive
Director
Role
Committee
chair role
1 April 2022¹
1 April 2021
David Shearer
Non-Executive Chairman
Nomination
£140,000
£132,500
David Garman
Senior Independent
Director
-
£52,000
£47,500
Rob Barclay
Non-Executive Director
Remuneration
£52,000
£49,500
Rhian Bartlett
Non-Executive Director
-
£45,000
£42,500
Shatish Dasani
Non-Executive Director
Audit & Risk
£52,000
£49,500
Carol Kavanagh
Non-Executive Director
-
£45,000
-
1 The policy reflects a base Board fee of £45,000 (FY2022: £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 (David Garman) of £7,000 (FY2022: £5,000).
Governance Speedy Hire Plc Annual Report and Accounts 2022 139
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
Directors’ remuneration for FY2022
The emoluments of the Directors of the Company for the year under review were as follows:
Financial
year
Fees/basic
salary
£’000¹
Benefits
£’000²
Pension
£’0003
Total fixed
remuneration
£’000
Annual
bonus
£’0004
Value of
long-term
incentives
£’0005
Total variable
remuneration
£’000
Total
remuneration
£’000
Executive Directors
Russell
Down
James
Bunn6
2022
2021
2022
2021
Non-Executive Directors
David
Shearer
David
Garman7
Rob
Barclay
Rhian
Bartlett
Shatish
Dasani8
Carol
Kavanagh9
Totals
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
395
368
329
179
133
126
48
44
50
47
43
40
50
8
35
-
16
14
16
7
-
-
-
-
-
-
-
-
-
-
-
-
59
58
10
6
-
-
-
-
-
-
-
-
-
-
-
-
470
440
355
192
133
126
48
44
50
47
43
40
50
8
35
-
265
137
220
115
-
-
-
-
-
-
-
-
-
-
-
-
0
213
-
-
-
-
-
-
-
-
-
-
-
-
-
-
265
350
220
115
-
-
-
-
-
-
-
-
-
-
-
-
735
790
575
307
133
126
48
44
50
47
43
40
50
8
35
-
2022
2021
1,083
812
32
21
69
64
1,184
897
485
252
0
213
485
465
1669
1362
1 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 Taxable benefits comprise a car or cash alternative, health insurance, and life insurance, including 0.5552 pence per share for the SAYE 2021 awards granted in
December 2021 (being the value of the discount under the scheme).
3 Russell Down and James Bunn received £59,273 and £6,423 respectively in lieu of pension contributions which are included in the Pension column above
together with any actual pension contributions made.
4 For FY2022 the maximum bonus opportunity for the Executive Directors was 100% of salary, based on Group adjusted profit before tax (70%), strategic
targets (15%) and ESG targets (15%). Details of actual performance against targets is set out below.
5 For FY2022, this reflects that the 2019 PSP awards failed to hit both the threshold EPS and TSR performance targets, resulting in nil vesting.
6 James Bunn was appointed to the Board on 14 September 2020.
7 David Garman was appointed as Senior Independent Director from 1 August 2020.
8 Shatish Dasani was appointed to the Board on 1 February 2021.
9 Carol Kavanagh was appointed to the Board on 1 June 2021.
140 Governance Speedy Hire Plc Annual Report and Accounts 2022
Annual bonuses awarded in respect of FY2022 performance
Russell Down and James Bunn were eligible to receive bonuses with a maximum opportunity of 100% of salary in respect of
financial and operational performance in FY2022. Details of the performance targets and resulting bonus outcome are set out
in the table below:
Measure
Adjusted PBT*
Strategic
ESG
Total
Weighting
(% of salary)
Target
Max
Actual
Result
(% of salary)
CEO Bonus
Award (100%
of salary max)
CFO Bonus
Award (100%
of salary max)
70%
15%
15%
100%
£30m
(35% of salary)
£33m
(70% of salary)
£31.0m
46.9%
£185,468
£154,067
15%
15%
-
-
-
-
-
-
-
5%
(See Table 1)
15%
(See Table 2)
£19,773
£16,425
£59,318
£49,275
66.9%
£264,559
£219,767
* Group adjusted profit before tax (‘adjusted PBT’). The actual results of £31.0m exclude development costs as agreed by the Remuneration Committee when targets were set at the start of the financial year.
Table 1 – Strategic Targets
Target
Committee Assessment
Deliver revenue growth in
consumer/retail sector
The Committee was pleased to note the formal agreement to partner with B&Q providing further opportunities in the B2C sector and
the good progress that has been made on revenue growth more generally.
Maximise Return on Capital
Return on Capital Employed for FY2022 was slightly lower than target due to an acceleration of the capital expenditure programme to
mitigate supply chain pressures.
Optimise asset utilisation
Whilst asset utilisation rates on our enlarged hire fleet have been strong, the Committee noted that it was slightly below target due to
the increased capex and impact of Covid-19 in the early months of FY2022.
Total
5% out of 15% of salary
Table 2 – ESG Targets
Target
Committee Assessment
Deliver a 10% improvement on
C02 per employee from FY2020
Deliver a significant
improvement in the HACT value
Proactively manage / minimise
safety incidents
The Committee was pleased to note a 23% reduction in CO2 per employee from 6.45 tonnes (excluding MENA) for FY2020
(i.e. using a pre-Covid base year for comparative purposes) to 4.94 (excluding MENA) for FY2022.
Based on a HACT target value of £2.3m, the Committee noted that the £6.3m result for FY2022 meant that this target was
significantly exceeded.
Management were deemed to have proactively managed the Company’s health and safety agenda during FY2022, resulting in a
reduction in the RIDDOR rate from 0.4 (excluding MENA) for FY2020 (i.e. using a pre-Covid base year for comparative purposes) to 0.35
(excluding MENA) for FY2022.
Total
15% out of 15% of salary
In addition to the assessing of the above financial, strategic and ESG targets, the Committee also considered the impact of
major health, safety and environmental incidents during the year (there were none) and the performance of the individual
Director when determining the extent to which annual bonuses should become payable. Based on this assessment, the
Committee is satisfied that total bonus awards of 66.9% of salary for both Russell Down and James Bunn are appropriate.
Governance Speedy Hire Plc Annual Report and Accounts 2022 141
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Remuneration Report continued
Performance share awards granted in 2019 and vesting in 2022
No awards vested in respect of the performance share awards granted in 2019 with three-year EPS and TSR performance
periods ended 31 March 2022. Details of the performance targets set for the award and actual achievement against them are
set out in the table below.
Performance
measure
Weighting
Performance
period end
Threshold hurdle
(25% vesting)
Stretch
performance hurdle
(100% vesting)
Actual
% vesting for this
part of the award
Adjusted earnings
per share before the
impact of IFRS 16
Total shareholder
return versus the
constituents of the
FTSE 250 (excluding
Investment Trusts)
50%
31 March 2022
6.82p
8.34p
4.13p
0%
50%
31 March 2022
Median
Upper Quartile
Below Median
0%
Long-term incentive plan awards granted in the year
Russell Down and James Bunn were granted the following awards under the 2014 Performance Share Plan on 14 June 2021 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
% vesting
at threshold
Russell Down
14/06/2021
James Bunn
14/06/2021
100%
of salary
100%
of salary
551,385
£395,454
458,031
£328,500
Three years
ending 31
March 2024
Three years
ending 31
March 2024
Three years
from grant
25% of
an award
Three years
from grant
25% of
an award
1 Determined using the average mid-market closing share price of the Company for the five 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 5.33 pence with
full vesting of this part of the award for EPS of 5.89 pence. 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 2024.
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 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).
142 Governance Speedy Hire Plc Annual Report and Accounts 2022
Details of long-term incentive plan awards outstanding
Details of the Executive Directors’ interests in share-based awards are as follows:
Executive
Director
Interest at
1 April 2021
Options/
awards
granted during
the year
Options/
awards
exercised
during the year
Options/
awards lapsed
during the year
Interest at
31 March 2022
Exercise price
(pence)
Normal date from
which exercisable/
vested to expiry date
(if appropriate)
Russell Down
PSP 2015 1,2
PSP 2016 1,2
PSP 20171,2
PSP 20181,2
PSP 20191,2,6
PSP 20201,4
PSP 20211,2,3
SAYE 2018 5
SAYE 2019 5
SAYE 2020 5
Total
James Bunn
PSP 2020 1,4
PSP 20211,2,3
SAYE 2021 5
Total
226,130
943,115
314,241
638,608
617,947
565,490
-
-
-
-
-
-
-
551,385
6,406
6,000
3,786
-
-
-
3,321,723
551,385
474,037
-
-
474,037
-
458,031
14,200
472,231
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
226,130
943,115
314,241
nil Aug 2018 – Aug 2025
nil
nil
Jun 2019 – Jun 2026
Jun 2020 – Jun 2027
(328,820)
309,788
nil May 2021 – May 2028
-
-
-
-
-
-
617,947
565,490
551,385
6,406
6,000
3,786
nil May 2022 – May 2029
nil Nov 2023 – Nov 2030
nil
Jun 2024 – Jun 2031
46.080 Feb 2022 – Jul 2022
48.000 Feb 2023 – Jul 2023
55.144 Feb 2024 – Jul 2024
(328,820)
3,544,288
-
-
-
-
-
-
474,037
458,031
14,200
946,268
nil Nov 2023 – Nov 2030
nil
Jun 2024 – Jun 2031
55.52 Feb 2025 – Jul 2025
-
-
1 The Performance Share Plan awards above were granted as nil-cost options.
3 The performance conditions for the 2021 Performance Share Plan awards
No consideration was paid for the grant of these options.
2 50% of each 2015, 2016, 2017, 2018, 2019 and 2021 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 (save for the 2021 award). 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; 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; 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; in respect
of the 2019 award: award for EPS (before amortisation and exceptional costs) of
6.82 pence, with full vesting of this part of the award for EPS of 8.34 pence or
better; and in respect of the 2021 award: award for EPS (before amortisation and
exceptional costs) of 5.33 pence, with full vesting of this part of the award for
EPS of 5.89 pence or better. A sliding scale operates between the points. 50%
of each 2015, 2016, 2017, 2018, 2019 and 2021 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.
are set out at ‘Long-term incentive plan awards granted in the year'
on page 142.
4 100% of 2020 Performance Share Plan award is subject to absolute TSR
condition, as follows:
The Company’s compound annual
growth rate of TSR over the three years
from grant
Percentage of an Award
that may Vest
Below 7.5% p.a.
7.5% p.a.
15% p.a. or above
0%
25%
100%
Greater than 7.5% p.a. but less than
15% p.a.
Between 25% and 100% on a straight
line basis
5 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.
6 Following the year-end, the 2019 Performance Share Plan lapsed in full as a
result of failing to hit the threshold EPS and TSR targets.
The mid-market closing price of Speedy Hire Plc ordinary shares at 31 March 2022 was 54.3 pence and the range during the
year was 47.4 pence to 80.9 pence per share.
Governance Speedy Hire Plc Annual Report and Accounts 2022 143
S
S
t
t
r
r
a
a
t
t
e
e
g
g
i
i
c
c
R
R
e
e
p
p
o
o
r
r
t
t
G
G
o
o
v
v
e
e
r
r
n
n
a
a
n
n
c
c
e
e
F
F
i
i
n
n
a
a
n
n
c
c
i
i
a
a
l
l
S
S
t
t
a
a
t
t
e
e
m
m
e
e
n
n
t
t
s
s
C
C
o
o
r
r
p
p
o
o
r
r
a
a
t
t
e
e
I
I
n
n
f
f
o
o
r
r
m
m
a
a
t
t
i
i
o
o
n
n
Remuneration Report continued
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 26 May 2022, the latest
practicable date before the publication of this Annual Report
and Accounts, 2.02% of the 5% limit and 4.79% of the 10%
limit have been used.
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 135 and 136.
Shareholder voting at AGM
The most recent resolutions in respect of the Directors’
Remuneration Policy (2020 AGM) and Directors’ Remuneration
Report (2021 AGM) received the following votes from
shareholders:
2020 AGM – Remuneration Policy
2021 AGM - Remuneration Report
Total number of votes
% of votes cast
Total number of votes
% of votes cast
For
Against
Total votes cast (for and against)
Votes withheld1
413,837,471
96.18
299,292,417
16,425,923
430,263,394
671,778
3.82
100
n/a
81,308,422
380,600,839
37,576,014
418,176,853
78.64
21.36
100
n/a
Total votes cast (including withheld votes)
430,935,172
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.
Details of the Committee’s engagement with shareholders in respect of the 21.4% vote against at the 2021 AGM are set out in
the Annual Statement.
Directors’ interests in the share capital of the Company
The interests of the Directors (all of which were beneficial) who held office during FY2022, are set out in the table below:
Legally owned
PSP Awards
Sharesave
Total
Shareholding
requirement
% of salary/fee
of requirement
met
Director
31 March 2021
31 March 2022
Unvested
Vested
Unvested
31 March 2022
Russell Down
319,186
319,186
1,734,822
1,793,274
16,192
2,112,460
James Bunn
-
35,981
932,068
David Shearer
500,000
500,000
David Garman
75,000
75,000
Rob Barclay
48,000
48,000
Rhian Bartlett
74,744
74,744
Shatish Dasani
35,000
61,500
Carol
Kavanagh
-
14,999
-
-
-
-
-
-
144 Governance Speedy Hire Plc Annual Report and Accounts 2022
-
-
-
-
-
-
-
14,200
35,981
-
-
-
-
-
-
500,000
75,000
48,000
74,744
61,500
14,999
%
200
200
100
100
100
100
100
100
%
85
3
>100
87
54
97
69
20
Note that only legally owned shares and vested but unexercised PSP awards (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 (being 55.39p) and tested against the Directors’ base salary/fee at 31 March).
Following the year-end, the 2019 Performance Share Plan lapsed in full. There have been no other changes in the interests of
any current Director in the share capital of Speedy Hire Plc between 1 April 2022 and the date of this report.
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
Speedy Hire
FTSE 250 (excl. investment trusts)
FTSE SmallCap (excl. investment trusts)
)
d
e
s
a
b
e
r
-
£
(
e
u
l
a
V
350
300
250
200
150
100
50
0
31/03/12
31/03/13
31/03/14
31/03/15
31/03/16
31/03/17
31/03/18
31/03/19
31/03/20
31/03/21
31/03/22
This graph shows the value, by 31 March 2022, of £100 investment in Speedy Hire on 31 March 2012, compared with the value
of £100 invested in the FTSE 250 (excl. Investment Trusts) and FTSE SmallCapp (excl. Investment Trusts) indices on the same day.
The other points plotted are the values at intervening financial year-ends.
Source: Refinitiv Eikon
Governance Speedy Hire Plc Annual Report and Accounts 2022 145
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Single Total
Figure of
remuneration
(£’000s)
Annual bonus
(% of max)
Remuneration Report continued
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 (FY2013 to FY2022) 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 2013 FY 2014 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
553
707
115
593
107
409
757
6671
1,2781
683
790
735
37.0%
-
-
-
60.0%
-
-
-
-
-
97.4% 54.8% 54.9%
- 70.54%3
66.9%
-
33.0% 96.4%2
50.0% 48.51%
0%
PSP vesting
(% of max)
-
82.0%
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.
3 The annual bonus potential was limited to 50% of salary over the second half of FY2021.
Percentage change in Chief Executive’s remuneration
The table below shows the percentage change in each Director’s total remuneration (excluding the value of any long-term
incentives and pension benefits receivable in the year) between FY2021 and FY2022 compared to that of the average for
all UK and Ireland based employees of the Group. Prior year comparatives are also presented.
% change from FY2020 to FY2021
% change from FY2021 to FY2022
Russell Down
James Bunn2
David Shearer
David Garman3
Rob Barclay
Rhian Bartlett4
Shatish Dasani5
Carol Kavanagh6
Average employees
Salary/Fee1
Benefits
(5%)
n/a
(6%)
4%
(5%)
(4%)
n/a
n/a
(0%)
2%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(0%)
Bonus
100%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Salary/Fee1
Benefits
7%
1%
6%
8%
5%
4%
3%
n/a
12%
0%
10%
n/a
n/a
n/a
n/a
n/a
n/a
0%
Bonus
93%
91%
n/a
n/a
n/a
n/a
n/a
n/a
11%
1 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 pandemic.
2 James Bunn was appointed to the Board on 14 September 2020. As such, there was no prior year remuneration for 2020. His 2021 numbers have been pro-
rated up, to enable a full year on year comparison.
3 David Garman was appointed as Senior Independent Director from 1 August 2020.
4 Rhian Bartlett was appointed to the Board on 1 June 2019. Her 2020 numbers have been pro-rated up to enable a full year on year comparison.
5 Shatish Dasani was appointed to the Board on 1 February 2021. As such, there was no prior year remuneration for 2020. His 2021 numbers have been pro-
rated up, to enable a full year on year comparison.
6 Carol Kavanagh was appointed to the Board on 1 June 2021. As such, there was no prior year fee.
146 Governance Speedy Hire Plc Annual Report and Accounts 2022
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 2022
(and for the prior year), and the pay details for the individuals at each percentile:
Year
2022
2021
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)
Option A
Option A
31:1
37:1
26:1
32:1
21:1
25:1
The Committee notes that the ratio has decreased from 32:1 to 26:1. This is primarily a function of a higher annual bonus for FY2022
compared to FY2021 failing to offset the 0% vesting under the 2019 PSP (the 2018 PSP vested at 48.5% of the maximum) in respect of
the CEO’s total remuneration.
The median, 25th percentile and 75th percentile figures used to determine the above ratios were calculated by reference to option ‘A’
methodology prescribed under the UK Companies (Miscellaneous Reporting) Regulations 2018 albeit the total remuneration figures
for employees are based on a cash, rather than accrual basis, in respect of the various annual bonus schemes operated. The Committee
selected this approach as it was felt to produce the most statistically accurate result based on the available data and to be comparable
from year-to-year.
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 2021/22 remuneration is at the median, 25th percentile and 75th percentile amongst UK based
employees (and for the prior year) are as follows:
Chief Executive
UK Employees
25th percentile
Median
75th percentile
2022
2021
Salary
(Total pay and benefits)
Salary
(Total pay and benefits)
£395,494 (£735,461)
£21,996 (£24,020)
£26,483 (£27,889)
£32,959 (£35,820)
£368,315 (£789,647)
£20,429 (£21,514)
£23,503 (£24,600)
£30,043 (£31,660)
Relative importance of spend on pay
The following table shows the Company’s actual spend on pay (for all employees) relative to distributions to shareholders by
way of dividends and share buybacks.
Staff costs (£’m)
Dividends (£’m)
Share Buyback (£’m)
2021
109.5
-
-
2022
123.3
11.3
6.1
% change
12.6
100
100
£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 the relevant financial year and the share buyback figure for committed transactions in the relevant
financial year.
This report was approved by the Board on 27 May 2022.
Rob Barclay
Chairman of the Remuneration Committee
Governance Speedy Hire Plc Annual Report and Accounts 2022 147
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
2. Key audit matters: our assessment of risks of material misstatement
Key audit m atters are those m atters that, in our professional judgem ent, were of m ost significance in the audit of the financial
statem ents and include the m ost significant assessed risks of m aterial m isstatem ent (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 engagem ent team . We sum m arise below the key audit m atters, in decreasing order of audit significance, in arriving at our
audit opinion above, together with our key audit procedures to address those m atters and, as required for public interest entities, our
results from those procedures. These m atters 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 statem ents as a whole, and in form ing our opinion thereon, and consequently are
incidental to that opinion, and we do not provide a separate opinion on these m atters.
The risk
Our resp onse
Carrying amount of hire
Sub jective estimate
Our procedures included:
(£226.9 m illion; 2021: £207.2
estim ation of useful econom ic lives and
the design over the controls around the
Judgem ent is applied by the Group in the
— Control design and re-p erformance: Testing
residual values. These judgem ents are
based on historical experience, industry
regulation, an assessm ent of the nature of
the assets involved and the future
expected usage and m arket for the sale of
assets. The judgem ents m ade are profit
im pacting and therefore there is an
incentive for m anagem ent to m anipulate
the judgem ents m ade.
estim ation of UELs and residual values.
— Test of details: Using data analytics techniques
to com pare the hire equipm ent register for the
current year to prior year to determ ine any
changes m ade to useful econom ic lives and
residual values and challenging any changes to
assess whether they are consistent with
accounting policies and reflective of the
planned usage for those assets. Evaluating the
The effect of these m atters is that, as part
profit or loss on disposal of hire equipm ent to
of our risk assessm ent, we determ ined
support the reasonableness of the useful
equip ment
m illion)
Refer to page 117 (Audit & Risk
Com mittee Report), page 172
(accounting policy) and page 185
(financial disclosures).
that the estim ation of useful econom ic
lives and residual values have a high
degree of estim ation uncertainty, with
potential range of reasonable outcom es
greater than our m ateriality for the financial
statem ents as a whole and potentially
m any tim es that am ount. This is of
particular im portance as the residual values
and useful econom ic lives of assets m ay be
im pacted by the current econom ic
conditions and carbon reduction objectives
and requirem ents.
econom ic lives and residual values applied.
— Test of details: Com paring the hire equipm ent
register to hire revenue inform ation to identify
the quantity and net book value of assets with a
history of low utilisation. Identifying from this
analysis those assets we consider to be at
highest risk of obsolescence, challenging the
com pany to provide evidence over the carrying
am ount of these assets and inspecting this
evidence.
— Test of details: For those hire assets identified
as not m eeting the low carbon targets of the
com pany or its custom ers, com paring net book
value with current and forecasted levels of hire
revenue and profits to identify those assets at
highest risk of a reduction in useful econom ic
life or residual value and challenging
m anagem ent to provide evidence to support
the carrying am ount of these assets.
— Assessing transp arency: Assessing the
adequacy of the Group’s disclosures in respect
of the judgem ents and estim ates involved in
arriving at the carrying am ount of hire
equipm ent.
We perform ed the tests above rather than seeking
to rely on any of the group's controls because the
nature of the balance is such that we would expect
to obtain audit evidence prim arily through the
detailed procedures described.
Our results
— As a result of our work we found that the
carrying am ount of hire equipm ent were
acceptable (2021: acceptable).
Independent
auditor’s report
to the members of Speedy Hire Plc
We were first appointed as auditor by the Directors in
October 2000. The period of total uninterrupted
engagem ent is for the 22 financial years ended 31
March 2022. We have fulfilled our ethical
responsibilities under, and we rem ain independent of
the Group in accordance with, UK ethical requirem ents
including the FRC Ethical Standard as applied to listed
public interest entities. No non-audit services
prohibited by that standard were provided.
Overview
Materiality:
group financial
statem ents as a
whole
£1.4m (2021:£1.1m )
4.8% (2021: 4.1%) of profit
before tax, (2021: profit before tax
norm alised to exclude exceptional
item s and discontinued operations
and by averaging over the last
three years)
Coverage
88% (2021: 90%) of group profit
before tax
Key audit matters
vs 2021
Recurring risks Group – Carrying
▼
am ount of hire
equipm ent
Group – Provision for
trade receivables
Parent Comp any –
Recoverability of
parent’s debt due from
group entities
◄►
◄►
1. Our opinion is unmodified
We have audited the financial statem ents of
Speedy Hire Plc (“the Com pany”) for the year
ended 31 March 2022 which com prise the
consolidated incom e statem ent, consolidated
statem ent of com prehensive incom e, consolidated
balance sheet, consolidated statem ent of changes
in equity, consolidated cash flow statem ent,
com pany balance sheet, com pany statem ent of
changes in equity, com pany cash flow statem ent
and the related notes, including the accounting
policies in note 1.
In our opinion:
— the financial statem ents give a true and fair
view of the state of the Group’s and of the
parent Com pany’s affairs as at 31 March 2022
and of the Group’s profit for the year then
ended;
— the Group financial statem ents have been
properly prepared in accordance with
international accounting standards in conform ity
with the requirem ents of UK-adopted
international accounting standards;
— the parent Com pany financial statem ents have
been properly prepared in accordance with
international accounting standards in conform ity
with the requirem ents of, and as applied in
accordance with the provisions of, UK-adopted
international accounting standards and as
applied in accordance with the provisions of the
Com panies Act 2006; and
— the financial statem ents have been prepared in
accordance with the requirem ents of the
Com panies Act 2006.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs
(UK)”) and applicable law. Our responsibilities are
described below. We believe that the audit
evidence we have obtained is a sufficient and
appropriate basis for our opinion. Our audit opinion
is consistent with our report to the Audit & Risk
Com m ittee.
148
149
2. Key audit matters: our assessment of risks of material misstatement
Key audit m atters are those m atters that, in our professional judgem ent, were of m ost significance in the audit of the financial
statem ents and include the m ost significant assessed risks of m aterial m isstatem ent (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 engagem ent team . We sum m arise below the key audit m atters, in decreasing order of audit significance, in arriving at our
audit opinion above, together with our key audit procedures to address those m atters and, as required for public interest entities, our
results from those procedures. These m atters 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 statem ents as a whole, and in form ing our opinion thereon, and consequently are
incidental to that opinion, and we do not provide a separate opinion on these m atters.
Carrying amount of hire
equip ment
(£226.9 m illion; 2021: £207.2
m illion)
Refer to page 117 (Audit & Risk
Com mittee Report), page 172
(accounting policy) and page 185
(financial disclosures).
The risk
Our resp onse
Sub jective estimate
Our procedures included:
Judgem ent is applied by the Group in the
estim ation of useful econom ic lives and
residual values. These judgem ents are
based on historical experience, industry
regulation, an assessm ent of the nature of
the assets involved and the future
expected usage and m arket for the sale of
assets. The judgem ents m ade are profit
im pacting and therefore there is an
incentive for m anagem ent to m anipulate
the judgem ents m ade.
The effect of these m atters is that, as part
of our risk assessm ent, we determ ined
that the estim ation of useful econom ic
lives and residual values have a high
degree of estim ation uncertainty, with
potential range of reasonable outcom es
greater than our m ateriality for the financial
statem ents as a whole and potentially
m any tim es that am ount. This is of
particular im portance as the residual values
and useful econom ic lives of assets m ay be
im pacted by the current econom ic
conditions and carbon reduction objectives
and requirem ents.
— Control design and re-p erformance: Testing
the design over the controls around the
estim ation of UELs and residual values.
— Test of details: Using data analytics techniques
to com pare the hire equipm ent register for the
current year to prior year to determ ine any
changes m ade to useful econom ic lives and
residual values and challenging any changes to
assess whether they are consistent with
accounting policies and reflective of the
planned usage for those assets. Evaluating the
profit or loss on disposal of hire equipm ent to
support the reasonableness of the useful
econom ic lives and residual values applied.
— Test of details: Com paring the hire equipm ent
register to hire revenue inform ation to identify
the quantity and net book value of assets with a
history of low utilisation. Identifying from this
analysis those assets we consider to be at
highest risk of obsolescence, challenging the
com pany to provide evidence over the carrying
am ount of these assets and inspecting this
evidence.
— Test of details: For those hire assets identified
as not m eeting the low carbon targets of the
com pany or its custom ers, com paring net book
value with current and forecasted levels of hire
revenue and profits to identify those assets at
highest risk of a reduction in useful econom ic
life or residual value and challenging
m anagem ent to provide evidence to support
the carrying am ount of these assets.
— Assessing transp arency: Assessing the
adequacy of the Group’s disclosures in respect
of the judgem ents and estim ates involved in
arriving at the carrying am ount of hire
equipm ent.
We perform ed the tests above rather than seeking
to rely on any of the group's controls because the
nature of the balance is such that we would expect
to obtain audit evidence prim arily through the
detailed procedures described.
Our results
— As a result of our work we found that the
carrying am ount of hire equipm ent were
acceptable (2021: acceptable).
149
2. Key audit matters: our assessment of risks of material misstatement (continued)
The risk
Our resp onse
2. Key audit matters: our assessment of risks of material misstatement (continued)
Provi sion for trade receivab les
Sub jective estimate:
Our procedures included:
(Net trade receivables: £100.1
m illion; 2021: £88.5 m illion)
(ECL Provision: £3.0 m illion; 2021:
£3.5 m illion)
Refer to page 118 (Audit & Risk
Com mittee Report), page 172
(accounting policy) and page 188
(financial disclosures).
The Group’s custom ers operate m ainly
in the construction m arket, which entails
a higher risk of non-recoverability of
trade receivables as evidenced by a
num ber of custom ers entering
adm inistration or going into liquidation in
previous years.
The risk of recoverability of all trade
receivables has been heightened at least
in the short term by the im pact of
Coronavirus and expected cost
inflationary pressures.
The effect of these m atters is that, as
part of our risk assessm ent, we
determ ined that the provision for
doubtful debts has a high degree of
estim ation uncertainty, with a potential
range of reasonable outcom es greater
than our m ateriality for the financial
statem ents as a whole. The financial
statem ents (note 1) disclose the
sensitivity estim ated by the Group.
— Control design and imp lementation:
Testing the design and im plem entation of
key controls including m anagem ent’s review
of custom er credit lim its, authorisation of
sales returns and credit notes and
authorisation of new custom ers.
— Test of details: Assessing the m ethodology
used to calculate the estim ated credit loss
provision recorded against trade receivables,
challenging the appropriateness of these
provisions against IFRS 9 and based on
historical write offs, collection rates and the
forecasted im pact of Coronavirus.
— Tests of details: Identifying a risk based
sam ple of receivables and analysing the
level of cash receipts post year end. For this
sam ple, assessing the recoverability of the
balance by evaluating the paym ent status of
the receivable balance and the custom er’s
likelihood of paym ent, including
independently agreeing the custom er’s
latest credit score and assessing the legal
status of balances.
— Benchmarking assump tions: Assessing
the directors’ assum ptions behind the
provision for trade receivables against
externally available data on trade credit
exposures;
— Assessing transp arency: Assessing the
adequacy of the Group’s disclosures in
relation to the degree of estim ation involved
in arriving at the carrying am ount of the
trade receivables balance.
We perform ed the tests above rather than
seeking to rely on any of the group's controls
because the nature of the balance is such that
we would expect to obtain audit evidence
prim arily through the detailed procedures
described.
Our results
— We found the provision for trade receivables
to be acceptable (2021: acceptable).
The risk
Our resp onse
Recoverab ility of p arent’s deb t
Low risk, high value:
Our procedures included:
due from Group entities
(£397.0 m illion; 2021: £306.6
debtor balance represents 78% (2021:
debtors to identify whether the
The carrying am ount of the intra-group
— Tests of detail: Assessing 100% of Group
73%) of the parent Com pany’s total
intercom pany debtor is expected to have
assets. The recoverability is not at a high
access to sufficient liquidity to settle the
Refer to page 170 (accounting
policy) and page 206 (financial
risk of significant m isstatem ent or
subject to significant judgem ent.
debt, with reference to the relevant debtors’
draft balance sheet, and therefore coverage
m illion)
disclosures).
However, due to its m ateriality in the
of the debt owed, as well as assessing
context of the parent Com pany financial
whether those debtor com panies have
statem ents, this is considered to be the
historically been profit m aking.
area that had the greatest effect on our
overall parent Com pany audit.
— Assessing sub sidiary audits: Assessing
the work perform ed by the subsidiary audit
team s, 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 repaym ent of the receivable.
We perform ed the tests above rather than
seeking to rely on any of the com pany's
controls because the sm all num ber of
transactions m eant that detailed testing is
inherently the m ost effective m eans of
obtaining audit evidence.
Our results
— We found the conclusion that there is no
im pairm ent of the intra-group debtor balance
to be acceptable (2021: acceptable).
We continue to perform procedures over the existence of hire equipm ent. However, we reassessed our determ ination of the
risk related to the existence of hire equipm ent and we have not assessed this as one of the m ost significant risks in our
current year audit and, therefore, it is not separately identified in our report this year.
150
151
2. Key audit matters: our assessment of risks of material misstatement (continued)
The risk
Our resp onse
2. Key audit matters: our assessment of risks of material misstatement (continued)
Provi sion for trade receivab les
Sub jective estimate:
Our procedures included:
(Net trade receivables: £100.1
m illion; 2021: £88.5 m illion)
The Group’s custom ers operate m ainly
— Control design and imp lementation:
in the construction m arket, which entails
Testing the design and im plem entation of
(ECL Provision: £3.0 m illion; 2021:
£3.5 m illion)
Refer to page 118 (Audit & Risk
Com mittee Report), page 172
(accounting policy) and page 188
(financial disclosures).
a higher risk of non-recoverability of
trade receivables as evidenced by a
num ber of custom ers entering
key controls including m anagem ent’s review
of custom er credit lim its, authorisation of
sales returns and credit notes and
adm inistration or going into liquidation in
authorisation of new custom ers.
previous years.
The risk of recoverability of all trade
used to calculate the estim ated credit loss
receivables has been heightened at least
provision recorded against trade receivables,
— Test of details: Assessing the m ethodology
Recoverab ility of p arent’s deb t
due from Group entities
(£397.0 m illion; 2021: £306.6
m illion)
Refer to page 170 (accounting
policy) and page 206 (financial
disclosures).
The risk
Our resp onse
Low risk, high value:
Our procedures included:
The carrying am ount of the intra-group
debtor balance represents 78% (2021:
73%) of the parent Com pany’s total
assets. The recoverability is not at a high
risk of significant m isstatem ent or
subject to significant judgem ent.
However, due to its m ateriality in the
context of the parent Com pany financial
statem ents, this is considered to be the
area that had the greatest effect on our
overall parent Com pany audit.
— Tests of detail: Assessing 100% of Group
debtors to identify whether the
intercom pany debtor is expected to have
access to sufficient liquidity to settle the
debt, with reference to the relevant debtors’
draft balance sheet, and therefore coverage
of the debt owed, as well as assessing
whether those debtor com panies have
historically been profit m aking.
— Assessing sub sidiary audits: Assessing
the work perform ed by the subsidiary audit
team s, 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 repaym ent of the receivable.
We perform ed the tests above rather than
seeking to rely on any of the com pany's
controls because the sm all num ber of
transactions m eant that detailed testing is
inherently the m ost effective m eans of
obtaining audit evidence.
Our results
— We found the conclusion that there is no
im pairm ent of the intra-group debtor balance
to be acceptable (2021: acceptable).
We continue to perform procedures over the existence of hire equipm ent. However, we reassessed our determ ination of the
risk related to the existence of hire equipm ent and we have not assessed this as one of the m ost significant risks in our
current year audit and, therefore, it is not separately identified in our report this year.
part of our risk assessm ent, we
— Tests of details: Identifying a risk based
in the short term by the im pact of
Coronavirus and expected cost
inflationary pressures.
The effect of these m atters is that, as
determ ined that the provision for
doubtful debts has a high degree of
estim ation uncertainty, with a potential
range of reasonable outcom es greater
than our m ateriality for the financial
statem ents as a whole. The financial
statem ents (note 1) disclose the
sensitivity estim ated by the Group.
challenging the appropriateness of these
provisions against IFRS 9 and based on
historical write offs, collection rates and the
forecasted im pact of Coronavirus.
sam ple of receivables and analysing the
level of cash receipts post year end. For this
sam ple, assessing the recoverability of the
balance by evaluating the paym ent status of
the receivable balance and the custom er’s
likelihood of paym ent, including
independently agreeing the custom er’s
latest credit score and assessing the legal
status of balances.
— Benchmarking assump tions: Assessing
the directors’ assum ptions behind the
provision for trade receivables against
externally available data on trade credit
exposures;
— Assessing transp arency: Assessing the
adequacy of the Group’s disclosures in
relation to the degree of estim ation involved
in arriving at the carrying am ount of the
trade receivables balance.
We perform ed the tests above rather than
seeking to rely on any of the group's controls
because the nature of the balance is such that
we would expect to obtain audit evidence
prim arily through the detailed procedures
described.
Our results
— We found the provision for trade receivables
to be acceptable (2021: acceptable).
150
151
3. Our application of materiality and an
overview of the scope of our audit
Group p rofit b efore tax
£29.1m (2021: £27.1m)
Group materiality
£1.4m (2021: £1.1m)
Materiality for the group financial statements as a
whole was set at £1.4m (2021: £1.1m ), determined
with reference to a benchm ark of group profit before
tax (2021: profit before tax normalised to exclude
exceptional item s of £8.4m and discontinued
operations and by averaging over the previous three
years due to fluctuations in the business cycle caused
by Coronavirus), of which it represents 4.8% (2021:
4.1%).
Materiality for the parent company financial
statements as a whole was set at £1.2m (2021:
£1.0m ), determined with reference to a benchmark of
com pany total assets, of which it represents 0.2%
(2021: 0.3%).
In line with our audit m ethodology, our procedures on
individual account balances and disclosures were
perform ed to a lower threshold, performance
m ateriality, so as to reduce to an acceptable level the
risk that individually immaterial m isstatements in
individual account balances add up to a m aterial
am ount across the financial statements as a whole.
Performance m ateriality was set at 75% (2021: 75%)
of m ateriality for the financial statements as a whole,
which equates to £1.05m (2021: £0.825m) for the
group and £0.9m (2021: £0.75m) for the parent
com pany. We applied this percentage in our
determ ination of performance m ateriality because we
did not identify any factors indicating an elevated level
of risk.
We agreed to report to the Audit & Risk Com m ittee
any corrected or uncorrected identified m isstatements
exceeding £0.07m (2021: £0.055m), in addition to
other identified m isstatements that warranted
reporting on qualitative grounds.
Of the group’s fifteen (2021: sixteen) reporting
com ponents, we subjected six (2021: nine) to full
scope audits for group purposes and none (2021: one)
to specified risk-focused audit procedures. The latter in
2021 was not individually financially significant enough
to require a full scope audit for group purposes, but did
present specific individual risks over staff costs that
needed to be addressed. We conducted reviews of
financial inform ation (including enquiry) at a further one
(2021: one) non-significant component. The
com ponent for which we performed a review of
financial inform ation (including enquiry) was not
individually significant enough to require an audit for
group reporting purposes but a review was performed
in order to address the risk related to an equity
accounted entity.
The com ponents within the scope of our work
accounted for the percentages illustrated opposite.
The rem aining 0% (2021: 0%) of total group revenue,
12% (2021: 10%) of group profit before tax and 0%
(2021: 0%) of total group assets is represented by nine
(2021: five) reporting com ponents, none of which
individually represented m ore than 0.4% (2021: 0.2%)
of any of total group revenue, group profit before tax or
total group assets. For these components, we
perform ed analysis at an aggregated group level to re-
exam ine our assessment that there were no
significant risks of m aterial misstatement within these.
Key:
£1.4m
Whole financial
statements materiality
(2021: £1.1m)
£1.2 m
Range of materiality at 6
components (£0.075m - £1.2m)
(2021: 10 components, £0.055m -
£1.0m)
£1.05 m
Whole financial
statements performance materiality
(2021: £0.825m)
£0.07m
Misstatements reported to the Audit
& Risk Committee (2021: £0.055m)
Normalised PBT
Group materiality
Group revenue
Group p rofit b efore tax
100%
(2 02 1 100%)
100
100
88%
(2 02 1 90%)
90
88
Group total assets
Group p rofit b efore excep tional
items and tax
100%
(2 02 1 100%)
100
100
88%
(2 02 1 91%)
91
88
Full scope for group audit purposes 2022
Full scope for group audit purposes 2021
Residual components
3. Our application of materiality and an overview of
the scope of our audit (continued)
The Group team approved the com ponent m aterialities,
which ranged from £0.075m to £1.2m (2021: £0.055m to
£1.0m ), having regard to the mix of size and risk profile of
the Group across the components. All work on the fifteen
components including the audit of the parent company,
was perform ed by the Group team (2021: work on three
of the sixteen components was perform ed by com ponent
auditors and the rest by the Group team). The group team
perform ed procedures on the exceptional items excluded
from norm alised group profit before tax in 2021. The
scope of the audit work perform ed was predominately
substantive as we placed limited reliance upon the
Group's internal control over financial reporting.
4. The impact of climate change on our audit
In planning our audit, we have considered the potential
im pact of risks arising from climate change on the Group’s
business and its financial statements.
The Group has set out its com mitm ents under the Paris
Agreem ent to be net zero by 2050. Further inform ation is
provided in the Group’s Task Force for Climate-Related
Financial Disclosures (‘TCFD’) recom mended disclosures
on page 57.
As a part of our audit we have performed a risk
assessment, including m aking enquiries of m anagem ent,
reading board m eeting m inutes and applying our
knowledge of the Group and sector in which it operates
to understand the extent of the potential im pact of climate
change risk on the Group’s financial statements.
Our ‘Carrying amount of hire equipment’ Key Audit Matter
describes the risk and response in relation to carbon
reduction objectives and requirements. In the course of
our audit work, we took climate change factors into
account in evaluating the directors’ estimation of the
useful economic lives and residual values of hire
equipment.
We have read the Group’s TCFD in the front half of the
annual report and considered consistency with the
financial statements and our audit knowledge.
We have not been engaged to provide assurance over the
accuracy of the climate risk disclosures set out on pages
57 to 61 in the Annual Report.
5. Going concern
The Directors have prepared the financial statements on
the going concern basis as they do not intend to liquidate
the Group or the Company or to cease their operations,
and as they have concluded that the Group’s and the
Com pany’s financial position m eans that this is realistic.
They have also concluded that there are no m aterial
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”).
We used our knowledge of the Group, its industry, and the
general econom ic environm ent to identify the inherent risks
to its business m odel and analysed how those risks m ight
affect the Group’s and Com pany’s financial resources or
ability to continue operations over the going concern period.
The risk that we considered m ost likely to adversely affect
the Group’s and Com pany’s available financial resources
over this period was:
— The general econom ic environm ent as a result of the
Coronavirus pandem ic and expected cost inflationary
pressures.
We considered whether this risk could plausibly affect the
liquidity or covenant com pliance in the going concern period
by com paring severe, but plausible downside scenarios that
could arise from the risk individually and collectively against
the level of available financial resources and covenants
indicated by the Group’s financial forecasts.
Our procedures also included:
— Critically assessing assum ptions in base case and
downside scenarios relevant to liquidity and covenant
m etrics, in particular in relation to the current econom ic
environm ent by com paring to historical trends in severe
econom ic situations, including the Group’s experience
during the first national lockdown, and considering
knowledge of the Group’s plans based on approved
budgets and our knowledge of the Group and the sector
in which it operates. In doing so, assessing the
achievability of any m anagem ent m itigations in the
downside scenario.
— Assessing the level of headroom on cash and covenants
on m anagem ent’s base case and downside scenarios.
— Assessing whether downside scenarios applied m utually
consistent and severe assum ptions in aggregate, using
our assessm ent of the possible range of each key
assum ption and our knowledge of inter-dependencies.
— Assessing the working capital assum ptions inherent in
the forecasts to actual recent experience and existing
supplier/ custom er arrangem ents.
— We also com pared past budgets to actual results to
assess the Directors' track record of budgeting
accurately.
— We inspected the confirm ation from the lenders of the
level of com m itted financing, and the associated
covenant requirem ents. As part of this we inspected the
latest correspondence surrounding the refinancing of the
loan facility.
— We inspected the finance agreem ent to assess the
restrictions on the use of funds and com pared these
restrictions to m anagem ent's m odel.
— We considered whether the going concern disclosure in
note 1 to the financial statem ents gives a full and
accurate description of the Directors' assessm ent of
going concern, including the identified risks,
dependencies and related sensitivities. We assessed the
com pleteness of the going concern disclosure.
152
153
3. Our application of materiality and an
overview of the scope of our audit
Group p rofit b efore tax
£29.1m (2021: £27.1m)
Group materiality
£1.4m (2021: £1.1m)
Group revenue
Group p rofit b efore tax
Materiality for the group financial statements as a
whole was set at £1.4m (2021: £1.1m ), determined
with reference to a benchm ark of group profit before
tax (2021: profit before tax normalised to exclude
exceptional item s of £8.4m and discontinued
operations and by averaging over the previous three
years due to fluctuations in the business cycle caused
by Coronavirus), of which it represents 4.8% (2021:
4.1%).
Materiality for the parent company financial
statements as a whole was set at £1.2m (2021:
£1.0m ), determined with reference to a benchmark of
com pany total assets, of which it represents 0.2%
(2021: 0.3%).
In line with our audit m ethodology, our procedures on
individual account balances and disclosures were
perform ed to a lower threshold, performance
m ateriality, so as to reduce to an acceptable level the
risk that individually immaterial m isstatements in
individual account balances add up to a m aterial
am ount across the financial statements as a whole.
Performance m ateriality was set at 75% (2021: 75%)
of m ateriality for the financial statements as a whole,
which equates to £1.05m (2021: £0.825m) for the
group and £0.9m (2021: £0.75m) for the parent
com pany. We applied this percentage in our
determ ination of performance m ateriality because we
did not identify any factors indicating an elevated level
of risk.
We agreed to report to the Audit & Risk Com m ittee
any corrected or uncorrected identified m isstatements
exceeding £0.07m (2021: £0.055m), in addition to
other identified m isstatements that warranted
reporting on qualitative grounds.
Of the group’s fifteen (2021: sixteen) reporting
com ponents, we subjected six (2021: nine) to full
scope audits for group purposes and none (2021: one)
to specified risk-focused audit procedures. The latter in
2021 was not individually financially significant enough
to require a full scope audit for group purposes, but did
present specific individual risks over staff costs that
needed to be addressed. We conducted reviews of
financial inform ation (including enquiry) at a further one
(2021: one) non-significant component. The
com ponent for which we performed a review of
financial inform ation (including enquiry) was not
individually significant enough to require an audit for
group reporting purposes but a review was performed
in order to address the risk related to an equity
accounted entity.
The com ponents within the scope of our work
accounted for the percentages illustrated opposite.
The rem aining 0% (2021: 0%) of total group revenue,
12% (2021: 10%) of group profit before tax and 0%
(2021: 0%) of total group assets is represented by nine
Key:
(2021: five) reporting com ponents, none of which
individually represented m ore than 0.4% (2021: 0.2%)
of any of total group revenue, group profit before tax or
total group assets. For these components, we
perform ed analysis at an aggregated group level to re-
exam ine our assessment that there were no
significant risks of m aterial misstatement within these.
Normalised PBT
Group materiality
100%
(2 02 1 100%)
100
100
100%
(2 02 1 100%)
100
100
£1.4m
Whole financial
statements materiality
(2021: £1.1m)
£1.2 m
Range of materiality at 6
components (£0.075m - £1.2m)
(2021: 10 components, £0.055m -
£1.0m)
£1.05 m
Whole financial
statements performance materiality
(2021: £0.825m)
£0.07m
Misstatements reported to the Audit
& Risk Committee (2021: £0.055m)
88%
(2 02 1 90%)
90
88
88%
(2 02 1 91%)
91
88
Group total assets
Group p rofit b efore excep tional
items and tax
Full scope for group audit purposes 2022
Full scope for group audit purposes 2021
Residual components
3. Our application of materiality and an overview of
the scope of our audit (continued)
The Group team approved the com ponent m aterialities,
which ranged from £0.075m to £1.2m (2021: £0.055m to
£1.0m ), having regard to the m ix of size and risk profile of
the Group across the com ponents. All work on the fifteen
components including the audit of the parent com pany,
was performed by the Group team (2021: work on three
of the sixteen com ponents was perform ed by com ponent
auditors and the rest by the Group team ). The group team
performed procedures on the exceptional item s excluded
from norm alised group profit before tax in 2021. The
scope of the audit work perform ed was predom inately
substantive as we placed limited reliance upon the
Group's internal control over financial reporting.
4. The impact of climate change on our audit
In planning our audit, we have considered the potential
im pact of risks arising from climate change on the Group’s
business and its financial statem ents.
The Group has set out its com mitm ents under the Paris
Agreement to be net zero by 2050. Further inform ation is
provided in the Group’s Task Force for Clim ate-Related
Financial Disclosures (‘TCFD’) recom mended disclosures
on page 57.
As a part of our audit we have performed a risk
assessment, including m aking enquiries of m anagement,
reading board m eeting m inutes and applying our
knowledge of the Group and sector in which it operates
to understand the extent of the potential im pact of climate
change risk on the Group’s financial statements.
Our ‘Carrying am ount of hire equipment’ Key Audit Matter
describes the risk and response in relation to carbon
reduction objectives and requirements. In the course of
our audit work, we took climate change factors into
account in evaluating the directors’ estimation of the
useful econom ic lives and residual values of hire
equipm ent.
We have read the Group’s TCFD in the front half of the
annual report and considered consistency with the
financial statem ents and our audit knowledge.
We have not been engaged to provide assurance over the
accuracy of the climate risk disclosures set out on pages
57 to 61 in the Annual Report.
5. Going concern
The Directors have prepared the financial statements on
the going concern basis as they do not intend to liquidate
the Group or the Com pany or to cease their operations,
and as they have concluded that the Group’s and the
Company’s financial position m eans that this is realistic.
They have also concluded that there are no m aterial
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
statem ents (“the going concern period”).
We used our knowledge of the Group, its industry, and the
general econom ic environm ent to identify the inherent risks
to its business m odel and analysed how those risks m ight
affect the Group’s and Com pany’s financial resources or
ability to continue operations over the going concern period.
The risk that we considered m ost likely to adversely affect
the Group’s and Com pany’s available financial resources
over this period was:
— The general econom ic environm ent as a result of the
Coronavirus pandem ic and expected cost inflationary
pressures.
We considered whether this risk could plausibly affect the
liquidity or covenant com pliance in the going concern period
by com paring severe, but plausible downside scenarios that
could arise from the risk individually and collectively against
the level of available financial resources and covenants
indicated by the Group’s financial forecasts.
Our procedures also included:
— Critically assessing assum ptions in base case and
downside scenarios relevant to liquidity and covenant
m etrics, in particular in relation to the current econom ic
environm ent by com paring to historical trends in severe
econom ic situations, including the Group’s experience
during the first national lockdown, and considering
knowledge of the Group’s plans based on approved
budgets and our knowledge of the Group and the sector
in which it operates. In doing so, assessing the
achievability of any m anagem ent m itigations in the
downside scenario.
— Assessing the level of headroom on cash and covenants
on m anagem ent’s base case and downside scenarios.
— Assessing whether downside scenarios applied m utually
consistent and severe assum ptions in aggregate, using
our assessm ent of the possible range of each key
assum ption and our knowledge of inter-dependencies.
— Assessing the working capital assum ptions inherent in
the forecasts to actual recent experience and existing
supplier/ custom er arrangem ents.
— We also com pared past budgets to actual results to
assess the Directors' track record of budgeting
accurately.
— We inspected the confirm ation from the lenders of the
level of com m itted financing, and the associated
covenant requirem ents. As part of this we inspected the
latest correspondence surrounding the refinancing of the
loan facility.
— We inspected the finance agreem ent to assess the
restrictions on the use of funds and com pared these
restrictions to m anagem ent's m odel.
— We considered whether the going concern disclosure in
note 1 to the financial statem ents gives a full and
accurate description of the Directors' assessm ent of
going concern, including the identified risks,
dependencies and related sensitivities. We assessed the
com pleteness of the going concern disclosure.
152
153
5. Going concern (continued)
Our conclusions based on this work:
— we consider that the Directors’ use of the going concern
basis of accounting in the preparation of the financial
statem ents is appropriate;
— we have not identified, and concur with the Directors’
assessm ent that there is not, a m aterial uncertainty
related to events or conditions that, individually or
collectively, m ay cast significant doubt on the Group’s or
Com pany's ability to continue as a going concern for the
going concern period;
— we have nothing m aterial to add or draw attention to in
relation to the Directors’ statem ent in note 1 to the
financial statem ents on the use of the going concern
basis of accounting with no m aterial uncertainties that
m ay cast significant doubt over the Group and
Com pany’s use of that basis for the going concern
period, and we found the going concern disclosure in
note 1 to be acceptable; and
— the sam e statem ent is m aterially consistent with the
financial statem ents and our audit knowledge.
However, as we cannot predict all future events or
conditions and as subsequent events m ay result in
outcom es that are inconsistent with judgem ents that were
reasonable at the tim e they were m ade, the above
conclusions are not a guarantee that the Group or the
Com pany will continue in operation.
6. Fraud and breaches of laws and regulations – ability
to detect
Iden tifying an d responding to risks of m aterial
m isstatement due to fraud
To identify risks of m aterial m isstatem ent due to fraud
(“fraud risks”) we assessed events or conditions that could
indicate an incentive or pressure to com m it fraud or provide
an opportunity to com m it fraud. Our risk assessm ent
procedures included:
— Enquiring of Directors, the Audit & Risk Com m ittee,
Internal Audit and the Group’s legal counsel and
inspection of policy docum entation as to the Group’s
high-level policies and procedures to prevent and detect
fraud, including the internal audit function and the
Group’s channel for “whistleblowing”, as well as
whether they have knowledge of any actual, suspected
or alleged fraud.
— Reading Board, Audit & Risk Com m ittee and
Rem uneration Com m ittee m eeting m inutes.
— Considering rem uneration incentive schem es and
perform ance targets for m anagem ent and Directors
including the EPS target for m anagem ent rem uneration.
— Using analytical procedures to identify any unusual or
unexpected relationships.
We com m unicated identified fraud risks throughout the
audit team and rem ained alert to any indications of fraud
throughout the audit.
As required by auditing standards, and taking into account
possible pressures to m eet profit targets and our overall
knowledge of the control environm ent, we perform
procedures to address the risk of m anagem ent override of
controls, in particular the risk that Group and com ponent
m anagem ent m ay be in a position to m ake inappropriate
accounting entries and the risk of bias in accounting
estim ates and judgem ents such as the estim ation of useful
econom ic lives and residual values and the expected credit
loss provision. On this audit we do not believe there is a
fraud risk related to revenue recognition because there is
little opportunity for m anagem ent to m anipulate revenue in
the year or at the year end.
We did not identify any additional fraud risks.
Further detail in respect of the fraud risk from the ability for
m anagem ent to m anipulate useful econom ic lives and
residual values is set out in the key audit m atter disclosures
in section 2 of this report.
We also perform ed procedures including:
— Identifying journal entries and other adjustm ents to test
for all full scope com ponents based on risk criteria and
com paring the identified entries to supporting
docum entation. These included those posted to
unexpected or unusual accounts and those posted
between hire equipm ent and profit/ loss on disposal of
hire equipm ent within adm inistration costs in the profit
and loss account.
— Evaluated the business purpose of significant unusual
transactions.
— Assessing significant accounting estim ates for bias.
We discussed with the Audit & Risk Com m ittee other
m atters related to actual or suspected fraud, for which
disclosure is not necessary, and considered any im plications
for our audit.
Iden tifying an d responding to risks of m aterial
m isstatement related to com pliance with laws an d
regulations
We identified areas of laws and regulations that could
reasonably be expected to have a m aterial effect on the
financial statem ents from our general com m ercial and
sector experience and through discussion with the
Directors and other m anagem ent (as required by auditing
standards), and from inspection of the Group’s regulatory
and legal correspondence and discussed with the Directors
and other m anagem ent the policies and procedures
regarding com pliance with laws and regulations.
As the Group is regulated, our assessm ent of risks involved
gaining an understanding of the control environm ent
including the entity’s procedures for com plying with
regulatory requirem ents.
We com m unicated identified laws and regulations
throughout our team and rem ained alert to any indications
of non-com pliance throughout the audit.
The potential effect of these laws and regulations on the
financial statem ents varies considerably.
Firstly, the Group is subject to laws and regulations that
directly affect the financial statem ents including financial
reporting legislation (including related com panies
legislation), distributable profits legislation and taxation and
we assessed the extent of com pliance with these laws and
regulations as part of our procedures on the related financial
statem ent item s.
6. Fraud and breaches of laws and regulations – ability
Strategic report an d Directors’ report
to detect (continued)
Iden tifying an d responding to risks of m aterial
m isstatement due to n on-compliance with laws an d
regulations (continued)
Secondly , the Group is subject to m any other laws and
regulations where the consequences of non-com pliance
could have a m aterial effect on am ounts or disclosures in
the financial statem ents, for instance through the
im position of fines or litigation. We identified the following
areas as those m ost likely to have such an effect: health
and safety, anti-bribery, em ploym ent law, regulatory capital
and liquidity and certain aspects of com pany legislation
recognising the financial and regulated nature of the
Group’s activities and its legal form . Auditing standards
lim it the required audit procedures to identify non-
com pliance with these laws and regulations to enquiry of
the Directors and other m anagem ent and inspection of
regulatory and legal correspondence, if any. Therefore if a
breach of operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will not
detect that breach.
Con text of th e ability of th e audit to detect fraud or
breach es of law or regulation
Owing to the inherent lim itations of an audit, there is an
unavoidable risk that we m ay not have detected som e
m aterial m isstatem ents in the financial statem ents, even
though we have properly planned and perform ed our audit
in accordance with auditing standards. For exam ple, the
further rem oved non-com pliance with laws and regulations
is from the events and transactions reflected in the financial
statem ents, the less likely the inherently lim ited procedures
required by auditing standards would identify it.
In addition, as with any audit, there rem ained a higher risk
of non-detection of fraud, as these m ay involve collusion,
forgery, intentional om issions, m isrepresentations, or the
override of internal controls. Our audit procedures are
designed to detect m aterial m isstatem ent. We are not
responsible for preventing non-com pliance or fraud and
cannot be expected to detect non-com pliance with all laws
and regulations.
in the Annual Report
The Directors are responsible for the other inform ation
presented in the Annual Report together with the financial
statem ents. Our opinion on the financial statem ents does
not cover the other inform ation 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 inform ation and, in
doing so, consider whether, based on our financial
statem ents audit work, the inform ation therein is m aterially
m isstated or inconsistent with the financial statem ents or
our audit knowledge. Based solely on that work we have
not identified m aterial m isstatem ents in the other
inform ation.
Based solely on our work on the other inform ation:
— we have not identified m aterial m isstatem ents in the
strategic report and the Directors’ report;
— in our opinion the inform ation given in those reports for
the financial year is consistent with the financial
statem ents; and
— in our opinion those reports have been prepared in
accordance with the Com panies Act 2006.
Directors’ rem uneration report
In our opinion the part of the Directors’ Rem uneration
Report to be audited has been properly prepared in
accordance with the Com panies Act 2006.
Disclosures of em erging and prin cipal risks an d longer-
term viability
We are required to perform procedures to identify whether
there is a m aterial inconsistency between the Directors’
disclosures in respect of em erging and principal risks and
the viability statem ent, and the financial statem ents and
our audit knowledge.
Based on those procedures, we have nothing m aterial to
add or draw attention to in relation to:
— the Directors’ confirm ation within Directors’ Viability
Statem ent on page 92 that they have carried out a
robust assessment of the emerging and principal risks
facing the Group, including those that would threaten
its business m odel, future performance, solvency and
liquidity;
— the Principal Risks disclosures describing these risks
and how em erging risks are identified, and explaining
how they are being m anaged and m itigated; and
— the Directors’ explanation in the Directors’ Viability
Statem ent 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
statem ent as to whether they have a reasonable
expectation that the Group will be able to continue in
operation and m eet its liabilities as they fall due over the
period of their assessm ent, including any related
disclosures drawing attention to any necessary
We are also required to review the Directors’ Viability
Statem ent set out on page 92 under the Listing Rules.
Based on the above procedures, we have concluded that
the above disclosures are m aterially consistent with the
financial statem ents and our audit knowledge.
Our work is lim ited to assessing these m atters in the
context of only the knowledge acquired during our financial
statem ents audit. As we cannot predict all future events or
conditions and as subsequent events m ay result in
outcom es that are inconsistent with judgem ents that were
reasonable at the tim e they were m ade, the absence of
anything to report on these statem ents is not a guarantee
as to the Group’s and Company’s longer-term viability.
7. We have nothing to report on the other information
qualifications or assum ptions.
154
155
5. Going concern (continued)
Our conclusions based on this work:
— we consider that the Directors’ use of the going concern
basis of accounting in the preparation of the financial
statem ents is appropriate;
— we have not identified, and concur with the Directors’
assessm ent that there is not, a m aterial uncertainty
related to events or conditions that, individually or
collectively, m ay cast significant doubt on the Group’s or
Com pany's ability to continue as a going concern for the
going concern period;
— we have nothing m aterial to add or draw attention to in
relation to the Directors’ statem ent in note 1 to the
financial statem ents on the use of the going concern
basis of accounting with no m aterial uncertainties that
m ay cast significant doubt over the Group and
Com pany’s use of that basis for the going concern
period, and we found the going concern disclosure in
note 1 to be acceptable; and
— the sam e statem ent is m aterially consistent with the
financial statem ents and our audit knowledge.
However, as we cannot predict all future events or
conditions and as subsequent events m ay result in
outcom es that are inconsistent with judgem ents that were
reasonable at the tim e they were m ade, the above
conclusions are not a guarantee that the Group or the
Com pany will continue in operation.
Iden tifying an d responding to risks of m aterial
m isstatement due to fraud
To identify risks of m aterial m isstatem ent due to fraud
(“fraud risks”) we assessed events or conditions that could
indicate an incentive or pressure to com m it fraud or provide
an opportunity to com m it fraud. Our risk assessm ent
procedures included:
— Enquiring of Directors, the Audit & Risk Com m ittee,
Internal Audit and the Group’s legal counsel and
inspection of policy docum entation as to the Group’s
high-level policies and procedures to prevent and detect
fraud, including the internal audit function and the
Group’s channel for “whistleblowing”, as well as
whether they have knowledge of any actual, suspected
or alleged fraud.
— Reading Board, Audit & Risk Com m ittee and
Rem uneration Com m ittee m eeting m inutes.
— Considering rem uneration incentive schem es and
perform ance targets for m anagem ent and Directors
including the EPS target for m anagem ent rem uneration.
6. Fraud and breaches of laws and regulations – ability
transactions.
to detect
As required by auditing standards, and taking into account
possible pressures to m eet profit targets and our overall
knowledge of the control environm ent, we perform
procedures to address the risk of m anagem ent override of
controls, in particular the risk that Group and com ponent
m anagem ent m ay be in a position to m ake inappropriate
accounting entries and the risk of bias in accounting
estim ates and judgem ents such as the estim ation of useful
econom ic lives and residual values and the expected credit
loss provision. On this audit we do not believe there is a
fraud risk related to revenue recognition because there is
little opportunity for m anagem ent to m anipulate revenue in
the year or at the year end.
We did not identify any additional fraud risks.
Further detail in respect of the fraud risk from the ability for
m anagem ent to m anipulate useful econom ic lives and
residual values is set out in the key audit m atter disclosures
in section 2 of this report.
We also perform ed procedures including:
— Identifying journal entries and other adjustm ents to test
for all full scope com ponents based on risk criteria and
com paring the identified entries to supporting
docum entation. These included those posted to
unexpected or unusual accounts and those posted
between hire equipm ent and profit/ loss on disposal of
hire equipm ent within adm inistration costs in the profit
and loss account.
— Evaluated the business purpose of significant unusual
— Assessing significant accounting estim ates for bias.
We discussed with the Audit & Risk Com m ittee other
m atters related to actual or suspected fraud, for which
disclosure is not necessary, and considered any im plications
for our audit.
Iden tifying an d responding to risks of m aterial
m isstatement related to com pliance with laws an d
regulations
We identified areas of laws and regulations that could
reasonably be expected to have a m aterial effect on the
financial statem ents from our general com m ercial and
sector experience and through discussion with the
Directors and other m anagem ent (as required by auditing
standards), and from inspection of the Group’s regulatory
and legal correspondence and discussed with the Directors
and other m anagem ent the policies and procedures
regarding com pliance with laws and regulations.
As the Group is regulated, our assessm ent of risks involved
gaining an understanding of the control environm ent
including the entity’s procedures for com plying with
The potential effect of these laws and regulations on the
financial statem ents varies considerably.
Firstly, the Group is subject to laws and regulations that
directly affect the financial statem ents including financial
reporting legislation (including related com panies
legislation), distributable profits legislation and taxation and
we assessed the extent of com pliance with these laws and
regulations as part of our procedures on the related financial
statem ent item s.
— Using analytical procedures to identify any unusual or
regulatory requirem ents.
unexpected relationships.
We com m unicated identified fraud risks throughout the
We com m unicated identified laws and regulations
throughout our team and rem ained alert to any indications
audit team and rem ained alert to any indications of fraud
of non-com pliance throughout the audit.
throughout the audit.
6. Fraud and breaches of laws and regulations – ability
Strategic report an d Directors’ report
to detect (continued)
Iden tifying an d responding to risks of m aterial
m isstatement due to n on-compliance with laws an d
regulations (continued)
Secondly , the Group is subject to m any other laws and
regulations where the consequences of non-com pliance
could have a m aterial effect on am ounts or disclosures in
the financial statem ents, for instance through the
im position of fines or litigation. We identified the following
areas as those m ost likely to have such an effect: health
and safety, anti-bribery, em ploym ent law, regulatory capital
and liquidity and certain aspects of com pany legislation
recognising the financial and regulated nature of the
Group’s activities and its legal form . Auditing standards
lim it the required audit procedures to identify non-
com pliance with these laws and regulations to enquiry of
the Directors and other m anagem ent and inspection of
regulatory and legal correspondence, if any. Therefore if a
breach of operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will not
detect that breach.
Con text of th e ability of th e audit to detect fraud or
breach es of law or regulation
Owing to the inherent lim itations of an audit, there is an
unavoidable risk that we m ay not have detected som e
m aterial m isstatem ents in the financial statem ents, even
though we have properly planned and perform ed our audit
in accordance with auditing standards. For exam ple, the
further rem oved non-com pliance with laws and regulations
is from the events and transactions reflected in the financial
statem ents, the less likely the inherently lim ited procedures
required by auditing standards would identify it.
In addition, as with any audit, there rem ained a higher risk
of non-detection of fraud, as these m ay involve collusion,
forgery, intentional om issions, m isrepresentations, or the
override of internal controls. Our audit procedures are
designed to detect m aterial m isstatem ent. We are not
responsible for preventing non-com pliance or fraud and
cannot be expected to detect non-com pliance with all laws
and regulations.
7. We have nothing to report on the other information
in the Annual Report
The Directors are responsible for the other inform ation
presented in the Annual Report together with the financial
statem ents. Our opinion on the financial statem ents does
not cover the other inform ation 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 inform ation and, in
doing so, consider whether, based on our financial
statem ents audit work, the inform ation therein is m aterially
m isstated or inconsistent with the financial statem ents or
our audit knowledge. Based solely on that work we have
not identified m aterial m isstatem ents in the other
inform ation.
Based solely on our work on the other inform ation:
— we have not identified m aterial m isstatem ents in the
strategic report and the Directors’ report;
— in our opinion the inform ation given in those reports for
the financial year is consistent with the financial
statem ents; and
— in our opinion those reports have been prepared in
accordance with the Com panies Act 2006.
Directors’ rem uneration report
In our opinion the part of the Directors’ Rem uneration
Report to be audited has been properly prepared in
accordance with the Com panies Act 2006.
Disclosures of em erging and prin cipal risks an d longer-
term viability
We are required to perform procedures to identify whether
there is a m aterial inconsistency between the Directors’
disclosures in respect of em erging and principal risks and
the viability statem ent, and the financial statem ents and
our audit knowledge.
Based on those procedures, we have nothing m aterial to
add or draw attention to in relation to:
— the Directors’ confirm ation within Directors’ Viability
Statem ent on page 92 that they have carried out a
robust assessment of the emerging and principal risks
facing the Group, including those that would threaten
its business m odel, future performance, solvency and
liquidity;
— the Principal Risks disclosures describing these risks
and how em erging risks are identified, and explaining
how they are being m anaged and m itigated; and
— the Directors’ explanation in the Directors’ Viability
Statem ent 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
statem ent as to whether they have a reasonable
expectation that the Group will be able to continue in
operation and m eet its liabilities as they fall due over the
period of their assessm ent, including any related
disclosures drawing attention to any necessary
qualifications or assum ptions.
We are also required to review the Directors’ Viability
Statem ent set out on page 92 under the Listing Rules.
Based on the above procedures, we have concluded that
the above disclosures are m aterially consistent with the
financial statem ents and our audit knowledge.
Our work is lim ited to assessing these m atters in the
context of only the knowledge acquired during our financial
statem ents audit. As we cannot predict all future events or
conditions and as subsequent events m ay result in
outcom es that are inconsistent with judgem ents that were
reasonable at the tim e they were m ade, the absence of
anything to report on these statem ents is not a guarantee
as to the Group’s and Company’s longer-term viability.
154
155
7. We have nothing to report on the other informationin the Annual Report (continued)Corporate governance disclosures We are required to perform procedures to identify whetherthere is a material inconsistency between the Directors’corporate governance disclosures and the financialstatements and our audit knowledge.Based on those procedures, we have concluded that eachof the following is materially consistent with the financialstatements and our audit knowledge: —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; —the section of the annual report describing the work of the Audit & Risk Committee, including the significant issues that the Audit & Risk Committee considered in relation to the financial statements, and how these issues were addressed; and—the section of the annual report that describes the review of the effectiveness of the Group’s risk management and internal control systems.We are required to review the part of the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect. 8.We have nothing to report on the other matters onwhich we are required to report by exception Under the Companies Act 2006, we are required to reportto you if, in our opinion:—adequate accounting records have not been kept by theparent 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.9.Respective responsibilitiesDirectors’ responsibilitiesAs explained more fully in their statement set out on page 105, the Directors are responsible for: the preparation of thefinancial statements including being satisfied that they give atrue and fair view; such internal control as they determine isnecessary to enable the preparation of financial statements that are free from material misstatement, whether due tofraud or error; assessing the Group and parent Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using thegoing concern basis of accounting unless they either intendto 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 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 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. The Company is required to include these financial statements in an annual financial report prepared using the single electronic reporting format specified in the EU ESEF Regulation. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with that format.10.The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company’s members, as abody, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006. Our audit work has been undertakenso that we might state to the Company’s members those matters we are required to state to them in an auditor’sreport and for no other purpose. To the fullest extentpermitted by law, we do not accept or assumeresponsibility to anyone other than the Company and theCompany’s members, as a body, for our audit work, for thisreport, or for the opinions we have formed.Nick Plumb (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s SquareManchesterM2 3AE27 May 2022156 Financial
Statements
Financial Statements
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
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
Corporate Information
Shareholder Information
Registered office and advisers
158
159
160
161
162
164
200
201
202
203
208
210
212
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 157
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
7. We have nothing to report on the other informationin the Annual Report (continued)Corporate governance disclosures We are required to perform procedures to identify whetherthere is a material inconsistency between the Directors’corporate governance disclosures and the financialstatements and our audit knowledge.Based on those procedures, we have concluded that eachof the following is materially consistent with the financialstatements and our audit knowledge: —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; —the section of the annual report describing the work of the Audit & Risk Committee, including the significant issues that the Audit & Risk Committee considered in relation to the financial statements, and how these issues were addressed; and—the section of the annual report that describes the review of the effectiveness of the Group’s risk management and internal control systems.We are required to review the part of the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect. 8.We have nothing to report on the other matters onwhich we are required to report by exception Under the Companies Act 2006, we are required to reportto you if, in our opinion:—adequate accounting records have not been kept by theparent 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.9.Respective responsibilitiesDirectors’ responsibilitiesAs explained more fully in their statement set out on page 105, the Directors are responsible for: the preparation of thefinancial statements including being satisfied that they give atrue and fair view; such internal control as they determine isnecessary to enable the preparation of financial statements that are free from material misstatement, whether due tofraud or error; assessing the Group and parent Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using thegoing concern basis of accounting unless they either intendto 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 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 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. The Company is required to include these financial statements in an annual financial report prepared using the single electronic reporting format specified in the EU ESEF Regulation. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with that format.10.The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company’s members, as abody, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006. Our audit work has been undertakenso that we might state to the Company’s members those matters we are required to state to them in an auditor’sreport and for no other purpose. To the fullest extentpermitted by law, we do not accept or assumeresponsibility to anyone other than the Company and theCompany’s members, as a body, for our audit work, for thisreport, or for the opinions we have formed.Nick Plumb (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s SquareManchesterM2 3AE27 May 2022156
Financial Statements
Consolidated Income Statement
for the year ended 31 March 2022
Revenue
Cost of sales
Gross profit
Distribution and administrative costs
Impairment losses on trade receivables
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
Financial expense
Profit before taxation
Taxation
Profit for the financial year from continuing operations
Profit from discontinued operations, net of tax
Profit for the financial year
Earnings per share
- Basic (pence)
- Diluted (pence)
Non-GAAP performance measures
EBITDA before exceptional items
Adjusted profit before tax
Adjusted earnings per share (pence)
*See Note 31
The accompanying notes form part of the financial statements.
158 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
Year ended 31
March 2022
(£m)
Year ended
31 March 2021
Restated*
(£m)
386.8
(165.7)
221.1
(185.7)
(3.8)
32.6
(1.0)
-
31.6
3.2
34.8
(5.7)
29.1
(7.7)
21.4
0.2
21.6
4.13
4.07
99.3
30.1
4.24
332.3
(147.4)
184.9
(170.4)
(2.0)
21.7
(0.8)
(8.4)
12.5
1.2
13.7
(5.4)
8.3
(2.2)
6.1
3.4
9.5
1.82
1.79
85.3
17.5
2.68
Note
2
18
13
4
5
14
8
9
10
10
12
12
10
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2022
Profit for the financial year
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 operations
Tax on items
Other comprehensive income, net of tax
Total comprehensive income for the financial year
The accompanying notes form part of the financial statements.
Year ended
31 March 2022
(£m)
Year ended
31 March 2021
(£m)
21.6
0.8
(0.8)
(0.2)
(0.2)
21.4
9.5
0.2
(1.4)
-
(1.2)
8.3
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 159
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Financial Statements continued
Consolidated Balance Sheet
at 31 March 2022
ASSETS
Non-current assets
Intangible assets
Investment in joint venture
Property, plant and equipment
- Hire equipment
- Non-hire equipment
Right of use assets
Deferred tax asset
Current assets
Inventories
Trade and other receivables
Cash
Current tax asset
Total assets
LIABILITIES
Current liabilities
Borrowings
Lease liabilities
Current tax creditor
Trade and other payables
Provisions
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Deferred tax liability
Total liabilities
Net assets
160 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
Note
31 March 2022
(£m)
31 March 2021
Restated*
(£m)
13
14
15
15
16
24
17
18
21
21
22
19
23
21
22
23
24
25.9
7.8
226.9
30.8
73.3
1.7
366.4
8.1
108.7
2.5
-
119.3
485.7
(1.7)
(20.6)
(1.0)
(96.6)
(2.8)
24.7
6.2
207.2
25.9
59.1
2.1
325.2
8.2
93.3
11.7
1.1
114.3
439.5
(0.5)
(16.7)
-
(95.8)
(3.1)
(122.7)
(116.1)
(68.3)
(56.1)
(1.2)
(11.0)
(136.6)
(259.3)
226.4
(44.4)
(46.5)
(2.9)
(8.8)
(102.6)
(218.7)
220.8
Consolidated Balance Sheet (continued)
at 31 March 2022
EQUITY
Share capital
Share premium
Capital redemption reserve
Merger reserve
Hedging reserve
Translation reserve
Retained earnings
Total equity
*See Note 31.
The accompanying notes form part of the financial statements.
Company registered number: 00927680
Consolidated Statement of Changes in Equity
for the year ended 31 March 2022
Note
31 March 2022
(£m)
31 March 2021
Restated*
(£m)
25
25.9
1.8
0.6
1.0
0.1
(1.8)
198.8
226.4
26.4
1.3
-
1.0
(0.7)
(1.0)
193.8
220.8
Share
capital
(£m)
Share
premium
(£m)
Capital
redemption
reserve
(£m)
Merger
reserve
(£m)
Hedging
reserve
(£m)
Translation
reserve
(£m)
At 1 April 2020 Reported
Restatement*
At 1 April 2020 Restated*
Total comprehensive income
Equity-settled share-based payments
Issue of shares under the Sharesave Scheme
At 31 March 2021 Restated*
Total comprehensive income
Dividends
Equity-settled share-based payments
Purchase and cancellation of shares
Tax on items taken directly to equity
Issue of shares under the Sharesave Scheme
At 31 March 2022
*See Note 31
26.4
-
26.4
-
-
-
26.4
-
-
-
(0.6)
-
0.1
25.9
0.8
-
0.8
-
-
0.5
1.3
-
-
-
-
-
0.5
1.8
-
-
-
-
-
-
-
-
-
-
0.6
-
-
0.6
The accompanying notes form part of the financial statements.
Retained
Earnings
Restated*
(£m)
Total
Equity
Restated*
(£m)
182.2
209.9
1.6
1.6
183.8
211.5
9.5
0.5
-
8.3
0.5
0.5
193.8
220.8
21.4
(11.3)
1.2
(6.2)
(0.1)
-
21.4
(11.3)
1.2
(6.2)
(0.1)
0.6
1.0
-
1.0
-
-
-
1.0
-
-
-
-
-
-
(0.9)
-
(0.9)
0.2
-
-
(0.7)
0.8
-
-
-
-
-
0.4
-
0.4
(1.4)
-
-
(1.0)
(0.8)
-
-
-
-
-
1.0
0.1
(1.8)
198.8
226.4
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 161
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Financial Statements continued
Consolidated Cash Flow Statement
for the year ended 31 March 2022
Cash generated from operating activities
Profit before tax including discontinued operations
Financial expense
Amortisation
Depreciation
Share of profit from joint venture
Termination of lease contracts
(Profit)/Loss on disposal of hire equipment
Loss on disposal of non-hire equipment
Decrease in inventories
(Increase)/decrease in trade and other receivables
Increase in trade and other payables
Decrease in provisions
Translation reserve recycled on disposal of Middle East assets
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 paid
Tax paid
Net cash flow from operating activities
Cash flow from investing activities
Purchase of non-hire property, plant and equipment and IT development
Proceeds from sale of non-hire property, plant and equipment
Proceeds from disposal of Middle East assets
Dividends and loan repayments from joint venture
Net cash flow from investing activities
Net cash flow before financing activities
*See Note 31
162 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
Year ended
31 March 2022
(£m)
Year ended
31 March 2021
Restated*(£m)
Note
13
14
5
5
18
23
29.3
5.7
1.0
66.7
(3.2)
(0.2)
(0.5)
0.1
0.1
(15.5)
3.8
(2.0)
-
1.2
86.5
(71.5)
13.6
28.6
(6.0)
(3.0)
19.6
(16.0)
-
-
1.9
(14.1)
5.5
12.3
5.9
0.8
68.1
(1.2)
(4.1)
1.0
0.5
0.5
9.3
3.6
(1.1)
1.0
0.5
97.1
(36.4)
12.2
72.9
(6.0)
(0.8)
66.1
(11.2)
0.8
13.0
1.0
3.6
69.7
Consolidated Cash Flow Statement (continued)
for the year ended 31 March 2022
Cash flow from financing activities
Payments for the principal element of leases
Drawdown of loans*
Repayment of loans*
Proceeds from the issue of Sharesave Scheme shares
Purchase of own shares for cancellation
Dividends paid
Net cash flow from financing activities
Decrease 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
*See Note 31
Year ended 31
March 2022
(£m)
Note
Year ended 31
March 2021
Restated*
(£m)
(24.6)
482.6
(457.2)
0.6
(6.0)
(11.3)
(15.9)
(10.4)
11.2
0.8
2.5
(1.7)
0.8
(23.6)
340.8
(399.0)
0.5
-
-
(81.3)
(11.6)
22.8
11.2
11.7
(0.5)
11.2
11
21
21
21
21
The Consolidated Financial Statements on pages 158 to 199 were approved by the Board of Directors on 27 May 2022 and were signed on its behalf by:
James Bunn
Director
Company registered number: 00927680
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 163
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
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 2022 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 27 May 2022.
The accounting policies set out below have, unless otherwise
stated, been applied consistently to all periods presented in
these consolidated Financial Statements.
reduction in planned capital expenditure. Despite the significant
impact of the assumptions applied in these scenarios, the Group
maintains sufficient 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.
Statement of compliance
Both the Group and Parent Company Financial Statements
have been prepared and approved by the Board of Directors in
accordance with UK-adopted international accounting standards
(“UK-adopted IFRS”) and in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006 (“Adopted IFRS”).
Basis of preparation
The Directors consider the going concern basis of preparation
for the Group and Company to be appropriate for the
following reasons.
The Group has a £180m asset based finance facility (‘the
facility‘) which matures in July 2024 and has no prior
scheduled repayment requirements. The total cash and
undrawn availability on the facility as at 31 March 2022 was
£110.8m (2021: £142.3m) based on the Group’s eligible hire
equipment and trade receivables.
Basis of consolidation
(a) 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.
(b) 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.
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 31 May 2023, 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 those expected level of revenues.
The Board has considered various possible downside scenarios
to the base case, which result in reduced levels of revenue across
the Group, whilst also reflecting inflationary pressures on the cost
base. Mitigations applied in these downturn scenarios include a
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:
164 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
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.
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,
consideration is given to 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.
Amendments to IFRS 4
Extension of the
Temporary Exemption
from Applying IFRS 9
Amendments to IFRS 9,
IAS 39 and IFRS 17
Interest Rate
Benchmark Reform
Amendments to IFRS 3
Reference to the
Conceptual Framework
There is no impact from these standards.
The following UK-adopted IFRSs have been issued at 31 March
2022 with an effective date of implementation after the date
of these Financial Statements but have not been applied by the
Group in these consolidated financial statements. Their adoption is
not expected to have a material effect on the financial statements:
International
Accounting
Standards
(IAS) / IFRS
IFRS 17
Amendments to
IAS 1*
Effective
date (periods
beginning on
or after)
Insurance Contracts
1 January 2023
Classification of
Liabilities as Current
or Non-current
1 January 2024
Amendments to
IAS 1*
Disclosure of
accounting policies
1 January 2023
Amendments to
IAS 8*
Changes in accounting
estimates
1 January 2023
Amendments to
IAS 12*
Deferred Tax related
to Assets and
Liabilities
* Not yet endorsed by the UKEB.
1 January 2023
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 reassessed its other contracts to identify whether they
contained a lease.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 165
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
Disposals revenue
iii.
The Group recognises revenue on planned asset disposals on a
point-in-time basis when control is transferred to the customer.
Discontinued operations
A discontinued operation is a component of the Group’s business
that represents a separate major line of business or geographical
area of operations that has been disposed of or is held for sale,
or is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs upon disposal or
when the operation meets the criteria to be classified as held for
sale, if earlier. When an operation is classified as a discontinued
operation, the comparative income statement is restated as
if the operation has been discontinued from the start of the
comparative period.
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 one
to fifteen years depending on the category of the asset.
1
Accounting policies (continued)
Accounting for leasing activities under IFRS 16 (continued)
COVID-19 related rent concessions
The Group applied COVID-19-Related Rent Concessions –
Amendment to IFRS 16 for the year ended 31 March 2021. The
Group applied the practical expedient allowing it not to assess
whether eligible rent concessions that are a direct consequence
of the COVID-19 pandemic are lease modifications. For rent
concessions which do not qualify for the practical expedient, the
Group assesses whether there is a lease modification.
As the Group has chosen to apply the practical expedient,
any rent waivers granted have been treated as variable lease
payments, and therefore a credit would be recognised in the
profit and loss account.
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:
Hire and related activities
i.
The Group recognises revenue for hire services, adjusted for
rebates, on a straight-line basis as the equipment is available
evenly over the period of hire. 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.
Services revenue
ii.
The Group recognises revenue for rehire services on a principal
basis 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 on a point-in-time basis when control is transferred
to the customer. Dependent on the agreement in place, fuel
revenue is recognised on either an agent or principal basis at the
point control is transferred to the customer.
166 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance
Government grants are recognised in line with the accrual
method. In the prior year, certain employees were placed on
furlough under Job Retention Schemes. Furlough income of £nil
(31 March 2021: £8.9m) in relation to no employees (31 March
2021: 1,740) was recognised in the year and as such the Group
adopted IAS 20 in accounting for this Government assistance. The
grant was recognised as income and matched with associated
payroll costs over the same period. There are no unfulfilled
conditions at either the current or previous year end.
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.
The principal rates and methods of depreciation used are as follows:
Hire equipment
Tools and general equipment
between one and ten years
straight-line
Access equipment
Surveying equipment
Power equipment
Non-hire assets
between one and fifteen years
straight-line
between one and nine years
straight-line
between one 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% per annum straight-line
IT equipment and software
between three and fifteen 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 5.
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.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 167
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
1
Accounting policies (continued)
Income tax (continued)
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 and head office expenses.
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.
Segment capital expenditure is the total cost incurred during the
period to acquire property, plant and equipment, and intangible
assets other than goodwill.
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 13).
Expenditure on internally generated goodwill and brands is
recognised in the income statement as an expense as incurred.
168 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
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
IT development
over the period of the expected
benefit, up to ten years
over the period of use in the
business, up to ten years
over the period of use in the
business, up to ten years
In April 2021, the International Financial Reporting
Interpretations Committee (‘IFRIC’) published an agenda decision
on the clarification of accounting in relation to the configuration
and customisation costs incurred in implementing Software-as-a-
Service (SaaS). The Group’s accounting policy is aligned with the
IFRIC guidance as follows:
- Amounts paid to cloud vendors for configuration and
customisation that are not distinct from access to the cloud
software are expensed over the SaaS contract term
- Configuration and customisation costs incurred in implementing
SaaS arrangements which give rise to an identifiable intangible
asset are capitalised and amortised over the life of the asset
- Other implementation costs are expensed as incurred
Dividend distribution
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. The Group have
considered the carrying value of non-eco assets and identified
no indicators of impairment. The relatively new age of the current
hire fleet within the Group mitigates any potential obsolescence
and new capital spend is weighted towards eco assets.
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.
The Group recognises loss allowances for expected credit losses
(ECLs) on financial assets measured at amortised cost.
Loss allowances for trade receivables and contract assets are always
measured at an amount equal to lifetime expected credit losses.
When determining whether the credit risk of a financial asset has
increased significantly since initial recognition and when estimating
ECL, the Group considers reasonable and supportable information
that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis,
based on the Group’s historical experience and informed credit
assessment and includes forward-looking information.
Lifetime ECLs are the ECLs that result from all possible default
events over the expected life of a financial instrument. The maximum
period considered when estimating ECLs is the maximum contractual
period over which the Group is exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit
losses are measured as the present value of all cash shortfalls
(i.e. the difference between the cash flows due to the entity in
accordance with the contract and the cash flows that the Group
expects to receive).
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.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 169
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
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.
Start-up expenses
Legal and start-up expenses incurred in respect of new depots
are written off as incurred.
1
Accounting policies (continued)
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.
170 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
value of the share-based payment is measured to reflect such
conditions and there is no adjustment for differences between
expected and actual outcomes.
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.
Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares are shown in equity as
a deduction from the proceeds. Where the Group purchases its
own equity share capital, the consideration paid is deducted
from equity attributable to the Group’s shareholders. Where
such shares are subsequently cancelled, the nominal value
of the shares repurchased is deducted from share capital and
transferred to a capital redemption reserve. Where the Group
purchases its own equity share capital to hold in treasury, the
consideration paid for the shares is shown as own shares held
within equity.
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.
Pension schemes
Employee benefits
•
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.
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
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 171
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
1
Accounting policies (continued)
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 15), 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 2022, the carrying value of hire
equipment was £226.9m (2021: £207.2m), representing 88.0%
(2021: 88.9%) of the total property, plant and equipment. The
hire equipment depreciation charge for the year ended 31 March
2022 was £35.2m (2021: £33.7m), which represents 8.7% (2021:
8.5%) of the average original cost of hire equipment. Both useful
economic lives and residual values are reviewed on a regular basis.
Given the varied portfolio and range of assumptions relating to
both the useful economic lives and residual values of the Group’s
hire equipment, it is not practical to disclose sensitivity analysis.
The Group has considered the impact of climate change on
non-eco assets with regards to their carrying values, residual
values and useful economic lives. The relatively new age of
the current hire fleet within the Group mitigates any potential
obsolescence and new capital spend is weighted towards eco
assets. Therefore, the Group has identified no impairment as a
result of climate change.
Valuation of trade receivables
The expected credit loss provision is calculated using the
simplified approach to expected credit loss methodology and is
based upon historical default experience over the lifetime of the
debt. This is adjusted for the Directors’ assessment of current and
forward-looking macroeconomic factors affecting the Group’s
operating environment.
The Directors have given specific consideration to the impact of
COVID-19 on the general economy. At the balance sheet date
the Group has not seen a marked increase in debt write-offs.
However, as has been widely reported, there is an expectation
that the situation will deteriorate as the effects of the ending of
the Government support occur and that the rate of insolvencies
may increase. Given these facts, the Group considers that
historical losses alone are not a sufficiently accurate predictor
of future failures and has exercised judgement in increasing the
expected loss rate. In so doing the provision has been increased
from that which would have been required based solely on loss
experience over recent years.
At 31 March 2022, the expected credit loss provision was £3.0m
(2021: £3.5m) against a total debtor book of £104.9m (2021:
£93.4m). The 2021 provision included specific provisions for
the training and international businesses which are no longer
required. Further detail is provided in Note 18, including an
ageing analysis of debt. The Group's estimated expected credit
losses are 2.9% (2021: 3.8%) of gross trade receivables. An
increase of 1% in this assumption would result in an increase to
the provision of £0.8m (2021: £1.0m).
2
Segmental analysis
The segmental disclosure presented in the Financial Statements
reflects the format of reports reviewed by the ‘chief operating
decision-maker’. UK and Ireland business delivers asset
management, with tailored services and a continued commitment
to relationship management. Corporate items comprise certain
central activities and costs that are not directly related to the
activity of the operating segment. 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 activity of the operating segment, together with net corporate
borrowings and taxation. The Middle East assets were disposed of
on 1 March 2021 and are now shown as discontinued operations.
172 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
2
for the year ended 31 March 2022
Segmental analysis (continued)
Revenue
Segment result:
EBITDA before exceptional items
Depreciation
Operating profit/(costs) before amortisation and exceptional items
Amortisation
Operating profit/(costs)
Share of results of joint venture
Trading profit/(costs)
Financial expense
Profit before tax
Taxation
Profit for the financial year from continuing operations
Profit from discontinued operations, net of tax
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)
Corporate items
(£m)
386.8
103.3
(66.4)
36.9
(1.0)
35.9
-
35.9
19.5
-
226.9
30.8
73.3
-
112.7
-
463.2
(76.7)
(92.1)
-
-
(168.8)
-
(4.0)
(0.3)
(4.3)
-
(4.3)
3.2
(1.1)
6.4
7.8
-
-
-
1.7
4.1
2.5
22.5
-
(8.5)
(70.0)
(12.0)
(90.5)
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Total
(£m)
386.8
99.3
(66.7)
32.6
(1.0)
31.6
3.2
34.8
(5.7)
29.1
(7.7)
21.4
0.2
21.6
25.9
7.8
226.9
30.8
73.3
1.7
116.8
2.5
485.7
(76.7)
(100.6)
(70.0)
(12.0)
(259.3)
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 173
Notes to the Financial Statements continued
2
for the year ended 31 March 2021
Segmental analysis (continued)
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
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
*See Note 31
UK and Ireland
(£m)
Corporate
items (£m)
Total-
continuing
operations
(£m)
Discontinued
operations
(£m)
332.3
-
332.3
31.3
89.5
(63.2)
26.3
(0.8)
(8.4)
17.1
-
17.1
20.1
-
206.4
25.9
59.1
-
96.5
-
408.0
(63.2)
(84.5)
-
-
(147.7)
(4.2)
(0.4)
(4.6)
-
-
(4.6)
1.2
(3.4)
4.6
6.2
0.8
-
-
3.2
2.2
11.7
28.7
-
(8.8)
(44.9)
(8.8)
(62.5)
85.3
(63.6)
21.7
(0.8)
(8.4)
12.5
1.2
13.7
(5.4)
8.3
(2.2)
6.1
24.7
6.2
207.2
25.9
59.1
3.2
98.7
11.7
436.7
(63.2)
(93.3)
(44.9)
(8.8)
5.2
(1.5)
3.7
-
0.8
4.5
-
4.5
(0.5)
4.0
(0.6)
3.4
-
-
-
-
-
-
2.8
-
2.8
-
(8.5)
-
-
Total
(£m)
363.6
90.5
(65.1)
25.4
(0.8)
(7.6)
17.0
1.2
18.2
(5.9)
12.3
(2.8)
9.5
24.7
6.2
207.2
25.9
59.1
3.2
101.5
11.7
439.5
(63.2)
(101.8)
(44.9)
(8.8)
(210.2)
(8.5)
(218.7)
174 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
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
Year ended 31 March 2022
Year ended 31 March 2021
Revenue
(£m)
376.5
10.3
386.8
Total assets
(£m)
472.6
13.1
485.7
Revenue
(£m)
323.6
8.7
332.3
Total assets
(£m)
423.7
13.4
437.1
Revenue and assets relating to discontinued operations were based in the Middle East.
Revenue by type
Revenue is attributed to the following activities:
Hire and related activities
Services
Disposals
2022
(£m)
243.3
138.4
5.1
386.8
2021
(£m)
206.4
121.7
4.2
332.3
Major customers
No one customer represents more than 10% of revenue, reported profit or combined assets of the Group.
3
Discontinued operations
During the year ended 31 March 2021, the Group sold the assets relating to its Middle East operations. The transaction comprised
of the disposal of its equipment fleet, stock and other fixed assets relating to its Middle East business to its principal customer
ADNOC Logistics and Services LLC (‘ADNOC’), for a consideration of $18m. At the date of sale, this translated to proceeds of £13.0m,
on which a pre-tax gain of £0.8m was recognised. The attributable tax was £0.2m, resulting in a gain after tax of £0.6m.
As part of this sale, a transitional services agreement was agreed for the first half of the year ended 31 March 2022, resulting in a
profit from discontinued operations during the year of £0.2m.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 175
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
4
Exceptional items
There are no exceptional items for the year ended 31 March 2022.
During the year ended 31 March 2021, exceptional administrative items of £8.4m were incurred in relation to continuing operations.
Action was taken to manage the Group's cost base following the COVID-19 pandemic, and consequently the network was restructured.
A number of depots were closed and the consolidation of depots took place to create larger, customer focused service centres. As a
result, £5.6m of property related costs and £1.9m of redundancy costs was incurred during the year ended 31 March 2021.
The training business, Geason, which was acquired in December 2018, was subject to an assurance visit from a funding agency in early
2020, and a subsequent claim was received for amounts overpaid. The claim was settled in October 2020, within the provision held at
31 March 2020. During the year ended 31 March 2021, an additional provision was made for £0.9m to cover legal and other costs.
5
Operating profit
Operating profit is stated after charging/(crediting):
Amortisation of intangible assets
Depreciation of owned property, plant and equipment
Depreciation of right of use assets
(Profit)/Loss on disposal of hire equipment
Loss 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 £60,000
(2021: £35,000)
Total fees
2022
(£m)
1.0
43.2
23.5
(0.5)
0.1
-
0.3
0.2
0.5
0.1
0.6
2021
(£m)
0.8
43.4
24.7
1.0
0.5
1.1
0.3
0.2
0.5
-
0.5
176 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
6
Employees
The average number of people employed by the Group (including Directors) during the year was as follows:
Number of employees
UK and Ireland
International
Central
2022
3,113
104
284
3,501
2021
3,040
581
254
3,875
During the year, the transitional services agreement in relation to the discontinued international segment concluded resulting in the
decrease in international employee numbers compared to the year ended 31 March 2021.
The aggregate payroll costs of these employees (including bonuses) were as follows:
Wages and salaries
Social security costs
Pension costs
Share-based payments
2022
(£m)
109.2
9.9
3.0
1.2
123.3
2021
(£m)
96.3
10.0
2.7
0.5
109.5
During the year ended 31 March 2021, £8.9m was received from furlough schemes and is included within the employee payroll
costs above.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 177
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
7
Directors’ remuneration
Directors’ emoluments
Basic remuneration, including benefits
Value of long-term incentives
Performance related bonuses
Gain on exercise of share options
Company pension contributions
Emolument of the highest paid Director
Basic remuneration, including benefits
Performance related bonuses
Termination payments
Gain on exercise of share options
Company pension contributions
2022
(£’000s)
2021
(£’000s)
1,113
-
484
-
70
1,667
412
265
-
-
59
736
1,108
213
252
587
76
2,236
76
-
156
584
13
829
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.
8
Financial expense
Interest on bank loans and overdrafts
Amortisation of issue costs
Total interest on borrowings
Interest on lease liabilities
Financial expense
2022
(£m)
2.6
0.6
3.2
2.5
5.7
2021
(£m)
2.6
0.4
3.0
2.4
5.4
178 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
9
Taxation
Tax charged in the Income Statement from continuing operations
Current tax
UK corporation tax on profit at 19% (2021: 19%)
Adjustment in respect of prior years
Deferred tax (Note 24)
UK deferred tax at 25% (2021: 19%)
Adjustment in respect of prior years
Effect of change in rates
Total deferred tax
Total tax charge from continuing operations
Tax charged in other comprehensive income
Deferred tax on effective portion of changes in fair value of cash flow hedges
Tax charged in equity
Deferred tax
2022
(£m)
2021
(£m)
4.9
0.5
0.9
(0.6)
2.0
2.3
7.7
0.2
0.1
1.2
(0.7)
1.0
0.7
-
1.7
2.2
-
-
The adjusted tax rate of 26.2% (2021: 19.4%) is higher than the standard rate of UK corporation tax of 19%. The tax charge in the
Income Statement for the year of 26.5% (2021: 26.5%) is higher than the standard rate of corporation tax in the UK and is explained
as follows:
Profit before tax
Accounting profit multiplied by the standard rate of corporation tax at 19%
(2021: 19%)
Expenses not deductible for tax purposes
Share-based payments
Share of joint venture income already taxed
Change in tax rates
Adjustment to tax in respect of prior years
Tax charge for the year reported in the Income Statement
2022
(£m)
29.1
5.5
0.7
0.2
(0.6)
2.0
(0.1)
7.7
2021
(£m)
8.3
1.6
0.8
-
(0.2)
-
-
2.2
An increase in the tax rate to 25% was substantively enacted on the 24 May 2021, consequently this rate has been used to
calculate the deferred tax assets and liabilities and has resulted in the increased effective rate of taxation. The impact of the
rate change is that the net deferred tax liabilities have increased by £2.0m. Excluding the impact of the change, the comparative
effective rate of taxation is 19.6%.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 179
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
10
Earnings per share
The calculation of basic earnings per share is based on the profit for the financial year of £21.6m (2021: £9.5m) and the weighted
average number of 5 pence ordinary shares in issue, and is calculated as follows:
2022
2021
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
Shares repurchased and subsequently cancelled
Weighted average for the year – basic number of shares
Share options
Employee share scheme
Weighted average for the year – diluted number of shares
Profit (£m)
Profit for the period after tax – basic earnings
Intangible amortisation charge (after tax)
Exceptional items (after tax)
Profit from discontinued operations (after tax)
Adjusted earnings (from continuing operations after tax)
Earnings per share (pence)
Basic earnings per share*
Dilutive shares and options
Diluted earnings per share*
Adjusted earnings per share (from continuing operations)
Dilutive shares and options
Adjusted diluted earnings per share (from continuing operations)
523.8
0.4
0.1
(1.0)
523.3
5.7
0.8
529.8
21.6
0.8
-
(0.2)
22.2
4.13
(0.06)
4.07
4.24
(0.06)
4.18
521.3
0.3
0.8
-
522.4
6.5
0.6
529.5
9.5
0.6
7.3
(3.4)
14.0
1.82
(0.03)
1.79
2.68
(0.03)
2.65
Total number of shares outstanding at 31 March 2022 amounted to 518,220,366 (2021: 528,180,280), including 4,236,422
(2021: 4,413,516) shares held in the Employee Benefit Trust, which are excluded in calculating earnings per share.
*Basic and diluted EPS includes amounts relating to discontinued operations of 0.04p (FY21: 0.65p) and 0.04p (FY21: 0.64p) respectively.
180 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
11 Dividends
The aggregate amount of dividend paid in the year comprises:
2021 final dividend (1.40 pence on 522.9m ordinary shares)
2022 interim dividend (0.75 pence on 524.2m ordinary shares)
2022
(£m)
7.3
4.0
11.3
2021
(£m)
-
-
-
Subsequent to the end of the year and not included in the results for the year, the Directors recommended a final dividend of
1.45 pence (2021: 1.40 pence) per share, bringing the total amount payable in respect of the 2022 year to 2.20 pence (2021: 1.40
pence), to be paid on 23 September 2022 to shareholders on the register on 12 August 2022.
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 2022, the Trust held 4,236,422 ordinary shares (2021: 4,413,516).
12 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. The measures on a continuing basis are as follows:
Operating profit
Add back: amortisation
Add back: exceptional items
Adjusted operating profit
Add back: depreciation
EBITDA before exceptional items
Profit before tax
Add back: amortisation
Add back: exceptional items
Adjusted profit before tax
2022
(£m)
31.6
1.0
-
32.6
66.7
99.3
29.1
1.0
-
30.1
2021
(£m)
12.5
0.8
8.4
21.7
63.6
85.3
8.3
0.8
8.4
17.5
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 181
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
13
Intangible fixed assets
Goodwill
(£m)
Customer lists
(£m)
Brands
(£m)
IT development
(£m)
Cost
At 1 April 2020
Additions
At 31 March 2021
Additions
At 31 March 2022
Amortisation
At 1 April 2020
Charged in year
Impairment
At 31 March 2021
Charged in year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
At 31 March 2020
126.3
-
126.3
-
126.3
108.8
-
-
108.8
-
108.8
17.5
17.5
17.5
45.1
-
45.1
-
45.1
41.8
0.4
1.1
43.3
0.3
43.6
1.5
1.8
3.3
7.0
-
7.0
-
7.0
5.9
0.4
-
6.3
0.2
6.5
0.5
0.7
1.1
1.2
3.5
4.7
2.2
6.9
-
-
-
-
0.5
0.5
6.4
4.7
1.2
Total
(£m)
179.6
3.5
183.1
2.2
185.3
156.5
0.8
1.1
158.4
1.0
159.4
25.9
24.7
23.1
The remaining amortisation period of each category of intangible fixed asset is the following: Customer lists 1-5 years (2021: 2-6
years), Brands 5 years (2021: 6 years) and IT development 6 years.
Goodwill is not tax-deductible.
All goodwill has arisen from business combinations. On transition to IFRS, the balance of goodwill as measured under UK GAAP
was allocated to the cash-generating unit (CGU). 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
of a single UK and Ireland CGU. 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.
182 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
13
Intangible fixed assets (continued)
The recoverable amounts of the assets allocated to the CGU 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 from the FY2023 budget, 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 pre-tax weighted average cost of capital, adjusted for risk factors associated with the CGU and
market-specific risks.
During the year ended 31 March 2021, the Training CGU was affected by market conditions due to COVID-19 and the impact social
distancing had on the delivery of courses. The recoverable amount of the CGU was considered £nil and the goodwill and intangible
assets associated with the training business were fully impaired, which resulted in an impairment of £1.1m in the year. During the
year ended 31 March 2022, the Geason business has been closed.
The pre-tax discount rates and terminal growth rates applied are as follows:
31 March 2022
31 March 2021
Pre-tax discount rate
Terminal value
growth rate
Pre-tax discount rate
Terminal value
growth rate
UK and Ireland
11.4%
2.5%
12.3%
2.5%
Impairment calculations are sensitive to changes in key assumptions of revenue growth and discount rate. At 31 March 2022,
the headroom between value in use and carrying value of related assets for the UK and Ireland was £52.8m (2021: £27.6m). The
increase in headroom is principally due to the decrease in discount rate at 31 March 2022 compared with previous years. There are
no reasonable variations in these assumptions that would result in an impairment.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 183
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
14
Investment in joint venture
Equity
investment
(£m)
Loan
advances
(£m)
Cost
At 1 April 2020
Effect of movement in foreign exchange rates
At 31 March 2021
Effect of movement in foreign exchange rates
At 31 March 2022
Share of post-acquisition results
At 1 April 2020
Share of results for the year after tax
Share of other comprehensive income
Dividend received
Loan repayment
At 31 March 2021
Share of results for the year after tax
Share of other comprehensive income
Dividend received
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
At 31 March 2020
3.8
(0.6)
3.2
0.1
3.3
2.5
1.2
(0.5)
(0.7)
-
2.5
3.2
0.2
(1.9)
4.0
7.3
5.7
6.3
2.0
(0.1)
1.9
-
1.9
(1.0)
-
-
-
(0.4)
(1.4)
-
-
-
(1.4)
0.5
0.5
1.0
Total
(£m)
5.8
(0.7)
5.1
0.1
5.2
1.5
1.2
(0.5)
(0.7)
(0.4)
1.1
3.2
0.2
(1.9)
2.6
7.8
6.2
7.3
In 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 an initial loan of US$2.5m to the joint venture with an equivalent
amount provided by the joint venture partner. A repayment of £nil ($nil) (2021: repayment of £0.4m ($0.5m)) was received during
the year. This joint venture is not considered to be individually material.
184 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
15 Property, plant and equipment
Land and buildings
(£m)
Hire equipment
(£m)
Other
(£m)
Total
(£m)
Cost
At 1 April 2020
Foreign exchange
Additions
Disposals
Transfers to inventory
At 31 March 2021
Foreign exchange
Additions
Disposals
Transfers to inventory
At 31 March 2022
Depreciation
At 1 April 2020
Foreign exchange
Additions
Disposals
Transfers to inventory
At 31 March 2021
Foreign exchange
Additions
Disposals
Transfers to inventory
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
At 31 March 2020
54.8
(0.5)
1.7
(5.4)
-
50.6
-
6.1
(3.5)
-
53.2
36.5
(0.3)
3.6
(3.2)
-
36.6
-
3.9
(2.9)
-
37.6
15.6
14.0
18.3
408.1
(1.1)
36.0
(46.0)
(10.4)
386.6
(1.0)
68.4
(15.8)
(15.5)
422.7
181.0
(0.6)
33.7
(27.4)
(7.3)
179.4
(0.1)
35.2
(7.2)
(11.5)
195.8
226.9
207.2
227.1
83.1
0.6
6.0
(1.2)
-
88.5
(0.3)
7.6
(4.1)
-
91.7
70.9
-
6.1
(0.4)
-
76.6
(0.2)
4.1
(4.0)
-
76.5
15.2
11.9
12.2
546.0
(1.0)
43.7
(52.6)
(10.4)
525.7
(1.3)
82.1
(23.4)
(15.5)
567.6
288.4
(0.9)
43.4
(31.0)
(7.3)
292.6
(0.3)
43.2
(14.1)
(11.5)
309.9
257.7
233.1
257.6
The net book value of land and buildings comprises improvements to short leasehold properties.
Included within depreciation charged in the year is £nil (2021: £1.0m) relating to exceptional impairments (see Note 4).
An impairment review has been completed during the year on the basis set out in Note 13.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 185
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
16 Right of use assets
Land and buildings
(£m)
Other
(£m)
Total
(£m)
Cost
At 1 April 2020
Foreign exchange
Additions
Disposals
At 31 March 2021
Foreign exchange
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2020
Foreign exchange
Charged in year
Disposals
At 31 March 2021
Charged in year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
At 31 March 2020
127.8
(0.6)
13.7
(9.6)
131.3
6.6
12.8
(7.2)
143.5
80.6
(0.4)
13.3
(6.9)
86.6
12.2
(6.5)
92.3
51.2
44.7
47.2
51.9
-
8.9
(12.6)
48.2
15.9
5.7
(14.2)
55.6
34.4
-
11.4
(12.0)
33.8
11.3
(11.6)
33.5
22.1
14.4
17.5
179.7
(0.6)
22.6
(22.2)
179.5
22.5
18.5
(21.4)
199.1
115.0
(0.4)
24.7
(18.9)
120.4
23.5
(18.1)
125.8
73.3
59.1
64.7
For the year ended 31 March 2021 included within depreciation charged is £2.0m relating to exceptional impairments (see Note 4).
186 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
17
Inventories
Work in progress
Finished goods and goods for resale
2022
(£m)
1.3
6.8
8.1
2021
(£m)
1.0
7.2
8.2
The amount of inventory expensed in the year amounted to £25.3m (2021: £31.1m) and is included within cost of sales. A provision
of £1.2m (2021: £0.3m) is recorded in respect of inventory held at the year-end.
18
Trade and other receivables
Trade receivables
Other receivables
Prepayments and accrued income
2022
(£m)
100.1
2.2
6.4
108.7
2021
(£m)
88.5
4.7
0.1
93.3
The Group’s credit risk is primarily attributable to trade receivables. The amounts presented in the consolidated statement of
financial position are net of any loss provision. There are £34.3m (2021: £26.2m) of trade receivables that are past due at the
balance sheet date that are in excess of the provision amount. There is no indication as at 31 March 2022 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
2022
(£m)
65.8
18.7
9.8
5.8
100.1
2021
(£m)
62.3
17.4
6.3
2.5
88.5
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 187
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
18
Trade and other receivables (continued)
The valuation of trade receivables is explained in the Significant judgements and estimates section within Note 1, Accounting
Policies. The movement in this balance during the year was as follows:
At 1 April
Impairment provision charged to the Income Statement
Utilised in the year
At 31 March
19
Trade and other payables
Trade payables
Other payables
Accruals
*See Note 31
2022
(£m)
3.5
3.8
(4.3)
3.0
2022
(£m)
45.3
10.7
40.6
96.6
2021
(£m)
3.9
2.0
(2.4)
3.5
2021
Restated* (£m)
49.8
9.5
36.5
95.8
188 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
20
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.
Furthermore, there are a small number of immaterial hedges
relating to fuel prices in order to mitigate any fuel price increases.
Fair value of financial assets and liabilities
The fair values of financial assets and liabilities are considered to
be equal to the carrying values shown in the balance sheet.
Basis for determining fair values
The following summarises the principal methods and assumptions
used in estimating the fair value of financial instruments:
(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 at a market rate of interest.
(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.
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
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 along with a consideration of the future
expected credit losses.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 189
Notes to the Financial Statements continued
20
Financial instruments (continued)
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 2022, the Group had a banking facility amounting to £180.0m (2021: £180.0m), as detailed in Note 21. The cash and
undrawn availability on this facility as at 31 March 2022 was £110.8m (2021: £142.3m) 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.
Asset based finance facility
Overdraft
Lease liability (principal and interest)
Bank interest payments
Trade and other payables
Asset based finance facility
Overdraft
Lease liability (principal and interest)
Bank interest payments
Trade and other payables
2023
(£m)
-
1.7
25.0
3.5
56.0
86.2
2023
(£m)
-
0.5
21.3
2.7
57.7
82.2
Undiscounted cash flows – 31 March 2022
2024
(£m)
-
-
18.1
3.3
-
21.4
2025
(£m)
68.3
-
12.8
1.2
-
82.3
2026 and later
(£m)
-
-
30.6
-
-
30.6
Undiscounted cash flows – 31 March 2021
2024
(£m)
44.4
-
15.8
1.7
-
61.9
2025
(£m)
2026 and later
(£m)
-
-
10.8
-
-
10.8
-
-
23.5
-
-
23.5
Total
(£m)
68.3
1.7
86.5
8.0
56.0
220.5
Total
(£m)
44.4
0.5
71.4
4.4
57.7
178.4
190 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
20
Financial instruments (continued)
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 2.7% 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 2022, if sterling had weakened or strengthened by 10% against the Euro and United Arab Emirates dirham with all
other variables held constant, post-tax profit for the year would have been £0.8m (2021: £0.6m) 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.
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
Fair value
(£m)
Notional amount
(£m)
Fair value
(£m)
Notional amount
(£m)
Fixed interest rate swaps
0.4
85.0
(0.4)
60.0
31 March 2022
31 March 2021
Future cash flows associated with the above instruments are dependent upon movements in the Sterling Overnight Index Average
Rate (SONIA) 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 SONIA rates.
The weighted average interest rate on the fixed interest rate swaps is 1.06% (2021: 1.00%) and the instruments are for a weighted
average period of 9 months (2021: 10 months). The maximum contractual period is 36 months (2021: 36 months).
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 191
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
20
Financial instruments (continued)
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 2022 it is estimated that an increase of 1% in interest rates would decrease the Group’s profit before tax by
approximately £0.1m (2021: £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 an efficient 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.
21 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
*See Note 31
192 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
2022
(£m)
2021
Restated*(£m)
1.7
20.6
22.3
68.3
56.1
124.4
146.7
(2.5)
(76.7)
67.5
0.5
16.7
17.2
44.4
46.5
90.9
108.1
(11.7)
(63.2)
33.2
21 Borrowings (continued)
The Group has a £180m asset based finance facility, which was renewed in July 2021, which is sub divided into:
(a)
(b)
A secured overdraft facility, 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.
An asset based finance facility of up to £175m, based on the Group’s hire equipment and trade receivables balance. The cash
and undrawn availability of this facility as at 31 March 2022 was £110.8m (2021: £142.3m), based on the Group’s eligible hire
equipment and trade receivables.
The facility is for £180m, reduced to the extent that any ancillary facilities are provided, and is repayable in July 2024, with no prior
scheduled repayment requirements. Uncommitted options exist for a further two one-year extensions until July 2026. An additional
uncommitted accordion of £220m is in place.
Interest on the facility is calculated by reference to SONIA (previously LIBOR) applicable to the period drawn, plus a margin of 155 to 255 basis
points, depending on leverage and on the components of the borrowing base. During the year, the effective margin was 1.73% (2021: 1.80%).
The facility is secured by fixed and floating charges over the Group’s assets.
Analysis of consolidated net debt
Cash at bank and in hand
Bank overdraft
Bank borrowings
31 March 2021
(£m)
Non-cash movement
(£m)
Cash flow
(£m)
31 March 2022
(£m)
11.7
(0.5)
(44.4)
(33.2)
-
-
0.6
0.6
(9.2)
(1.2)
(24.5)
(34.9)
2.5
(1.7)
(68.3)
(67.5)
Cash flow relating to bank borrowings includes £0.9m of fees paid in respect of the refinancing of the facility during the year.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 193
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
22
Lease liabilities
At 1 April 2020 Restated*
Foreign exchange
Additions
Repayments
Unwinding of discount rate
Terminations
At 31 March 2021 Restated*
Additions
Remeasurements
Repayments
Unwinding of discount rate
Terminations
At 31 March 2022
Land and
buildings
(£m)
52.7
(0.1)
13.7
(14.2)
2.0
(5.3)
48.8
6.6
12.8
(15.0)
1.9
(1.9)
53.2
Other
(£m)
17.6
-
8.9
Total
(£m)
70.3
(0.1)
22.6
(12.0)
(26.2)
0.6
(0.7)
14.4
15.9
5.7
(12.1)
0.6
(1.0)
23.5
2.6
(6.0)
63.2
22.5
18.5
(27.1)
2.5
(2.9)
76.7
Included within terminations in the year ended 31 March 2021 is £3.7m relating to exceptional terminations of property leases (see
Note 4).
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
*See Note 31
2022
(£m)
2021
Restated* (£m)
20.6
56.1
76.7
16.7
46.5
63.2
194 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
23 Provisions
At 1 April 2020
Created in the year
Provision utilised in the year
At 31 March 2021
Provision utilised in the year
At 31 March 2022
Dilapidations
(£m)
Training provision
(£m)
4.1
3.2
(2.5)
4.8
(1.5)
3.3
3.0
0.9
(2.7)
1.2
(0.5)
0.7
Total
(£m)
7.1
4.1
(5.2)
6.0
(2.0)
4.0
Of the £4.0m provision at 31 March 2022 (2021: £6.0m), £2.8m (2021: £3.1m) is due within one year and £1.2m (2021: £2.9m) 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. The movement in the year is a part settlement of these costs from properties exited.
In April 2020 Speedy were notified that a funding agency was suspending payments, and seeking repayment of £2.6m from
Geason Training. In the year ended 31 March 2020, £3.0 million was provided as an exceptional charge. The claim was settled in
October 2020 within the provision held. An additional provision was recognised in 2021 for £0.9m in relation to legal and other
costs. The movement in the year is a part settlement of those costs.
24 Deferred tax
At 1 April 2020 Restated*
Recognised in income
At 31 March 2021
Recognised in the year
At 31 March 2022
*See Note 31
Property, plant
and equipment
(£m)
Intangible
assets
(£m)
Share-based
payments
(£m)
Other items
(£m)
7.4
1.4
8.8
2.2
11.0
-
(0.3)
(0.3)
0.2
(0.1)
(0.4)
-
(0.4)
0.3
(0.1)
(2.0)
0.6
(1.4)
(0.1)
(1.5)
Total
(£m)
5.0
1.7
6.7
2.6
9.3
The Group has gross trading losses carried forward at 31 March 2022 amounting to approximately £6.1m (2021: £7.7m). No deferred
tax asset has been recognised in respect of these losses. The Group also has gross capital losses carried forward at 31 March 2022
amounting to approximately £1.4m (2021: £1.4m). No deferred tax asset has been recognised in respect of these losses.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 195
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
25
Share capital
Allotted, called-up and fully paid
At 1 April (ordinary shares of 5 pence each)
Exercise of Sharesave Scheme options
Purchase and cancellation of own shares
Total
2022
2021
Number (m)
Amount (£m)
Number (m)
Amount (£m)
528.2
1.1
(11.1)
518.2
26.4
0.1
(0.6)
25.9
526.8
1.4
-
528.2
26.4
-
-
26.4
In January 2022 the Company commenced a share buyback programme. By resolutions passed at the 9 September 2021 AGM, the
Company’s shareholders generally authorised the Company to make market purchases of up to 52,831,110 of its ordinary shares. In
the year ended 31 March 2022, a total of 11,114,363 ordinary shares were purchased and cancelled. A further 401,186 shares were
acquired immediately prior to the year ended 31 March 2022 and cancelled in April 2022.
The average price paid was 54p with a total consideration (inclusive of all costs) of £6.2m. 11,114,363 shares purchased were
cancelled, nil held in treasury and 401,186 held pending cancellation.
During the year, 1.1m ordinary shares of 5 pence were issued on exercise of options under the Speedy Hire Sharesave Schemes
(2021: 1.4m).
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 177,094 (2021: 1,058,690) shares were
transferred to employees during the year. At 31 March 2022, the Trust held 4,236,422 (2021: 4,413,516) shares.
26
Share incentives
At 31 March 2022, options and awards over 19,203,929 shares (2021: 15,533,503) were outstanding under employee share
schemes. The Group operates two share incentive schemes. During the year a weighted average 325,283 ordinary shares of 5 pence
were issued on exercise of options under the Speedy Hire Sharesave Schemes (2021: 327,607).
As at 31 March 2022, options to acquire 8,035,173 (2021: 6,771,223) Speedy Hire Plc shares were outstanding under the Speedy
Hire Sharesave Schemes. These options are exercisable by employees of the Group at prices between 48 and 56 pence (2021: 46
and 55 pence) at dates between April 2022 and July 2025 (2021: April 2021 and July 2024). At 31 March 2022, options to acquire
11,168,757 shares (2021: 8,762,281) under the Performance Share Plans were outstanding. These options are exercisable at nil cost
between April 2022 and November 2031 (2021: April 2021 and November 2030). The weighted average fair value of the awards
granted in the year was 55 pence (2021: 27 pence).
196 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
26
Share incentives (continued)
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
2022
2021
WAEP pence
Number
WAEP pence
Number
22
28
29
46
22
8
15,533,503
5,216,389
(1,163,070)
(382,893)
19,203,929
5,135,960
21
26
15
40
22
5
14,465,265
5,463,705
(1,519,073)
(2,876,394)
15,533,503
3,179,683
Options and awards outstanding at 31 March 2022 have weighted average remaining contractual lives as follows:
Exercisable at nil pence
Exercisable at 46 pence
Exercisable at 48 pence
Exercisable at 55 pence
Exercisable at 56 pence
2022
(years)
2021
(years)
1.4
-
0.8
1.8
2.8
0.8
0.8
1.8
2.8
-
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 197
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
26
Share incentives (continued)
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
2021
December
2020
December
2019
December
2018
Stochastic
Stochastic
Stochastic
Stochastic
56p
31.7%
55p
31.2%
48p
28.8%
46p
36.4%
3.25 years
3.25 years
3.25 years
3.25 years
3.6%
0.5%
1.1%
(0.1%)
2.9%
0.5%
3.2%
0.7%
June
2021
November
2020
May
2019
June
2018
Stochastic
Stochastic
Stochastic
Stochastic
Nil
32.6%
3 years
Nil
0.1%
Nil
31.8%
3 years
Nil
(0.0%)
Nil
27.1%
3 years
Nil
0.7%
Nil
30.8%
3 years
Nil
0.8%
27 Contingent liabilities
There are no contingent liabilities as at the 31 March 2022.
28 Commitments
The Group had contracted capital commitments amounting to £20.2m (2021: £19.2m) at the end of the financial year for which no
provision has been made.
29 Post-balance sheet events
There are no post balance sheet events not already disclosed.
198 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
30 Related party disclosures
Key management remuneration
The Group’s key management personnel are the Executive and Non-Executive Directors as identified in the Directors’
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 2022 are
given in the Directors’ Remuneration Report.
31 Prior year adjustment
On transition to IFRS 16 in FY2020 the lease liabilities were overstated and accruals understated. This has been corrected by
restating each of the affected financial statement line items in the balance sheet as at 1 April 2020 in line with IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors. There is no impact on the amounts recognised in the income statement.
A summary of the affected accounts and the restatements made as at 31 March 2021 is as follows:
Assets:
Deferred tax asset
Liabilities:
Lease liability
Accruals
Net assets
Equity:
Retained earnings as at 1 April 2020
Retained earnings as at 31 March 2021
Reported
(£m)
Adjustment
(£m)
Restated
(£m)
2.5
(65.8)
(35.9)
(101.7)
219.2
182.2
192.2
(0.4)
2.6
(0.6)
2.0
1.6
1.6
1.6
2.1
(63.2)
(36.5)
(99.7)
220.8
183.8
193.8
Impairment losses on trade receivables of £2.0m, as determined in accordance with IFRS 9 Financial Instruments, were previously
included in distribution and administration expenses. These are now shown separately on the face of the Income Statement and the
comparative amounts restated.
Loan drawdowns and repayments previously shown net in the Cash Flow Statement are now shown separately. The comparative net
repayment of £58.2m has been restated to show loan drawdowns of £340.8m and repayments of £399.0m.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 199
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Company Financial Statements
Company Balance Sheet
At 31 March 2022
ASSETS
Non-current assets
Investments
Deferred tax asset
Current assets
Trade and other receivables
Current tax receivable
Cash
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Other financial liabilities
Non-current liabilities
Borrowings
Deferred tax liability
Total liabilities
Net assets
EQUITY
Share capital
Share premium
Capital redemption reserve
Merger reserve
Hedging reserve
Retained earnings
Total equity
Note
31 March 2022
(£m)
31 March 2021
(£m)
33
38
34
37
35
37
38
39
93.5
-
93.5
399.4
4.1
11.8
415.3
508.8
(201.4)
-
(201.4)
(83.1)
(0.1)
(284.6)
224.2
25.9
1.8
0.6
2.3
0.1
193.5
224.2
93.5
0.1
93.6
308.6
16.1
1.0
325.7
419.3
(126.5)
(0.4)
(126.9)
(56.4)
-
(183.3)
236.0
26.4
1.3
-
2.3
(0.7)
206.7
236.0
The accompanying notes form part of the financial statements. The Company Financial Statements on pages 200 to 207 were
approved by the Board of Directors on 27 May 2022 and were signed on its behalf by:
James Bunn, Director
Company registered number: 00927680
200 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
Company Statement of Changes in Equity
For the year ended 31 March 2022
Share capital
(£m)
Share
premium
(£m)
Capital
redemption
reserve
(£m)
Merger
reserve
(£m)
Hedging
reserve
(£m)
Retained
earnings
(£m)
Total equity
(£m)
At 1 April 2020
26.4
0.8
Profit for the financial year
Effective portion of change in fair
value of cash flow hedges
Equity-settled share-based
payments
Issue of shares under the
Sharesave Scheme
-
-
-
-
At 31 March 2021
26.4
Profit for the financial year
Dividends
Effective portion of change in fair
value of cash flow hedges
Equity-settled share-based
payments
Tax on items taken directly to equity
Purchase and cancellation of shares
Issue of shares under the
Sharesave Scheme
At 31 March 2022
-
-
-
-
-
(0.6)
0.1
25.9
-
-
-
0.5
1.3
-
-
-
-
-
-
0.5
1.8
The accompanying notes form part of the financial statements.
-
-
-
-
-
-
-
-
-
-
-
0.6
-
0.6
2.3
(0.9)
206.5
235.1
-
-
-
-
-
0.2
-
-
(0.3)
(0.3)
-
0.5
-
0.2
0.5
0.5
2.3
(0.7)
206.7
236.0
-
-
-
-
-
-
-
-
-
0.8
-
-
-
-
3.2
3.2
(11.3)
(11.3)
-
1. 2
(0.1)
(6.2)
-
0.8
1.2
(0.1)
(6.2)
0.6
224.2
2.3
0.1
193.5
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 201
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Company Financial Statements continued
Company Cash Flow Statement
For the year ended 31 March 2022
Cash generated from operating activities
Profit before tax
Financial income
Exceptional impairment charge
(Increase)/decrease 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*
Repayment of loans*
Proceeds from the issue of Sharesave Scheme shares
Purchase of own shares for cancellation
Dividends paid
Net cash flow from financing activities
Increase/(decrease) in cash and cash equivalents
Cash at the start of the financial year
Cash at the end of the financial year
Year ended 31
March 2022
(£m)
Year ended 31
March 2021
Restated*
(£m)
3.2
(4.8)
-
(75.0)
75.2
1.2
(0.2)
4.7
(3.0)
1.5
482.6
(456.5)
0.5
(6.0)
(11.3)
9.3
10.8
1.0
11.8
0.3
(5.6)
5.3
6.9
23.8
0.6
31.3
6.1
(0.8)
36.6
340.8
(398.3)
0.5
-
-
(57.0)
(20.4)
21.4
1.0
The accompanying notes form part of the financial statements.
*Loan drawdowns and repayments previously shown net in the Cash Flow Statement are now shown separately. The comparative net repayment of £57.5m
has been restated to show loan drawdowns of £340.8m and repayments of £398.3m.
202 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
Notes to the Financial Statements
32 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.
The Company does not have any employees. Directors are paid by other Group companies.
33
Investments
Cost
At 1 April 2020, 31 March 2021 and 31 March 2022
Provisions
At 1 April 2020, 31 March 2021 and 31 March 2022
Net book value
At 1 April 2020, 31 March 2021 and 31 March 2022
Investments in
related undertakings
(£m)
113.3
(19.8)
93.5
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 203
Notes to the Financial Statements continued
33
Investments (continued)
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 (2021: £nil).
The Company’s related undertakings are as follows:
Incorporation and
operation
Principal
activity
Ordinary share
capital held
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
Ireland
UK
UK
UK
UK
UK
UK
UAE
Egypt
UK
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Holding company
Training services
Dormant
Dormant
Holding company
Dormant
Dormant
Holding company
Dormant
Dormant
Dormant
Dormant
Dormant
Hire services
Dormant
Hire services
Hire services
Dormant
Dormant
Dormant
Dormant
Dormant
Holding company
Hire services
Dormant
Dormant
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
49%
100%
100%
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
Rail Hire (UK) Limited1,2
SHH 501 Limited1,2
Speedy Asset Leasing Limited1
Speedy Asset Services Limited1
Speedy Engineering Services Limited1
Speedy Hire (Ireland) Limited4
Speedy Hire (Ireland) Limited2,5
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 Leasing Limited1,2
204 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
33
Investments (continued)
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 LLP10
Speedyloo Limited1
Stockton Investments (North East) Limited1
Tidy Group Limited1
Turner & Hickman Limited9,10
Waterford Hire Services Limited1,1`
Incorporation and
operation
Principal
activity
Ordinary share
capital held
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Provision of group services
Dormant
Provision of group services
Kazakhstan
Hire services
UK
UK
UK
UK
Dormant
Dormant
Dormant
Holding company
Ireland
Dormant
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 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.
10 Registered office: 19 Woodside Crescent, Glasgow, G3 7UL.
11 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.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 205
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Notes to the Financial Statements continued
34
Trade and other receivables
Amounts owed by Group undertakings
Other receivables
2022
(£m)
397.0
2.4
399.4
2021
(£m)
306.6
2.0
308.6
Amounts owed by other group undertakings are repayable on demand. Interest is not payable on balances outstanding as a result of
routine inter-company trading. Long term inter-company loans bear interest on the same basis as external bank borrowings.
35
Trade and other payables
Amounts owed to Group undertakings
Accruals
2022
(£m)
200.6
0.8
201.4
2021
(£m)
125.7
0.8
126.5
Amounts due from other group undertakings are repayable on demand. Interest is not payable on balances outstanding as a result
of routine inter-company trading. Long term inter-company loans bear interest on the same basis as external bank borrowings.
36
Financial instruments
The Company financial instruments are stated in accordance with Note 20.
The fair values of financial assets and liabilities are considered to be equal to the carrying values shown in the balance sheet.
206 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
37 Borrowings
Non-current borrowings
Maturing between two and five years
- Asset based finance facility
Total borrowings
Less: cash
Net debt
2022
(£m)
83.1
83.1
(11.8)
71.3
2021
(£m)
56.4
56.4
(1.0)
55.4
The Company borrowings are stated in accordance with Note 21.
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
38 Deferred tax
Company asset
Opening at 1 April 2020 and 1 April 2021
Recognised in income
Closing balance at 31 March 2022
31 March 2021
(£m)
Non-cash movement
(£m)
Cash flow
(£m)
31 March 2022
(£m)
1.0
(56.4)
(55.4)
-
(0.6)
(0.6)
10.8
(26.1)
(15.3)
11.8
(83.1)
(71.3)
Total
(£m)
0.1
(0.2)
(0.1)
39
The Company share capital is stated in accordance with Note 25.
Share capital and share incentives
40 Contingent liabilities and commitments
The Company contingent liabilities and commitments are stated in accordance with Notes 27 and 28.
41 Post-balance sheet events
The Company post-balance sheet events are stated in accordance with Note 29.
42 Related party disclosures
The Company related party disclosures are stated in accordance with Note 30.
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 207
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Five-year Summary
Income Statement
Revenue
Gross profit
Analysis of operating profit
Operating profit before amortisation and exceptional items
Amortisation
Exceptional items
Operating profit
Share of results of joint ventures
Net financial expense
Financial income/(expense) - exceptional
Total net financial (expense)/income
Profit before taxation
Non-GAAP performance measures
EBITDA before exceptional items
Adjusted profit before tax, exceptional items and amortisation
Balance sheet
Hire equipment – original cost
Hire equipment – net book value
Total equity
Cash flow
Cash generated from operations
Net cash flow before financing activities
Purchase of hire equipment
Profit/(loss) on disposal of hire equipment
In pence
Dividend per share (interim and final dividend)
Adjusted earnings per share2
Net assets per share
208 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022
20223
(£m)
386.8
221.1
32.6
(1.0)
-
31.6
3.2
(5.7)
-
(5.7)
29.1
99.3
30.1
422.7
226.9
226.4
28.6
5.5
(71.5)
0.5
2.20
4.24
43.7
20213
Restated*
(£m)
2020
Restated*
(£m)
2019
(£m)
20182
(£m)
332.3
184.9
406.7
224.2
394.7
214.4
373.0
204.7
21.7
(0.8)
(8.4)
12.5
1.2
(5.4)
-
(5.4)
8.3
85.3
17.5
386.6
207.2
220.8
72.9
69.7
(36.4)
(1.0)
1.40
2.68
41.8
39.1
(1.3)
(23.8)
14.0
2.8
(7.0)
10.9
3.9
20.7
107.4
34.9
408.1
227.1
211.5
64.5
45.2
(53.6)
0.8
0.70
5.54
40.1
36.7
(0.7)
(1.2)
34.8
1.9
(7.2)
(0.8)
(8.0)
28.7
104.8
31.4
385.8
216.9
202.0
61.2
13.6
(54.3)
1.2
2.00
4.96
38.5
29.2
(0.2)
(7.2)
21.8
0.8
(4.1)
(0.5)
(4.6)
18.0
73.0
25.9
364.0
203.7
197.8
37.2
17.4
44.8
0.7
1.65
4.04
37.7
In percentages
Gearing
Return on capital employed1
EBITDA margin2
In ratios
Net debt/EBITDA2 (excluding impact of IFRS 16)
Net debt/net tangible fixed assets
In numbers
Average employee numbers
Depot numbers
20223
(£m)
20213
Restated*
(£m)
2020
Restated*
(£m)
2019
(£m)
20182
(£m)
29.8
13.1
25.7
0.9
0.20
15.0
8.4
25.7
0.5
0.11
37.8
14.4
26.4
1.0
0.31
44.1
11.7
26.6
1.1
0.35
35.1
11.5
19.3
1.0
0.29
3,501
207
3,875
180
4,071
216
3,873
222
3,783
217
1 2019 and 2018 ROCE are calculated as adjusted profit before tax. 2020, 2021 and 2022 are calculated on adjusted EBITA.
2 2018 amounts are presented excluding the impact of IFRS 16
3 2022 and 2021 Income Statement amounts are presented for continuing operations only
*See Note 31
Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 209
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Electronic communications
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.
Shareholder Information
Annual General Meeting
The Annual General Meeting (‘AGM’) will be held at the offices
of Addleshaw Goddard LLP, Milton Gate, 60 Chiswell Street,
London, EC1Y 4AG on 8 September 2022 at 11.00am.
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 are 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 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.
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.
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 8.30am to 5.30pm (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.
210 Corporate Information Speedy Hire Plc Annual Report and Accounts 2022
Contact details
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
Boiler room fraud
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.
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 a
re 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!
Forward-looking statements
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.
Corporate Information Speedy Hire Plc Annual Report and Accounts 2022 211
S
t
r
a
t
e
g
i
c
R
e
p
o
r
t
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
Bankers continued
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
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
Visit our website to find out more
speedyservices.com/investors
Sign up for our RNS alerts
speedyservices.com/investors/
alert-subscribe
Financial advisers
NM Rothschild & Sons Limited
New Court
St. Swithin's Lane
London
EC4N 8AL
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
Proposed for appointment
at the 2022 AGM
PricewaterhouseCoopers LLP
No 1 Spinningfields
1 Hardman Square
Manchester
M3 3EB
Bankers
ABN AMRO Asset Based Finance N.V.,
UK Branch
5 Aldermanbury Square
London
EC2V 7HR
Barclays Bank PLC
1st Floor
3 Hardman Street
Spinningfields
Manchester
M3 3AP
HSBC Invoice Finance (UK) Ltd
21 Farncombe Road
Worthing
West Sussex
BN11 2BW
HSBC Bank Plc
8 Canada Square
Canary Wharf
London
E14 5HQ
212 Corporate Information Speedy Hire Plc Annual Report and Accounts 2022
All paper from sustainable and
controlled sources.
This Annual Report is available at:
speedyservices.com/investors
Designed by Engine Studio | mhpc.com
Printed by 4-Print Limited | 4-print.co.uk
Speedy Hire Plc
Chase House
16 The Parks
Newton-le-Willows
Merseyside WA12 0JQ
speedyservices.com/investors