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Strong foundations...
accelerating
sustainable
growth
Speedy Hire Plc
Annual Report and Accounts 2023
Welcome
Speedy Hire is the UK’s leading provider of tools and equipment hire,
and services, to customers ranging from the largest national infrastructure
contractors through to SMEs, tradespeople and retail consumers.
Our hire and services business operates through an omni-channel approach
including approximately 180 trading locations in the UK and Ireland,
including concessions within selected B&Q stores and on-site facilities at
customer locations, central service hubs and digitally online at our website
speedyservices.com and via our mobile app. We also operate internationally
through a joint venture in Kazakhstan.
Investment case
Strategic Report
01 Awards
02 Key achievements
03 Our ambition
04 Speedy Hire at a glance
06 What we do
08
10 Market focus
12 Chairman’s Statement
14 Chief Executive’s Review
18 Our growth strategy
24
Financial KPIs
26 ESG report
66 Non-financial information statement
67
Section 172 statement and
engagement with stakeholders
70 Financial Review
76 Principal risks and uncertainties
83 Viability statement
Governance
84 Chairman’s letter to shareholders
85 Directors’ Report
89
Statement of Directors’
Responsibilities
90 Board of Directors
92 Corporate Governance
100 Audit & Risk Committee Report
106 Nomination Committee Report
108 Sustainability Committee Report
110 Remuneration Report
130 Independent auditor’s report to the
members of Speedy Hire Plc
Financial Statements
140 Consolidated Income Statement
141 Consolidated Statement of
Comprehensive Income
142 Consolidated Balance Sheet
143 Consolidated Statement of
Changes in Equity
144 Consolidated Cash Flow Statement
145 Notes to the Financial Statements
176 Company Balance Sheet
177 Company Statement of Changes
in Equity
178 Company Cash Flow Statement
179 Notes to the Company Financial
Statements
185 Five-year summary
186 Corporate information
Strategic Report
Governance
Financial Statements
Corporate Information
01
Awards
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ISS Prime: Ranked as an industry leader for sustainability.EcoVadis Silver: Ranked in the top 25% of companies for sustainability in recognition of the Company’s work to reduce its environmental impact.Carbon Disclosure Programme Grade B Accreditation: For our ability to show real progress in operational practices and transparency in our environmental impact. A+ Energy Performance Certificate (EPC): Achieved at our Innovation Centre in Milton Keynes which is now carbon negative, giving back energy to the grid.Hire Awards of Excellence: Highly Commended in the ‘Best Sustainability & CSR Initiative’.RoSPA Gold: Achieved for the 9th year running.Construction News Awards: Shortlisted for the Supply Chain Excellence Award to be announced July 2023.Fleet News Awards: Highly Commended for the Wellbeing and Inclusivity in Fleet Award.Youth Verified: Successful verification as a Youth Verified Business by Youth Group, the UK’s largest community of young people.
Key achievements
Highlights FY2023
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Above: In June, Prime Minister Rishi Sunak visited
our industry-first, carbon-negative Innovation
Centre to see the ground-breaking work
we’re undertaking to develop net zero carbon
operational facilities, products and logistics.
Velocity growth strategy Launched Velocity, our strategy to drive revenue growth and improve margins.Zero carbon equipment investment Expanded the exclusive provision of the Milwaukee MX Fuel range of battery powered assets to extend our fleet of low and zero carbon equipment.Electric vehicle fleet expansion Introduced 150 new electric vans to reduce up to 1,280 tonnes of CO2e per year from our commercial fleet emissions.Industry first ECO generatorsLaunched an industry-first roll-out of retrofitted Stage V emission compliant generators, boosting the availability of greener generators to the construction industry.B&Q partnership extensionExtended our B&Q partnership to launch tool hire on both diy.com and tradepoint.co.uk in 2023, fulfilled exclusively by Speedy Hire. Supporting UkraineSupported the UK Government in providing 287 generators to Ukraine; enough to operate the equivalent of c.8,000 homes, and help run relief centres, hospitals, phone masts and water pumping stations.Sustainable Service CentresOpened the latest brand new low carbon Regional Services Centres in our ongoing programme to more sustainably and efficiently service customers in West Yorkshire and Staffordshire.Home delivery from B&QAnnounced being able to provide home delivery tool hire from approximately 300 B&Q stores nationwide.Early careers investmentInvested in over 100 early careers trainees across the UK to help boost our skills base and the industry’s talent pipeline.Emerging Talent Development Board Implemented an industry-leading Emerging Talent Development Board, to work alongside the Executive Team in assisting the strategic development of the business. Youth VerifiedBecame a Youth Verified Business, setting a new standard for inclusivity and innovation in the workforce.Neurodivergent supportBecame one of the founding members of Neurodiversity in Business (the NiB), an industry forum to support the participation of neurodivergent individuals in the workplace.The Speedy Hire ExpoAfter an absence of two years due to the COVID-19 pandemic, we welcomed back over 1,700 customers, colleagues, supply chain partners and leading figures in ESG and innovation to the hire industry’s leading event; the Speedy Hire Expo.
Strategic Report
Governance
Financial Statements
Corporate Information
03
Our ambition
Our Vision
To inspire and innovate the future of hire
and accelerate sustainable growth.
Our Mission
To be the most efficient and sustainable UK hire business:
digital and data driven, optimised through operational
excellence and powered by our people.
Our Values
People First
Ambitious
Innovative
We lead with
bravery to make
anything possible
We nurture a
culture where
ideas grow
Inclusive
We are all unique,
and we all belong
Safe
Together
Trusted
We share a collective
responsibility to keep
everyone safe
We are family, proud
to work as one to make
great things happen
We are responsible
and do the right
thing, always
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Speedy Hire at a glance
Key company
facts and
figures
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Colleagues
Customers
3,375
Gender diversity at senior
leadership level:
80% male,
19% female,
1% other
Implementation of an
industry leading Emerging
Talent Development Board
c.68,000
Customers in the UK and
Ireland, ranging from large
national contractors to
local trade and retail
4 star
High levels of customer
advocacy with a 4 star
rating on Trustpilot
Servicing a significant
number of the UK’s
largest contractors*
Strategic Report
Governance
Financial Statements
Corporate Information
05
Partnerships and
key memberships
Supplier partnerships with
globally recognised market
leading brands developing
sustainable technologies
including Milwaukee, Hilti,
JCB and many others
Strategic collaborations with
Peak (Advanced Data Analytics)
and Microsoft (Systems)
Member of the Supply Chain
Sustainability School and
Advisory Board Member of The
All Party Parliamentary Group
on Environmental, Social and
Governance
Products and
services
c.2,500
hire product lines and approximately
317,000 itemised assets for hire
53%
of our revenue is generated from eco
products, demonstrating our customers’
increasing demand and our commitment
to reducing carbon emissions
40,000
consumable products in our extensive
range (6,200 product lines)
Property, fleet
and logistics
1,054
commercial vehicles, a year-on-year
reduction of 150 diesel vehicles and
now running the largest electric and
hybrid vehicle fleet in UK hire
150
Service Centre and on-site locations in
the UK and Ireland, including Industry-
leading low and zero carbon facilities
alongside a number of outlets within
selected B&Q stores
31,000
litres of fuel saved during FY2023
through engine idling reductions
90
electric vehicle charging points
across our network with a further
122 being installed
All figures quoted as at 31 March 2023 unless otherwise stated.
* Based on figures from Glennigan – largest UK contractors by turnover FY2023.
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What we do
Providing a
channel of choice
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Our network is designed to reflect our pioneering, Innovation and
Regional Service Centre in Milton Keynes, providing the blueprint
for our future, and retro-fit low carbon facilities.
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 individual needs.Speedy DirectThrough our central call centre in the North West, with dedicated desks for our national customers.Customer Solutions Through our centralised service providing a single hire destination for the provision of all our core products and services, plus an extensive range of equipment in partnership with the industry’s leading product suppliers.Regional Trading HubsOur regional call centres are located throughout the country, with dedicated colleagues servicing our regional customer base.B&Q Concession stores We operate within selected B&Q stores across the UK and on B&Qs website: diy.com and tradepoint.co.uk.Service Centre Network Through approximately 150 operational centres across the UK and Ireland.Customer Relationship CentreThrough our central hub in South Wales, dedicated to servicing our SME customers.Online Through our website and mobile app and on B&Q’s website: diy.com and tradepoint.co.uk.
Strategic Report
Governance
Financial Statements
Corporate Information
07
Our integrated
hire and services
offering
Core Hire
Product and
consumable
sales
Training
Specialist
products and
solutions
Fuel and
energy
Test,
Inspection and
Certification
the provision of all our core products
and services, plus an extensive range of
equipment to provide a site solution to
any customer requirement through our
partnerships with the industry’s leading
suppliers.
Product and consumable sales
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 Hire
Service Centres and within selected
B&Q stores across the UK.
Fuel sales and energy
Fuel Management. Speedy Hire 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
Training. We provide a comprehensive
range of industry leading safety
and skills training along with other
progressive end-to-end training courses.
Test, 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.
Powered access specialist servicing and
refurbishment. We provide specialist
servicing and refurbishment services
for powered access equipment.
Net zero carbon strategy for Hire
In FY2023 we partnered with Hydrock,
a leading engineering, energy and
sustainability consultancy to support
our business, customers and suppliers
on our ‘decade to deliver’ commitment
to become a net zero business and make
hire services, solutions and equipment
even more sustainable.
Hydrock is providing advice and
expert guidance across our business
in areas such as whole lifecycle carbon
assessments of our products, processes
and operations; social value; EDI; and
wellbeing. Hydrock also verify our
carbon data to ISO standards ensuring
data accuracy and transparency in our
external reporting which is critical to
achieving our target of being net zero
by 2040.
We also want to help our customers and
supply chain better understand their
own carbon impacts and how to make
better informed decisions at every stage
of the hire process to support them
in achieving their own net zero goals.
As a consequence, from FY2023 we
will be offering a range of carbon and
sustainability services alongside ‘Hire’
in partnership with Hydrock.
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Core and specialist hireTools. 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, and compressors 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. We provide an industry leading range of equipment including sustainable hybrid boom lifts, specialist platforms and cherry pickers, bringing the first hydrogen powered access lift to market in June 2023. Customer Solutions. We provide a single hire destination service for customers, offering a complete site service through
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Investment case
Why invest in
Speedy Hire
We are a market leading hire
and services company.
We have a clear customer focused growth strategy underpinned by an ambitious
award-winning Environment, Social, Governance (ESG) programme that drives
innovation and sustainability in our sector. We supply large national customers,
including a vast number of the UK’s top 100 contractors, as well as local trades
and retail markets.
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Strong end marketsSupportive long-term end market fundamentals across infrastructure and construction, as well as RMI* and Support Services that create a visible, resilient, less cyclical revenue stream.MeasuredFocused key metrics in place to measure strategic progress and priorities.AmbitiousAn ambitious, purpose-led strategy to increase revenue, grow our margins and become the UK’s most efficient and sustainable hire business.OptimisedA digital and data driven business, optimising our network, logistics and assets and powered by our people.ESG leadingIndustry leading ESG programme designed to reach net zero by 2040. Committed to keeping colleagues and customers safe, reducing our impact on the environment, supporting our people and local communities and operating as a leading sustainable company.Cash generativeStrong balance sheet and cash generation, with significant banking facility headroom with which to grow the business organically and through value enhancing acquisitions.Capital allocationClear capital allocation investment and dividend policy.Strong and resilientStrong and resilient business with ability to develop revenue, grow EBITDA, expand margins and increase shareholder returns over the next five years.
Strategic Report
Governance
Financial Statements
Corporate Information
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* Repair Maintenance Improvement (housing and construction).
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Thriving UK retail sectorWe have accelerated our penetration of the growing consumer retail market through our partnership with B&Q including on diy.com.DiverseFrom our growing range of services to our diverse customer base, we aim to grow our business which ensures we are more resilient to an economic downturn.Unique service promiseWe provide a unique industry-leading national four-hour delivery promise on our 350 most popular products to both trade and retail customers.InnovativeWe embrace technology through digital and product innovation, actively working with our suppliers through our ESG strategy to deliver award-winning, sustainable customer solutions.Customer satisfactionWe have high levels of customer advocacy, with a 4-star rating on Trustpilot.
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Market focus
Strategic growth
engines supporting
strong end markets
Key product, service and market
opportunities to accelerate
sustainable, profitable growth.
Core hire
products
Specialist
products
and services
Trade
and retail
markets
Grow our market share
with all customer
segments across all
geographies trading
as a multi-channel
service offering.
A focus on niche
products and services
with significant
growth and margin
opportunities.
Grow trade and retail
customers, through
conversion of sales into
hire space, e-commerce
opportunities and
market creation to a less
developed area of hire.
We operate across diverse markets and sectors, with an integrated hire
and services customer proposition. Our customer proposition, combined
with our omni-channel delivery model enables our national customers
to deliver the largest infrastructure projects in the UK, through to retail
customers who are renovating their homes.
Strategic Report
Governance
Financial Statements
Corporate Information
11
Markets we
operate in
2%*
27%*
10%* 4%*
21%*
36%*
* Approximate percentage of Group revenue.
** Repair Maintenance Improvement (housing and construction).
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Support Services and Other RMI**Facilities Management, Manufacturing and Production, Environmental Services, Engineering Services, Defence and MediaInfrastructureNew Build Highways, Rail, Energy, Harbours and AirportsFrameworks in Water and Sewerage (AMP7), Roads (Highways England), Rail (CP6) and Tele-communications Non-Residential ConstructionNew Build Offices, Shops, Education, Hospitals, Warehouses and Factories, Hotels, Stadiums and PrisonsResidential ConstructionNew Build HousingIndustrial Services RMI**Power, Petrochemicals and SteelResidential RMI**DIY and Home Improvement
Chairman’s statement
The results we are reporting
today demonstrate the
strength and resilience
of our business model.”
David Shearer Chairman
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Overview
The results we are reporting today
demonstrate the strength and resilience
of our business model in generating year
on year profitable growth during what
has been a challenging time for the UK
economy. We continue to maintain a
strong balance sheet, we have invested
significantly in innovative, market
leading sustainable products and have
concluded a £30 million share buyback
programme launched in the prior year.
Since his appointment on 1 October
our new Chief Executive Dan Evans has
developed an ambitious new growth
strategy which has been launched under
the name ‘Velocity’ and aims to position
the Group at the forefront of the industry
in the years ahead.
Results
Group revenue increased by 13.9%
to £440.6m (FY2022: £386.8m) with
adjusted PBT up 6.6%, contributing
to a 24% increase in adjusted EPS.
We have achieved a number of new
contract wins and renewals, reflecting
our market leading customer service
proposition. Our partnership with B&Q
has been extended to launch tool hire
on both diy.com and trade-point.co.uk
in 2023, providing home delivery tool
hire digitally in-store from over 300 B&Q
stores nationwide to a wide ranging
customer base.
The Group continues to operate
internationally through a joint venture
in Kazakhstan. Our share of profits
increased to £6.6m (FY2022: £3.2m)
resulting from a continuation of a
significant contract win in FY2022.
Strategic Report
Governance
Financial Statements
Corporate Information
13
We have invested c.£52.1m in our hire
fleet, ensuring it is commercially the
right investment to support our strategy.
Using data and analytics to target
products that our customers require,
just over half of that investment was
placed in sustainable products to meet
increased demand.
The Group announced on 8 February
2023 it had identified a shortfall in
the quantity of non-itemised assets of
c.£20.4m, recognised as an exceptional
cost in the year. The investigation into
the causes was completed and the
findings announced on 18 May 2023,
concluding that the issue had resulted
from problems with the Company’s
controls and accounting procedures for
non-itemised assets over a number of
years, and in particular the reconciliation
of such counts to the Group’s fixed asset
register. The investigation concluded it
was not the result of underlying systemic
fraud perpetrated by the Company’s staff
or third parties. In addition to corrective
actions and new controls implemented
by management, the Board has agreed
a remedial plan to further strengthen
the financial control environment for
managing non-itemised assets and
to provide assurance for the relevant
accounting values, which remains in
progress.
We have launched our ESG roadmap
and enhanced our proposition by
setting a target of becoming a net zero
carbon business by 2040, ten years
ahead of the Government’s target and
supported by science based targets. Our
ESG strategy ‘The Decade to Deliver’ is
already demonstrating a positive impact
on reducing our carbon footprint, while
enabling our customers to make choices
that reduce their environmental impact
through increasing our percentage of
sustainable products for hire.
Dividends and returns to
shareholders
In view of the continuing strong
performance of the business and with
confidence in the future, the Board
has recommended a final dividend of
1.80pps for the year (FY2022: 1.45pps),
making the full year dividend 2.60pps
(FY2022: 2.20pps) and an increase of
18% on the prior year. If approved at the
forthcoming Annual General Meeting the
dividend will be paid on 22 September
2023 to shareholders on the register at
close of business on 11 August 2023.
The Group completed its £30 million
share buyback programme on
8 March 2023. In line with the capital
allocation policy we will continue
to prioritise investment in organic
We have a resilient business model with an
ambitious growth strategy, Velocity, which
positions the Group strongly to accelerate
sustainable profitable growth despite the
challenging macro-economic environment.”
growth and maintaining regular returns
to shareholders, whilst remaining
open to potential bolt on acquisition
opportunities with a strong strategic
rationale. In view of the new growth
strategy which has been implemented
there is presently no plan to engage
in a further share buyback programme,
but the Board will continue to keep
this under review.
Board and people
During the year I was pleased to
welcome Dan Evans as Chief Executive.
Dan was formerly Chief Operating
Officer, responsible for the Group’s
operational performance in the UK
and Ireland including sales, business
development and marketing, and has
been with Speedy for over 14 years. Dan
knows our customers and operations
very well and performed exceptionally
as Chief Operating Officer. Under his
leadership he has led the development
of our exciting new strategy ‘Velocity’
and I look forward to working closely
with him as the business delivers on its
growth ambitions.
On 1 November 2022 James Bunn
stepped down as Chief Financial Officer
(“CFO”) to pursue an opportunity in an
unrelated sector. The Board appointed
an external head-hunter to start the
process to find a permanent successor
and in the intervening period was
pleased to announce the appointment
of Paul Rayner who assumed the role of
interim CFO with effect from 1 November
2022, for a period of up to 12 months.
This allowed time for the Board to
complete the recruitment process. After
undertaking a comprehensive search
process, the Board offered Paul the role
on a permanent basis and he will join
the Board as CFO with effect from 1 July
2023. Paul is an experienced CFO and
since joining the business as interim
he has established strong relationships
with the Board, Dan Evans and the senior
team and has worked closely with them
in the development of the Velocity
strategy. I am delighted that he has
accepted the position and look forward
to continuing to work with him.
On behalf of the Board I would like to
take this opportunity to thank all of my
colleagues for their continuing hard work
and dedication, which has enabled the
Group to deliver a strong performance
over the last year.
Future
We have a resilient business model with
an ambitious growth strategy, Velocity,
which positions the Group strongly to
accelerate sustainable profitable growth
despite the challenging macro-economic
environment. The continued capital
investment in recent years and a robust
balance sheet will allow the business to
capitalise on market opportunities and
the Board looks forward with confidence
to the year ahead.
David Shearer
Chairman
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Chief Executive’s review
Our new strategy, Velocity,
is exciting, provides clear
direction and we expect it
to deliver long term benefits
to our customers, our people
and our investors.”
Dan Evans Chief Executive
Overview and results
I am pleased to present our results for
the financial year ended 31 March 2023.
Growth in our revenue and underlying
profits demonstrate the strength and
resilience of our business, and the value
our unique hire and services proposition
delivers to customers in an uncertain
and fast changing macro-economic
environment.
Revenue increased by 13.9% to £440.6m
(FY2022: £386.8m) reflecting a strong
performance in core hire and Customer
Solutions. This improved performance is
the result of new national customer wins
and renewals and further penetration
into the trade and SME market. Group
revenues, excluding disposals, increased
by 13.8% to £434.3m (FY2022:
£381.7m). Adjusted profit before tax
increased 6.6% to £32.1m (FY2022:
£30.1m). Adjusted earnings per share
were 5.25 pence (FY2022: 4.24 pence).
Profit before tax after exceptional items
decreased to £1.8m (FY2022: £29.1m).
Whilst the macro-economic environment
is challenging, our end markets remain
positive, with a strong pipeline of major
infrastructure, construction and energy
projects including HS2, nuclear new
build and decommissioning and the rail
network. Our largest customers continue
to demand sustainable solutions to
complex problems and, as a result, our
newly branded Customer Solutions
business, combining rehire and our
services categories, has experienced
record growth during the year, increasing
revenues by 27.4%. Customer Solutions
reflects the value we offer in providing
both core and re-hired products and
services seamlessly to customers. We
also saw strong growth in our fuel and
energy management business, where
we proactively promote low-emission
HVO fuel which now accounts for 29.9%
(FY2022: 12.3%) of our fuel sales.
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We have continued to develop our trade
and retail business in partnership with
B&Q, announcing that we have extended
our offering to launch tool hire on both
trade-point.co.uk and diy.com in 2023,
fulfilled exclusively by Speedy. We also
announced that during FY2024 we will be
able to extend our service to digitally hire
in-store a selected number of products
from c.300 B&Q stores nationally.
The Group has implemented price
increases to offset inflationary cost
pressures on both overheads and new
equipment purchases. Our pricing
strategy is designed to give customers
the very best value for the high-quality
products and services we deliver.
Itemised asset utilisation was 54.4%
(FY2022: 57.0%) reflecting the targeted
investment in the Group’s hire fleet to
satisfy customer demand and improve
availability, whilst also being in place
to maximise the strong pipeline of
opportunity visible to the Group. As a
result of the improved controls around
all assets, specifically non itemised, we
anticipate being able to give greater
detail moving forward.
We are continuing to trade internationally
through our 45% share in a joint venture
in Kazakhstan which I was pleased to
visit in February. During the year the
joint venture has performed well. The
share of profit increased to £6.6m
(FY2022: £3.2m), representing a
record performance.
Strategy and operational review
During H2 FY2023 we launched a
new strategy into the business that
we call ‘Velocity’, which is designed
to accelerate sustainable profitable
growth. Velocity provides a clear focus
on measurable medium and long-term
growth and performance objectives,
building on the Simplify, Standardise,
Grow programme launched in 2020. The
Velocity growth strategy is underpinned
by a five-year transformation programme
with two defined stages: enable
growth through creating foundational
improvements across technology and
operational efficiency; and deliver
growth by becoming the most efficient
and sustainable UK hire business.
Our new 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. Our mission, is to
be the most efficient and sustainable
UK hire business: digital and data
driven, optimised through operational
excellence, and powered by our people.
We serve approximately 68,000
customers in the UK and Ireland,
including a significant number of the
UK’s 100 largest contractors*. Our
customers include major infrastructure
contractors working across Highways,
Rail, Energy, Harbours and Airports,
as well as frameworks in Water and
Sewerage (AMP7), Roads (National
Highways), Rail (CP6) and Tele-
communications. We also serve
thousands of regional customers and
trade and retail customers through our
network of service centres, B&Q stores,
by phone and online through our click
and collect, or unique 4-hour delivery
service. During the year we have won
and extended major contracts with
large contractors operating nationally
including Cadent Gas, Renew Group
and Babcock.
We have increased our focus on
growing share of the regional customers
and trade and retail market. This is
achieved through continued growth
in our Customer Relationship Centre,
a telesales division located in South
Wales primarily geared to activate
lapsed and dormant accounts through a
targeted approach across the UK, as well
as remote customer support for these
customers to ensure they enjoy their
customer experience.
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Chief Executive’s review continued
Our customers’ key priorities are
quality, availability, speed and a first
class customer experience. We are the
only company in our sector to offer an
industry leading guaranteed four-hour
delivery service which is driven by our
service-led culture and is made possible
by the strategic targeted investment we
have made in the tools and equipment
our customers need. This unique value
proposition is available on our 350
most popular products, and creates a
significant differentiator, presenting an
enhanced level of value as we amplify
our presence in the retail market during
FY2024. We expect to develop this
proposition and its availability as
part of our new strategy.
We have developed our digital
proposition, which enables customers
to trade online or via our mobile app.
In the past year we have increased our
digital marketing activity to attract and
retain customers who want to trade
with us online through a number of new
initiatives and promotions around key
retail dates such as Black Friday, and
new year sales periods. Digital revenue
has increased driven by improved online
conversion rates through developments
that are enhancing the digital buying
experience for customers. In addition
we significantly increased and retained
new accounts online, underpinning our
growth ambitions as we move into a
digital transformation period.
Our customers increasingly require
sustainable products and services
that drive down carbon and reduce
waste, supporting their commitments
to achieving net zero. With our own
extensive range of eco products,
alongside the provision of HVO fuel
sales and partner products, our Customer
Solutions business is perfectly placed
to meet that growing demand. Services
revenue has performed strongly as
a result of being able to combine
these services and cross-sell our
complete customer proposition to
larger customers. By penetrating our
addressable markets in this way, we
can achieve a higher share of wallet.
Customer service is key to this value
proposition, driving retention and
loyalty whilst increasing market share.
Our operations are increasingly data
and Artificial Intelligence (AI) driven
in support of our strategy to deliver
sustainable profitable growth. AI is
helping us ensure we have the right
products to meet customer demand,
in the right place, at the right time, in
the most efficient way. To accelerate
progress in this area, we have agreed
a strategic collaboration with Peak in
a 5-year contract. Peak is the market
leading AI Platform company and a
leader in providing technology and
expertise in AI adoption in business.
Their software drives revenue and profit
growth, efficiency, and optimisation
across the value chain. The successful
use of AI is key in further enhancing
our ability to optimise our asset
holdings through dynamic forecasting
and continuing to achieve strong
asset utilisation rates on our hire fleet
in association with our logistics and
property network.
Creating a modern workplace is a
strategic pillar in achieving our growth
ambitions and integrating a world-class
ERP (Enterprise Resource Planning)
system is a foundational building block
to enable this. Throughout the past year
we have deepened our longstanding and
strategic collaboration with Microsoft
to upgrade our ERP to the cloud based
Microsoft Dynamics 365 Platform.
During FY2023 we have made a number
of upgrades through the enhanced
opportunities this platform presents to
us, simplifying some of our key business
processes and significantly improving
the user experience. This has resulted
in increased productivity through
efficiency, and in the process improves
the customer experience. Our continued
collaboration with Microsoft will be a key
pillar in enabling our profitable growth
ambitions as we accelerate our Velocity
strategy over the near term.
Trade and Retail
The trade and retail consumer market
represents an attractive opportunity for
the business. As an already established
hire provider in the trade market, we have
identified significant growth opportunities
in penetrating this further, growing market
share and developing loyalty and repeat
purchase. To enable the accelerated
growth in these markets, during FY2023
we announced that we will be developing
our partnership with TradePoint and
B&Q by implementing a national tool
and equipment hire offer specifically
for these customers. During FY2024 we
will extend our service to digitally hire a
selected number of products from c.300
B&Q stores nationally. Trade and retail
customers will be able to order products
at the TradePoint and B&Q tills, meaning
they can shop the entire TradePoint
or B&Q range and hire the tools and
equipment they need at the same time.
This low cost-to-serve retail model
represents added value for trade and
retail customers and an efficient seamless
process of fulfilment.
In addition, we will launch tool hire on
both trade-point.co.uk and diy.com,
hosted by B&Q and fulfilled exclusively
by Speedy, exposing our hire proposition
to millions of trade and retail customers
online. This combined and efficient
in-store and digital offering means
that Speedy will have a national home
delivery service through TradePoint and
B&Q. Our aim is to continue to innovate in
this space and we will look to expand the
in-store offer further with an increased
range of in-store products, and potential
national Click and Collect opportunities
within B&Q locations.
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ESG
During the year we upgraded our original
commitment of becoming a net zero
business by 2050 in pledging to reach
that goal by 2040; ten years ahead of
the Government’s target.
Our carbon emissions in the UK and
Ireland have reduced by 19.7% from
16,690 tonnes, in FY2022, to 13,397
tonnes in FY2023. This reduction has
been achieved through the procurement
and organic generation of renewable
energy, a more efficient vehicle fleet
and the use of HVO fuel in our larger
vehicles.
During the year we conducted an
industry first London Light Freight River
Trial in conjunction with a number
of partners including the Cross River
Partnership, DEFRA, Port of London
Authority and Thames Clippers. By
utilising the river Thames for the
transportation of freight in the centre of
London, the trial’s aims were to remove
congestion on London’s roads and cut
the time deliveries spend on the road
by 50%.
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
FY2023 we invested £52.1m in our hire
fleet, of which 51% was on sustainable
equipment. We have a target to ensure
that ECO products account for 70% of
our itemised equipment fleet by 2027.
People
We recognise that our people are the
most important component of our
business, from developing long term high
value relationships with our customers,
through to delivering products and
services through our network.
Our People First strategy prioritises
personal and professional development,
wellbeing and diversity, equity and
inclusion within the workplace. We have
increased the number of graduates
and apprentices within the business
and are working towards having 5%
of our employees on earn and learn
programmes within 4 years. To enhance
our capability to affect this, during the
year we were successful in becoming a
Youth Verified Business by Youth Group,
the UK’s largest community of young
people, after successfully completing the
youth verification challenge.
The Board is committed to supporting
colleagues, new and established who are
participating in the long-term success of
the business.
Summary and outlook
I am pleased to report results that
reflect the strong performance we have
achieved this year. Our new strategy,
Velocity, is exciting, provides clear
direction and we expect it to deliver
long term benefits to our customers, our
people and our investors. Our strategic
goal is to accelerate sustainable growth,
leveraging our leading position in our
addressable markets, through innovation,
an action focused and ambitious ESG
strategy, and developing a first class
omni-channel customer experience. I
would like to thank our people for their
continued hard work and commitment
that have enabled us to report this
strong performance and develop our
new strategy, Velocity, which we look
forward to providing more detail on in
our upcoming capital markets day.
We have made an encouraging start
to FY2024 with a strong pipeline
of new customer and project based
opportunities. In Peak and Microsoft
we are collaborating with experts
in their field, to ensure we have the
best support available to deliver our
strategy. Whilst we acknowledge the
continuing challenges of the macro-
economic climate, we are excited by the
opportunities for success we have in
front of us, the key role we play in our
customers’ success and the continued
development of our amazing team of
people.
Dan Evans
Chief Executive
* Based on figures from Glennigan – largest UK contractors by turnover FY2023.
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Our growth strategy
Velocity
Over the past three years we have improved our
business under the Simplify, Standardise, Grow
programme as detailed in previous reports.
The work achieved under this programme created a positive
platform to develop a new strategy we call ‘Velocity’, which is
designed to accelerate sustainable growth through increasing
revenue and improving margins, along with clear focus on
measurable medium and long term growth and performance
objectives.
1.
2.
Enable growth
Deliver foundational improvements across technology
and operational efficiency (years 1-3)
Deliver growth
Become the most efficient and sustainable UK hire
business (years 1-5)
Velocity is a five-year transformation and growth strategy.
There are two defined stages to achieve this goal and drive
sustainable long-term growth:
Fully aligned to our vision ‘To inspire and innovate the
future of hire and accelerate sustainable growth’.
Growth engines:
Strong foundations to maximise organic
opportunities in products and markets
we operate in
Stage 1. Enable growth:
Deliver foundational improvements
across technology and operational
efficiency
Stage 2. Deliver growth:
To be the most efficient and sustainable
UK hire business
Grow core hire products
Wider specialist products
and services
Penetrate trade and
retail markets
Customer growth and experience
Sectors market share
Efficient logistics
Product sustainability
Tailored propositions
Transformation programme
Focus on brand and customers
Technology and data led
Operating on a secure platform
Enable years 1–3
Deliver years 1–5
Underpinned by our People First strategy
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Growth engines
powering enablement
and delivery
Our growth engines reflect opportunities that are presented
in our current addressable markets. By focusing on these
key areas, we aim to increase market share profitably to
enable us to accelerate sustainable growth.
Fundamentally, growing core hire
depends on our customers being
able to rely on us to deliver the right
piece of equipment, to the right place,
on time, every time. And to collect it
when we say we will. Ensuring this
happens will not only create high
levels of customer experience and
satisfaction, it will also reduce the
administrative costs of not meeting
these expectations from customers.
needs individually, and use predictive
AI systems to develop automation and
increase cross-selling opportunities.
To facilitate an unrivalled service in
the market, we launched an industry
first same day delivery model in
London in 2018, and improved that
offer by launching an improved four-
hour delivery service on our core 350
products nationally in 2019.
To achieve this, we are accelerating
our data and technology programme
so that we can create a 360 degree
picture of our customers and their
This unique proposition enables
customers to stay on site when they need
tools and equipment quickly, reducing
the associated costs of downtime.
Core hire
We have the widest range of tools
and equipment in the industry,
serving customers from the largest
Tier 1 national contractors, regional
constructors and sub-contractors
on large sites, to thousands of
independent SME, trade and retail
customers. Providing high quality
tools and equipment alongside a
first-class customer experience is
essential in attracting and retaining
these customers and enabling the
success of their projects.
Our strategy to accelerate sustainable
profitable growth through core hire
focuses on efficiencies to both reduce
cost-to-serve through an omni-channel
digital approach, and in making more
efficient using of our capital through
better asset investment decision
making and purchasing power.
The strategy will also be driven to increase
sales through attracting and retaining
more customers who will buy more from
us, more often, increasing market share
in every region across the UK.
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Our growth strategy continued
Thank you for another site mobilised and
ready for our team to hit the ground running at
Good Hope Hospital. Every site set up we task
Speedy with comes with its challenges, yet by
working together the challenges are overcome
and a solution is found. Thank you to Speedy
for your continued support.”
Ashley Houghton, Technical Category Manager at Veolia
From a full site set up, including
excavators, dumpers and telehandlers
through to waste management, cranes
and forklift trucks; our Speedy Solutions
team work closely with each of its
customers to understand the unique
challenges of each job.
Our larger customers increasingly
require sustainable products and
services that drive down carbon to meet
their commitments to achieving net zero.
With our own extensive range of ECO
products, alongside the provision of
HVO fuel sales and partner products, our
Speedy Solutions business is perfectly
placed to meet that growing demand.
Growing Speedy Solutions in the
provision of specialist products and
services and delivering our customers’
needs for fully integrated site solutions
is a key strand of our strategy to
accelerate profitable growth.
Speedy Solutions
During FY2023 we created a new
division ‘Speedy Solutions’. We have
brought together our thriving partnered
services model, training, consumable
sales and our test, inspect and
certification (TIC) services. In addition,
we have extended our proposition by
introducing a new solutions promise to
source any item or service required by a
customer, enhancing our complete site
solutions offering in a more seamless,
effective and efficient way for the
customer.
We provide site solutions by
understanding our customers and the
markets and specialist sectors in which
they work. We become an extension
of their own team, liaising with the
customer’s various on-site teams and
effectively coordinating all project
requirements on their behalf.
Working with world class brands, all
recognised leaders in their own fields,
we offer our customers peace of mind
that they can source anything they need
to deliver a successful project from day
one, and we guarantee the provision of a
quality service aligned to our values, and
those of our customers.
Specialist products
and services
We service a significant number of the
top 100 national contractors in the
UK, across sectors including road, rail
and communications infrastructure,
commercial and residential construction,
industrial services including power,
petrochemicals and steel, and support
services including facilities management,
manufacturing, environmental services,
engineering services, defence and media.
These sectors have both common
requirements for tools, plant and
equipment hire, and a demand for
innovative specialist solutions bespoke
to their projects. We are uniquely
positioned to offer customers operating
in these end markets a complete
site solution through the provision
of specialist sustainable products in
categories such as survey, rail, lifting,
power and powered access, in addition
to our core hire range.
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We continue to develop our trade and
retail strategy in partnership with B&Q.
During FY2024 we aim to launch Tool
Hire on both diy.com and tradepoint.
co.uk, hosted by B&Q and fulfilled
exclusively by Speedy.
During FY2024 we will extend our
service to hire a selected number
of products from c.300 B&Q stores
nationally. Trade and retail customers
will be able to order products at the
Tradepoint and B&Q tills, meaning they
can shop the entire Tradepoint or B&Q
range and hire the tools and equipment
they need at the same time. There is a
significant opportunity in these markets,
and our strategy is to embark on creating
channels that will make the process of
hire seamless for consumers so that it
becomes second nature and as easy
and natural as buying a drill.
Trade and retail
During FY2023 we serviced over 41,000
trade and retail customers through
utilising our omni-channel approach for
customers choosing to do business with
us, whether that’s through our national
Service Centre network, by phone, or
online via our click and collect or click
and deliver service.
We are embarking on an ambitious contact
strategy that will improve the customer
experience, attract and retain more trade
customers and reduce our cost to serve
in a number of ways. This includes:
• Developing and consolidating a
future estate of sustainable and
efficient Service Centres in better
and more accessible locations,
with better facilities for both our
customers and our colleagues
•
Improving the process of account
opening to make it simpler, quicker
and even more secure
• Accelerating our digital
propositions on our website and
mobile app from product selection
to checkout and delivery
During FY2023 we launched tool hire
into the retail marketplace, through
our unique partnership with B&Q and
released a retail website to run alongside
our trade site, with pricing, content
and tool selection targeted and more
accessible retail consumers.
As part of our Velocity strategy, we plan
to revolutionise our retail offering both
in-store and digitally to open up the
consumer market and position Speedy
as the brand of choice for tool and
equipment hire.
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Our growth strategy continued
Our strategy continued
Innovation,
sustainability and
collaboration
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The Speedy Expo
Collaboration and trust are key to our
success. During October 2022 our
annual Speedy Expo, the largest private
hire exhibition and conference in the UK,
took place in Liverpool. Across two days,
over 1,700 of our colleagues, customers,
suppliers and industry experts came
together to discover innovative and
sustainable products, and to understand
the key part that data and technology
will play in revolutionising our industry.
The collaboration between our
customers and supply chain innovations
underpins our ability to achieve our
ambitious ESG commitments, and
ensures we play a key role in our
customers delivering their own.
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During FY2024, we will be launching
a satellite event to our annual Expo;
Speedy Net Zero London. The new
conference led event will bring together
sector and non-sector thought leaders
from London and the South East. The
event will highlight the essential steps
that the supply chain within the industry
needs to take in delivering on Scope 3
emissions and the Government’s net zero
carbon targets, and the role our ‘Decade
to Deliver’ sustainability strategy will
play in enabling that transition.
Our industry-first Innovation Centre
in Milton Keynes is a carbon negative
operational site. It runs on state-of-
the-art energy saving technology,
showcases the latest innovative tools,
plant and equipment, and creates a
first-class working environment for our
people. Since launching the Centre we
have conducted over 120 individual
tours comprising of over 1,500
customers from contractors operating
on the largest and most ambitious
projects in the UK.
Speedy Net Zero London will also
showcase the latest sustainable
products on the market, as well as future
innovations in development that will
drive down carbon and create climate
positive solutions in collaboration with
a select number of our leading supply
chain manufacturers.
This regular engagement
enables us to build stronger and
deeper relationships with those
customers, and demonstrate the
very latest innovations that we are
able to provide them to make their
projects successful.
The collaboration between our customers and
supply chain innovations underpins our ability
to achieve our ambitious ESG commitments,
and ensures we play a key role in our
customers delivering their own.
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Financial KPIs
KPI
Revenue
Why this KPI is important
to our strategy
A measure of the work we
are undertaking.
How we have done
FY2022 performance
£440.6m £386.8m
Revenue
(excluding
disposals)
A measure of our underlying
activity with customers having
removed planned hire fleet
asset disposal income.
£434.3m £381.7m
Operating profit
A measure of profit we
generate from core operations
before the impact of financing
and tax.
£3.8m
£31.6m
EBITDA2
A measure of operating return
before depreciation and
amortisation.
£103.7m £99.5m
EBITDA2 margin
Highlights value generated
either through operational
efficiency or the quality of
the revenue.
23.5% 25.7%
Adjusted profit
before tax2
A measure of profit we
generate adjusted to exclude
amortisation and exceptional
items.
£32.1m £30.1m
Profit before tax
A measure of profit we
generate from our revenue
activity having accounted
for all costs before taxation.
£1.8m
£29.1m
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KPI
Utilisation1
Why this KPI is important
to our strategy
A measure of how many of
our itemised assets are on
hire to customers by net
book value.
How we have done
FY2022 performance
54.4% 57.0%
ROCE3
A measure of how well
Speedy is delivering a return
from the capital invested. 14.5% 13.6%
Net debt4
A measure of the
Company’s borrowings.
£92.4m £67.5m
Net debt4
to EBITDA2
A measure of how leveraged
the balance sheet is.
1.3x
0.9x
NBV of property,
plant and
equipment
As assets are our core
revenue generator, this
effectively measures the
scale of investment to
support revenue.
£237.7m £257.7m
Earnings per
share5
A measure of the return
generated for the holder of
each of our ordinary shares. 0.25p
4.13p
5.25p
4.24p
Adjusted earnings
per share5
A measure of the return
generated for the holder
of each of our ordinary
shares, adjusted to
exclude amortisation
and exceptional items.
Explanatory notes:
1 Utilisation of itemised assets
2 Before exceptional items, see Note 12 to the Financial Statements
3 Return on Capital Employed: Profit before tax, amortisation and exceptional items divided by the average capital employed
(where capital employed equals shareholders’ funds and net debt3), based on a two-point average between opening and closing
for the financial year
4 See Note 21 to the Financial Statements
5 See Note 10 to the Financial Statements
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Introduction
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At Speedy, we believe that when it comes to sustainability,
the next ten years will define the next hundred, so we
need to make this decade count. Our hire business model
is already circular and sustainable meaning we are already
having a positive environmental impact and supporting
our customers on their sustainability journeys.
Our new business strategy ‘Velocity’
is deigned to accelerate sustainable,
profitable growth, so we’re rolling out
further plans 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 meeting the needs of our people,
customers, communities and the planet.
Through collaboration we’ve learnt
that you go furthest, fastest when you
go together. That’s why as a Speedy
family, we will be working even harder
with our customers, suppliers and
communities to create the biggest
positive impact we possibly can.
Today, every project, big or small needs
to be sustainable. There’s no more time
to wait, that’s why we’ve called our plan
“The Decade to Deliver” detailed on
pages 28 to 39, and our strategy can be
implanted throughout our business, our
supply chain and within all our customer
groups.
For our national and regional customers
who have their own stretching
sustainability targets, we are providing
the latest, most innovative sustainable
products, with eco products now
accounting for 44% of our hire range to
help them deliver on their objectives and
accelerate their sustainability objectives.
For trade and retail customers, we know
that tools and equipment can spend
their time in vans, sheds, warehouses
and garages, getting old instead of
getting used. Hire is a sustainable way
to solve this problem, delivering carbon
and waste savings while helping people
save money and space.
Our aim is 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. It’s time for change and the faster
we can deliver it, the sooner we can make
this the decade of sustainable hire.
I hope you enjoy reading the progress
we have made over the last year, and the
plans we have for the future in this report.
Amelia Woodley
ESG Director
Strategic Report
Governance
Financial Statements
Corporate Information
27
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.
Our ESG committee and associated
programme is sponsored by Chief
Executive, Dan Evans working closely with
ESG Director, Amelia Woodley. The ESG
Committee, made up of senior members
from across the business, meets monthly
to drive continuous improvement in our
ESG Strategy and KPIs, which are aligned
to Science Based Targets and the United
Nations Sustainable Development Goals
2030 (UN SDGs).
The ESG Committee reports business-
wide sustainability performance to the
Executive Team monthly and the Plc Board
Sustainability Committee that meets three
times a year demonstrating our leadership
commitment. Please see page 45 for more
information on this structure.
ESG governance
As ESG (Environment Social Governance) continues to
grow in executive mindshare and compliance importance,
it’s critical to keep good governance practices as a focal
point and executive priority.
With stakeholder demands increasing for
strong governance practices; regulators,
and customers seek companies that
demonstrate sound financial decision-
making and business performance whilst
contributing more positively to the
environment and society; additionally,
ESG governance places a key role in
voluntary and mandatory ESG reporting
and public disclosure.
Our strong controls and leadership
within ESG Governance ensure that
our sustainability efforts continue to
meet current and emerging legal and
compliance requirements. Speedy
regularly reviews internal and external
ESG risks through respected independent
frameworks such as TCFD (Task Force for
Climate-Related Financial Disclosure),
which determine strategies to reduce
risk(s), and put preventative and adaptive
measures in place to manage these
accordingly, see pages 46 to 47.
To validate our performance, we are
the only UK hire company to publicly
commit to adopting science-based
targets to achieve Net Zero carbon
emission by 2040, in line with science
and government policy, further enhancing
our accountability-focused leadership in
sustainability.
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 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.
Chief Executive Dan Evans is
the Executive sponsor of our
ESG programme.
In November 2020, Dan became a
Board member of the Supply Chain
Sustainability School, joining Chairman
Shaun McCarthy OBE and eight other
elected board members from some of
the industry’s largest businesses.
Based in London, the Supply Chain
Sustainability School represents the
needs of over 100 partner businesses
and 14,000 sustainability school
members. The organisation aims to
upskill firms on integrating more
sustainable ways of working into their
businesses through free, practical
support in the form of CPD-accredited
e-learning modules and training
workshops, tailored assessments and
action plans, benchmarking tools,
networking opportunities, and access
to thousands of online resources.
“ With the construction industry’s
significant contribution to carbon
emissions, at Speedy we’ve long
recognised the importance of helping
our customers transform how they
operate by providing low and zero
carbon tools and equipment. Our
Velocity strategy, underpinned by our
ESG programme, sets out ambitious
targets to reach net zero for us, and
our customers across the markets we
operate in. Collaborating with the
Supply Chain Sustainability School in
working with its members enables us to
play an important role in meeting the
industry’s sustainability targets.”
Dan Evans
Chief Executive
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ESG report continued
ESG Framework
Leading the industry
Our Velocity growth strategy, as detailed on pages 18 to 23,
is underpinned by a five-year transformation programme
to drive sustainable profitable growth, a key part of which
includes our ambition to become the most efficient and
sustainable UK hire business.
Our ESG framework underpins our Velocity growth strategy,
aligns with our vision ‘To inspire and innovate the future of
hire’ and our mission ‘to be the most efficient and sustainable
UK hire business: Digital and data driven, optimised through
operational excellence, and powered by our people’.
The commitment within our Velocity strategy to operate
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 enabling our
customers to meet their sustainability targets, and our people
and local communities, from looking after their wellbeing and
boosting diversity, equity and inclusivity, to supporting charity
and community projects wherever we operate.
It underpins our commitment to strong governance, trading
safely and ethically, and supports our Code of Conduct, as
detailed in the Governance Report on page 105, robust audit
functions and processes.
During FY2023, through the continued development of our ESG
programme, building it into every aspect of our business strategy
to focus on sustainable growth, we have maintained our status
in being ranked as an industry leader in ESG practices by the
Institutional Shareholder Services group of companies (ISS).
In FY2023 we were awarded Ecovadis Silver and a B rating
under our recent CDP (Carbon Disclosure Programme)
disclosure, which is above the industry sector average of C
grade for our Net Zero progress, transparent reporting and
supplier engagement.
THE DECADE TO DELIVER
A HIRE REVOLUTION:
WORKING TOGETHER
ACCELERATING
INNOVATION
CLIMATE
SOLUTIONS
PART OF THE
COMMUNITY
INCLUDING
EVERYONE
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
investors to push for even
better designed products:
built to last, designed to be
repaired and made to be
recycled.
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.
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.
A decade of supporting our
communities will help make
Delivering on the promise
of a sustainable 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.
Strategic Report
Governance
Financial Statements
Corporate Information
29
The Decade to Deliver
Sustainability highlights
2%
57%
#1Largest electric and hybrid
positioned in the top 2%
of businesses in the UK for
decarbonisation readiness*
Increased our recycling
to 57%
44%
of our itemised hire range
are eco products
c.£9.2m
generated in positive social value
for the economy, communities
and society
c.14m
litres
of HVO D+ supplied to our
customers, up from c.6 million
litres in FY2022
82%
Increased company cars to
electric/hybrid to 82%
c.34,400
tCO2e
saved for our customers by
supplying HVO fuel
52%
of our revenue generated from
eco products
90graduates and apprentices
c.90%
renewable electricity across our
property network in FY2023
Carbon Disclosure
Programme
Grade B Accreditation: For our ability
to show real progress in operational
practices and transparency in our
environmental impact
BCIA Awards
Finalist in the “Energy Management”
category for demonstrating an estate
wide move to carbon negative
A+ Energy Performance
Certificate (EPC)
Achieved at our Innovation Centre
in Milton Keynes which is now
carbon negative, giving back
energy to the grid
Zero
waste to landfill
ISS Prime
Ranked as an industry leader
for sustainability
* Based on c.15,000 submissions to EcoVadis.
vehicle fleet in the UK hire
EcoVadis Silver
Ranked in the top 25% of companies
for sustainability in recognition of
the Company’s work to reduce its
environmental impact
Partnered with Hydrock
An international engineering and
environmental consultancy to
support our business, customers
and suppliers across Net Zero
Carbon and sustainability
Science Based Targets
First hire company to publicly commit
to Science Based Targets
Fleet News Awards
“Highly Commended” for the
“Wellbeing and Inclusivity in Fleet
Award”
Hire Awards of
Excellence
“Highly Commended” in the “Best
Sustainability & CSR Initiative”
RoSPA Gold
Achieved for the 9th year running
Youth Verified
Successful verification as a Youth
Verified Business by Youth Group,
the UK’s largest community of
young people
Construction
News Awards
Shortlisted for the “Supply
Chain Excellence Award”
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The Decade to Deliver 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.
Switching to sustainable fuels
We have increased the supply of HVO D+ to our customers
which reduces tailpipe carbon emissions by up to 90%,
whilst we work with suppliers to develop and invest in eco
technologies. In FY2023 we supplied c.14 million litres of
HVO D+ to our customers, an increase from c.6 million litres
in FY2022. This transition to sustainable fuels has saved our
customers c.34,400 tCO2e as well as reducing our scope 3
carbon emissions and improving local air quality through
reduced air pollutants such as NOx (30% reduction in nitrous
oxide) and PM (86% reduction in particulate matter).
Closing the loop on circularity
Our innovation philosophy looks at eco investment in hire
products and sustainable fuel and energy, and the circularity
of products. We work with our people and suppliers to repair,
refurbish, retrofit and/or recycle our products, where possible to
extend their life and reduce their environmental impact. Through
this collaborative approach we have also designed products that
contain recycled materials and can be recycled again.
We are actively monitoring and prioritising the phasing out
of fossil fuel from our hire fleet to meet Net Zero by 2040
through investment in eco, repair, refurbishment and recycling
programmes and divestment of fossil fuel products when they
reach their end of life.
Our plan to become the green icon of hire
As an inherently sustainable practice, we are in the position to
raise awareness that hire is a sustainable, shareable commodity
that provides an alternative to ownership today. It enables
customers and, as a newer concept, consumers the ability
to make an immediate positive impact on the environment
through utilising a re-usable product and reducing the
wastefulness of storing unused tools, which could eventually
end up in landfill.
We have and continue to collaborate with our suppliers and
actively invest in eco technologies such as battery, solar and
hydrogen and sustainable fuels and energy to reach Net Zero
by 2040, reducing our own emissions and supporting our
customers to meet their carbon commitments.
Investing in eco-technologies
44% of our itemised assets are now defined as eco exceeding
our FY2023 target of 40%. This represents an increase from
30% eco in FY2022. ECO products represent over half of our
revenue at 52% demonstrating our customer’s increasing
demand for ECO products and our commitment to reducing
carbon emissions. In FY2023 we:
•
Invested £4.3m in 380 new low emission powered
access scissor lifts to replenish and expand our
powered access fleet
• Entered into a multi-million-pound investment in new
battery powered assets from Milwaukee’s MX Fuel range
which is exclusive to Speedy, expanding our fleet of low
and zero carbon equipment
All new investments in our hire fleet are now screened against
our eco-definitions, the UN Sustainable Development Principles
(UN SDGs) and the Sustainability Chain School Plant Charter
minimum requirements so that we invest in the most eco
option available.
Strategic Report
Governance
Financial Statements
Corporate Information
31
Strategy in action
Enabling customer success;
introducing the industry’s
first stage V generator retrofit
technology
During FY2023 we delivered an industry-first retrofitted
Stage V emission compliant generator, as part of a trial
to help boost the availability of greener generators to the
construction industry.
Working with exhaust systems specialist Eminox, a global
leader in the design of aftermarket retrofit technology,
we became the first in the industry to retrofit Stage IIIa
generators to Stage V emission-compliant standards.
Major infrastructure and construction projects require
equipment to meet Stage V emission standards to lower
the impact on air quality. Compliant engines limit the
overall volume of harmful pollutants, such as nitrogen
oxide and carbon monoxide in exhaust gas, and are
compatible with hydrotreated vegetable oil, which emits
up to 90% less CO2e than red diesel. However, customer
demand is significantly outweighing supply, with low
availability blocking contractors from switching to greener
power alternatives.
Retrofitting these units to the increasingly essential Stage
V emission compliant standard will help to deliver the
capacity the market needs, while ultimately enabling
our customers to operate more sustainably. Upgrading
generators, rather than replacing, will also cut tonnes of
waste in our business as Stage IIIa is phased out in the
years to come.
Since our successful trials, we have invested over £1 million
in upgrading our Stage IIIa generators to Stage V emission
compliance.
Our partnership with Eminox on the Stage V emission
retrofit project has been shortlisted as a finalist in the
Construction News Awards in the ‘Supply Chain Excellence’
category to be held in London on 13 July 2023.
We are working hard to make the process of hire even more
sustainable in the future and have a clear eco-roadmap to
achieve this objective. By 2027 we commit that 70% of our
hire fleet will be eco.
To support our eco-roadmap our key focus in FY2024
is to develop our circular economy strategy and work
collaboratively across our business and with our suppliers
to deliver hire products that are Net Zero and circular.
During FY2023 we delivered an industry-first retrofitted Stage V
emission compliant generator, as part of a trial to help boost the
availability of greener generators to the construction industry.
Strategy in action
Reducing our carbon impact
on the supply chain
During FY2023, we partnered with Oxford Plastics to
bring tangible carbon savings to customers. Oxford
Plastics’ lightweight, composite LowPro Road Plates are an
alternative to heavy steel plates and save carbon emissions
throughout the supply chain. By using a set of LowPro Road
Plates instead of a set of steel road plates, there is 79%
reduction in carbon dioxide emissions. This includes:
• 69% less carbon footprint during the manufacture
stage
• 76% less carbon footprint in transit
• 0kg CO2e carbon footprint during installation
This directly impacts on our own carbon footprint and of
our customers where trench work is needed. In 2022, we
invested in 800 of these LowPro Road Plates, which could
save the supply chain up to 1000 tonnes of carbon dioxide
equivalent emissions over the lifespan of its use.
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The Decade to Deliver continued
Our roadmap to
sustainable innovation
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2022
2023
2024
30% 40% 50% 60%
• 30% of products to be
• 40% of product range will
• 50% of product range will
eco design and operation
be eco friendly
be eco friendly
• 60% of product range
will be eco friendly
• Develop plan for fuel cell
technology and possible
integration into our fleet
•
Introduce alternative
fuel (HVO) to replace for
diesel (red & white)
• Hydrogen product
development established
•
Infrastructure to support
Hydrogen in place
•
Investment in Solar
Lighting with a fleet of
c.200 units by FY2023
• Development of stage V
engines both new
and retrofit
Implement a Circular
Economy approach
and partnership with
our suppliers on key
product lines
• Establish carbon footprint
of key product lines
• Development of cordless
technology to replace
electric and engine driven
equipment
•
•
Future development of
eco innovative products,
collaborating with key
suppliers of equipment
• All products will be
delivered from suppliers
in ECO friendly
packaging (R4R)
• 110v will be replaced by
cordless across the full
range of products
•
Full eco product offering
made up of solar,
hydrogen, battery and
recycled options
• Synthetic fuel to replace
diesel and petrol in ICE
(internal combustion
engines)
• Explore carbon capture
system and how they
could work on our
products
Strategic Report
Strategic Report
Governance
Governance
Financial Statements
Financial Statements
Corporate Information
Corporate Information
33
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Racing ahead on recycling
We have continued to meet our zero waste to landfill target
and have increased our recycling to 57% through continued
implementation of the waste hierarchy and better waste
segregation achieving our FY2023 target of 50% recycling. Our
recycling targets have been achieved through raising the profile
of recycling across our business via recycling campaigns and
communications, improved signage and recycling areas at our
depots and head office, recycling audits and improved reporting.
We have committed to continue our focus on recycling by
increasing our target to 85% by 2025.
We continue to work with our suppliers to reduce packaging
waste through understanding the types of packaging used and
replacing with alternatives such as delivering our products to
our depots in crates instead of cardboard. In FY2024 we will be
developing a packaging policy to further reduce our packaging
waste in collaboration with our suppliers.
Reducing water
We recognise that climate change results in water stress,
therefore in FY2023 we started a programme to understand
how we can reduce our water consumption. Throughout
FY2024 we will be fitting automatic water meter readers across
our property estate and measure our water use and set an
appropriate water reduction target.
Strategy in action
Achieving EcoVadis Silver
During the year, we achieved a Silver ranking by leading
ratings provider EcoVadis, and placed in the top 25% of
companies for sustainability in recognition of our work to
reduce our environmental impact.
EcoVadis is a global leading corporate social responsibility
rating provider. Its methodology is based on internationally
recognised principles and standards such as Global
Reporting Initiative (GRI), UN Global Compact and ISO 26000.
We were awarded silver by EcoVadis in this year’s assessment
after scoring highly for our efforts to reduce carbon emissions.
Taken into account was: being the first hire provider to sign up
to the science-based targets initiative (SBTi), where emissions
targets are certified to be in line with reductions required
under the Paris Agreement; launching the industry’s first net-
zero hire centre in Milton Keynes, certified this year with an A+
energy rating; and investing in our vehicle fleet to ensure that
the majority of our vehicles are electric or hybrid by 2030;
and that more than 50% of our capex was focused on hire
products that help customers to reduce their own emissions.
rights, corruption, and sustainable procurement.
As a marker of our industry leading carbon commitments
we were classified as a “Carbon Leader”.
We are now working closely with our supply chain of
construction equipment manufacturers to help them help
us improve our sustainability, and our ambition is to target
a Gold EcoVadis rating which will put us into the top 5% of
all businesses.
“This is a great achievement for our business. Our national
customers are increasingly scrutinising the environmental
impact of their supply chains. The EcoVadis Silver rating
gives them the certainty that Speedy is a responsible
business that can help them to operate more sustainably.
With 1,500 vehicles and c.180 trading locations in the UK
and Ireland, net-zero represents a huge transformation for
us. The silver accolade demonstrates the maturity of our
ESG strategy and reflects how we’re moving in the right
direction as a business. We now need to mobilise our supply
chain to join us on our journey to enhance our position as
the leading provider in sustainable hire. Working as one
sustainable supply chain into construction, we can play
a significant part in the overall decarbonisation of the
built environment.”
The EcoVadis assessment universally benchmarks our ESG
performance across the environment, labour, ethics, human
Amelia Woodley
ESG Director
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The Decade to Deliver continued
Climate solutions
We are passionate about minimising climate change, with
a commitment to becoming a Net Zero Carbon business by
2040, ten years ahead of the Government’s target of 2050.
This means accelerating our focus to deliver on where we
can make the biggest impact within our own business and
collaborate to minimise carbon in the supply chain.
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During FY2023 we achieved:
• A reduction in carbon emissions from
16,690.20 tCO2e in FY2022 to 13,397.49
tCO2e in FY2023 equating to a 19.7%
reduction.
• Overall, the carbon emissions per
employee have reduced from 4.9 tCO2e
during FY2022 to 3.8 tCO2e during
FY2023, equating to 22.6% per employee.
• Since our baseline FY2020 that we model
our science-based targets against (SBTs)
we have reduced our carbon emissions
from 25,034 tCO2e to 13,397.49 tCO2e in
FY2023 equating to a 46.5% reduction.
We have delivered these carbon reductions through the key
initiatives detailed in this section.
Delivering Net Zero Carbon by 2040
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 science-based targets (SBTs)
and decarbonisation roadmap, which we have now published
as part of this report. This includes full Scope 1, 2 and 3
inventories. You can see the overview of the roadmap on
pages 38 to 39.
We were the first in UK Hire to commit to SBTs and are now
the first in UK Hire to submit our SBTs and decarbonisation
roadmap to the Science Based Target Initiative (SBTi)
demonstrating our commitment to climate leadership. This
commitment plays 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.
As part of our commitment to SBTs we have publicly declared
that we will:
•
•
•
Reduce our Scope 1 and 2 emissions by 50% by 2030
against baseline FY2020.
Reduce our Scope 3 emissions by 42% by 2030 against
baseline FY2020.
Achieve Net Zero Carbon by 2040 against baseline FY2020.
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Scope 1 and 2 emissions near term targets
We are already making rapid emission cuts now, so that by
2030 our absolute Scope 1 and Scope 2 emissions are reduced
by 50% from baseline FY2020. We will be taking a beyond
leadership position by setting our ambition slightly higher than
1.5ºC thus encouraging investment in innovation and future
proofing our future business growth.
Most of our Scope 1 carbon emissions are related to our fuel
consumption in our commercial fleet and company cars, which
represents 89%.
Cutting down on carbon – Net Zero vehicles and logistics
We have an industry leading track record of introducing a range
of pioneering electric vehicles across our fleet to help reduce
our Scope 1 emissions and our customers Scope 3 emissions
through sustainable deliveries.
Low carbon vehicles
• Our company car fleet list is completely made up of Ultra
Low Emission Vehicles (ULEVs) and we have transitioned
82% of our company cars to electric/hybrid significantly
reducing the carbon emissions from business travel. Due
to manufacturing and supply chain issues in FY2023 we
have re-baselined our company car target to reach 100%
electric/hybrid by FY2025. By 2030 100% of our company
cars will transition to full electric.
• We have continued to use HVO D+ as an alternative
sustainable fuel in our HGVs and tankers while we
introduce electric HGVs into our commercial vehicle fleet.
In FY2023 we replaced one million litres of diesel with HVO
D+ saving 2,860 tCO2e in FY2023 compared to using diesel,
an increase from 794 tCO2e in FY2022. By 2030 25% of our
HGVs will run on HVO D+ whilst we replace another 15% of
our HGVs with electric technologies.
In FY2023 we began the largest roll out of 150 electric
LCVs (Light Commercial Vehicles) which will make up c.15%
of our commercial fleet, the largest electric commercial
fleet in UK hire. By 2030 at least 66% of our LCVs will be
electric.
100% of our vehicles meet the EuroCat6 Standard, an
increase from 95% in FY2022 helping to reduce air
pollutant emissions from our vehicles and improve
local air quality.
•
•
• Our vehicle fleet transition programme to Net Zero by 2040
has also been supported by the roll out of electric vehicle
charging technologies across our property estate and
electric vehicle fuel cards to keep our vehicles topped
up throughout the day.
Low carbon logistics
During the year we introduced double deck trailers on all
trunking routes between our National Service Centres (NSCs).
This means we can move a larger volume of assets around the
network using less journeys.
We have focused on maximising vehicle utilisation to drive
down the costs of using third party haulage contractors, and
in the process have removed vehicles that have low utilisation,
reducing cost and making our fleet more efficient.
During the year we began scoping out a new ‘Transport
Optimisation Project’ (TOP), that sets out to implement a
system interface into our ERP Microsoft 365 that will optimise
deliveries and collections further to maximise the utilisation
of our fleet, reducing costs, time and mileage. The system
development is underway, and the project is due to be trialled
during FY2024.
We use telematics to monitor data on our vehicles for a host
of reasons from speeds and related fuel consumption to safe
driving practices. Through the use of telematics, we identified
an opportunity to reduce idling time on delivery routes to
reduce costs and emissions when the vehicle is stopped for
short periods of time. We ran an internal campaign explaining
the benefits of reducing engine idling time, resulting in a year-
on-year reduction of 31,000 litres of fuel.
There are many times when we are due to collect a product
that, when we arrive, the customer wants to keep on hire for an
extended period. To address the cost and environmental impact
of needless journeys, we have reduced aborted collections
through implementing a more robust pre-collection checking
process. We aim to reduce this further as we move into FY2024.
A small proportion of our Scope 1 emissions is related to our
gas usage across our properties. As part of our SBTs we will
transition at least 30% of our natural gas to alternative fuels
and technologies by 2030.
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The Decade to Deliver continued
Strategy in action
Industry leading electric fleet
In recent years we have led the industry in developing
a sustainable vehicle fleet, innovating with trialling new
alternative vehicles including, in the prior year, becoming
the first company to introduce a fully electric powered
access delivery truck into its fleet. During FY2023 we
invested £8.25 million in 150 new electric vans that
will cut up to 1,280 tonnes of CO2e per year from our
commercial fleet emissions.
The investment forms part of our commitment to reduce
our emissions by 50% by 2030 and achieve Net Zero by
2040.
The initiative is a major step on our roadmap to becoming
a net zero business, and aims to help our customers
meet their sustainability targets by reducing their supply
chain emissions through zero carbon equipment delivery,
while protecting the environment in the communities we
operate in.
The new fleet was distributed across our UK-wide network
to replace internal combustion engine models. The carbon
saving made by the switch is equivalent to that absorbed
by 7,700 trees per year*.
“Ford has been Speedy’s preferred vehicle supplier
over many years, and we are delighted to continue
that partnership as the company accelerates its move
to a zero carbon future and transitions to electric
alternatives for its fleet. As Speedy invests in electric
vehicles, Ford looks forward to working together to find
further opportunities to maximise the productivity and
sustainability of its delivery fleet through our integrated
Ford Pro solutions.”
Adam Harkin,
Ford of Britain & Ireland Head of
National Fleet Accounts
*
Approximate, based on one ton of CO2 per year for six mature
trees, according to Climate Consulting by Selectra.
Cutting down on carbon – Net Zero property estate
For our Scope 2 emissions we continued to prioritise renewable
energy procurement achieving c.90% renewable electricity
in FY2023, an increase from 88% in FY2022. During the next
four years we will continue to work with our property team and
landlords to transition the remaining 10% so that 100% of our
electricity is renewable by 2027 in the UK and Ireland.
As part of our property decarbonisation programme, we are
rapidly re-developing our property network to consolidate
smaller inefficient depots into larger, sustainable Service Centres
which include smart energy-efficient building solutions.
These solutions include the integration of LED lighting,
controlled heating and cooling through a Building Management
System, air quality management, daylight harvesting and on-
site renewables such as solar photo-voltaics to improve energy
efficiency, reduce carbon emissions and maintain a comfortable
environment for colleagues and customers. All data generated
from smart energy-efficient building solutions is sent to the
cloud to support with better energy management across the
property estate.
In FY2023 we rolled out a business-wide mandatory energy
efficiency training programme to help our people interact more
sustainably with our buildings.
Strategy in action
Innovation Centre becomes
carbon negative
In FY2022 we launched our Innovation Centre at Milton
Keynes designing energy efficient features throughout the
building from LED lighting, a building management system
and photo-voltaic (PV) cells. During FY2023 our Innovation
Centre became Carbon Negative and achieved a rare A+
EPC rating 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. Our Milton Keynes Innovation Centre has set the
blueprint for sustainability standards in our properties.
In addition, during FY2023 we consolidated several
inefficient depots and set new sustainability standards
within the industry by opening two new sustainable low-
carbon service centres in Leeds and Stoke which employ
many of the same carbon saving technologies featured
within Our Innovation Centre. We have ambitious plans to
repeat this model for our estate and, where appropriate,
retrofit our existing buildings with more energy efficient
features to achieve Net Zero by 2040.
Since launching the Centre, we have conducted over
120 individual tours comprising of over 1,500 customers
operating on the largest and most ambitious projects in
the UK. Customers are able to see first-hand how we are
taking major steps in reducing our carbon footprint to help
them meet their sustainability targets in the supply chain
and enables us to demonstrate the very latest innovations
that we can provide them to make their projects more
sustainable.
The Building Controls Industry Association recognise
innovation, product development, project delivery and
industry leading training within sector. We, along with
our partners Global Associates, with which we developed
the low energy technology within our Innovation Centre,
were delighted to be a finalist in the Energy Management
Award category at the prestigious BCIA Awards 2023 for
demonstrating an estate wide move to carbon negative.
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37
Scope 3 emissions near term targets
As part of our Net Zero commitment, we have undertaken a scope
3 screening assessment, carbon footprinted our value chain and
set a near term Scope 3 carbon reduction target of 42%.
Our Scope 3 carbon emissions represents 91% of our total
carbon footprint with most of our emissions sitting in four
carbon hotspots:
•
•
•
•
Downstream leased assets such as the use of electricity
and fuel in the equipment we hire to our customers
Use of sold products such as the fuel that we sell to
our customers
Capital Goods such as the tools we purchase
Purchased goods and services such as consultancy
services, telecoms and sub-contractors
Strategy in action
Enabling customers to meet
their sustainability targets
on site
Our national customers are demanding products that
significantly reduce their carbon emissions, to meet their
own stretching targets on the road to net zero, and also the
costs of running older machinery.
We have long been at the forefront of bringing brand new
products that have been developed with low emission
technology to help our customers meet their sustainability
goals, launching the Milwaukee MX Fuel range exclusive
to Speedy and the V20 lighting tower in the prior year.
During FY2023 we placed an order to bring to market a
revolutionary new powered access product, the HR15H2E
boom lift, manufactured by one of our key supply chain
partners NiftyLift, which runs on a hydrogen fuel cell
further advancing product innovation in zero emission
technology.
In addition to the zero-emission benefit to the
environment, the product cuts noise pollution, and high
operating costs in terms of maintenance and fuel, helping
customers become more efficient and cost-effective.
The 140 new units began to arrive on fleet and became
available to customers in June 2023.
Nature Positive by 2030
We recognise that climate change and biodiversity loss go
hand in hand therefore in FY2023 we will start to baseline our
biodiversity risks and opportunities across our value chain, and
we have partnered with leading biodiversity experts to develop
our roadmap to Nature Positive by 2030.
Mobilising our value chain towards Net Zero
Throughout FY2023 we continued our transformation
programme to align our supply chain activities to the ISO
20400 sustainable procurement standard by embedding
sustainability across our procurement processes.
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 have continued to focus our carbon reduction
efforts across our four key Scope 3 hotspots by:
•
•
•
Investing in eco products such as battery, solar and
hydrogen and adopting circular solutions for our hire
products
Increasing our sales of HVO D+ sustainable fuels to our
customers
Engaging with our key suppliers by issuing a carbon
maturity questionnaire to understand where they are on
our journey
• Mobilising the supply chain to Net Zero by instructing
new sustainability contract requirements to key suppliers
asking them to join our SBT journey by 2025
•
•
Engaging our customers on sustainable solutions to help
them achieve their Net Zero goals
Continuing to work across our value chain to improve our
Scope 3 data to reduce our carbon emissions
Strategy in action
Net Zero carbon strategy
for Hire
In FY2023 we partnered with Hydrock, an international
engineering, energy and sustainability consultancy
to support our business, customers and suppliers on
our ‘decade to deliver’ commitment to become a Net
Zero business and make hire services, solutions and
equipment even more sustainable.
Hydrock is providing advice and expert guidance across
our business in areas such as whole lifecycle carbon
assessments of our products, processes and operations;
social value; EDI; and wellbeing. Hydrock also verify our
carbon data to ISO standards ensuring data accuracy and
transparency in our external reporting which is critical to
achieving our target of being Net Zero by 2040.
We also want to help our customers and supply chain
better understand their own carbon impacts and how
to make better informed decisions at every stage of the
hire process to support them in achieving their own Net
Zero goals. As a consequence, during FY2024 we will be
offering a range of carbon and sustainability services
alongside ‘Hire’ in partnership with Hydrock.
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The Decade to Deliver continued
Our roadmap to
net zero
As part of the ethos that drives our Velocity strategy,
during the year we upgraded our original commitment
of becoming a net zero business by 2050 in pledging
to reach that goal by 2040; ten years ahead of the
government’s target.
In FY2023 we continued to work with
Carbon Intelligence to set our long-term
target of reducing our emissions by 90-
95% before 2040 to achieve Net Zero.
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.
Whilst our roadmap will deliver on our
own Net Zero strategy, it is also designed
to enable our customers to meet their
near and long term sustainability goals.
Near term targets
Reduce our Scope 1 and 2
emissions by
50%
by 2030 (compared to 2020)
Reduce our total Scope 3
emissions by
42%
by 2030 (compared to 2020)
Long term targets
Reduce our Scope 1, 2 and 3
emissions by
90%
by 2040 (compared to 2020)
Our headline goals and targets
To be a Net Zero business by 2040
7%
2%
91%
Scope 1
Scope 2
Scope 3
270,000
Reduce our emissions
from 270 thousand to
27 thousand tonnes
of CO2 by 2040
27,000
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What we will do together
We’re speeding up on Sustainability to make the next
decade count. Through collaboration, transparency and
meaningful change, this is how we will do it.
Leadership
our ESG Business Partner programme
c o p e 1 & 2 e missions reduced by 50% by 2030
S
Our science-based
target setting
Replace 100%
of petrol and diesel cars
within fleet with EVs
Transition
25% of UK-based
vans and HGV’s
vans and HGVs
to low carbon
alternatives like HVO
Reduce
refrigerant leakage
by 14% and
natural gas
emissions by 30%
100%
renewable electricity
by FY2027 in
UK and Ireland
Transition
66% of diesel vans and
15% of UK-based HGVs
to EV
e 1
Sco p
Scop
e 2
DECADE
TO DELIVER
18% reduction
in sold fossil fuels
such as petrol
2% YOY waste reduction
from FY2023 via
staff engagement
Utilise policy, engagement
and booking process to
reduce travel by
economy flights
by 40%
Engage with
top 30 suppliers
to set their own
science-based targets
68% reduction
in sold diesel
Sc o p e 3
Reduce hotel use by 35%
and car use by 45%
by encouraging use of online capability
and rail transport/EVs from
hire car providers
17% reduction
in sold propane
49% reduction
in fossil fuel driven equipment
hired to customers
Scope 3 emissions reduced by 42 % b y 2 0 3 0
Our
decarbonisation
journey
Eliminating carbon is at the heart
of every decision we make
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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, and
Northern and Republic of Ireland operations. Included are
the business travel and waste disposal activities of our UK
Mainland offices and depots.
ISO14064-1:2018 Carbon Summary
This statement has been prepared in accordance with ISO
14064-1:2018 for the purpose of documenting our GHG
emissions and progress against our targets. We aim to achieve
a minimum of a 5% reduction year on year. Comparisons are
made to both the previous financial year and our baseline year
(FY2019). The current scope of reporting does not include a full
Scope 3 assessment of FY2023 and includes a limited scope
consistent with that of the FY2019 disclosure. This statement is
intended to inform all of our employees and Board of Directors,
and is reviewed on an annual basis in line with our science-
based target net zero model. Headline figures have been
provided, followed by the methodology used to calculate our
emissions, and finally, a detailed breakdown of our emissions.
Overall, the carbon emissions per employee have reduced
from 4.9 tCO2e during FY2022 to 3.3 tCO2e during FY2023,
in line with our objective to reduce our carbon footprint.
The reduction in absolute emissions is 19.7% and 46.5%
comparative to FY2022 and the baseline, respectively.
Combustion of Fuel and Operation of Facilities
During FY2023, we have significantly reduced our diesel
consumption, resulting in approximately 2,900 tCO2e less being
emitted, and equating to a reduction of 20.4% comparative to
the previous financial year.
We have made a significant effort over FY2023 to reduce our
carbon emissions. We have achieved a sizeable switch of one
million diesel litres across our commercial vehicles to HVO D+,
which has had a significant impact on reducing our emissions.
We have also transitioned primary ICE company vehicles to
PHEV/BEV alternative vehicles, which has resulted in a major
shift from diesel mileage to less carbon-intensive Hybrid and
Hybrid Plug-in EV mileage, lowering our emissions. Moreover,
the Company has fostered a driving conscious culture, with the
Executive Team and Senior Leadership Team leading by example.
Electricity, Heat, Steam and Cooling Purchased
for Own Use
Of the electricity procured in FY2023, approximately 90%
was renewable. By comparison to FY2022, our emissions from
electricity, heat, steam and cooling have reduced by 4.7%.
Scope 3 Business Travel
Comparative to last financial year, there has been a slight
increase in business travel, particularly hotel stays, due to the
transition out of the global pandemic and return to face-to-
face meetings. As a business, however, we are continuing to
encourage our colleagues to reduce travel where possible by
opting for teleconferences over in-person meetings, and where
not possible, to select more sustainable travel options, such as
using public transport rather than private vehicles.
Scope 3 Waste
In FY2022, emissions associated with our waste increased due
to the additional inclusion of oily rags, filters, waste-absorbent
materials, wastewater from washdown activities, sludges, waste
oil and fuel, and battery waste. Over FY2023, however, we
have actively worked to reduce the amount of waste produced,
resulting in a reduction of 1.0% comparative to FY2022.
Methodology
We have made a significant effort to improve carbon data
collection and reporting processes, which has supported
the reductions during FY2023. Since FY2022, we have
implemented a management procedure system, Mavim, and
issued an accompanying policy document (‘Carbon Reporting
System Procedures – 3. Data Management & Storage’),
defining the processes of collating carbon data throughout the
organisation and ensuring consistency and accuracy of data.
We have reported on all emissions 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 sections. We have
used the GHG Protocol Corporate Accounting and Reporting
Standard (revised edition), Scopes 1, 2 and 3, and emissions
factors from the UK Government’s GHG Conversion Factors for
Company Reporting FY2023. The organisational boundary has
been set based on the operational control approach.
Omissions
•
This FY disclosure is consistent with the 2019 baseline
reporting boundaries found in the below table. This
disclosure omits a full Scope 3 assessment of this FY as this
was carried out post FY2023 disclosure period. The limited
Scope 3 boundaries of waste, T&D and business travel have
been included for year-on-year comparison as in 2019
they were the most mature data sets with a high level of
confidence. Going forward in subsequent reporting years
Speedy will fully disclose Scope 3 emissions aligned to the
15 categories of the Science Based Targets.
•
F gas has not been excluded from the emissions in this
Statement; however, only leakages are required to be
reported and based on the data for FY2023, no leakages
have occurred.
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•
There have been no biogenic CO2 emissions or offsets during FY2023. Business Travel WTT emissions are only included for air
travel to enable like-for-like comparison to the previous financial year and baseline year.
• Emissions relating to our operations in Kazakhstan have historically been included in the previous year and baseline under
Scope 1 and Scope 2. In accordance with ISO 14064-1:2018, emissions relating to Kazakhstan should have been placed in
Scope 3 under Category 15 – Investments. Therefore, the figures presented in this statement have been updated and emissions
relating to our Kazakhstan operations have been omitted.
Data confidence
The data used to report the GHG emissions under ISO14064-1:2018 have been assessed and assigned a “Good” level of
confidence +/-5.7%. The confidence level has been established using the ‘GHG Protocol guidance on uncertainty assessment in
GHG inventories and calculating statistical parameter uncertainty’, and has been independently verified. Going forward, we aim to
reduce the level uncertainty regarding our Scope 3 emissions by transitioning to activity-based data.
Global GHG emissions
The GHG emissions reported below cover the period from 1 April 2022 to 31 March 2023. We have seen a reduction in our carbon
emissions per employee of 22.6% comparative to FY2022.
A detailed breakdown is shown in Table 1 below.
Table 1. GHG emissions for FY2023 comparative to the FY2022 and the baseline year
Emissions Source
Scope 1 Combustion of Fuel and Operation of Facilities
Scope 1 Refrigerants
Scope 2 Electricity, Heat, Steam and Cooling Purchased for Own Use
(market-based)
Total Scope 1 and 2 Emissions
Scope 3 Transmission and Distribution of Electricity
Scope 3 Waste
Scope 3 Business Travel (inc. Air WTT)
Total Scope 3 Emissions
Total emissions Scopes 1, 2 and 3
Tonnes of CO2e per employee
Tonnes of CO2e
Current reporting year
(FY2023)
Last reporting year
(FY2022)2
12,768.77
0.00
225.28
12,994.05
164.04
55.39
184.01
403.44
16,041.32
20.11
236.48
16,297.91
183.00
55.94
153.36
392.29
Baseline
(FY2020)1,2
19,841.43
13.17
4,411.68
24,266.28
283.1
91.94
392.91
767.95
13,397.49
16,690.21
25,034.23
3.80
4.91
7.92
1 Figures were previously reported for calendar year 2019. These figures have undergone a verification process as part of SBT modelling and have been
represented as they are now aligned with the Groups’ financial reporting periods to ensure consistency and comparability. Furthermore, as part of the Group’s
continuing data improvement journey, Scope 2 data has been represented using market-based emissions rather than previously reported location-based
emissions; similarly to assist with consistency and comparability.
2 Historically, emissions relating to operations in Kazakhstan have been included under Scope 1 and Scope 2. In accordance with ISO 14064-1:2018, however,
these emissions should fall under Scope 3, Category 15; figures for FY2022 and the baseline have therefore been updated accordingly.
Streamlined Energy & Carbon Report (‘SECR’)
Energy usage and carbon emissions have been disclosed separately to adopt to the requirements of the UK Streamlined Energy
and Carbon Reporting (‘SECR’) policy. Included in the table below are the Group’s total emissions, of which the UK makes up
materially all.
Scope 1 emissions (tCO2e)
Scope 2 emissions (tCO2e) (location-based)
Total Scope 1 and 2 emissions (tCO2e)
Emission intensity Scope 1 & 2 (tCO2e/£m revenue)
Natural gas usage (kWh)
Commercial fuel usage (ltr)
Electricity usage (kWh)
Total energy consumption (kWh) (Gas & Electric)
FY2023
FY2022
FY2020
12,768.77
225.28
12,994.05
29.5
3,654,672
5,501,104
9,267,873
19,854.60
16,061.43
4,411.68
236.48
24,266.22
16,297.91
59.7
42.1
7,365,690
6,063,727
6,310,316
5,782,180
9,741,279 11,438,472
12,922,545 15,805,006 18,804,162
ESOS methodology (as specified in Complying with the Energy Savings Opportunity Scheme version 6, published by the
Environment Agency 28/10/2019) used in conjunction with Government GHG reporting conversion factors.
We recognise that climate change is one of the most serious environmental challenges currently threatening the global community
and we understand we have a role to play in reducing greenhouse gas emissions. We have implemented various improvements
during FY2023 and will continue to do so as part of our strategy. See pages 28 to 39 for further detail.
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Corporate Greenhouse Gas (GHG) Report continued
Assurance Statement
Assurance Statement related to the Speedy Hire Plc,
Greenhouse Gas Statement on Operational Control Emissions
for the Financial Year April 1, 2022 to March 31, 2023.
This Assurance Statement has been prepared for Speedy Hire
Plc in accordance with Hydrock’s contract.
Terms of Engagement
This Assurance Statement has been prepared for Speedy
Hire Plc, Chase House, 16 The Parks, Newton Le Willows,
Merseyside, WA12 0JQ.
Hydrock Holdings Limited (Hydrock) was commissioned by
Speedy Hire Plc to assure the Greenhouse Gas (GHG) Emissions
Inventory and GHG Statement of Speedy Hire Plc for Financial
Year 2023, based on operational control consolidation.
The GHG Statement relates to the following emissions:
• Complete Scope 1 Indirect Emissions
• Complete Scope 2 Direct Emissions
• Partial Scope 3 Indirect Emissions – limited to waste
disposal, transmission and distribution, Employee
commuting.
Hydrock was commissioned by Speedy Hire Plc to provide
unaccredited GHG data verification to ISO 14064-1:2018.
Hydrock has been involved in the GHG consultancy support of
Speedy Hire Plc. However the verification contract delivered
by Hydrock has mitigated the risk between consultancy and
verification by having separate personnel. This risk has been
reviewed under the Hydrock stage 3 technical assurance review.
Management Responsibility
Speedy Hire Plc was responsible for providing suitable
evidence and conformity against the ISO 14064-1:2018 criteria.
Hydrock’s responsibility was to carry out the unaccredited
verification of GHG in accordance with our contract with
Speedy Hire Plc.
Ultimately, the FY2023 GHG emissions data for Speedy Hire
Plc, has been approved by, and remains the responsibility of
Speedy Hire Plc.
Hydrock Approach
Our verification has been conducted in accordance with ISO
14064–3:2006, ‘Specification with guidance for validation
and verification of greenhouse gas assertions’ to provide
reasonable assurance that GHG data as presented in the
GHG Statement have been prepared in conformance with:
•
ISO 14064–1:2018 – Specification with guidance at the
organisational level for quantification and reporting of
greenhouse gas emissions and removals (hereafter
referred to as ISO 14064-1).
To form our conclusions, the assurance engagement was
undertaken as a sampling exercise and covered the following
activities:
• Review existing Green House Gas Management Systems
and processes to manage GHG emissions.
•
•
Interview various Speedy Hire Plc Senior Management Staff
to confirm engagement, processes and responsibility.
Investigate internal governance, systems and tools which
contribute to the financial year reporting.
Level of Assurance & Materiality
The opinion expressed in this Assurance Statement has been
formed on the basis of a reasonable level of assurance and at
a materiality of ±5%.
Hydrock Opinion
Based on Hydrock’s approach, we believe that the organisation
has, in all material respects:
• Met the requirements of ISO 14064-1; and
• Disclosed accurate and reliable performance data and
information.
Qualifications
• Hydrock has not verified the GHG emissions of the Financial
Year 2020 which Speedy Hire Plc has established as the
base year for GHG emissions.
• Hydrock has not verified the GHG emissions of the Financial
Year 2021-2022 which Speedy Hire Plc has established for
a Year-on-Year comparison.
•
This engagement has not verified current SBTi progress or
verified any other Scope 3 carbon data apart from those
specified within this assurance statement.
• Hydrock has not verified Speedy Hire Employee numbers.
Notes for information
• Any external disclosure by Speedy Hire Plc in relation to
this assurance engagement is made at the risk of Speedy
Hire Plc. The Hydrock risk is mitigated by the issuance of
this Assurance Statement.
Hydrock competence and independence
Hydrock ensures the selection of appropriately qualified
individuals based on their qualifications, training and
experience. The outcome of all assurance engagements
is internally reviewed by senior management to ensure
that the approach applied is rigorous and transparent.
Strategic Report
Governance
Financial Statements
Corporate Information
43
Taskforce on Climate-Related Financial Disclosures (‘TCFD’)
Introduction
This disclosure details Speedy’s response to the recommendations and recommended
disclosures of the TCFD in accordance with Listing Rule LR 9.8.6 (8). In preparing this report
we have considered the completeness and robustness of the scope 3 emissions data available
and have decided not to include that data for some categories of scope 3 emissions in these
disclosures. For this reason we consider ourselves to not be fully consistent with the TCFD
recommendations in this regard. Speedy’s reporting is otherwise consistent with the TCFD
reporting requirements for UK premium-listed companies. The sections below describe how
climate change is incorporated into corporate governance processes, its potential impact on
our strategy and financial planning, its treatment in our risk management procedures and
climate-related KPIs for Speedy.
The following sections correspond to the TCFD framework:
1.
Governance – Our governance
structure provides effective
oversight over our climate-related
risks and opportunities.
2.
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. We present the results
from our climate scenario
analysis.
3.
Risk Management – How
we identify, assess and manage
climate-related risks as part of
Speedy’s overall risk management.
4.
Metrics and Targets – How we
measure, track and manage our
performance in addressing these
risks and opportunities.
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Governance
1.
Board-Level Oversight
Speedy’s Board has strategic oversight of climate-related risks and
opportunities and for approving the Company’s ESG strategy. The
Plc Board Sustainability Committee meets three times a year and TCFD
and climate risk are discussed. Prior to submission to the Science Based
Target initiative (SBTi) for verification, the ESG Committee, Executive
Team and Plc Board Sustainability Committee approved Speedy’s
science-based targets (SBT).
Each Board Committee liaises directly
with relevant Management and Executive
Directors and provides regular reports
to the Plc Board. The Executive Team
has responsibility for ensuring the
management of climate risks and
opportunities, it meets monthly and
is also briefed directly by senior
management on material issues. The
ESG Committee is responsible for
driving the ESG agenda, climate strategy
and performance, and its members
meet monthly and reports to both the
Executive Team monthly and the Plc
Board Sustainability Committee three
times a year. The ESG Director chairs the
ESG Committee, which is attended by
key stakeholders across HR, Operations,
Digital, Supply Chain, General Counsel
and Risk. Other stakeholders attend
as guest presenters to update the ESG
Committee on their progress to the ESG
Strategy. The ESG Director also provides
strategic and technical leadership on
climate across the business to ensure
the risks are appropriately managed.
The ESG Director was promoted to the
Executive Team on 1st April 2023 and
represents the link between the ESG
Committee, Executive Team and Plc
Board Sustainability Committee. The
Chief Executive is a member of the Plc
Board Sustainability Committee to which
climate-related matters are reported
or escalated in accordance with
governance and policy set by the
Plc Board Sustainability Committee.
In FY2023 we selected 30 people across
all business divisions to become ESG
Business Partners to mitigate climate
risk and support the delivery of climate
opportunities and form a sustainability
roundtable where climate-related
topics are discussed. The sustainability
roundtable is chaired by the ESG
Director and attended by the ESG
Business Partners and ESG team.
The Plc Board’s responsibilities are
discharged through its committees
as follows:
•
•
•
•
The Audit & Risk Committee
oversees climate-related risk.
The Committee reviews the efficacy
of risk management and internal
control processes and ensures
the Company complies with
its disclosure obligations. The
Committee ordinarily meets four
times a year.
The Sustainability Committee
oversees the management of climate-
related risks and opportunities as
part of the Committee’s oversight
of the Company’s ESG strategy and
performance against targets. The
Committee meets as required and
at least three times year.
The Remuneration Committee
integrates ours ESG-related
performance metrics where relevant
into the Company’s variable
remuneration, including the
Executive Team’s bonus payments
being linked to carbon reduction
targets, which have been achieved
for FY2023.
The Nomination Committee
supports the Company’s diversity,
equity and inclusion strategy with
the aim of developing an increasingly
diverse and inclusive workforce
including across backgrounds,
experience, knowledge, skills
and gender which additionally
helps create a sustainable and
prosperous business.
Strategic Report
Governance
Financial Statements
Corporate Information
45
Governance framework
Plc Board
Chief Executive
Audit & Risk
Committee
Remuneration
Committee
Nominations
Committee
Sustainability
Committee
Executive Team
ESG Director
Training & Partnerships
Over the course of FY2023, training has
been provided to senior leaders on ESG
including climate-related issues through
workshops to develop our Net Zero
by 2040 roadmap and to embed TCFD
across our business, and help to identify
opportunities to reduce and mitigate
climate risk as well as identifying climate
opportunities for future sustainable
growth.
ESG Committee
Together with Carbon Intelligence, part
of Accenture, we also ran a series of
leadership workshops for our Executive
Team in FY2023 and has started the
development of a business-wide
sustainability training programme that
includes climate change. We have
collaborated with industry experts
Futerra, IEMA (Institute of Environmental
Management and Assessment), SSCS
(Sustainability Supply Chain School) and
Hydrock to deliver our sustainability
training programmes. As a first step all
colleagues have now been trained on
energy efficiency to reduce our energy
use and carbon emissions and our sales
teams have received training on Net
Zero to better communicate our eco
product and sustainable fuels range
with customers.
Furthermore, as part of our Green Skills
transition programme, the ESG Business
Partners who will lead the ESG agenda
for their business unit will be trained
to an IEMA Associate Level in FY2024,
giving them a deeper understanding
of sustainability and climate change.
We have also formally partnered with
engineering design and environmental
consultancy Hydrock, who provides
sustainability technical advice and
support to our ESG team and the
wider business.
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TCFD continued
Strategy
2.
In FY2023 we updated our list of climate-related risks and
opportunities. For example, we added energy as a new risk due to
the rising costs of charging electric vehicles and running occupied
office premises. Our 11 top-rated climate risks are listed in the
table below, along with the potential impacts and the mitigating
controls we have put in place.
Risks
Potential Impacts
Timeframes
Mitigating Controls in place
Technology:
Climate technology
may not keep up
with demand.
This could lead
to unreliable new
technologies and
increased costs.
Long-term
(5-10 years)
• Monitoring the market and research
• Engaging with customers to understand the preferences and
benefits of ECO products
• Increased R&D expenditure and capex investment on low-
carbon equipment and sustainable fuels
Medium-term
(2-5 years)
• Investing in the refurbishment and/or upgrading of
equipment to eco
Assets:
Carbon-intensive
assets may become
obsolete.
This could damage
our margins if
these assets cannot
generate revenue
and impose more
costs for disposal.
We could be
exposed to
increases in cost.
Short-term
(0-2 years)
Fuel:
Increasingly
limited supply of
fossil fuel may
lead to greater
instability in fuel
prices.
Energy:
Increasing energy
prices will increase
direct costs.
Speedy could
be exposed to
increases in cost.
Reputation:
Speedy may not
stay on track to
meet its Science
Based Target.
This could lead
to reputational
repercussions with
stakeholders, such
as customers and
external ESG rating
agencies.
Medium-term
(2-5 years)
Short-term
(0-2 years)
• Hedge energy rates and Power Purchase Agreements (PPAs)
in place for properties with on-site renewables
• Greater investment in low carbon technologies and targeted
divestment of carbon intensive products
• Working with suppliers on recycling or repurposing
solutions to extend product lifecycle
• Developing our circular economy strategy to lower the
environmental impact of our products
• Hedge our fuel rates for diesel and HVO D+
• Improving energy and fuel efficiency across our properties
and products
• Investing in hybrid/electric company cars and electric
commercial vehicles and consolidating vehicle logistics
• Use of sustainable fuels across our properties, products and
commercial vehicles
• Improving energy and fuel efficiency across properties and
products
• Delivered employee training focused on energy-efficient
behaviours with further training planned
• Consolidating properties to more energy efficient buildings
• Invested in energy-efficient technologies such as Building
Management Systems across properties
• SBT Net Zero by 2040 roadmap cascaded across the business
and supply chain
• Implementing processes across the business to embed
climate and carbon reduction
• Allocation of accountability across the organisation, teams,
and individuals supported by KPIs
• Embedment of ESG business partners across all business
units to deliver climate and carbon reduction
• Requested key suppliers in supply chain to align to SBTs
by 2025
Strategic Report
Governance
Financial Statements
Corporate Information
47
Risks
Potential Impacts
Timeframes
Mitigating Controls in place
Short-term
(0-2 years)
Short-term
(0-2 years)
• Monitoring the market and research
• Engaging with customers to understand the preferences and
benefits of ECO products
• Working with suppliers to bring ECO products to market
• Identified and set aside necessary budget to invest in R&D
for alternative products and services
• Implemented governance mechanism (horizon scanning
and materiality assessments) to continuously monitor the
regulatory and reporting landscape
• Review requirements and regulations through the ESG
Committee and Plc Board Sustainability Committee
Short-term
(0-2 years)
• Aligning procurement activities to ISO 20400 sustainable
procurement standard
• Issued a climate and carbon questionnaire to our suppliers
• Contractually instructed suppliers to provide GHG data
• Developed a product carbon calculator for our Top 350
products
• Investing in telematics on key equipment
• Implementing data collection systems for Scope 3
• Externally verified our carbon data to ISO 14064-1
• Supplier training and supplier engagement programme
• Developed fleet investment and transition roadmap
Medium-term
(2-5 years)
Medium-term
(2-5 years)
• Implementing changes in properties to move out of old
premises into fit for purpose premises
Medium-term
(2-5 years)
• Developed property investment and transition roadmap
Customer demand:
Speedy’s provision
of low-emission
fuel alternatives
may be insufficient
to meet customer
demand.
Regulation:
Not meeting
compliance
requirements of
advancing climate
regulation.
Data:
Challenges in
obtaining Scope
3 greenhouse gas
emissions data.
Infrastructure:
Insufficient EV
infrastructure
development might
inhibit Speedy’s
transition success.
Extreme weather
events:
Business
operations and
human capital may
be significantly
affected by
the increasing
frequency and
severity of storms.
Extreme weather
events:
Storms and
extreme winds
speeds may cause
physical damage to
Speedy’s sites and
assets.
There is a risk of
losing customers
to competitors or
straining customer
relationships
due to cost
negotiations.
This could lead
to reputational
damage, fines and/
or stranded assets.
Inaccurate or
incomplete Scope
3 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 can
service customers.
This could
negatively
impact operating
efficiency and
increase costs
as business
operations and
human capital may
be significantly
affected.
This could
negatively
impact operating
efficiency and
increase costs
as business
operations and
human capital may
be significantly
affected.
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TCFD continued
Speedy also intends to capture climate-related opportunities. The four most significant opportunities are listed in the table below.
Opportunity
Potential Impact
Timeframe
Actions to seize opportunities
Products and services:
Customer demand for
low-emissions equipment
and services will rise as
the economy transitions
to net zero.
Supports targets:
Investment in low-emissions
product technology will
support Speedy’s climate
targets.
Climate leadership:
Achieving our Science-Based
Target could allow us to
become a climate leader.
Product development:
Development of a carbon
product calculator to report
carbon emissions and costs
for our Top 350 products.
This could lead to new revenue streams and
greater market shares, especially if Speedy
is a first mover.
Medium-term
(2-5 years)
Capitalising on emerging needs is
key to diversifying our business
and generate new revenue streams.
In addition to meeting Speedy’s climate
targets, this could lead to increased
efficiencies and opportunities for business
partnerships.
Long-term
(5-10 years)
This could help Speedy attract new talent.
By mitigating Speedy’s data-related risk
and developing this new product, this could
generate new revenues. The development
in conjunction with partners and customers
to also help them understand their carbon
impacts and help manage it.
Medium-term
(2-5 years)
Short-term
(0-2 years)
Investment in low emissions
technologies to develop our
vehicle and hire fleet products will
be a key area of action in achieving
emission target goals and aligning
to 1.5˚C trajectory.
Significant investments and
allocation of internal resources
over time will be required to realise
this opportunity.
Increase resources expenditure to
monitor and respond to market and
technology trends.
We have now taken our top climate-
related risks and opportunities through
scenario analysis. The aim was to test
and enhance the resilience of our
current strategy and risk management
to the transition risks of rapid global
decarbonisation as well as the physical
risks of global warming. To do so, we
chose three plausible climate scenarios
from the Network for Greening the
Financial System (NGFS), one of the
TCFD-recommended frameworks, and
included a well below 2°C scenario in
line with the TCFD Recommendations:
• Net Zero 2050 (1.5°C): Policies
are implemented immediately and
smoothly. Emissions start declining
immediately and reach zero by 2050.
This scenario is aligned with the RCP
2.6 pathway.
• Delayed Transition (2°C): This
scenario assesses our resilience
under a high transition risk scenario
with increased physical risk. With no
additional policies, emissions rise
until 2030. Thereafter, strong and
rapid policy sees emissions decline
dramatically, reaching Net Zero by
2060. This scenario is aligned with
the RCP 4.5 pathway.
• Current Policies (3°C): This scenario
tests our resilience in a world with
high warming and physical change.
With only current policies pursued,
emissions continue to rise. This
scenario is aligned with the RCP 8.5
pathway.
Using these climate scenarios, we then
modelled the risks and opportunities
across four timeframes: short-term
(2022-2024), medium-term (2024-
2027), long-term (2027-2032), and
very long-term (2032-2050).
Our high-level scenario analysis tested
the resilience of our current strategy
and risk management framework to
climate transition and physical risks
shows that physical risk is likely to be
most impactful to our business under
the Current Policies (3°C) scenario and
less so under the other scenarios. Under
the Net Zero 2050 (1.5°C) scenario,
we face potential transition risk in
the short- to medium-term. Under a
Delayed Transition (2°C) scenario,
it is projected that we experience
these risks in the long-term but with
potentially greater impact due to the
delayed uptake of climate policy. In
a Net Zero 2050 (1.5°C) scenario, we
have the greatest opportunity due to
early action, allowing us to potentially
reap both financial and reputational
benefits. In FY2023 we extended this
work to include quantitative modelling
of financial impact for one risk, which
is the investment required to transition
to eco-products to reduce scope 3
emissions to meet Speedy’s Science-
Based Target commitments.
Strategic Report
Governance
Financial Statements
Corporate Information
49
Climate Scenario Analysis Summary
Key to risk intensity
The risk intensity has been defined by the potential impact the risk could have on Speedy considering the potential impact on
Speedy’s strategic plan and the likelihood of the risk occurring across the three scenarios and time horizons. Speedy’s risk register
was used to inform the definition of the likelihood of occurrence.
Key to time-horizons:
ST: short-term (2022-2024)
LT: long-term (2027-2032)
MT: medium-term (2024-2027)
VT: very long-term (2032-2050)
Transition Risk
Scenario 1: Current Policies
Scenario 2: Delayed Transition
Scenario 3: Net Zero 2050
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
Medium Medium Medium Medium
Medium
High
High
Medium
Medium Medium Medium
Low
Low
Low
Medium Medium
Medium Medium
High
High
Medium
High
High
High
Medium Medium Medium Medium
Medium Medium Medium
High
Medium Medium Medium
High
Medium Medium Medium Medium
Medium Medium Medium
High
Medium Medium Medium
High
Transition risk
category
Technology –
Unreliable Tech
Technology –
Assets
Fuel
Energy
Reputation
Low
Low
Medium Medium
Low
Low
Medium
High
Low
Medium
High
High
Customer
Demands
Medium Medium Medium Medium
Medium Medium
High
High
Medium
High
High
High
Regulation
Low
Low
Low
Medium
Medium Medium
High
Data
Medium Medium Medium Medium
Low
Medium
High
Infrastructure
Low
Low
Low
Medium
Medium Medium
High
High
High
High
Medium
High
High
Medium Medium
High
High
High
Medium Medium Medium Medium
Physical Risk
Scenario 1: Current Policies
Scenario 2: Delayed Transition
Scenario 3: Net Zero 2050
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
ST
(2022-
2024)
MT
(2024-
2027)
LT
(2027-
2032)
VT
(2032-
2050)
Medium Medium Medium Medium
Medium Medium Medium Medium
Low
Medium Medium Medium
Medium Medium Medium
High
Medium Medium Medium Medium
Medium Medium Medium Medium
Transition risk
category
Extreme Weather
– Business
Operations
Extreme Weather
– Physical
Damage
n Low risk intensity n Medium risk intensity n High risk intensity
Mitigating Controls
During FY2023, we reviewed the controls
we have in place that support climate-
related risk management processes,
such as business continuity, financial,
and strategic planning. We assessed
the effectiveness of these processes in
mitigating risks. Our aim is to ensure that
Speedy is resilient enough to thrive in
multiple plausible climate scenarios.
Our growing number of mitigating
controls to address climate-related risks
fall under three groups: energy and fuel
risk, data and technology. As technology
evolves, for example, we are investing in
solutions to avoid emissions-intensive
equipment becoming obsolete assets.
We are retrofitting such products as
power generation and lighting towers
with the latest technology while HVO D+
is helping to reduce emissions from our
diesel assets by up to 90%.
To respond to energy and fuel risks
we are engaging with energy and
fuels providers, keeping up to date
with market changes and improving
energy and fuel efficiency across sites,
properties and products. For data-
related risks, we are engaging with our
supply chain and will invest in software
for supplier GHG data, are fitting key
products with telematics and developing
carbon calculators and reporting
solutions for our customers. Finally, on
technology risks, we are Speedy is in the
process of engaging with customers to
understand the preferences and benefits
of ECO eco products, communicating
the environmental benefits of our
products and identify circular economy
opportunities for assets.
As a result of the scenario analysis, the
following steps are being taken:
• We are moving all of its carbon data
into a data warehouse to develop
automated reporting for Scope 1, 2
and limited Scope 3.
•
For engagement, we are developing
training programmes for all internal
staff on carbon for rollout in FY2023.
• We are investing in our property
estate to reduce energy
consumption.
•
Linked to modelling, we have an
eco-roadmap and monitor eco-
investments through our Investment
Committee.
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TCFD continued
Risk management
On behalf of the Audit & Risk Committee, the ESG Director and
Head of Risk and Assurance review a climate and ESG risk register
that is based on each functional department’s own risk register,
where the risks are recorded.
3.
To do so, the ESG Director seeks climate-
related mitigation activities from internal
stakeholders, as well as climate risk
specialists. On at least a six-monthly
basis, internal stakeholders and risk
owners assess our comprehensive list of
climate-related risks and opportunities
for materiality based on their likelihood
and impact. This approach is aligned with
our risk management framework and
based on current expectations of climate
trajectories and global action. We then
decide whether to transfer, control or
mitigate each risk and embed into our risk
management framework. These risks and
associated mitigations are reviewed by
the ESG committee on a quarterly basis.
With the support of Carbon Intelligence
part of Accenture, we developed a
comprehensive list of climate-related
risks to assess our exposure. This list,
which is periodically updated, includes
both physical risks (e.g., flooding
or storms) and transition risks (e.g.,
regulatory, technological, reputational
or legal risks) involved with the shift to
a low-carbon economy.
Integrating Climate-Related Risk
Climate-related risk management
is integrated in our overall risk
management. Our climate-related
risks are integrated into the Company’s
overall risk register and used by the
Board to assess our principal risks.
All risks and opportunities identified
in this disclosure are therefore listed in
the Company’s risk register. In addition,
a business team is assigned to lead
the management of each risk.
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Financial Statements
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51
Metrics and targets
Developing metrics and targets for each key risk and opportunity
is essential to track our progress in decarbonising our business,
managing climate-related risks and capturing opportunities.
4.
The Science Based Target initiative’s
(SBTi) new Corporate Net Zero Standard
is the world’s first framework for
corporate net zero target setting. Subject
to verification, we have set a near-term
2030 science-based target (SBT) for
Scopes 1, 2 and 3 emissions that is in
line with a 1.5°C scenario. In addition,
we have set a long-term 2040 science-
based Net Zero target for Scopes 1, 2 and
3 with a FY2020 base year. These targets
provide a clearly defined pathway to
reduce our greenhouse gas emissions
in line with the Paris Agreement.
We are the first company in UK
Hire to set and submit SBTs and a
decarbonisation roadmap across all
Scopes to reach Net Zero.
The following targets have been
submitted to the SBTi and are currently
subject to verification. We expect our
targets to be verified and validated
before the end of FY2023.
We have committed to:
• Reduce absolute Scope 1 &
2 GHG emissions by 50%
by FY2030 from FY2020
base year.
• Reduce absolute Scope 3
GHG emissions by 42% by
FY2030 from FY2020 base
year.
• Reduce absolute Scope 1, 2
& 3 GHG emissions by 90%
by FY2040 from FY2020
base year.
• Reach net-zero GHG
emissions across the value
chain by FY2040.
The targets for our decarbonisation
pathway span the entire Speedy
business: product offering, operations,
property estate, fleet and supply chain.
Our Scope 1 & 2 targets will be achieved
by continuing our transition to HVO
D+ fuel, electric vehicles, renewable
power, low-carbon heating, cooling and
retrofitting our properties.
Our Scope 3 targets will be achieved
by investing in low carbon equipment
and sustainable fuels and implementing
circular economy solutions such as
repairing, refurbishing and retrofitting
our equipment. We are working
collaboratively with our supply chain
to engage and achieve Net Zero by
2040 together and have asked our top
suppliers to join SBTi Initiative by 2025.
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In FY2023 we reduced our carbon
emissions across Scope 1, 2 and 3 by
19.7% compared to FY2022 and 48.55%
compared to our SBT baseline year of
FY2020. We achieved this by:
•
Increasing the number of company
cars to electric/hybrid to 82%
significantly reducing the emissions
associated with business travel, with
the aim to achieve 100% electric/
hybrid by FY2025 and 100% electric
by 2030.
• Continuing to run our large
commercial vehicles such as HGVs
and tankers on HVO D+ instead of
diesel replacing c.1 million litres
of diesel and reducing carbon
emissions by 2,860 tCO2e. By 2030
25% of our HGVs will run on HVO D+
whilst we replace another 15% of
our HGVs with electric technologies.
•
Introducing 150 electric Light
Commercial Vehicles (LCVs) in
collaboration with Ford making us
the biggest EV commercial fleet in
Hire. By 2030 at least 66% of our
LCVs will be electric.
• Continued to roll out supporting
EV charging infrastructure across
our network.
• Consolidating our property estate
and implementing energy efficient
technologies, such as Building
Management Systems to control
heating and cooling, air quality
management, daylight harvesting
and on-site renewables such as
solar photovoltaics.
• Developed a BETA product carbon
calculator for our Top 350 products
to help our customers make more
sustainable solutions.
• Calculated our first annual
Scope 3 footprint to monitor
our Scope 3 targets in our four
key Scope 3 hot-spots.
Through our sustainability partnership
with Hydrock we are also looking to
better support our customers and
suppliers on their carbon journey through
Net Zero solutions and carbon reporting
alongside our core ‘hire’ offering.
These metrics and targets allow us
to track the magnitude of risks and
exposure, capture opportunities and
strengthen our resilience.
Climate metrics:
• % carbon reduction
(Scope 1, 2 and 3)
• % renewable energy
• % energy use reduction
• % suppliers with SBTs
• % eco products by volume
• % eco products by revenue
• % recycling
•
•
Increasing the proportion of electricity
from renewable sources that we
purchase as a Group. At present,
renewable electricity accounts for
c.90% of electricity. By 2027, this
will account for 100% of purchased
electricity and by 2030 30% of
our natural gas will be replaced by
alternative fuels and technologies.
Increasing our investment in eco-
products from 30% to 44% meeting
our FY2023 target of 40%. Our aim
is to reach 50% of eco products by
FY2024 with the goal that 70% of
our products will be eco by FY2027.
Our eco products represent over half
of our revenue at 53% reflecting
the increasing demand from our
customers for eco-solutions.
•
Increasing our sales of HVO D+
from c.6 million litres to c.14
million litres to support our
customers demand for sustainable
fuels saving c.34,400 tCO2e.
• Working with our people and
suppliers to repair, refurbish, retrofit
and/or recycle our products, where
possible, to extend their life and
reduce their environmental impact
and collaborating with suppliers
to design products that contain
recycled materials and can be
recycled again.
• Continuing to achieve zero waste
to landfill and have increased our
recycling to 57% meeting our
FY2023 target of 50% with the aim
to reach 85% recycling by FY2025.
• Continuing to support our supplier
engagement programme. In FY2023
we issued a carbon questionnaire
to understand the carbon maturity
of our supply chain and requested
our key suppliers to align to SBTs
by 2025.
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Financial Statements
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53
We use the Greenhouse Gas (GHG) Protocol to calculate our GHG emissions, which are reported below. Further data for FY2023
and comparisons to our base year are available on pages 40 to 42.
Additional metrics:
Metrics
FY2023 Performance
Target
GHG emissions*
Complete Scope 1 Indirect Emissions: 12,768.77
• Reduce absolute Scope 1 & 2 GHG emissions by
Complete Scope 2 Direct Emissions: 225.28
Partial Scope 3 Indirect Emissions (Waste disposal,
transmission and distribution, and business travel):
403.44
* This data has been assured by Hydrock and is for the
Financial Year April 1, 2022 to March 31, 2023
50% by FY2030 from FY2020 base year
• Reduce absolute Scope 3 GHG emissions by 42%
by FY2030 from FY2020 base year
• Reduce absolute Scope 1, 2 & 3 GHG emissions
by 90% by FY2040 from FY2020 base year
• Reach net-zero GHG emissions across the value
chain by FY2040
c.90% electricity renewable
• 100% renewable electricity by 2027
• Scope 1
• Scope 2
• Scope 3
Transition
opportunities/
climate-related
opportunities
82% of company cars are electric/hybrid
Introduced the roll out of 150 electric LCVs
44% of itemised assets are eco representing 52%
of revenue
Instructed top suppliers to set SBTs by 2025
Zero waste to landfill
57% recycling
Capital deployment
44% of itemised assets are eco representing 52%
of revenue
51% of capital expenditure on hire fleet relates to
eco forward products
• 30% replacement of natural gas with alternative
fuels and technologies by 2030
• 14% reduction in refrigerants
• 100% company cars to be electric/hybrid by
FY2025 and 100% electric by 2030
• 25% HGVs converted to HVO D+ and 15%
transitioned to electric by 2030
• 70% eco products by volume to be eco by 2027
• Use of sold goods – 18% reduction in petrol, 60%
reduction in two stroke, 6% reduction in propane
and 17% reduction in propane by 2030
• Downstream leased assets – 68% reduction
in diesel, 17% reduction in petrol and 15%
reduction in LPG by 2030
• Purchased Goods and Services, Capital Goods,
Upstream Transportation and Distribution –
engage top suppliers to set SBTs by 2025
• 2% YoY reduction in waste from FY2023 to 2030
• 40% reduction in employee commuting by 2030
• Reduce business air travel by 40% by 2030, hotel
use by 35% and car use by 45% by 2030
• Achieved FY2023 target of 40% of itemised assets
being eco
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Including everyone
Our Speedy Family
Our People First approach has been developed as a key
component within our growth strategy Velocity, and is driven
by living our values of ambition, innovation, inclusivity, safety,
working together and trusting each other.
Our People First Commitment
Our renewed Colleague Value Proposition sits at the heart
of becoming a Times Top 100 employer. The key metric for
People First is colleague engagement. We maintained a high
engagement score of 77% for FY2023. Our survey is run by
an independent company and when measured against similar
sized companies, Speedy’s results were 5% above the external
benchmark. Our goal is to improve this result with two areas of
concentrated effort in FY2024.
•
•
Embedding our new Vision, Mission, and Values, helping
our colleagues understand how their roles contribute to the
success of the business
A further focus on wellbeing, focused on work-life balance
and raising the bar with mental health wellbeing through
the ‘Make It Visible’ campaign, where we will work in
conjunction with the Lighthouse Club.
Wellbeing
Mental health and wellbeing are a key issue within the
construction industry. Every single working day in the UK
two construction workers take their own life, and that stress,
anxiety and depression accounts for a fifth of all work-related
illness. Speedy is a company supporter of the Lighthouse
Club, the only charity that provides emotional, physical, and
financial wellbeing to support construction workers and their
families. Our support of this charity has enabled us to train
55 volunteers within Speedy to become Mental Health First
Aiders who have the skills to identify potential mental health
issues in the workplace, and proactively promote strategies
to support the wellbeing of our colleagues. This support
is available 365 days a year and if further help is required,
colleagues can use our Employee Assistance Programme. We
are leading the way for Hire with the, `Make it Visible’ mental
health and wellbeing campaign, this is being facilitated by the
Lighthouse Club with the support of the Government to reduce
the number of suicides in construction-related businesses. Our
Chief People Officer is involved in the launch of this campaign.
During FY2023 we delivered several wellbeing initiatives
and campaigns promoting a healthy approach to mind and
body supported by our wellbeing group. These initiatives
were delivered either via training our colleagues, or by them
accessing our internal communications platform “The Hub”,
the content of which is refreshed on a regular basis. On here
we have a calendar of events that are planned throughout the
year and any opportunities for involvement in these.
Delivering on the promise of a sustainable 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.
Colleague Engagement
Our People Engagement team have tailored a full range
of communication tools, both digital and in person for our
different job families. This enables us to get relevant, key
information to our colleagues promptly and also encourages
two-way communication. Yammer was introduced this
year which has facilitated communication and connection
opportunities right across the organisation.
In 2023, we have significantly improved our Hub by moving
it across to the MS365 share point platform. This has enabled
colleagues to access company and employee news, initiatives,
support articles and much more from either a Speedy device
or their own.
This year our People Like Us group has further developed, with
an affinity network which is colleague led. These groups which
cover race and ethnicity, wellbeing, communities and gender
balance are governed by the ESG Committee and work together
to deliver our social value objectives.
Our established CCC, Colleague Consultative Committee
provides an avenue for appointed colleague representatives
from across Speedy to review colleague ideas, challenges and
provide feedback directly to the CEO, CPO, and other members
of the Executive Team. Rhian Bartlett in her capacity as the
designated Non-Executive Director for employee engagement
annually attends this meeting. Her attendance helps ensure
our colleagues voices are heard in the boardroom. This enables
a greater understanding of workforce concerns and their
consideration in Board decisions.
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Strategy in action
Bump 2 Baby & beyond
As part of our commitment to supporting our colleagues
when embarking on any type of dependant’s leave, or to
support as they face life changing events, we entered a
collaboration with “Bump 2 Baby & Beyond”.
A charitable group encompassing experienced public
health experts and academics offering specialised train
the trainer training in all aspects of fertility; pregnancy;
adoption; dependent leave; workplace support; domestic
violence and coercive behaviour awareness; sexual
harassment and sexual assault awareness. This coming year
we will formalise the train the trainer sessions and share
this content by way of classroom and eLearning to our
colleagues.
We have also focused on male health with this partnership,
with delivering train the trainer sessions on prostate
and testicular cancer awareness. To provide support
to colleagues who are diagnosed with cancer and our
managers supporting their people, we have introduced a
cancer support pack detailing the help and support that is
available internally and externally.
To continually support our colleague’s wellbeing as we
move into FY2024, our action plan includes:
• Reinforcing the importance that Speedy places on
the mental health and wellbeing of our people and
what we are doing to help within our monthly video
messaging from the Executive Team.
• 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.
• 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.
We have supported our colleagues by way of guidance and
coaching regarding managing workloads and how to have a
healthy work-life balance. This coaching has been welcomed
as we began a flexible working trial which is in place to assess
the viability of a nine-day fortnight, four and a half-day week,
and other suitable work patterns. A final decision on flexible
working will be taken in June 2023, and throughout this trial
we have and continue to seek feedback from our colleagues
that have chosen to be part of the trial and those that haven’t
so that all opinions can be taken into consideration. We
introduced a hybrid working policy to provide flexibility and
improved work-life balance and shared guidelines around
managing meetings remotely.
Our Time to Talk campaign, that began in FY2023, with
colleagues being encouraged to talk on the last Friday of
the month, has supported several colleagues in seeking
professional help. Those colleagues have gone on to share their
experiences and promoted Time to Talk via videos on the Hub.
Diversity, Equity, and Inclusion
The Board understands and appreciates that, diversity, equity,
and inclusion (DEI) is an increasingly important aspect of the way
we operate and that is why we have continued to encourage DEI
in the composition and culture of our Board, Board Committees,
senior management as well as our wider workforce. Full details
of the Group’s diversity, equity and inclusion is detailed in the
Corporate Governance Report on pages 94 to 96.
A comprehensive review of our group People Policies and
how they are applied across the group was completed in
the summer of 2022 and relaunched in October 2022. This
included training sessions with members of the People Team,
targeted communications across the business as well as
enhancing the training provided to our people managers.
We appreciate that we need to recruit and retain our female
workforce as well as attract and retain a younger demographic.
The review of our People Policies paid particular attention
to our family friendly policies, including making several
improvements in the promotion of the early adoption of future
legislative employment rights changes with regards to flexible
working and neo natal care leave.
Via our PLUS affinity group, we have further increased
awareness of menopause and neurodiversity by hosting PLUS
talks open to all colleagues. We also continue to support Black
History Month and Pride events. As a result of our revised
DEI Policy, we have commenced DEI training with our newly
appointed People Managers, and this will be rolled out to our
wider management teams throughout 2023.
To attract a more diverse and wider age demographic throughout
the business we have engaged in several partnerships and
affiliations, including with Not Going to Uni, highlighting the
alternatives to the standard route to school and college leavers.
We are a committed member of the ‘5% Club’, a dynamic
movement of employer-members working to create shared
prosperity across the UK by driving ‘earn and learn’ training
opportunities; this supports our effective early careers strategy.
We have also successfully undergone a verification process
with the Youth Group. Our ambition is that we diversify and
strengthen our workforce by further enhancing our young talent.
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Including everyone continued
Strategy in action
Becoming a Youth
Verified Business
During the year we were proud to announce our successful
verification as a Youth Verified Business by Youth Group,
the UK’s largest community of young people.
Becoming Youth Verified aligns with our People First strategy
and underpins our values of ambitious, innovative, inclusive
and togetherness. The youth verification challenge process
allowed Speedy to understand how it can further diversify
and strengthen its workforce with outstanding young talent.
We plan to leverage this status to attract more young people
into the business, working with Youth Group to showcase
the hire industry and the plethora of career opportunities
available within it.
“We are inspired by the Youth Group and its goals to
support young talent into work whilst simultaneously
assisting employers with attracting them into
progressive businesses like Speedy. There are over 1.7
million young people connected to the Youth Group, all
seeking some level of guidance when it comes to finding
a career for themselves. We are delighted to be Youth
Verified and excited to share our opportunities and
welcome more young people into our Speedy family.”
Ellie Armour
Chief People Officer
“We are thrilled to have Speedy join our growing list
of Youth Verified Businesses. Their commitment to
inclusivity, innovation and the development of young
talent aligns perfectly with our mission at Youth Group.
This is just the beginning of a meaningful partnership
between our organisations, and we look forward to
supporting Speedy in their continued efforts to create
a better future for all young people.”
Leon Marseglia
Chief Operating Officer at Youth Group
We are committed to ensuring that young people are heard,
mentored, developed, nurtured, and are part of the Speedy
family. We also plan to expand the work we do around
mental health, DEI, ESG, flexible working, career development
opportunities, and mentoring, so all young people can
progress in the pathways they choose, be happy, healthy, and
feel embraced by what is known amongst our people and
customers as ‘the Speedy Spirit’.
Resourcing Partnerships
This year we have re-signed the Armed Forces Covenant
as a continued commitment to the employment of ex-
service personnel.
We continue to be a signatory to Cleansheet, a national
Criminal Justice Charity founded in 2010 with the simple
purpose to offer people with spent convictions the hope of
a better future by finding real, permanent employment.
In addition to this we are planning to form a new partnership
to support survivors of modern slavery find permanent
employment.
People Matter Charter
We have reconfirmed our ongoing commitment to our people
and to the employees in our supply chain by completing, for the
second year, our membership and commitment to The Supply
Chain Sustainability School’s People Matter Charter of which
we are a proud partner. The Charter focuses on a wide range
of principles, including fairness, inclusion and respect, and
training and skills. A key requirement of this re-commitment is
producing a case study to evidence how we have committed
to each principle and analysing how this has added value to
our business. We have a representative from our ESG Team
on the charter’s working group, focusing on human rights and
modern slavery within the construction industry, an example of
a collaborative approach across the Built Environment to reduce
marginalisation of vulnerable people.
We intend to closely monitor each element of our DEI strategy
and the work underpinning it to continue to improve our DEI
position and thus helping to ensure that further tangible
beneficial results can be provided in the future.
By 2026 5% of our talent will be apprentices, graduates, and sponsored
students.
Personal development
Supporting and developing our people will underpin our
Velocity strategy to accelerate sustainable growth. 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 and all initiatives support our approach to
talent and succession planning for all roles.
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 careers
at Speedy.
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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.
Apprenticeships
We have 78 colleagues participating in apprenticeship
schemes across the UK to boost our skills base and the
industry’s talent pipeline. Our schemes are made up of a mix
of new apprentices (we invested in 40 early years trainees this
year) 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.
We remain on track to meet our 5% Club objective with 2.8%
of our people being apprentices, graduates, professional
trainees, and our sponsored students on formal programmes as
of April 2023. The overall percentage has remained broadly flat
year on year due to having had several new trainees starting
and others qualifying, whilst operating with a smaller workforce.
Our plan is to accelerate our progress against target during
FY2024.
Additionally, in FY2023 we launched a ‘late careers’ mentor
programme which matches experienced colleagues with our
early careers trainees to ensure that our trainees are receiving
the best possible experience and recognising the exceptionally
skilled colleagues we have.
Graduate Programmes
We offer two types of graduate programmes at Speedy, a
two-year fixed placement where the graduate learns about
all aspects of their chosen business area, and a three-year
rotational programme where the participant gains exposure
and experience of working across the business before
identifying the area they want to start building their Speedy
career.
During FY2023 we increased the total number of graduates
participating in these programmes from 10 to 12.
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 which is made up of modules
around leadership and self-awareness.
During FY2023 a cohort of 62 colleagues successfully
participated in the programme, with 29% now having been
promoted or moved into new roles as part of their ‘Career
Line of Sight’ journey.
Industry first Development Board
During FY2023 we implemented an industry leading Emerging
Talent Development Board. This group is made up of 11 of our
brightest ‘emerging talent’ colleagues in our business, and
they are charged with developing themselves personally and
professionally while working alongside the Executive Team in
contributing to the strategic plans and delivering on complex,
business projects.
The organisation chart below demonstrates the Board
Development roles in support of each Executive Team member.
Finance
Business Partner
(Chief Executive)
Commercial Manager
(Commercial Director)
Legal Counsel
(General Counsel and
Company Secretary)
Environmental Advisor
(HSSEQ Director)
Digital Marketing
Director
(Chief Digital Officer)
IT Operation Manager
(Chief Information
Officer)
Regional Manager
(Chief Operating Officer)
Group Financial
Planning and Analysis
Manager
(Chief Financial Officer)
Contract Service
Delivery Manager
(Chief Operating
Officer Sales)
People Advisor
(Chief People Officer)
Business Development
Manager
(ESG Director)
Brackets denote equivalent role as represented at
Executive Team level.
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Including everyone continued
Senior Leadership Programme
We operate an annual Senior Leadership Programme, which in
FY2023 is being attended by 7 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.
Training Academy
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.
In FY2023 we provided 51,643 training courses which was a
combination of e-learning and classroom-based training.
Sustainability training and upskilling
As a member of the Supply Chain Sustainability School, we
also provide sustainability training as part of our High Potential
Programme and Graduate and Apprenticeship Training Schemes.
In FY2023 we partnered with Futerra, IEMA and the SCSS to
deliver sustainability training across our entire business with
the aim that all our people will receive sustainability training
by FY2025.
We also launched our first ever ESG business partnering
programme in FY2023 to embed sustainability deep within
our business and culture. 30 people from across the business
have been handpicked to be the custodian of ESG for their
business function helping to deliver our ESG strategy. Our
ESG BPs will be supported in their sustainability journey by
a team of leading experts from the internal ESG team and
Hydrock. They will all receive training to an IEMA Associate
Level supporting their skills, knowledge and CDP. This is an
industry leading programme that formalises the role of a
green champion within a business.
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. 2141 awards were presented during FY2023.
We host an annual People First Awards event where
outstanding teams and individuals are publicly recognised
for their performance. The awards are made over several
categories that are associated directly with our company
values: Ambitious; Innovative; Inclusive; Safe; Together; and
Trusted. Nominations are received from colleagues within
the business and in FY2023 we received a record number
of nominations.
Celebrating colleagues at our annual Excellence Awards, which has been
re-branded in line with our strategy as the People First Awards in FY2024.
Our long service recognition scheme celebrates loyalty for
those who have 10, 20 and 25-years’ service with the Company.
144 colleagues reached these milestones during this
financial year.
Strategic Report
Governance
Financial Statements
Corporate Information
59
Rewards and benefits
We aim to provide competitive reward and benefits packages
that attract, motivate and retain people in the most efficient
manner. During FY2023 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 several 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.
Group headcount 3,375 employees (31 March 2022: 3,554).
Gender pay gap and living wage
At Speedy we aim to ensure that everyone is rewarded and
recognised fairly for their contribution, with equal access to
opportunities, no matter what part of our business they work
within. We believe in promoting equality and diversity within
our workforce and we work hard to encourage inclusivity in all
our activities both internally within Speedy and externally with
our customer base. Our recruitment team is working to attract
applicants from a wide variety of backgrounds and increase
female representation across the business, increasing diversity
at all levels and in all roles.
Speedy’s gender pay gap has increased slightly this year in
comparison to figures reported for April 2021 but remains well
below both the national median average of 14.9% published
for 2022 by the Office for National Statistics and the gap for
the construction industry for the year ending April 2022 of
23.7% published by CIPD. Speedy is also proud to be a Living
Wage supporter as we believe our colleagues deserve a wage
which meets everyday needs.
Below is a breakdown by gender of the number of colleagues
who were Directors of the Company, senior managers, and
other employees as at the end of the reporting period:
•
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Plc Board – female 28.57%, male 71.43%
Executive Team – female 22.22%, male 77.78%
Senior management team* – female 18.59%, male 80.13%,
other 1.28%;
All Speedy colleagues (UK and Ireland) – female 21.34%,
male 75.68%, other 2.98%
22% 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
and we have a Gender Group to drive initiatives to help us
reach our gender target.
* Grade 6 and above
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Including everyone continued
Safety
Safety of our people and communities
Our commitment to the safety of our colleagues
and customers sits at the heart of our business
and is core to supporting our Velocity sustainable
growth strategy.
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. An example during the year was our AluTruk
innovation, a newly designed sack truck which has led to
a 20% reduction in lifting and handling injuries. Having
trailed, consulted, and designed the product, we distributed
over 850 units throughout our network and vehicles to
reduce manual handling injuries.
• Continuing to develop and promote the use of our new
safety management system ‘EcoOnline’, a system for every
colleague within the business in all areas and at all levels
to manage safety incidents, accidents, environmental
incidents, and hazardous and near miss reporting. Alongside
this, it enables colleagues to record positive examples of
safety practices and, as a business, provide the data to drive
continual improvement through corrective action logging
and root cause analysis.
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 Board and Executive
Team on safety performance
• Providing safety dashboards on our EcoOnline system for
the business for every colleague in the business to access
• Reporting regularly to key stakeholders on safety
performance
• Monitoring safety performance standards through safety
inspections, audits and reviews
• Recording and investigating accidents, dangerous
occurrences and near misses
• Encouraging the reporting of hazards and positive
observations
•
Implementing effective measures to prevent the
re-occurrence of incidents
• Safety standard recognised by Network Rail and RoSPA
Key reporting measures
•
0.12 RIDDOR accidents per 100,000 hours worked
(FY2022: 0.35)
•
0.03 Specified Injury Frequency Rate per 100,000 hours
worked (FY2022: 0.09)
Strategic Report
Governance
Financial Statements
Corporate Information
61
Our Collective Responsibility action plan FY2024
At the beginning of FY2024, we launched a new plan to keep
our people and customers safe, to continuously improve and
provide a basis for monitoring and reporting progress. The plan
is categorised into six key areas as follows:
People First
People are our most valuable asset and we continue to develop
solutions to keep them safe in every environment be that
working from home in our network or on site:
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Launch “Our Commitments”
• Colleague safety engagement days
• Walk and Talk conversations
•
Improved workwear and PPE offering
Safety organisation
Listening and consulting with our colleagues ensures that our
management systems reflect the reality of the business:
• Complete pulse safety culture survey
• MMA review and relaunch
• HSSEQ communications strategy
• Quarterly Safety Committee meetings
• Major incident testing of CMP and BIA’s
Training
We aim to ensure that safety training is provided to all our
leaders, managers and supervisors and 2023 will see this
delivered to our entire leadership team:
• Culture training for Managers and Supervisors
• Review competency pathways in People Fluent
• Review delivery of training courses
• Deliver IOSH approved Managing SHE 200+
• CDM Awareness training
Health
During 2023 we will develop our occupational health screening
provision with a new provider who will bring the service to our
colleagues in NSCs and RSCs:
• Onboard new occupational health provider
• Register all defibrillators with The Circuit for public use
• CPR training for all colleagues
• Promote wellbeing calendar and activities
Innovation in safety
We continue to explore how to design out safety concerns and
this year will see some fantastic innovations being delivered:
• Embedding EcoOnline, StaySafe, F360, What3Words
onto PDA’s
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FLT fleet with enhanced safety features
Focus on workplace transport safety
Industry safety committee including MCG’s
System improvements
Having implemented EcoOnline in December 2020, we
continue to develop this platform to further tailor it to our
business requirements:
• Develop “Safe” scorecard for operations
• Consolidate COSHH assessments
• Enhanced EcoOnline dashboards/reporting
•
Lone worker support app
• Enhanced POWRA
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Including everyone continued
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. That’s
why this decade we will continue to harness our
‘Speedy Spirit’ supporting our communities to
help make a meaningful difference.
With c.3,500 colleagues spread across 180 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.
In FY2023, we became a founder patron of the Warrington
Youth Group pledging a £25,000 donation. The Warrington
Youth Zone officially opened on 2 July 2022, the WYZ believes
in ‘inspiring young people to achieve’. They exist to support
young people’s development, offering opportunities to gain,
increase and develop skills, knowledge, self-awareness and
confidence, and enabling them to make positive and healthy
life choices through the charities’ wide range of programmes
aimed at different age groups. Becoming a Founder Patron is
both a financial commitment and a promise to support the
charity in any way we can.
Getting closer to our communities
Our Communities Committee, set up in 2015, brings together
Community Ambassadors from across the business to shape
our charity and community agenda moving forward.
Throughout FY2023 our Communities Committee and our wider
Speedy teams have supported a number of charities on both a
corporate and localised level. Speedy have charity partnerships
with WellChild, The Lighthouse Club and the British Heart
Foundation (BHF) which we frequently participate in
volunteering and fundraising events. In February we supported
heart month raising money for the BHF through creating
awareness of heart related issues and promoting the awareness
and training of CPR through the BHF RevivR app.
In April 2022, Speedy donated £25,000 to the Ukraine Fund
to help aid the ongoing situation. We also supplied 1/3rd of
generators shipped to Ukraine on behalf of the UK government
to help the crisis. We also won the contract, via the Crown
Commercial Services Framework, to support the Department for
Business, Energy & Industrial Strategy in the sale of £1.5million
of generators to support the supply of temporary power in
Ukraine. More recently Speedy also donated £5,000 to the
Turkey & Syria appeal.
A team of colleagues from across the business also came
together for a volunteer day at Weaver Vale Primary School.
Despite the heatwave, the Speedy team cleared undergrowth,
roots and branches to clear a space for their new outdoor
learning space in their forest school setting. Speedy provided
all the tool hire free of charge.
The 22 kits for 2022 campaign is also another way Speedy
pledged to give back to our communities.
We asked colleagues to nominate a sportsperson and/
or sports club that they would like Speedy to sponsor, we
initially set out with the goal to sponsor 22 kits however with
an overwhelmingly positive response from the business we
have raised this to sponsor 26 kits and have further supported
another nine sportspeople and clubs through a sponsorship
donation instead of kit.
Throughout FY2024 we will continue to support charities that
mean the most to our Speedy family and will work closer with
community groups to support vulnerable people as well as
helping to make communities a better place to live, work and play.
Harnessing our Speedy Spirit
Utilising our Speedy Spirit, we continue to support volunteering
leave for charity and community projects that are meaningful
to our Speedy family. Through our comprehensive Charity,
Community & Volunteering policy our colleagues can apply for
donations for fundraising events which they are taking part in
and also take part in volunteering days.
At Speedy we love to support the charity and community-
giving achievements of our colleagues through our volunteer
leave scheme and through sponsorship donations. Last year 48
colleagues volunteered in their local communities. Such events
included creating specialist gardens for the homes of children
who have life limiting illnesses through our partnership with
WellChild and the creation of the forest school area for Weaver
Vale Primary School in the North West of England. In July 2022
a group of Speedy colleagues came together to complete the
Yorkshire Three Peaks Challenge. The team collectively raised
£3,410 to support our charity partner, British Heart Foundation.
Strategic Report
Governance
Financial Statements
Corporate Information
63
Strategy in action
Speedy becomes a Founder
Patron of the WYZ
During the year we pledged a four-year commitment as a
Founder Patron of the Warrington Youth Zone.
The Warrington Youth Zone believes in ‘inspiring young
people to achieve’. They exist to support young people’s
development, offering opportunities to gain, increase and
develop skills, knowledge, self-awareness and confidence,
and enabling them to make positive and healthy life
choices through the charities’ wide range of programmes
aimed at different age groups.
The Youth Zone also believe they have a social
responsibility to help each young person discover and
achieve their potential and they believe it is not solely
down to teachers and parents.
They set out with the aim of 7,000 members at the Youth
Zone and they already have over 5,000 members. Those
members are children and young people aged 7-19 or up
to 25 if they have a disability.
With the new Youth Zone, they have been able to increase
what they offer and now have the facilities and support to
open 365 days a year, welcoming more young people than
ever.
As a Founder Patron, we have committed to donating
£25,000 to support the Youth Zone per year for four years
to support the incredible work they carry out. However, it’s
both a financial commitment and a promise to support the
charity through our own fundraising activities throughout
the partnership.
Since 1 April 2022, we are proud to say we have donated a
huge £75,000 to support a range of charities and communities
to over 80 different charities such as ADHD, Alzheimer
Scotland, British Red Cross, Children In Need, CRSA, Dali Dog
Rescue, Macmillan, Palm Brown Charity, Royal British Legion,
Samaritans and St Peter’s Hospice.
Boosting Local Business
Our local businesses form part of our local communities and
just under half of our supply chain is comprised of SMEs
(Small, Medium Enterprises). From one family to another we
will continue to support local businesses and jobs in our
local communities.
In FY2023 Speedy have partnered with Payroll Giving experts,
GoodPAYE, to help colleagues to support the causes they
care about in the most impactful way, through tax-free and
hassle-free donations directly from their pay. GoodPAYE is a
100% charity-owned tech-for-good start-up and won Start Up
Business of the Year 2023.
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. Doing good business is about far more than just making
money, it’s the impact we have in the communities we work,
employ and train. And that means creating social value. We
have calculated that our Social Value Impact (SVI) has increased
from £6.3million in FY2022, to £9.2million in FY2023.
Our people have chosen charities that we have partnered with,
this has provided volunteering activities for our colleagues and
opportunities to be involved in fundraising initiatives.
We are building a workforce that is happy, safe, and offered
opportunities for personal development and training.
We continually look for ways to improve our employee initiatives
and encourage our people to be involved in our focus groups,
making recommendations that are important to them.
We have had a positive effect on society by being more
inclusive and offering employment opportunities to people
who may have previously been overlooked. This may be via our
Early Career programme or our partnership with Cleansheet.
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Standards and
accreditations
We work to leading industry certifications and
accreditations to ensure best practice, while maintaining
the standards our people, customers and suppliers.
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 in an effort to
eliminate any discriminatory practices.
These policies emphasise our compliance to 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. Our standard trading terms
for suppliers and our Supplier Code of Conduct require our
suppliers to comply with the Modern Slavery Act and operate
procedures requiring compliance in their own supply chain.
Recognising the increasing risk in modern slavery across the
industry and global supply chains, in FY2023 we partnered
with Ardea International to help provide additional assurance in
relation to our modern slavery gap analysis and to assist in the
development of our risk management processes.
The objective of this process is to:
• develop our approach to managing modern slavery risk
• gain additional understanding of modern slavery issues
within the organisation and assist in the assessment of
risk areas in our operations and supply chain
This partnership will provide a springboard to further
develop due diligence processes in line with the Modern
Slavery Act 2015 and UN Guiding Principles at both
a strategic and operational level.
Our current certifications include:
ISO 9001 for quality management
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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
We 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
including 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
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.
* Lloyds British National Contracts
Strategic Report
Governance
Financial Statements
Corporate Information
65
Alongside the gap analysis, in FY2024 our ambition is to:
• Develop our modern slavery and forced labour operational
risk map in an effort to better understand the potential risks
across our operations and in our supply chains.
• Analyse which risks require additional monitoring and/
or management, with a view to developing an ever more
robust human rights due diligence framework. Together,
these actions will enable us to progress on a long-term
roadmap of continuous improvement, compliant with our
legal obligations and in line with investor expectations.
• Develop a training programme relating to forced labour
and modern slavery across the business, with a focus on
ensuring that it is ‘fit for purpose’ to build capacity for key
managers and stakeholders.
• Achieve alignment with ISO 20400: Sustainable
Procurement Guidance which includes assessing the risks
and opportunities in respect of Modern Slavery legislation
and tracking this through our supply chain via a programme
of assessment, engagement and assurance.
Our current Directors’ Remuneration Policy was approved
at our 2020 Annual General Meeting with the intention that
it operates for a three year period. An updated Directors’
Remuneration Policy will be put to shareholders for approval
at the 2023 AGM the intention being that if approved it will
be effective from that date and operate for the three-year
period to the 2026 AGM. The primary objective of the 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, as detailed
on page 112, including ESG-based performance metrics and
targets, where appropriate. Our ESG performance is linked to
the remuneration of our Executive Team.
The business has a robust, independent internal audit function
in place and its tax strategy is well publicised.
The Strategic Report was approved by the Board and authorised
for issue on 30 June 2023.
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Non-financial
information statement
In accordance with sections 414CA and 414CB of the Companies Act 2006, the information below sets out how we comply
with each reporting requirement, where further information can be found within the Annual Report and Accounts and which
relevant policies and guidance are adopted:
What we do is described on pages 6 & 7 and our vision, mission and values are described on page 3. We demonstrate
how we act as a responsible business when fulfilling our, mission and values throughout our ESG Report on pages 26 to 65.
Our principal risks and uncertainties, together with the mitigating controls in place, are summarised within our Principal Risks
and Uncertainties disclosures on pages 76 to 82. A description of all matters relating to climate-related risks and opportunities,
are included within our Task Force on Climate-related Financial Disclosures on pages 43 to 53.
Reporting
requirement
Information necessary to understand
our development, performance, position
and the impact of our activity
Environmental
matters
Our policies reflecting the needs of our environmental and
support our roadmap to Net Zero.
ESG Report – Pages 26 to 65, incorporating the following
key areas:
• Climate solutions – Pages 34 to 37
• Our roadmap to Net Zero – Pages 38 & 39
• Corporate Greenhouse Gas (GHG) Report – Pages 40 to 42
• Task Force on Climate-related Financial Disclosures –
Pages 43 to 53
Our People First approach is driven by living our values of
ambition, innovation, inclusivity, safety, working together and
trusting each other. Our polices help support this.
Including everyone; Our Speedy Family – Pages 54 to 65
Safety – Pages 60 to 61
Colleagues
Social matters
Our policies, underpinned by our Code of Conduct, support
all colleagues to do the right thing within our communities
and from a safety and environmental perspective.
Part of the community – Pages 62 & 63
Safety – Pages 60 & 61
ESG Report – Pages 26 to 65
Relevant policies and guidance1
Supplier Trading Agreement
Supplier Code of Conduct
Speedy Sustainability Requirements for Suppliers
Supply Chain Policy
Sustainability Policy
Sustainable Travel Policy
Employee Handbook
Recruitment, Selection & Equal Opportunity Policy
Diversity, Equity and Inclusion Policy
Resolving Issues at Work Policy
Health and Safety Policy
Code of Conduct
Charity, Community & Volunteering Policy
Time off for Public Duties Policy
Health and Safety Policy
Human Rights
Reflecting the needs of our stakeholders we consider human
rights within our own operations, suppliers and customers.
Human Rights Policy
Anti-Slavery and Human Trafficking Policy
Our published Modern Slavery Statement is available at
www.speedyservices.com/investors
Human Rights and Modern Slavery – Pages 64 & 65
Anti-corruption
and anti-bribery
Our policies support compliance with anti-bribery and
anti-corruption requirements. We strive to act in a clear,
transparent and fair way without our operations and expect
our stakeholders to do the same.
Audit & Risk Committee Report – Code of Conduct – Page 105
Corporate Governance – Pages 92 to 99
Employee Handbook
Code of Conduct
Speak Up Whistleblowing Policy
Data Protection – GDPR – Policies
Code of Conduct
Anti-Bribery Policy
Speak Up Whistleblowing Policy
Supplier Trading Agreement
Supplier Code of Conduct
Supply Chain Policy
Internal financial control processes
1 Some of our policies and guidance are only published internally
Strategic Report
Governance
Financial Statements
Corporate Information
67
Section 172 statement and
engagement with stakeholders
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
pages 68 to 69 and should be read in
conjunction with information disclosed
in the Governance section, on pages 84
to 139.
To help facilitate this before each
scheduled Board meeting all Directors
receive appropriate reports addressing
key matters concerning customers,
suppliers, investors, colleagues,
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.
Board decisions and stakeholders
We set out on page 68 to 69 a number
of examples 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 26 to 65
through the Company’s ESG programme.
Our mission is to be the most efficient
and sustainable UK hire business: digital
and data driven, optimised through
operational excellence, and powered
by our people. Our vision to inspire
and innovate the future of hire and
accelerate sustainable growth.
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.
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.
Stakeholder engagement
Engagement with relevant stakeholders
is a key consideration of the Board which
varies depending on the subject at hand.
Pages 68 to 69 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.
Colleague engagement
In addition to the Board receiving
reports from management concerning its
colleagues the Board engages directly
with colleagues in a variety of ways. This
includes via its Colleague Consultative
Committee, formerly the Employee
Forum (attended annually by Non-
Executive Director, Rhian Bartlett), via its
People First Awards, annual Speedy Expo
and Chief Executive’s and Chief Financial
Officer’s ‘Up to Speed’ and ‘The Hub’
communications and updates. Further
information on colleague engagement
can be found on pages 54 to 59.
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Section 172 statement and engagement with stakeholders
continued
Key stakeholder
Customers
Ways we engage
Key stakeholder
Colleagues
Ways we engage
• Face to face meetings (when required), video-conferencing
• Colleague Consultative Committee meetings (including
and calls
• Tendering and RfP processes
NED attendance)
• People First Survey and pulse surveys; include wellbeing
• Monitoring of hires, sales and services
• Apprenticeship and graduate programmes (commitment
• Speedy Direct, a central call centre in the North West, with
to the 5% Club initiative)
dedicated desks for our national customers
• Career Line of Sight programme
• Customer Solutions, a centralised service providing a single
hire destination service through the provision of all our core
products and services, plus an extensive range of equipment
in partnership with the industry’s leading product suppliers
• Regional Trading Hubs, regional call centres are located
throughout the country, with dedicated staff servicing our
regional customer base
• Benchmarking of key roles within the business
•
‘The Hub’ communications platform and intranet
• Active Yammer communities to promote social engagement
•
‘Up to Speed’ e-communications
• Mobile phone and PDA text messaging
• Senior management meetings held at various UK and
• Direct to customers through concession stores within B&Q
Ireland locations
• To B&Q’s customer base via their store and online channels
(www.diy.com and www.trade-point.co.uk) through our drop
ship vendor arrangement
• Senior Leadership quarterly ‘Connect Calls’ and monthly
‘Team Talks’
• Executive Team and Chief Executive video updates and
• Service Centre network, through approximately 150 centres
colleague briefings
across the UK and Ireland
• Customer Relationship Centre, through our central hub in
South Wales, dedicated to servicing our SME customers
• Online, through our website and mobile app
• Social media
• Product videos and peer reviews
• Advertising campaigns
• People Fluent training portal for key messages that fall
outside of the regular Executive Team video updates
which can be broadcast or targeted to specific groups of
colleagues
•
•
Line manager communication and engagement workshops
and training modules
Training Academy schedule of online, classroom and
practical training courses
• The Speedy Expo, the industry’s largest private hire event
bringing together over 1,700 customers, colleagues, suppliers
and industry experts
• Personal Development Reviews
•
‘Celebrating Excellence’ reward scheme
• Trade shows throughout the year
Areas discussed
• 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
• ‘One Speedy’ for first class customer experience
• Sustainability solutions
• Product development
• People First Awards nomination process and finalist gala
dinner
•
Long service recognition scheme at 10, 20 and 25 years’
service
• Speedy Expo
•
Inclusion in cross functional project teams to inform project
development
• PLUS – People Like Us, colleague group and its underlying
affinity groups:
9 Gender
9 Race and ethnicity
9 Wellbeing
9 Communities
Areas discussed
• Career opportunities
• Wellbeing (including mental and physical health)
•
Training and development (including safety)
• Pay and conditions
• Colleague engagement
Strategic Report
Governance
Financial Statements
Corporate Information
69
Key stakeholder
Suppliers
Ways we engage
• Tendering process
Key stakeholder
Investors
Ways we engage
• Annual Report and Accounts
• Visits and meetings (including via video-conferencing)
• Annual General Meeting
• Supplier conferences
• RNS announcements
• Partnership Programme engages customers, suppliers and
• Investor presentations and roadshows
peer groups on key sustainability issues
• Pioneering use of electric vans reducing CO2
• Industry trade shows
• Product innovation days
• Speedy Expo
Areas discussed
• Quality management
• Cost efficiency
• Ethical Trading policy
• Long-term relationships
• Sustainability as part of our ESG programme
• Product development
• Capital markets days
• Corporate website
• One-on-one meetings
• Information requests
• Consultation letters
• Speedy Expo
Areas discussed
• Financial and operating performance
• Dividends
• Risk information
• Access to Management
• Strategy
• Sustainability
• Remuneration Policy
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Financial review
Our financial results for FY2023
demonstrate we have continued
to deliver sustainable growth,
underpinned by a commitment
to excellent customer service.”
Paul Rayner Interim Chief Financial Officer
Our financial results for FY2023
demonstrate we have continued to
deliver sustainable growth, underpinned
by a commitment to excellent
customer service. Despite underlying
cost pressures and macro-economic
uncertainty, revenue grew by 13.9%,
with rate increases mitigating the impact
of cost inflation.
Hire revenue has grown throughout the
year and was 6.0% ahead of FY2022.
We continued to increase our market
share, with recent major contract wins
and renewals.
We have continued to invest in the
hire fleet with capex spend of £52.1m
in FY2023. 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. A decline in utilisation
on itemised assets to 54.4% (FY2022:
57.0%) was mitigated by effective rate
increases.
Strategic Report
Governance
Financial Statements
Corporate Information
71
Revenue and margin analysis
The Group generates revenue through two categories, Hire and Services.
Revenue and margin by type
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
Change
%
Hire
Revenue
Cost of sales1
Gross profit
Gross margin
Services
Revenue
Cost of sales
Gross profit
Gross margin
1 Before exceptional items (see note 4).
Hire revenue increased by 6.0%
compared to FY2022 reflecting rate
increases and improved damage
recovery and delivery charges to
customers. A number of new and
renewed contracts with key customers
were secured during the year, reflecting
the strength of our market position.
The Group implemented rate increases
during FY2023 to offset the effects of
cost inflation on both overheads and
new equipment purchases. The rate
increases take effect as framework
agreements and hire contracts are
renewed resulting in the benefits of
those increases building throughout
the year.
Customer Solutions is our growing and
diversified services business which
is now led by one managing director.
258.0
(54.8)
203.2
78.8%
176.3
(142.9)
33.4
18.9%
243.3
(54.5)
188.8
77.6%
6.0%
7.6%
138.4
(107.8)
30.6
22.1%
27.4%
9.2%
Services revenues increased by 27.4%
in the year. 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, in terms of volumes and higher
average selling price for both diesel and
HVO fuels.
Gross margins1 decreased from 57.2%
to 54.3%, resulting from a shift in sales
mix. Hire margin1 increased to 78.8%
(FY2022: 77.6%) through rate increases
and diligent control of other direct costs.
Asset utilisation on itemised assets for
the year decreased to 54.4%. Services
margin of 18.9% was impacted by sales
mix with comparably stronger revenue
performance in lower margin fuel
(FY2022: 22.1%).
Increased capital expenditure and the
completion of the £30m share buyback
programme in the year has increased
net debt to £92.4m as at 31 March
2023 representing leverage of 1.3 times
(FY2022: £67.5m, 0.9x leverage). The
Group has benefited from increased
dividends from the Kazakhstan JV and
has placed an increased focus on cash
generation and active working capital
management resulting in improved free
cash flow for the year to £10.6m, versus
a free cash outflow of £18.5m in FY2022.
Group financial performance
Total revenue for the year ended
31 March 2023 increased by 13.9%
versus FY2022 to £440.6m; revenue
(excluding disposals) increased by
13.8% to £434.3m and revenue from
disposals was £6.3m (FY2022: £5.1m).
Gross profit1 was £239.4m (FY2022:
£221.1m), an increase of 8.3%. The gross
margin decreased to 54.3% (FY2022:
57.2%), reflecting rate increase in hire
revenue offset by the mix impact from
increased resale fuel and a strong
performance in the Customer Solutions
business.
The share of profit from the joint venture
in Kazakhstan increased to £6.6m
(FY2022: £3.2m), representing a record
performance from a continuation of a
significant contract win in FY2022.
EBITDA before exceptional items
increased by 4.4% to £103.7m (FY2022:
£99.3m) and profit before taxation,
amortisation and exceptional items
increased to £32.1m (FY2022: £30.1m).
The Group incurred exceptional items
before taxation of £28.5m (FY2022: nil).
Further details are included below.
After taxation, amortisation and
exceptional items, the Group made a
profit of £1.2m, compared to £21.6m
in FY2022.
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Financial review continued
Overheads
The overheads as disclosed in the income and expenditure account can be further
analysed as follows:
Distribution and administrative costs1
Amortisation
Underlying Overheads
1 Before exceptional items (see note 4).
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
203.1
(1.8)
201.3
185.7
(1.0)
184.7
Inflationary pressures on overheads,
particularly pay increases, utility
costs and fuel were experienced as
expected, resulting in a 9.0% increase
in underlying overheads1 to £201.3m
(FY2022: £184.7m), mitigated by
certain cost measures outlined below.
To protect against further inflationary
increases utility prices have been fixed
for the period to September 2024
and fuel hedges are in place on a nine
to 12 month rolling basis. Overhead
investment to support growth continued,
in particular, in trade and retail with a
significant marketing campaign in Spring
2022 including TV adverts to bring
awareness to consumers of the benefits
of hire versus buy.
In the second half of FY2023, an
operational review has included
further progress in the evolution of the
depot network towards larger, more
energy efficient low-carbon facilities,
located and designed to create a better
experience for all customers and an
enhanced working environment for our
colleagues. This has resulted in a net
20 depot reduction going into FY2024.
The cost of these closures, related
redundancies and with costs associated
with improved logistics across the depot
network are estimated to be c.£6.7m
and have been taken as an exceptional
cost in the financial year. The associated
benefits are expected to be in the region
of £5m per annum. The cost savings from
these initiatives have been reinvested
in our people, ESG and omni-channel
capabilities.
The headcount decreased to 3,375,
compared to 3,554 at 31 March 2022
as a result of the rationalisation of our
depot network.
Strategic Report
Governance
Financial Statements
Corporate Information
73
Exceptional items
During FY2023, exceptional costs were incurred as follows:
Exceptional costs
Asset impairment
Other – Legal & Professional
Restructuring
Total
During the final quarter of FY2023, the
Group undertook a comprehensive count
of all hire equipment in preparation for
the year end.
As at 31 March 2022, the reported
net book value of the Group’s hire
equipment assets was £226.9m. The
Company categorises hire equipment
into two groups: those that are
individually identifiable by a unique
serial number to the asset register
(“itemised assets”, representing 78%,
or £177.0m, of the total reported net
book value), and other equipment such
as scaffolding towers, fencing and non-
mechanical plant which does not have a
unique serial identifier and is not tracked
on an individual asset basis (“non-
itemised assets”, representing 22%,
or £49.9m, of the total reported net
book value). The comprehensive count
covered both itemised and non-itemised
assets. Whilst this count validated the
previously disclosed net book value of
itemised assets, it identified a shortfall
in the quantity of non-itemised assets,
resulting in a write-off of c.£20.4m.
The Board instigated an investigation
into the issue identified with non-
itemised assets, including a review of
controls and accounting procedures.
The investigation into the causes was
completed and announced on 18 May
2023, concluding that the issue resulted
from problems with the Company’s
controls and accounting procedures for
non-itemised assets over a number of
years, and in particular the reconciliation
of such counts to the Group’s fixed
asset register. It was not the result of
underlying systemic fraud perpetrated
on the Company by its staff or third
parties. In addition to corrective action
and new controls implemented by
management, the Board has agreed a
remedial plan to further strengthen
the financial control environment for
managing non-itemised assets and
provide assurance for the relevant
accounting values. This includes
additional counts of the assets and
new procedures for reconciling those
against its fixed asset register.
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
20.4
1.4
6.7
28.5
–
–
–
–
Due to the issues identified in the
year and the surrounding control
environment, our external auditors will
issue a limitation in scope qualification
in the Annual Report and Accounts audit
opinion in relation to property, plant and
equipment as they have been unable
to obtain sufficient appropriate audit
evidence in relation to these assets. The
Group is satisfied that there is no impact
on the financing facilities.
As previously announced, as part of
the new controls, the asset count at the
end of March 2023 did not identify the
need to increase the existing provision.
The associated professional and other
support fees amounted to £1.4m, which
are also presented within exceptional
items.
Whilst the issue identified is not isolated
to FY2023, it is not possible to quantify
the financial impact on prior periods,
therefore the prior year comparatives are
not restated and an exceptional charge is
recognised in the year.
An operational efficiency review has
resulted in restructure costs and a
net 20 depot reduction at the end of
March 2023. The cost of these closures,
and other restructure costs across the
business, are estimated to be c.£6.7m.
Interest and bank borrowings
The Group’s net financial expense,
including interest on lease liabilities,
increased to £8.6m (FY2022: £5.7m)
reflecting higher average gross
borrowings throughout the year
following the share buyback programme
and the impact of increased interest
rates on borrowings and on lease
liabilities.
Net debt, excluding lease liabilities, as
at 31 March 2023 increased to £92.4m
(FY2022: £67.5m), reflecting increased
capital expenditure, dividend payments
and £24.0m for the recently completed
share buyback programme.
The Group’s main bank facilities were
renewed in July 2021 for a three year
term, with options to extend by a
further two years. On 26 May 2023
these options were exercised and the
facility now expires in July 2026. The
additional uncommitted accordion of
£220m remains in place through to
July 2026. There were no changes to
the terms of the facility following the
extension facility and it continues to
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.
Borrowings under the facility are
now priced based on SONIA 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 1.55% and 2.15%
dependent on the weighting of the asset
base on which borrowings are based
between receivables and plant and
machinery. The effective average margin
in the period was 1.84% (FY2022:
1.73%).
The Group utilises interest rate hedges
to manage fluctuations in SONIA with
varying maturity dates to November
2025. The fair value of these hedges
was £1.0m at 31 March 2023 (FY2022:
£0.4m).
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 £0.6m
(FY2022: £7.7m), with an effective
tax rate of 28.6% (FY2022: 26.5%).
Adjusting for the impact of exceptional
items, the effective tax rate for FY2023
was 20.2%. An increase in the UK
corporation tax rate to 25% for periods
from 1 April 2023 was substantively
enacted on 24 May 2021 thereby
impacting the FY2022 effective rate;
excluding the impact of this change in
tax rate, the effective rate for FY2022
would have been 19.6%.
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Financial review continued
Share buyback
In January 2022 the Board commenced
a £30m share buyback programme,
which was completed in full on 8 March
2023. Under the programme 67.7m
shares have been purchased, of which
12.6m have been cancelled and 55.1m
purchased after 6 April 2022 have been
placed in Treasury.
At 31 March 2023, 516,983,637
Speedy Hire Plc ordinary shares were
outstanding (FY2022: 518,220,366),
of which 4,162,452 were held in the
Employee Benefit Trust (FY2022:
4,236,422) and 55,146,281 were
held in Treasury (FY2022: nil).
Earnings per share
Adjusted earnings per share1 was
5.25 pence (FY2022: 4.24 pence from
continuing operations), an increase of
24%. Basic earnings per share was 0.25
pence (FY2022: 4.13 pence) as a result
of the exceptional items in the year.
Capital expenditure and disposals
Total capital expenditure during the
year amounted to £60.9m (FY2022:
£82.1m), of which £52.1m (FY2022:
£68.4m) related to equipment for hire.
Our hire fleet investment is biased
towards carbon efficient ECO products
in line with the increasing relevance
of sustainable solutions including
customers mandating zero site emissions
on some projects. The strength of our
supply chain relationships and advanced
planning have meant that we mitigated
the impact of supply chain pressures.
Non-hire fleet capital expenditure of
£8.8m (FY2022: £13.7m) represents
the investment in our properties and
IT capabilities.
Proceeds from disposal of hire
equipment were £17.4m (FY2022:
£13.6m). The increase driven primarily
by improved loss recovery and a
divestment in certain powered access
equipment in March 2023.
The Group expects to invest further in its
hire fleet to support revenue growth in
FY2024 with budgeted capex of c.£50m.
Balance sheet
The Group strives to achieve an efficient
balance sheet, which reflects the
share buyback programme, proactive
management of the asset fleet and
effective control over working capital.
Net assets at 31 March 2023 were
£184.6m (FY2022: £216.4m).
Net property, plant and equipment
(excluding IFRS 16 right of use assets)
was £237.7m as at 31 March 2023
(FY2022: £257.7m), of which equipment
for hire represents 87.5% (FY2022:
88.0%).
Intangibles decreased to £25.0m
(FY2022: £25.9m), primarily due to
amortisation, offset by continuing IT
development expenditure.
Right of use assets of £83.2m (FY2022:
£74.2m) and corresponding lease
liabilities of £86.1m (FY2022: £76.7m)
have increased in part due to new
vehicle leases to support the move to
a lower carbon fleet and property lease
renewals, offset in part by depot closures
and consolidations.
The business has increased its 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
particularly in the second half of the
year. Gross trade receivables totalled
£102.2m at 31 March 2023 (FY2022:
£104.9m). Bad debt provisions were
£3.2m as at 31 March 2023 (FY2022:
£3.0m), equivalent to 3.1% of gross
trade receivables (FY2022: 2.9%).
Debtor days as at 31 March 2023 were
61, reduced significantly from 67 days
at March 2022.
Trade payables as at 31 March 2023
were £39.1m (FY2022: £42.8m). Due
to a significant improvement in debtor
days, the Group improved its creditor
days to 37 (FY2022: 56).
In conjunction with its external auditors,
the Group has reviewed its position
in respect of dilapidation provisions,
assessing a more comprehensive view
of the future liability on all leases, in line
with accounting standards. This change
has resulted in an increase in opening
provisions of £10.9m, recognised as
a restatement of the balance sheet as
at 1 April 2021. There is no impact on
the amounts presented in the income
statement for the current or prior period.
Cash flow and net debt
Cash generation from operations (before
changes in hire fleet) for the year of
£88.7m represents 85.5% conversion
from EBITDA, reflecting greater focus on
working capital improvements. Free cash
flow (being net cash flow before returns
to shareholders and movement in loan
balances) increased to £10.6m (FY2022:
£18.5m outflow) as cash disciplines
across the business are reinforced.
Net debt increased by £24.9m from
£67.5m at the beginning of the year to
£92.4m at 31 March 2023. Excluding the
impact of IFRS 16, leverage increased to
1.3 times (FY2022: 0.9 times). The Group
retained substantial headroom within its
bank facility throughout the year with
cash and undrawn facility availability of
£83.5m as at 31 March 2023 (FY2022:
£110.8m).
Strategic Report
Governance
Financial Statements
Corporate Information
75
Dividend
The Board has proposed a final dividend
for FY2023 of 1.80 pence per share
(FY2023: 1.45 pence per share) to
be paid on 22 September 2023 to
shareholders on the register on 11
August 2023. The cash cost of this
dividend is expected to be c.£8.3m.
This takes the total dividend for FY2023
to 2.60 pence per share (FY2022: 2.20
pence per share) following an interim
dividend of 0.80 pence per share
(FY2022: 0.75 pence per share).
Capital allocation policy
The Board’s objective is to maximise
long term shareholder returns through
a disciplined deployment of capital
resources, 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.
Paul Rayner
Interim Chief Financial Officer
Free cash flow increased to
£10.6m as cash disciplines
across the business are
reinforced.”
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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.
Safety, health and environment
Description and potential impact
Strategy for mitigation
Serious injury or death
Speedy operates, transports and provides for rental a
wide range of machinery. Without rigorous safety regimes
in place there is a risk of injury or death to employees,
customers or members of the public.
Environmental hazard
The provision of such machinery includes handling,
transport and dispensing of substances, including fuel, that
are hazardous to the environment in the event of spillage.
The 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.
All management grade employees are enrolled on safety related
training courses and are expected to champion a safety awareness
within the Group’s culture.
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.
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Financial Statements
Corporate Information
77
Service
Description and potential impact
Strategy for mitigation
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.
We operate an industry-leading four-hour service promise which
covers a wide range of our assets.
Our use of personal digital assistants (PDAs) 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.
Sustainability and Climate Change
The Board has created the Sustainability Committee to oversee
the development of the sustainability and climate change
response plan.
The Group has set industry-leading science-based targets to
measure its progress against.
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 on pages 46 to 49.
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 Group’s 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.
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Principal risks and uncertainties continued
Revenue and trading performance
Description and potential impact
Strategy for mitigation
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.
Bids and Tenders
There is a risk to future revenue growth if the Group is
unsuccessful in its ambition to win new contracts using
innovative solutions that appropriately balance the
available reward with potential increases in risk.
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.
Transformation
The Velocity strategy represents an ambition to transform
the Group. There are risks that this might be unsuccessful
in respect of new initiatives or that the transformation
activity may distract from or harm our established
businesses.
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.
The Group’s operational management team includes a Managing
Director dedicated to retail-based routes to market.
We have a team dedicated to responding to bids and tenders, with
a clear approval process to ensure opportunities are maximised.
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.
We have strengthened the capability of the Group to manage
this transformation with the appointment of a dedicated
Transformation Director who reports directly to the Chief Digital
Officer. The Transformation Office will operate with clearly defined
governance structures, sponsored by the executive team. This
process is designed to mitigate risk and increase the success rate
of the programme.
Strategic Report
Governance
Financial Statements
Corporate Information
79
People
Description and potential impact
Strategy for mitigation
Colleague excellence
In order to achieve our strategic objectives, it is imperative
that we are able to recruit, retain, develop and motivate
colleagues who possess the right skills for the Group,
whilst also demonstrating our commitment to diversity,
equity 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 colleagues for the Group, with greater
requirements for training.
The Group regularly reviews remuneration packages and aims
to offer competitive reward and benefit packages, including
appropriate short and long-term incentive schemes. We have
reviewed the reward packages for colleagues with skills in
disciplines with particularly high turnover such as drivers and
engineers. We have a medium term forecast to offer market
competitive rewards to all colleagues as we strive to become
recognised as an employer of choice. We have set targets to
improve our diversity, equity and inclusivity which are designed to
attract individuals with the right talent from across the population.
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. We actively consider promotion
opportunities in preference to external hiring where possible.
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.
Partner and supplier service levels
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.
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.
BREXIT, the COVID-19 pandemic and the war in Ukraine
all resulted in some supply chain challenges that may
now be considered permanent.
Partner reputation
Significant revenues are generated from our rehire
business, where the delivery or performance is affected
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.
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Principal risks and uncertainties continued
Operating costs
Description and potential impact
Strategy for mitigation
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.
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 who manage the estate,
supported where appropriate by external specialists.
We operate a dedicated fleet of commercial vehicles that are
maintained to support our brand image. This includes 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.
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 negative effect on the performance of the
Group.
Data security
Speedy, as with any organisation, holds data that is
commercially sensitive and in some cases personal in
nature. There is a risk that disclosure or loss of such data
is detrimental to the business, either as a reduction in
competitive advantage or as a breach of law or regulation.
Annual and 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.
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.
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Financial Statements
Corporate Information
81
Funding
Description and potential impact
Strategy for mitigation
Sufficient capital
Should the Group not be able to obtain sufficient capital
in the future, it might not be able to take advantage of
strategic opportunities or it might be required to reduce or
delay expenditure, resulting in the ageing of the fleet and/
or non-availability.
This could disadvantage the Group relative to its
competitors and might adversely impact its ability to
command acceptable levels of pricing.
The Board has established a treasury policy regarding the nature,
amount and maturity of committed funding facilities that should
be in place to support the Group’s activities.
The £180m asset based finance facility, along with an additional
uncommitted accordion of £220m, is available through to July
2026.
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.
Economic vulnerability
Economy
Any changes in construction/industrial market conditions
could affect activity levels and consequently the Group’s
revenue.
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.
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.
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.
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 an escalation of the war in Ukraine such
as an increase in hostilities involving more countries, may
have a further impact on 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.
Our close relationships with our customers, coupled with the
differentiation allows us to adopt a partnership approach to
responding to cost inflation.
We consistently monitor our share in each market segment and
seek to balance our risk between cyclical areas and those which
are more predictable.
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Principal risks and uncertainties continued
Business continuity
Description and potential impact
Strategy for mitigation
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.
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.
Speedy has a documented plan to establish a crisis management
team when events occur that interrupt business. This includes
detailed plans for all critical trading sites and head office support.
These plans are regularly tested by both management and
third-party advisors. They have proven to be effective in both
the significant event of a global pandemic and more localised
events such as extreme weather closing a number of our trading
locations.
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.
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.
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.
Following the identification of a deficiency in the value of
non-itemised assets of c.£20.4m during FY2023, the Group has
undertaken a full review of the control framework for non-itemised
assets. This has been improved at all stages of the asset lifecycle,
across the three lines of defence of operational management
(including delivery/collection processes and perpetual inventory
counts), financial control (including routine asset register
reconciliations) and internal audit assurance (including standalone
asset counts).
Strategic Report
Governance
Financial Statements
Corporate Information
83
Viability statement
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, while
maintaining a consistent 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 2026.
The going concern statement and further information can
be found in note 1 of the financial statements.
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.
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, which has been extended for a further two years,
through to July 2026. The Strategic Plan assumes the facility
will be extended to meet the Group’s capital investment and
acquisition strategies.
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Chairman’s letter to shareholders
Dear shareholder,
On behalf of the Board, I am pleased to present the
Governance Report for FY2023. This section of the
Annual Report highlights the Company’s corporate
governance processes (alongside the work of the
Board and Board Committees).
David Shearer
Chairman
During the year we made further progress
in the development and execution of
our ESG strategy. This was overseen by
the new Board Sustainability Committee,
which commenced operation in the
year and is chaired by Rob Barclay.
Membership includes our Chief Executive
providing a strong link with the business
and performance in this key developing
area.
During the year there have been Board
changes among the Executive Directors.
In May 2022 Russell Down advised the
Board of his intention to retire as Chief
Executive once a suitable successor had
been found. Recruitment consultants
were appointed to support the
Nomination Committee and following
an extensive search involving internal
and external candidates, I was pleased
to welcome Dan Evans to the Board as
Chief Executive on 1 October 2022. Dan
has been with the business since 2008,
and held a variety of roles, culminating
in Chief Operating Officer before the
appointment. We thank Russell for his
contribution to the business over the last
seven years in role. He left the business
in May 2023 on the expiration of his
notice period.
In October 2022 James Bunn resigned
as Chief Financial Officer, to pursue
an opportunity in an unrelated sector
and stepped down from the Board
on 1 November 2022. Recruitment
consultants were again retained to
undertake a comprehensive search for
a new Chief Financial Officer with the
process being led by the Nomination
Committee under my chairmanship.
In the intervening period Paul Rayner
was appointed for a period of up to
12 months as an Interim Chief Financial
Officer with effect from 1 November
2022. The recruitment process has
concluded with Paul Rayner being
appointed to the Board as Chief
Financial Officer on a permanent
basis with effect from 1 July 2023.
This year the Board and Board
Committees’ evaluations were again
undertaken internally led by our Senior
Independent Director, David Garman.
Whilst in a relative period of transition
I was pleased that the findings indicated
that the Board and Committees were
performing well. The process followed
and outcomes are reported on page 97
and this will be further considered after
a new Chief Financial Officer has been
appointed and allowed to settle in.
In accordance with the Corporate
Governance Code and the Company’s
Articles of Association, all Directors
serving at the time of the Annual General
Meeting will be submitting themselves
for election or 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 7 September 2023 at
11:00am and I would like to invite our
shareholders to attend.
David Shearer
Chairman
Strategic Report
Governance
Financial Statements
Corporate Information
85
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
Chair’s statement on pages 12 and 13,
the Strategic Report on pages 1 to 83,
the Corporate Governance review on
pages 92 to 99 and the reports of the
Audit & Risk, Nomination, Remuneration
and Sustainability Committees on pages
100 to 129, 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.
Results and dividends
The consolidated profit after taxation
for the year was £1.2m (2022: £21.6m).
Profit is stated after a taxation charge of
£0.6m (2022: £7.7m) representing an
effective rate of 28.6% (2022: 26.5%).
An interim dividend of 0.80 pence per
share was paid during the year. The
Directors propose that a final dividend
of 1.80 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 2.60 pence per share (2022: 2.20
pence). The final dividend, if approved,
will be paid on 22 September 2023
to all shareholders on the register at
11 August 2023.
Post-balance sheet events
There are no post balance sheet events
not already disclosed.
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
The Company announced a share
buyback programme on 27 January 2022
as updated on 9 September 2022 (the
'Share Buyback Programme'), to purchase
an aggregate value of up to £30 million
of the Company's Ordinary Shares of
5 pence each in accordance with the
terms of the programme. The Share
Buyback Programme was concluded on
8 March 2023. The Company purchased
67,713,058 Ordinary Shares of 5 pence
each in the Company through its brokers,
of which 55,146,281 are currently held
in treasury and 12,566,777 have been
cancelled. The total number of Ordinary
Shares repurchased represented 12.8%
of the Company’s issued share capital on
the day prior to the commencement of
the Share Buyback Programme.
The share buyback programme was
initially operated under the usual
authority from shareholders granted by
way of a special resolution at the Annual
General Meeting on 9 September 2021
to make purchases of up to 10% of
its ordinary shares. The authority was
renewed at the Annual General Meeting
held on 8 September 2022.
Shareholders will be asked to renew the
usual authority to make purchases of
up to 10% of its ordinary shares at the
forthcoming Annual General Meeting on
7 September 2023.
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 it appropriate
to adopt the going concern basis
for the preparation of the Financial
Statements and that the Group has
adequate financial resources and has
access to sufficient borrowing facilities
to continue operating for a period of at
least 12 months from the date of signing
these accounts as detailed in the ‘Going
concern basis for the preparation of the
Financial Statements’ section on page
102.
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.
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1 Percentage of total voting rights at the date of notification to the company.
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Directors’ report continued
Substantial shareholders
The Company had received notifications from the following holders of shares with
3% or more of the total voting rights in the issued share capital of the Company
(excluding treasury shares) which confirmed the following holdings as at 31 March
2023:
Shareholder name
Schroders Plc
Abrdn Plc
Aberforth Partners LLP
Polar Capital LLP
Lombard Odier Asset Management (Europe) Limited
Jupiter Fund Management Plc
Percentage of
voting rights1
13.29
7.10
5.95
5.59
5.04
4.12
Between 1 April 2023 and 30 June 2023 the company had been notified of changes
in the following interests under the Disclosure Guidance and Transparency Rules:
Shareholder name
Polar Capital LLP
1 Percentage of total voting rights at the date of notification to the company.
Percentage of
voting rights1
4.53
Directors
The Directors who served during the
year and the interests of Directors in the
share capital of the Company are set out
on page 127.
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 3,375 people in
the UK and Ireland as at 31 March 2023.
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, equity and inclusion
matters. Further information on equal
opportunities within the Group is set out
on page 55 of 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. Rhian Bartlett in her capacity as
the designated Non-Executive Director
for employee engagement annually
attends this meeting. Her 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 54 to 59 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 either in
Company incentive schemes or local
tactical campaigns 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 110 to
129.
The Group has a people strategy in
place aimed at being an employer of
choice, as can be seen on pages 54 to
59 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 54 to 59 of the
Strategic Report.
Strategic Report
Governance
Financial Statements
Corporate Information
87
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 67 to 69. 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 page 67 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.
Auditors
PricewaterhouseCoopers LLP (‘PwC’)
was appointed at the Annual General
Meeting of the Company held on 8
September 2022 and its appointment
expires at the conclusion of this year’s
Annual General Meeting. PwC has
expressed its willingness to continue
as external auditors of the Group.
Separate resolutions proposing the
re-appointment of PwC and to authorise
the Directors to determine the auditors’
remuneration will be put to the
forthcoming Annual General Meeting
on 7 September 2023.
Capital structure
As at 31 March 2023, the Company’s
share capital comprised a single class
of ordinary shares of 5 pence each.
As at 31 March 2023 the issued share
capital was 516,983,637 comprising
ordinary shares of 5 pence each, of
which 55,146,281 were held in treasury.
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.
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 7 September 2023, 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.
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 30 June 2023 the Trust
held 4,162,452 shares in the Company
(0.81% of the issued share capital).
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Directors’ report continued
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 (2022: nil).
Research and Development
The Company continued to undertake
research and development activities
in order to develop its information
technology, including its enterprise
resource planning (‘ERP’) system and
digital platforms.
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 26 to 65.
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 7 September 2023 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
on 30 June 2023 and signed on its
behalf by:
Dan Evans
Chief Executive
Strategic Report
Governance
Financial Statements
Corporate Information
89
Statement of Directors’ Responsibilities
in respect of the Annual Report and Financial Statements
In the case of each Director in office
at the date the Directors’ Report is
approved:
•
•
so far as the Director is aware,
there is no relevant audit information
of which the Group’s and Parent
Company’s auditors are unaware;
and
they have taken all the steps
that they ought to have taken
as a Director in order to make
themselves aware of any relevant
audit information and to establish
that the Group’s and Parent
Company’s auditors are aware of
that information.
Approved by the Board on 30 June 2023
and signed on its behalf by:
David Shearer
Chair
Dan Evans
Chief Executive
The Directors are responsible for
preparing the Annual Report and the
financial statements in accordance
with applicable law and regulation.
Company law requires the Directors
to prepare financial statements for
each financial year. Under that law the
Directors have prepared the Group and
the Parent Company financial statements
in accordance with UK-adopted
international accounting standards.
Under company law, 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
profit or loss of the Group and Parent
Company for that period. In preparing
the financial statements, the Directors
are required to:
•
•
select suitable accounting policies
and then apply them consistently;
state whether applicable UK-adopted
international accounting standards
have been followed, subject to any
material departures disclosed and
explained in the financial statements;
• make judgements and accounting
estimates that are reasonable and
prudent; and
• prepare the financial statements
on the going concern basis unless
it is inappropriate to presume that
the Group and Parent Company will
continue in business.
The Directors are responsible for
safeguarding the assets of the Group
and Parent Company and hence
for taking reasonable steps for the
prevention and detection of fraud
and other irregularities.
The Directors are also responsible
for keeping adequate accounting
records that are sufficient to show
and explain the Group’s and Parent
Company’s transactions and disclose
with reasonable accuracy at any time
the financial position of the Group and
Parent Company and enable them to
ensure that the financial statements
and the Directors’ Remuneration Report
comply with the Companies Act 2006.
The Directors are responsible for the
maintenance and integrity of the
Parent Company’s website. Legislation
in the United Kingdom governing the
preparation and dissemination of
financial statements may differ from
legislation in other jurisdictions.
Directors’ confirmations
The Directors 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 and Parent
Company’s position and performance,
business model and strategy.
Each of the Directors, whose names
and functions are listed in Board of
Directors confirm that, to the best of
their knowledge:
•
•
the Group and Parent Company
financial statements, which have
been prepared in accordance with
UK-adopted international accounting
standards, give a true and fair view
of the assets, liabilities and financial
position of the Group and Parent
Company, and of the profit of the
Group; and
the Financial review and Principal
risks and uncertainties includes
a fair review of the development
and performance of the business
and the position of the Group and
Parent Company, together with a
description of the principal risks
and uncertainties that it faces.
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1. David Shearer
Non-Executive Chair
Appointment to the Board and
Committee memberships
Appointed to the Board as Non-Executive
Chair on 1 October 2018. Prior to this
appointment David was a Non-Executive
Director of Speedy from 9 September
2016. David is also Chair of the Nomination
Committee and has previously been a
member of each of Speedy’s Audit & Risk,
Nomination and Remuneration Committees.
Skills and experience
David is an experienced independent
director, corporate financier and turnaround
specialist. He is currently Executive Chair of
Esken Limited and Non-Executive Chair of
Amber River Group Limited and the Scottish
Edge Fund. David was previously senior
partner for Scotland & Northern Ireland and
a UK Executive Board member of Deloitte
LLP, Co-Chair of Martin Currie (Holdings)
Limited, Chair of Mouchel Group plc and
Crest Nicholson plc and a Non-Executive
Director of City Inn Limited, in each case
standing down after completing the
successful restructuring of these businesses.
He was also Non-Executive Chair of
Aberdeen New Dawn Investment Trust plc,
Liberty Living Group Plc and Liberty Living
Finance plc: Senior Independent Director
of Renold plc, STV Group plc, Superglass
Holdings plc and Scottish Financial
Enterprise, a Non-Executive Director of
Mithras Investment Trust plc and a
Governor of The Glasgow School of Art.
S
2. Dan Evans
Chief Executive
Appointment to the Board and
Committee memberships
Appointed to the Board as Chief Executive
on 1 October 2022. Dan is also a member
of the Sustainability Committee.
Skills and experience
Dan joined Speedy in December 2008
and has developed through the business
undertaking a variety of roles including
Regional Director, Contracts Director and
Managing Director UK and Ireland, before his
appointment as Chief Operating Officer in
November 2019. Dan is also a board member
of the Supply Chain Sustainability School.
3
7
6
1
2
4
5
A
N
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R
Audit & Risk Committee
Nomination Committee
Sustainability Committee
Remuneration Committee
Chair
Strategic Report
Governance
Financial Statements
Corporate Information
91
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7. Carol Kavanagh
Independent Non-Executive Director
Appointment to the Board and
Committee memberships
Appointed to the Board on 1 June 2021 as
Non-Executive Director. Carol is Chair of the
Remuneration Committee.
Skills and experience
Carol is currently a Non-Executive Director
of ScS Group plc and an independent
remuneration committee member for British
Swimming. 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.
N R
3. David Garman
Senior Independent Director
Appointment to the Board and
Committee memberships
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.
Skills and experience
David is currently a Non-Executive Director
at Troy Income & Growth Trust plc and a
Director of several private companies. David
has a broad range of industrial experience
and was previously Chief Executive of TDG
plc (now TDG Limited), a European contract
logistics and supply chain management
business, an Executive Director of Associated
British Foods plc and held a variety of
management roles at United Biscuits. He was
also the Senior Independent Director at John
Menzies plc, St Modwen Properties Plc and
Phoenix IT plc, and a Non-Executive Director
at Kewill plc and Victoria plc.
A R S
4. Rob Barclay
Independent Non-Executive Director
Appointment to the Board and
Committee memberships
Appointed to the Board in April 2016 as
Non-Executive Director. Rob is Chair of the
Sustainability Committee and a member
of the Audit & Risk and Remuneration
Committees. Rob was previously 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 where he originates.
A N S
5. Rhian Bartlett
Independent Non-Executive Director
Appointment to the Board and
Committee memberships
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. Rhian is also
the designated Non-Executive Director
for employee engagement.
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.
A N
6. Shatish Dasani
Independent Non-Executive Director
Appointment to the Board and
Committee memberships
Appointed to the Board on 1 February
2021 as Non-Executive Director. Shatish
is Chair of the Audit & Risk Committee and
a member of the Nomination Committee.
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 and Genuit Group 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.
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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 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 at page 97.
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. The Sustainability
Committee of the Board established
at the end of FY2022 was staffed and
commenced operation in the year to
assist the Board in its oversight of the
Company’s ESG strategy and support the
Board on all sustainability matters. This
includes supporting the Board’s ongoing
evaluation of environmental risks and
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 reports and accounts,
it has complied in full with the
Combined Code (now the UK Corporate
Governance Code 2018 ('the 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 Code.
A copy 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 2023, the
Company has been in full compliance
with the provisions set out in the Code
with the exception of Provision 38 with
regard to Russell Down’s employer
pension contribution, or payments in
lieu, of 15% of base salary not being
aligned with those available to the UK
workforce prior to him stepping down
as Executive Director on 30 September
2022. An agreement was in place to
effect the alignment by 31 December
2022 which was in accordance with the
current Directors’ Remuneration Policy.
All other Executive Directors’ employer
pension contributions of 3% of salary
were aligned with those available to
the UK workforce and thus operated in
accordance with Provision 38.
Directors
The Board
The Board comprises a Non-Executive
Chairman, one Executive Director
and five independent Non-Executive
Directors.
In the year ended 31 March 2023, 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 2023.
Dan Evans succeeded Russell Down as
Chief Executive (following his giving
notice of his retirement) and was
appointed to the Board on 1 October
2022 and a member of the Sustainability
Committee. Additionally, during the year
James Bunn resigned as Chief Financial
Officer and stepped down from the
Board on 1 November 2022.
Board and Committee attendance at scheduled meetings
Board (8)
Audit & Risk
Committee (4)
Nomination
Committee (2)
Remuneration
Committee (5)
Sustainability
Committee (2)
Executive Directors
Dan Evans1
Non-Executive Directors
David Shearer
David Garman
Rob Barclay
Rhian Bartlett
Shatish Dasani
Carol Kavanagh
Former Directors
Russell Down2
James Bunn3
4/4
8/8
8/8
8/8
8/8
8/8
8/8
4/4
4/4
0/0
0/0
0/0
4/4
4/4
4/4
0/0
0/0
0/0
0/0
2/2
2/2
0/0
2/2
2/2
0/0
0/0
0/0
0/0
0/0
5/5
5/5
0/0
0/0
5/5
0/0
0/0
1/1
0/0
0/0
2/2
2/2
0/0
0/0
1/1
0/0
1 Dan Evans was appointed as Chief Executive and member of the Sustainability Committee with effect from 1 October 2022.
2 Russell Down stepped down as Chief Executive and member of the Board and Sustainability Committee with effect from 30 September 2022.
3 James Bunn stepped down as Chief Financial Officer and member of the Board with effect from 1 November 2022.
Directors who are not a member of a Board Committee may attend meetings at the invitation of the relevant Committee Chair.
Strategic Report
Governance
Financial Statements
Corporate Information
93
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.
Chair and Chief Executive
The posts of Chair and Chief Executive
are held by David Shearer and Dan
Evans, respectively.
A statement as to the division of the
responsibilities between the Chair
and Chief Executive is available on
the Company’s website. The Board
considered that the Chair, 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 Chair.
Board balance and independence
The Board currently comprises the
Chair, one Executive Director 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 90 and 91,
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 100 to 105.
The Remuneration Committee is chaired
by Carol Kavanagh. The other members
are David Garman and Rob Barclay. The
Committee Chair’s Statement, Directors’
Remuneration Policy and Directors
Remuneration Report are on pages 110
to 129.
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
17 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 106 and 107.
The Sustainability Committee is chaired
by Rob Barclay. The other members are
Rhian Bartlett and Dan Evans. A report of
the Committee’s activities is contained
on pages 108 and 109.
The Chair and other Non-Executive
Directors meet at least twice a year
without the Executive Directors present.
In addition, the Chair 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 at least twice a
year without the Chair present, and also
undertake an annual appraisal of the
Chair’s performance as part of the
Board annual appraisal process.
The minutes of all meetings of the
Board and each Committee are taken
by the Company Secretary or Assistant
Company Secretary. In addition to
constituting a record of decisions taken,
the minutes reflect questions raised by
the Directors relating to the Company’s
businesses and, in particular, issues
raised from the reports included in the
Board or Committee papers circulated
prior to the relevant meeting. Any
unresolved concerns are recorded
in the minutes.
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3
Diversity, equity, and inclusion
The value of diversity, equity and
inclusion (‘DEI’) in the way we operate
is strongly recognised and encouraged
in the composition and culture of
the Board, Board Committees, senior
management as well as the wider
workforce.
Underpinning the importance of DEI, we
are pleased to report that as at 31 March
2023 our seven-member Board includes
two women and a board member from
a minority ethnic background, the latter
complying with the Listing Rules and
Parker Review recommendation; all are
standing for re-election at the AGM.
In line with the objective to increase
gender diversity across all areas of
our business, including the Board,
senior management levels, and the
appointment of a female Board member
into a senior board position1, this will
be considered as future recruitment
opportunities arise as detailed below.
The Board is working hard to seek to
overcome any challenges resulting from
the under-representation of women,
as well as those from a minority ethnic
background, within the construction
industry and remains committed to
reaching the Listing Rules target of not
less than 40% female composition on
the Board.
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Corporate governance continued
On resignation, written concerns (if any)
provided by an outgoing Non-Executive
Director are circulated by the Chair 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 matters
relating to diversity, equity and inclusion
and encouraging that within senior
management levels as recruitment
opportunities arise. Any succession
planning for the Board recognises
this and matters relating to diversity,
equity and inclusion 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 106 and 107. 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 Chair,
including anticipated time commitment, is
included as part of the written statement
of division of responsibilities between the
Chair and Chief Executive. Details of the
Chair’s other material commitments are
set out on page 90 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 Chair, 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,
Nomination or Sustainability Committees.
Details of other material commitments
are disclosed to the Board and a register
of the same is maintained by the
Company Secretary.
During the year Dan Evans was appointed
to the Board as Chief Executive. The
search and selection of Dan Evans 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 Chair of a FTSE 100 company.
1 Chair, CEO, senior independent director (SID) or CFO.
Strategic Report
Governance
Financial Statements
Corporate Information
95
When recruitment opportunities arise on the Board and its Committees, the recruitment process and Recruitment, Selection and
Equal Opportunities Policy will be followed, additional details of which can be found in the Including Everyone section of the
Strategic Report reported on pages 54 to 65. The Board will always prioritise appointing the best candidate, ensuring that the
Board and its Committees have a sufficient range of experience and expertise, to maximise Board effectiveness, whilst at all times
considering the targets detailed within the Listing Rules and Disclosure Guidance and Transparency Rules regarding gender/gender
identity and minority ethnic background representation. The Board also recognises that diversity can take many forms, including
gender, ethnic and social background as well as personal, behavioural, and cognitive strengths; accordingly, the Board understand
and appreciate that diversity at Board and Committee level and throughout the Company is a valuable strength.
Numerical data disclosure obligations as at 31 March 2023:
Gender identity/sex
Men
Women
Not specified
Ethnic background
White British or other White (including minority-white groups)
Mixed/Multiple Ethnic Groups
Asian/Asian British
Black/African/Caribbean/ Black British
Other ethnic group, including Arab
Not specified/ prefer not to say
1 Reference to ‘executive management’ is to the Company’s Executive Team.
Number
of Board
members
Percentage of
the Board
5
2
–
71.4%
28.6%
–
Number
of senior
positions on
the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management1
Percentage
of executive
management1
3
0
–
6
1
–
85.7%
14.3%
–
Number
of Board
members
Percentage of
the Board
6
–
1
–
–
–
85.7%
–
14.3%
–
–
–
Number
of senior
positions on
the Board
(CEO, CFO, SID
and chair)
Number in
executive
management1
Percentage
of executive
management1
3
–
–
–
–
–
7
–
–
–
–
–
100%
–
–
–
–
–
The approach to collecting the data used for the purposes of making the disclosures detailed above consisted of each Board and
Executive Team member anonymously self-reporting their gender/gender identity and their ethnic diversity as at 31 March 2023.
The results are based on a 100% return rate.
On 1 April 2023, Amelia Woodley, ESG Director, and Andy Johnson, HSSEQ Director, joined the Executive Team.
In addition, Paul Rayner is being appointed to the Board as Chief Financial Officer on a permanent basis with effect from 1 July 2023.
Speedy’s DEI position
A benchmark review of Speedy’s DEI position was undertaken against a recent diversity survey completed by the Sustainability
Supply Chain School and Sustainability Tool1 which included input from over 270 companies and 340,000 employees within the
construction sector.
Speedy2
Diversity survey report3
Female gender
21.3%
23.0%
Diverse
ethnicity
6.0%
17.5%
Disability
3.8%
4.5%
Diverse
religion
6.8%
13.6%
Age 18-25
Age 50-65
10.0%
6.8%
36.0%
34.0%
1 Sustainability Supply Chain School and Sustainability Tool’s survey relating to Equality, Diversity & Inclusion, to which Speedy contributed as a tier 1 supply
chain partner.
2 Figures taken from Speedy's internal DEI report.
3 Figures taken from a survey published in February 2023 by the Sustainability Supply Chain School and Sustainability Tool relating to Equality, Diversity
& Inclusion, to which Speedy contributed as a tier 1 supply chain partner.
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Corporate governance continued
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Speedy’s DEI strategy
The overriding objective of Speedy’s
DEI Policy is to ensure that the Board,
its Committees and Executive Team
comprise outstanding individuals who
can lead the business effectively in
a manner aligned to Speedy’s vision,
mission and values. Candidates are
recruited regardless of age, gender,
ethnicity, sexual orientation, disability,
or educational, professional and
socioeconomic backgrounds, however
the Board will at all times consider
on such appointments the targets
detailed within the Listing Rules and
Disclosure Guidance and Transparency
Rules regarding gender/gender identity
and minority ethnic background
representation.
The Board appreciates and is committed
to ensuring that it delivers on Speedy’s
DEI strategy, including increasing
female and ethnic representation where
appropriate. Details of the Group’s
approaches and initiatives to help
achieve its DEI strategy can be found
within the Including everyone; Our
Speedy Family section of the ESG
Report from page 54.
The Board intends to regularly
review progress under Speedy’s DEI
strategy and the underlying work and
achievement to improve its DEI position
and provide the basis for further
progress.
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.
Strategic Report
Governance
Financial Statements
Corporate Information
97
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 Chair. The
one-to-one sessions with Directors had
been open and constructive. The Board
changes in year had introduced new
perspectives and insights and scoring in
the year-on-year comparative analysis
under the questionnaire used. The
findings overall were positive, confirming
that the Board and Committee
meetings were well managed, with
an open atmosphere providing good
opportunity for discussion, questioning
and challenge. Key actions from the
evaluation included increasing the
frequency and depth of reporting against
the implementation of Velocity (detailed
from page 18) and increasing the Board’s
awareness of markets, customers and
business development activity. The
evaluations in FY2024 will allow for
consideration of any relevant matters
relating to the deficiency in the value of
non-itemised assets.
The Chair 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 Chair, and the Senior
Independent Director discussed the
results of that assessment with the Chair.
No actions were considered necessary
as a result of these evaluations, and
the Board is satisfied with the Chair’s
commitment and performance.
Re-election
Pursuant to the Code and under the
Company’s Articles of Association
all Directors must submit to annual
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 Chair
confirm that appointments are for
specified terms and that reappointment
is not automatic.
Directors’ remuneration
The performance-related elements of the
remuneration of the Executive Directors
form a significant proportion of their
potential total remuneration packages.
The performance-related 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 contract for Dan Evans
provides for termination by the Company
on 12 months' notice. 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 the office of Chairperson
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
Chair 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. The remuneration of
Non-Executive Directors was reviewed at
the end of FY2023. The conclusion was
that the annual base fee be increased to
£47,500 and the employee designated
Non-Executive Director receive an
annual fee of £5,000 both effective
from 1 April 2023. Further details of the
remuneration of Non-Executive Directors
are set out on page 123.
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Corporate governance continued
Procedure
The Remuneration Committee met
on five scheduled occasions during
the year, although additional ad
hoc meetings took place 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 Carol Kavanagh (Chair),
David Garman and Rob Barclay 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 Company Chair, Chief
Executive, Chief Financial Officer 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
FY2024.
A more detailed summary of the work
of the Remuneration Committee during
the year and the Group’s Remuneration
Policy, to be considered for adoption at
the Annual General Meeting in 2023 is
contained on pages 110 to 129.
Accountability and audit
Financial reporting
The Directors’ Report and independent
auditor’s report appear on pages 85 to
88 and pages 130 to 139 respectively
and comply with Provisions 27 and 30
of the Code.
Audit & Risk Committee and auditors
The Audit & Risk Committee met on
four scheduled occasions 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 Chair of the Audit &
Risk Committee, Shatish Dasani, has
appropriate recent and relevant financial
experience and that the Committee as a
whole has competence relevant to the
sector in which the Company operates.
Strategic Report
Governance
Financial Statements
Corporate Information
99
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 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 •, 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 100 to 105.
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 Company's external
auditor, highlighting matters identified
in the course of its statutory audit
work, and is reviewed by the Audit &
Risk Committee in the presence of the
external auditor and, by invitation, the
Chief Executive, the Chief Financial
Officer, Group Financial Controller
and the Head of Risk and Assurance.
The Committee also considers formal
reports prepared and presented by the
internal audit function. The findings and
recommendations of the Committee are
then formally reported to the Board for
detailed consideration.
Relations with shareholders
Dialogue with institutional
shareholders
The Chair, Chief Executive and Chief
Financial Officer give presentations
regularly to analysts and investors,
which include the Company’s half
and full-year results. The Chair, 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
Chair 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
Chair, 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.
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Audit & Risk Committee Report
The Audit & Risk Committee presents
its report for the financial year ended
31 March 2023.
Shatish Dasani
Chair of the Audit & Risk Committee
The Audit & Risk Committee is satisfied
that, following the changes made over
the controls around non-itemised hire
assets described below, the Group’s
internal and external processes are
robust and appropriately aligned to
delivering good financial reporting
and governance. The Directors confirm
that the Board has completed a robust
assessment of the Company's emerging
and principal risks, 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.
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.
Composition of the Audit & Risk
Committee
The Audit & Risk Committee comprises
three Non-Executive Directors: Shatish
Dasani (Chair), 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 91.
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 91. 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.
Strategic Report
Governance
Financial Statements
Corporate Information
101
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.
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 during the year:
Shatish Dasani (Chair)
Non-Executive Director
Rob Barclay
Non-Executive Director
Rhian Bartlett
Non-Executive Director
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Operation and responsibilities
of the Audit & Risk Committee
The Chair, 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 Chair
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:
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.
Significant areas considered
during FY2023
During the year, the Audit & Risk
Committee considered and discussed
with the external auditors and
management the following items:
•
•
the existence and valuation of hire
equipment, including the deficiency
identified in the year relating to non-
itemised assets;
the going concern basis for the
preparation of the Financial
Statements;
•
the valuation of trade receivables;
• provisions for dilapidations;
•
FRC review of the Company’s interim
report; 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.
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Audit & Risk Committee Report continued
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 reported previously, following
recommendations made at the end of
the audit for the year ended 31 March
2022 and as part of the subsequent
work undertaken by management in
agreement with the Committee around
controls of hire equipment, the Group
carried out comprehensive counts of
all hire equipment during the year.
The counts validated the previously
disclosed net book value of itemised
assets but identified a deficiency in
the value of non-itemised assets of
c.£20.4m.
An external investigation was instigated
by the Board and following completion
of this it was concluded that the issue
resulted from problems with the Group’s
controls and accounting procedures for
non-itemised assets over a number of
years, and in particular the reconciliation
of counts to the Group’s fixed asset
register. The Board also concluded
that the issue was not the result of
underlying systemic fraud perpetrated
on the Group by its staff or third parties.
Following the counts completed in
January 2023, the company carried out
a further comprehensive asset count in
March 2023 and reconciled this to the
book value of fixed assets. This count did
not identify the need to increase existing
provisions further.
Due to the issues identified in the
year and the surrounding control
environment, our external auditors have
concluded on a limitation in scope in
relation to fixed assets as they have been
unable to obtain sufficient appropriate
audit evidence in relation to these
assets.
The Group is strengthening the control
environment for managing its non-
itemised asset fleet, including additional
counts, increased internal audit focus,
enhanced control over purchases and
disposals, and new procedures for
reconciliation to the fixed asset register,
which also incorporate recommendations
from the investigation.
Based on the further comprehensive
asset count was carried out at the year
end of March 2023 and this did not
identify related control procedures, the
need to increase Committee is satisfied
that the existing provision amount
presented on the balance sheet at 31
March 2023 reflects the correct closing.
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 these
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.
The Group’s £180m asset-based
finance facility was entered into in
July 2021 on a three year tenure. On
26 May 2023 options for a further two
one-year extensions were exercised
and the facility now terminates in July
2026. There are no prior scheduled
repayment requirements. The additional
uncommitted accordion of £220m
remains in place through to July 2026.
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.
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.
As a result of the work performed,
the Committee is satisfied that trade
receivables are appropriately valued.
Strategic Report
Governance
Financial Statements
Corporate Information
103
The Group provided a detailed response
into the queries and have adopted the
recommended changes in those areas
which are relevant to this set of financial
statements. The FRC was satisfied by
our responses and the review has been
concluded.
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.
In response to the recommendations
made by an external specialist in
FY2022, improvements have been
made in the control framework for
managing cybersecurity risk. These
include the appointment of a dedicated
security manager, implementation of a
significantly enhanced colleague training
programme and the introduction of a SIEM
(Security Incident Event Management)
system that is monitored by a third party.
The intrusion defence capability has been
strengthened and is routinely subjected
to penetration threat tests, also provided
by an external specialist.
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 Board is also
responsible for defining the risk appetite
of the Group. 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 the
Interim Chief Financial Officer 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 internal
and external auditors. Save for the
control framework for non-itemised
assets described above, the Committee
has concluded that internal controls have
operated effectively during FY2023.
Provisions for dilapidations
The Group has previously recognised
dilapidation provisions upon exit – or
notification of exit – of a leased property,
together with an ongoing assessment
of property conditions. During the year,
the Group has reviewed its position,
assessing a more comprehensive view
of the future liability on all leases in
line with accounting standards. This
represents a change from the assessment
made in prior years and dilapidations
are now assessed at the earliest point,
being the start of the lease or due to
an obligating event. This change has
been corrected through a prior year
restatement of the balance sheet as
at 1 April 2021. There is no impact on
the amounts recognised in the income
statement.
As a result of the work performed,
the Committee is satisfied that the
provisions held for dilapidations are
sufficient and appropriate, in with
accounting standards.
FRC review of the Company’s interim
report
During the year, the Financial Reporting
Council (‘FRC’) contacted the Company
requesting further information regarding
our interim report for the six months
ended 30 September 2022, in respect of:
Share buyback programme, Impairment
review and Disposals of hire equipment.
The FRC review was based on our
interim report and did not benefit from
detailed knowledge of our business
or an understanding of the underlying
transactions entered into. It was,
however, conducted by staff of the
FRC who have an understanding of the
relevant legal and accounting framework.
The review provides no assurance
that our interim report is correct in all
material respects; the FRC’s role is not
to verify the information provided but
to consider compliance with reporting
requirements. The letters from the FRC
are written on the basis that the FRC
accepts no liability for reliance on them
by the Company or any third party,
including but not limited to investors
and shareholders.
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Audit & Risk Committee Report continued
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 FY2023.
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 FY2022.
The review concluded that ‘the internal
audit and risk function is effective in
providing independent assurance to
the organisation and complies with IIA
standards. In addition to this, the Head
of Risk and Assurance is required to
undertake an annual self-assessment of
adherence to this framework. This self-
assessment is considered by the Audit
& Risk Committee during its review of
internal audit.
On an annual basis the Audit & Risk
Committee circulates a questionnaire
to Directors and senior management
inviting comments on the Risk and
Assurance function. The responses
are considered by the Audit & Risk
Committee and are used in conjunction
with the other review processes
described to determine whether
internal audit is working effectively.
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 and that the
learnings arising from the poor control
framework around non-itemised assets
should be incorporated into its work
processes.
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.
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, effectiveness
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 5.5% of the annual audit
fees and the three-year average,
including former auditor KPMG LLP, was
7.3%. 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.
Strategic Report
Governance
Financial Statements
Corporate Information
105
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 30 June 2023.
Shatish Dasani
Chair of the Audit & Risk Committee
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 Chair 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.
Audit & Risk Committee
performance evaluation
The Committee carried out a self-
evaluation during the year using
questionnaires circulated to members
of the Committee as well as those
who attend regularly including the
external auditors, Head of Risk and
Assurance and the Executive Directors.
The responses received indicated that
the Committee was considered to be
operating effectively and that it should
consider the lessons from the external
investigation into non-itemised assets.
The Committee has set the following
key objectives for its work as a result:
• Oversee and challenge where
necessary the design and
implementation of agreed actions
relating to controls around non-
itemised assets; and
• Support the Head of Risk & Assurance
to achieve the full complement of
staff of the appropriate calibre.
Appointment of auditors
Following a comprehensive tender
process for the appointment
of a new external auditor,
PricewaterhouseCoopers started
undertaking transitional activity from
May 2022, in preparation for the external
audit cycle in FY2023.
Having considered the results of the
Audit & Risk Committee’s work, the Board
is recommending the re-appointment
of PricewaterhouseCoopers as auditors
of the Group for FY2024. The lead
audit engagement partner is Jonathan
Studholme PricewaterhouseCoopers has
expressed its willingness to continue
as external auditors of the Group.
Separate resolutions proposing its
reappointment and the determination of
its remuneration will be proposed at the
Annual General Meeting to be held on
7 September 2023.
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Nomination Committee Report
The Nomination Committee presents
its report for the financial year ended
31 March 2023.
David Shearer
Chair of the Nomination Committee
Attendance
The Nomination Committee met on
two The Nomination Committee met
on two scheduled occasions during
the year. Additional ad hoc meetings
took place dealing with Board changes
occurring during the year. Details of the
attendance at scheduled Nomination
Committee meetings are set out in the
table below. At the invitation of the
Chair, 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:
Nomination Committee attendance
David Shearer (Chair)
Non-Executive Chair
David Garman
Non-Executive Director
Rhian Bartlett
Non-Executive Director
Shatish Dasani
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.
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 election or re-election
at the AGM; and
• overseeing the development of a
diverse pipeline for succession to
the Board.
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.
Composition of the
Nomination Committee
The Nomination Committee comprises
the Chair, 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 90 and 91.
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.
Strategic Report
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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's 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
equity and inclusion and the objective of
increasing the diversity of the Board. The
Company’s values and objectives in this
area are disclosed on pages 55, 94 and
107. 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 Directors
and senior management, which followed
the completion of an annual review
led by the Chief People Officer for
the latter. The review included the
identification of talented individuals for
key management roles and development
across the Group and took account of
the Company’s objectives to increase
diversity, equity and inclusion across all
levels. In support of succession planning
and senior management development,
Non-Executive Directors participate in
the Group’s mentoring scheme.
Board
During the year the Nomination
Committee has overseen the changes
within the Executive Directors on the
Board.
In May 2022 Russell Down, then Chief
Executive, advised the Board of his
intention to retire and agreed to remain
with the business until a successor was
in place to ensure a smooth and orderly
transition. The Nomination Committee
led the process for the appointment
of his successor and external search
consultants Russell Reynolds Associates
were retained. Both external and internal
candidates were considered, with the
Committee pleased to recommend Dan
Evans, an internal candidate and the
then incumbent Chief Operating Officer.
Dan was appointed Chief Executive
and joined the Board with effect from
1 October 2022. Russell Down left the
business in May 2023 on the expiration
of his twelve month notice period.
In October 2022 James Bunn, then
Chief Financial Officer (CFO), resigned to
pursue an opportunity in an unrelated
sector. It was agreed that James would
step down as CFO and from the Board
on 1 November 2022. The Nomination
Committee led the process for the
appointment of a permanent successor
and external search consultants Russell
Reynolds Associates were retained. In
the intervening period, Paul Rayner was
appointed interim CFO with effect from
1 November 2022, for a period of up
to 12 months, to allow time for the
permanent recruitment process. In view
of the interim nature of the role, Paul
was not appointed to the Board. With
an interim in place James Bunn left
the business on 31 December 2022
after supporting the smooth hand
over of responsibilities. Following a
comprehensive search process Paul
Rayner will be appointed to the Board
as CFO on a permanent basis with
effect from 1 July 2023.
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 with both
the Executive Directors in place, the
overall size, structure and composition
of the Board had been well balanced
and operated effectively. In view of the
above changes in Executive Directors
this will be further reviewed after
the new appointees have settled into
role. The Board Committees were all
continuing to work effectively.
The Committee recommended the
three-year extension of the term
of appointment of Rhian Bartlett to
expire on 31 July 2025 and a one year
extension to the term of appointment
of both David Garman and Rob Barclay
to expire July 2024 and March 2024
respectively, providing increased Board
stability during the period of change
amongst the Executive Directors.
As previously reported, following the
FY2022 annual evaluation of the Board
and its Committees, and to balance
Non-Executive Directors roles and
commitments on the Board and its
Committees and the staffing of the new
Board Sustainability Committee the
Committee recommended the following
changes 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 took 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 to remain on the
Remuneration Committee; and
• Rhian Bartlett to take over as the
designated Non-Executive Director
for employee engagement from Rob
Barclay on 30 September 2022.
The changes had been implemented
with relevant Directors settling into
their new roles. Dan Evans took over
from Russell Down on the Sustainability
Committee following his appointment
as Chief Executive on 1 October 2022.
Diversity, Equity and Inclusion
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. During the year the
Committee reviewed the Company’s
Diversity, Equity and Inclusion Policy
and objectives generally to increase
gender diversity on the Board, its
Executive Team and amongst senior
management and, in particular, with a
view to meeting gender targets for those
under the Listing Rules. More generally
the Group’s approach to diversity, equity
and inclusion can be seen on pages 55,
94 and 107 of the Corporate Governance
Report, along with details of the gender
balance of those personnel in senior
management.
The Nomination Committee has
recommended the election and re-
election of all Directors standing at the
forthcoming Annual General Meeting.
This report was approved by the Board
on 30 June 2023.
David Shearer
Chair of the Nomination Committee
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Sustainability Committee Report
The Sustainability Committee presents
its report for the financial year ended
31 March 2023.
Rob Barclay
Chair of the Sustainability Committee
Chaired by Rob Barclay, the key function
of the Sustainability Committee is
to assist the Board in its oversight of
Speedy’s Environmental, Social and
Governance (ESG) strategy and to
provide input to the Board and other
Board Committees on ESG-related
matters as required.
Composition of the
Sustainability Committee
The Sustainability Committee comprises
the Chair, Rob Barclay, Rhian Bartlett
and Dan Evans. Appointments and
attendance at meetings during the
year are set out below. Biographies
of the members of the Sustainability
Committee are set out on page 91.
The terms of reference of the
Sustainability 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
This being the first year of the
Sustainability Committee, its first
meeting was held in September 2022
and in total met on two occasions during
the year. Details of the attendance are
set out in the table below.
At the invitation of the Chair, Speedy’s
ESG Director, Amelia Woodley is invited
to attend Committee meetings. Amelia
was appointed to Speedy’s Executive
Team as of 1 April 2023, underlining the
importance ESG has within Speedy.
Sustainability Committee meetings and
member attendance during the year:
Rob Barclay (Chair)
Non-Executive Director
Rhian Bartlett
Non-Executive Director
Dan Evans1
Chief Executive
Russell Down2
Former Chief Executive
2/2
2/2
1/1
1/1
1 Dan Evans was appointed as Chief Executive and member of the Sustainability Committee with effect from 1 October 2022.
2 Russell Down stepped down as Chief Executive and member of the Board and Sustainability Committee with effect from 30 September 2022.
Strategic Report
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Financial Statements
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Operation of the Sustainability
Committee
The Company Secretary or assistant
acts as secretary to the Sustainability
Committee. The members of the
Sustainability Committee can, where
they judge it necessary to discharge their
responsibilities, obtain independent
professional advice at the Company’s
expense.
The Sustainability Committee’s duties
include inter alia:
During the year the Sustainability
Committee fulfilled all of the duties set
out above. In particular, the Sustainability
Committee undertook a detailed review
of Speedy’s ESG strategy, execution and
progress against ESG-related targets,
including its aim to achieve Net Zero by
2040, as reported within the Strategic
Report from page 38. The Committee
was pleased to note progress made and
to review and approve the proposed
ESG strategy, and execution against its
'Decade to Deliver' targets for FY2024.
•
reviewing Speedy’s ESG strategy and
execution for the Board;
This report was approved by the Board
on 30 June 2023.
Rob Barclay
Chair of the Sustainability Committee
• engaging with and supporting the
other Board Committees (Audit &
Risk, Remuneration and Nomination
Committees) in respect of ESG
matters;
• overseeing Speedy’s sustainability
disclosures on behalf of the Board,
including approval of the ESG
Report, Task Force on Climate-
Related Financial Disclosures and
greenhouse gas emissions; and
• monitoring developments and
emerging best practice in approaches
to ESG matters.
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Remuneration Report
The Remuneration Committee presents
its report for the financial year ended
31 March 2023.
Carol Kavanagh
Chair of the Remuneration Committee
•
•
the binding triennial vote on the
Directors’ Remuneration Policy,
which will, subject to shareholder
approval, become formally effective
as at the date of the AGM; and
an advisory vote on the Directors’
Remuneration Report (excluding the
Policy), which provides details of the
remuneration earned by Directors
for performance in the year ended
31 March 2023 and how we intend
to remunerate Directors in the year
ending 31 March 2024.
Following a detailed review and
extensive consultation exercise with
our major shareholders and the main
shareholder representative bodies, no
changes are being made to the Policy
in respect of remuneration quantum.
However, the Committee is proposing the
following minor updates to the Policy in
response to shareholder feedback and
to reflect developments in remuneration
governance and best practice over the
last three years:
• Pension Policy – The maximum value
of pension provision in the current
Policy for current Executive Directors
is 15% of salary. However, noting
that the Chief Executive has received,
and any new Finance Director will
receive, a workforce aligned pension
provision from appointment, the
15% of salary Policy maximum will
be replaced by a requirement to offer
I am pleased to present, on behalf of
the Board, the Directors’ Remuneration
Report for the year ended 31 March
2023, my first since taking over as Chair
of the Remuneration Committee. As
in previous years, the report has been
divided into the following three sections:
•
•
•
this Annual Chair’s Statement
summarising major decisions and any
relevant changes to remuneration;
the Remuneration Policy Report,
which sets out the Group’s proposed
policy on the remuneration of
the Executive and Non-Executive
Directors for the next three years;
and
the Annual Remuneration Report
outlining how the Group’s
Remuneration Policy was
implemented in FY2023 and how it
will be implemented in FY2024.
In accordance with sections 439 and
439A of Companies Act 2006, the
Company will be asking shareholders
at the 2023 Annual General Meeting
(‘AGM’) to vote on two separate
resolutions as follows:
•
workforce aligned pension provision
(which is currently 3% of salary) to
Executive Directors in line with the
2018 UK Corporate Governance Code.
Shareholders consulted on the new
Policy were supportive of this change.
Introduction of ESG Performance
Metrics – The current Policy permits the
use of non-financial targets in respect
of the annual bonus and Performance
Share Plan ('PSP') awards although there
is no specific reference to ESG-based
targets. Going forward and reflecting
that a separate part of the annual bonus
(15%) is already based on ESG and
the Committee may introduce ESG-
based targets for future PSP awards
from 2024 onwards to the extent
appropriate, the proposed Policy will
make explicit reference to the operation
of ESG-based targets going forward.
However, noting that shareholder views
were mixed in respect of shareholders
consulted expressed support for the
inclusion introduction of specific
references to ESG-based metrics in
the Policy. However, consistent with
the Remuneration Committee’s current
thinking, there was an emphasis on
the need for incentive targets to be in
the PSP, the Committee will: (i) ensure
any targets are both relevant to the
Company’s strategy and are measurable,
to the extent that new metrics are
introduced; and (ii) re-engage with
major shareholders in the future
advance of introducing such targets.
• Bonus Deferral – Bonus potential is
currently capped at 125% of salary
under the Policy, with any bonus
above 100% deferred into shares for
two years. However, given that bonus
potential has been capped at 100%
of salary (i.e. below the 125% Policy
Strategic Report
Governance
Financial Statements
Corporate Information
111
maximum) during the current Policy
period, no deferral has operated in
practice. Going forward, following
shareholder feedback and noting
the Committee’s current intention to
maintain bonus potential at 100%
of salary, the threshold for deferral
will be lowered from 100% to 75%
of salary, with 50% of any bonus
paid in excess of 75% of salary
normally deferred into shares for two
years. In the Committee’s view, this
approach strikes a sensible balance
between the Executive Directors (i.e.
ensuring bonus potential remains
market competitive) and shareholder
interests. However, should the bonus
quantum be increased to 125% of
salary during the next Policy period
(after appropriate consultation), it
is the Committee’s intention that a
minimum of 20% of the entire bonus
would be deferred into shares for
two years. Shareholders consulted
on the new Policy were supportive of
both the current and the proposed
approach, should bonus potential be
increased in the future.
• Service contracts and leaver policy
– Reflecting feedback from the
Investment Association, the leaver
Policy will be updated to make it
clear that, in line with Speedy’s
current practice, annual bonus
awards would only be awarded in
'good leaver' scenarios. In addition,
following the recent changes
amongst Executive Directors,
the service contract section was
reviewed and minor changes made to
align it to Speedy’s current Executive
Director model service contract
where appropriate. Shareholders
consulted on the new Policy were
supportive of these changes.
Performance and reward for FY2023
The Group performed well in the year
to 31 March 2023 with an increase in
revenue and adjusted profit before tax
in line with the Board’s expectations.
However, despite making progress on
the strategic and ESG-based objectives,
reflecting that the threshold PBT target
was not met, no annual bonus was
awarded in respect of the year ended 31
March 2023. In respect of the PSP awards
granted on 27 November 2020, given
the difficulty in setting robust three-year
EPS targets and the Committee’s desire
to see the share price return to pre-
Covid levels, these awards were based
on absolute Total Shareholder Return
targets. However, based on performance
to 31 March 2023, 0% of the awards are
currently expected to vest in November
2023.
Policy Implementation for FY2024
In respect of implementing the Policy for
the year ending 31 March 2024:
• Salary – Following his appointment
as Chief Executive on 1 October
2022, Dan Evans’ salary was set
below the market level at £450,000.
Subject to Company and individual
performance and consideration of
wider workforce pay, this will increase
to no more than £495,000 p.a. (i.e.
closer to market levels) from 1 October
2023 (i.e. the first anniversary of
appointment). As shareholders may
recall, following a positive shareholder
consultation exercise carried out
circa 12 months ago and as set out
in last year’s Directors’ Remuneration
Report, the Committee had intended
to move Russell Down’s salary from
£445,000 to £495,000 from 1 April
2023. However, this increase was not
ultimately implemented following
notice of Russell’s retirement.
Workforce aligned, or lower, base
salary increases are envisaged for
Dan Evans from 2024 onwards. While
bonus and PSP award levels were also
set below market levels and below
current Policy maximums, it is currently
envisaged that these will move
towards market levels over–a longer
period of time.
• Pension – The Chief Executive will
continue to receive a workforce
aligned pension contribution,
currently set at 3% of salary (with
any Executive Director appointments
receiving the same).
• Annual bonus – For the financial
year beginning 1 April 2023,
notwithstanding that the maximum
annual bonus opportunity in the
Remuneration Policy is set at 125%
of salary, potential will continue to be
limited to 100% of salary in line with
past practice. Performance metrics
will continue to be based on financial,
strategic and ESG targets to reflect
Speedy’s priorities for the year ahead.
Outstanding performance will be
required for the maximum bonus to
become payable. As explained above,
50% of any bonus award above 75%
of salary in respect of the year ending
31 March 2024 will be deferred into
shares for two years. Full retrospective
disclosure of the performance metrics,
targets and outturns will be provided
in the Directors’ Remuneration Report
for the year ending 31 March 2024.
• PSPs – 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 FY2024
will be granted to Executive Directors
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.
Performance metrics for FY2024 PSP
awards will continue to be based on
EPS and relative TSR. The Committee
intends to disclose the performance
metrics and targets via an RNS
published immediately following the
grant date.
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.
In recent years every employee in Speedy
has participated in a discretionary
bonus scheme relevant to their role,
ensuring all employees are able to
share in the success of the organisation.
We have reviewed our discretionary
bonus schemes and for FY2024 we
have reduced the number of schemes
across the lower grades in favour of a
further salary increase later in the year, to
provide a greater level of fixed income to
those colleagues. In addition, alongside
the Company wide salary review process,
investment will continue to be made
during the year to ensure that employees
are paid at or above the Real Living Wage.
Our apprentices are paid well above
the relevant apprentice minimum wage
during their first year and then at least the
relevant national minimum or living wage
until they transfer off the apprenticeship
scheme, at which point they are paid at
least the Real Living Wage.
Shareholder engagement
In addition to the shareholder
consultation on the proposed Directors’
Remuneration Policy referred to above,
the Committee takes an active interest in
any shareholder views on the Company’s
executive remuneration and is mindful
of the concerns of shareholders and
other stakeholders. We will continue
to take into account the views of our
shareholders as appropriate. The
Committee was pleased by the strong
support received from shareholders
for the Directors’ Remuneration Report
and Annual Report on Remuneration
at the 2022 AGM. I am grateful for
the consideration and constructive
feedback from shareholders during the
consultation process this year.
Conclusion
I hope you find this report clear
and helpful in understanding our
remuneration policy and practices, and
I look forward to receiving continued
shareholder support for the related
shareholder resolutions at our AGM.
This report was prepared by the
Remuneration Committee and approved
by the Board on 30 June 2023.
Carol Kavanagh
Chair of the Remuneration Committee
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Directors’ Remuneration Policy Report
This part of the Directors’ Remuneration
Report sets out the updated Directors’
Remuneration Policy ('Policy') for the
Group. This updated Policy will be put to
shareholders for approval in a binding
vote at the 2023 AGM and if approved
it will be effective from that date. The
Remuneration Committee’s current
intention is that the revised policy will
operate for the three-year period to the
2026 AGM.
Summary of Policy Changes
Shareholders approved our current
Policy at the 2020 AGM with over
96% of votes cast in favour. Against
a background of the Policy expiry,
progress on strategy and changes to
the leadership team and in light of
shareholder feedback received, the
Committee is proposing a number of
minor Policy changes. The changes,
none of which involve any increase to
quantum, are set out below:
• Pension – The Policy has been
updated to remove references to
the previous approach to pension
provision which differentiated
between new and incumbent
Executive Directors. Going forward,
pension provision for all Executive
Directors will be aligned with the
workforce.
• ESG – References to annual bonus
and Performance Share Plan
performance targets have been
updated to make it clear that in
addition to a potential range of
financial, personal and strategic
targets, the Committee may
introduce ESG-based performance
metrics and targets where
appropriate.
• Annual bonus deferral – The Policy
in respect of deferring annual bonus
has been strengthened. Rather than
the current approach of deferring
any bonus above 100% of salary
into shares, going forward, 50% of
any annual bonus paid in excess of
75% of salary will be compulsorily
deferred into shares for two years.
While recent practice has been to set
maximum bonus potential at 100%
of salary (i.e. below the existing
125% Policy maximum), should
bonus quantum be increased to
125% of salary during the three year
Policy period, it is the intention of
the Committee that at least 20% of
the entire annual bonus award would
be deferred into shares for two years.
• Service contracts – Minor updates
were made to the Policy to ensure
they align to the current Executive
Director model service contract.
•
Leaver provisions – The Policy in
respect of leavers has been updated
to make it clear that annual bonus
awards will only be paid in 'good
leaver' scenarios.
Policy overview
The primary objective of the
Remuneration Policy is to promote
the long-term success of the Group. In
working towards the fulfilment of this
objective, the Remuneration Committee
takes into account a number of factors
when setting the Remuneration Policy
for the Executive Directors including the
following:
•
•
•
the need to attract, retain and
motivate high calibre Executive
Directors and senior management;
internal pay and benefits levels, and
practice and employment conditions
within the Group as a whole;
the recommendations set out in the
UK Corporate Governance Code and
the views of shareholders and their
representative bodies; and
• periodic external comparisons to
examine current market trends
and practices and equivalent
roles in similar companies taking
into account their size, business
complexity, international scope and
relative performance.
Our remuneration structure is intended
to be simple and transparent, and
to contribute to the building of a
sustainable performance culture. The
main elements of the remuneration
package for Executive Directors are
a base salary, benefits and pension
provision and, subject to stretching
performance conditions, an annual
bonus plan and shares awarded under
a Performance Share Plan (‘PSP’).
The key principles of the policy are:
• Clarity – maintain transparency of
our competitive total remuneration
structure that is driven by our
business strategy and model, focuses
on sustained long-term value
creation and is aligned with the
interests of shareholders;
• Predictability – to ensure that
targets set each year result in
stretching ambitions and that the
scale of the reward is proportionate;
• Simplicity – ensure the remuneration
structure avoids unnecessary
complexity, with a reward package
that balances short and long-term
performance, rewarding Company
and personal performance;
• Risk – 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.
Directors’ Remuneration Policy
table
The table below summarises each
element of the proposed updated
Remuneration Policy for the Directors,
explaining how each element operates
and the links to the corporate strategy.
If approved, the Policy will be effective
from the date of the Company’s 2023
AGM.
This Policy has been prepared in
accordance with the provisions of
the Companies Act 2006 ('the Act')
and the Large and Medium-sized
Companies and Groups (Accounts and
Reports) (Amendment) Regulations
2013 ('the Regulations') as amended,
the UK Corporate Governance Code,
the Financial Conduct Authority’s
Listing Rules and the Disclosure and
Transparency Rules. It also takes into
account the accompanying Directors’
Remuneration Reporting Guidance, the
Corporate Governance Code, prevailing
shareholder and proxy guidelines and
wider best practice.
The overall approach to remuneration
remains consistent, with modest
adjustments to ensure the policy
continues to underpin the performance
of the business and deliver a balanced
remuneration package to executives that
is focused on total remuneration with
a significant proportion of the package
based on performance-related variable
pay. The Remuneration Report will note
how the current Remuneration Policy has
been implemented over the previous
year and how the proposed Policy will
be implemented in the following year.
Strategic Report
Governance
Financial Statements
Corporate Information
113
Salary
Purpose and link to strategy
Operation
Maximum
Performance targets
Recognises the knowledge, skills
and experience, as well as the
size and scope of the role.
Normally reviewed annually with
changes typically effective 1 April.
Paid in cash on a monthly basis.
Provides an appropriate level
of basic fixed income avoiding
excessive risk arising from over
reliance on variable income.
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.
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.
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.
Benefits
Purpose and link to strategy
Operation
Maximum
Performance targets
To provide a competitive
benefits package.
To promote recruitment and
retention.
N/A
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 in respect of
any all-employee share
plan is subject to the limits
imposed by HMRC from time
to time (or a lower cap set by
the Company).
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.
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Directors’ Remuneration Policy Report continued
Pension
Purpose and link to strategy
Operation
Maximum
Performance targets
To provide market competitive
retirement benefits, to reward
sustained contribution.
Bonus
Defined contribution and/or pension
allowance.
Workforce aligned.
N/A
Purpose and link to strategy
Operation
Maximum
Performance targets
To incentivise delivery of
specific strategic objectives,
including financial performance
and personal annual goals.
Maximum bonus only payable
for achieving demanding
targets.
Performance metrics will be
set for each financial year
by the Committee aligned to
the Company’s key strategic
objectives.
Group financial measures (e.g.
profit before tax) will apply.
Personal and/or strategic and/
or ESG-based 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 25% of the
maximum opportunity will
be payable for threshold
performance and no more
than 50% of the maximum
opportunity will be payable
for on-target performance.
Annual awards based on targets set
by the Committee normally at the
beginning of each financial year.
The annual bonus policy
maximum is 125% of salary
in any 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 75% of
salary are normally payable in cash
(although the Committee reserves
the right to deliver some or all of
such bonus in shares which may be
deferred).
50% of any bonus paid in excess
of 75% of salary will normally be
compulsorily deferred into shares
for two years with vesting normally
subject to continued employment.
Note, should bonus quantum be
operated at 125% of salary during
the Policy period, it is the intention
of the Committee that a minimum of
20% of the entire bonus would be
deferred into shares for two years with
vesting normally subject to continued
employment.
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.
Strategic Report
Governance
Financial Statements
Corporate Information
115
Performance Share Plan
Purpose and link to strategy
Operation
Maximum
Performance targets
To recruit and retain Executive
Directors.
Aligned to main strategic
objectives of delivering long
term value creation.
Align Executive Directors’
interests with those of
shareholders.
Performance normally
measured over three years.
Performance targets and
metrics may be based on
financial targets (e.g. Earnings
Per Share), share price-
based targets (e.g. relative
Total Shareholder Return
targets) and/or strategic/
ESG-based targets as set by
the Committee to reflect the
prevailing strategic priorities.
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.
Discretionary conditional awards or nil
or nominal cost options are normally
granted annually.
Maximum annual awards
of 150% of salary in any
financial year may be
granted.
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.
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Directors’ Remuneration Policy Report continued
Shareholding requirements
Purpose and link to strategy
Operation
Maximum
Performance targets
N/A
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.
To strengthen the alignment
between the interests of the
Executive.
In accordance with best practice, share
ownership requirements apply during
and after employment.
Directors and those of
shareholders.
In-employment shareholding
requirement
Executive Directors will normally be
required to retain at least 50% of the
shares acquired on the vesting of share
awards, net of tax, until the required
level of shareholding is achieved.
Deferred bonus shares, vested PSP
shares, shares subject to a holding
period and open market purchase
shares, including shares held by a
spouse or children under 18 count
towards this limit, on a net of tax basis.
Newly appointed Executive Directors
would normally be expected to achieve
the required shareholding within five
years of the date of appointment.
Existing Executive Directors would
normally be expected to achieve
the increased requirement within a
reasonable timeframe of the adoption
of the policy.
Post-employment shareholding
requirement
Executive Directors will normally
be required to retain a shareholding
until the second anniversary of the
date they ceased to be an Executive
Director.
The post-cessation shareholding
requirement will apply to shares
acquired (net-of-tax) under awards
granted under this policy. Shares
acquired under all employee share
plans or purchased from the Executive
Directors’ own funds would not be
included.
Strategic Report
Governance
Financial Statements
Corporate Information
117
Non-Executive Directors
Purpose and link to strategy
Operation
Maximum
Performance targets
To attract and retain high
calibre Non-Executive Directors.
N/A
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.
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.
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 and/or ESG 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 are selected by the Remuneration Committee on the belief that a combination of conditions drawn
from TSR, key financial objectives and, where relevant, strategic/ESG-based targets provides strong alignment with the delivery of long-term returns to
shareholders and incentivises strong Group performance – consistent with the Company’s objective of delivering superior sustainable 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 PSP performance measures.
3 The Remuneration Committee operates the annual bonus, PSP and all employee share plans in accordance with the relevant plan rules and, where appropriate,
the Listing Rules and HMRC legislation. The Remuneration Committee, consistent with market practice, retains discretion over a number of areas relating to the
operation and administration of the plans. These include, for example, selecting the participants, the timing and quantum of awards and setting performance
criteria each year, determining 'good leaver' status, determining the extent of vesting based on the assessment of performance, form of payment, discretion to
retrospectively amend performance targets in exceptional circumstances (providing the new targets are no less challenging than originally envisaged) and in
respect of share awards, to adjust the number of shares subject to an award in the event of a variation in the share capital of the Company.
4 Consistent with HMRC legislation, the all employee Sharesave scheme does not have performance conditions.
5 Directors are eligible to receive payment, and any existing award may vest, in accordance with the terms of any such award made prior to the approval of the
Remuneration Policy detailed in this report, and in accordance with the provisions of the Remuneration Policy in force at the time such award or right to receive
payment was made or granted.
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Remuneration scenarios for Executive Directors
The remuneration package comprises core fixed pay (base salary, pension and benefits) and performance based variable pay
(annual bonus and the PSP). The chart below illustrates the composition of the Chief Executive’s remuneration package under
the proposed policy for threshold, on-target and stretch performance.
0
0
0
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£
£479
100%
£1,097
30%
26%
44%
£1,716
39%
33%
28%
£2,054
17%
33%
27%
23%
Minimum
On-target
Maximum
Fixed pay
Annual bonus
PSP
Shareprice growth
Chief Executive
Maximum with share
price growth
Notes:
• Chief Executive base salary effective 1 April 2023;
• an approximated annual value of benefits;
• a workforce aligned annualised pension contribution;
• minimum performance comprises salary, benefits and pension only, with no bonus awarded and no PSP awards vested;
• on-target performance comprises annual bonus, based on 50% of the maximum and PSP awards assuming 50% of the maximum awards vest;
• maximum performance comprises annual bonus awarded at the maximum level of 125% of salary, and 150% of salary PSP awards assuming that 100% of the
performance shares will vest; and
• maximum performance plus 50% share price appreciation illustrates the effect of a 50% growth in the Company’s share price on the value of the PSP awards.
How employees’ pay is taken into
account
The designated employee Non-
Executive Director normally attends
an annual Colleague Consultative
Committee (formerly the employee
forum) meeting (the last meeting was
held in March 2023) where Directors’
remuneration and how it aligns with
the wider pay policy is discussed. In
addition, employees were consulted
on the development of, and proposed
changes to, the Remuneration Policy
at this meeting. 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.
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 with our
major shareholders and the main
shareholder representatives on the
updated Remuneration Policy in the
three months up to 31 March 2023.
Following consideration of the feedback
received, which was generally very
positive and therefore resulted in no
changes being made to the updated
Policy, a shareholder consultation wrap
up exercise was carried out in order to
share the feedback received and the
Committee’s conclusions.
Strategic Report
Governance
Financial Statements
Corporate Information
119
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
Dan Evans
29 July 2022 12 months
No Executive Director has the benefit
of provisions in his or her service
contract for the payment of pre-
determined compensation in the event
of termination of employment. It is
the Remuneration Committee’s policy
that the service contracts of Executive
Directors will provide for termination
of employment by giving notice or by
making a payment of an amount equal
to the monthly basic salary, benefits 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.
Annual bonus may be payable for a
good leaver with respect to the period
of the financial year worked although
it will be performance linked, 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 individual’s
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
retirement, 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 time pro-rating. However,
the Remuneration Committee retains
discretion to determine that awards vest
at cessation of employment and/or to
disapply the time pro-rating in full or
in part if it considers it appropriate to
do so.
Outside of this, the Remuneration
Committee seeks to engage with its
major shareholders when any significant
changes to the Remuneration Policy are
proposed. The Remuneration Committee
will consider shareholder feedback
received in relation to the Directors’
Remuneration Report each year. The
Remuneration Committee also has
regard to additional feedback received
from time to time, and closely monitors
developments in institutional investors’
best practice expectations.
Approach to recruitment and
promotions
The remuneration package for a new
Executive Director would be set in
accordance with the terms of the
approved Remuneration Policy prevailing
at the time of appointment and take
into account the skills and experience
of the individual, the market rate for a
candidate of that experience and the
importance of securing the relevant
individual.
The overarching principles applied
by the Remuneration Committee in
developing the remuneration package
will be to set an appropriate base salary
together with benefits and short and
long-term variable pay that takes into
account the complexity of the role.
Salary would be provided at such a
level as required to attract the most
appropriate candidate and may be set
initially at a below market level on the
basis that it may progress towards a
competitive market level once expertise
and performance have been proven and
sustained. Salary will be considered in
the context of the total remuneration
package.
The maximum level of variable pays
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.
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Directors’ Remuneration Policy Report continued
In relation to a termination of
employment, the Remuneration
Committee may make payments in
relation to any statutory entitlements
or payments to settle or compromise
claims as necessary. The Remuneration
Committee also retains the discretion
to reimburse reasonable legal expenses
incurred in relation to a termination
of employment and to meet any
transitional or outplacement costs if
deemed necessary. Payment may also
be made in respect of accrued benefits,
including untaken holiday entitlement.
There is no provision for additional
compensation on a change of control.
In the event of a change of control, the
PSP awards will normally vest on (or
shortly before) the change of control
subject to the satisfaction of the relevant
performance conditions at that time and,
unless the Remuneration Committee
determines otherwise, reduced pro-rata
to reflect the proportion of the vesting
period served. Outstanding awards
under any all-employee share plans will
vest in accordance with the relevant
scheme plan. Bonuses may become
payable, subject to performance and,
unless the Remuneration Committee
determines otherwise, subject to a pro-
rata reduction to reflect the curtailed
performance period.
External appointments
The Board allows Executive Directors to
accept appropriate outside commercial
non-executive director appointments
provided the aggregate commitment is
compatible with their duties as Executive
Directors. The Executive Directors
concerned may retain fees paid for
these services, which will be subject to
approval by the Board.
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.
Non-Executive Director
Appointment date
Month of last election
Expected month of expiry
of current term1
David Shearer2
David Garman
Rob Barclay
Rhian Bartlett
Shatish Dasani
Carol Kavanagh
1 October 2018
1 June 2017
1 April 2016
1 June 2019
1 February 2021
1 June 2021
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
July 2024
July 2024
April 2024
July 2025
July 2024
July 2024
Notes:
1 Subject to annual re-election by shareholders at the AGM.
2 Details relate to appointment as Non-Executive Chairman, original appointment as Non-Executive
Director was 9 September 2016.
Strategic Report
Governance
Financial Statements
Corporate Information
121
Annual Remuneration Report
The sections of the Annual Remuneration
Report that have been audited by PwC
are indicated in the corresponding titles
of those sections.
Remuneration Committee role and
membership
The Remuneration Committee comprises
three members: Carol Kavanagh (Chair),
David Garman and Rob Barclay. Carol
Kavanagh took over as Chair of the
Committee from Rob Barclay with effect
from 30 September 2022. 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
page 91. Details of the attendance at
Remuneration Committee meetings are
set out below.
Remuneration Committee members and
scheduled meetings attended:
Carol Kavanagh (Chair)
Non-Executive Director
David Garman
Senior Independent
Director
Rob Barclay
Non-Executive Director
5/5
5/5
5/5
At the invitation of the Remuneration
Committee Chairman, other members of
the Board and senior management may
attend meetings of the Remuneration
Committee, except when their own
remuneration is under consideration. No
Directors are involved in determining
their own remuneration. The Company
Secretary acts as the secretary to the
Remuneration Committee. The members
of the Remuneration Committee can,
where they judge it necessary to
discharge their responsibilities, obtain
independent professional advice at the
Group’s expense.
The Remuneration Committee’s duties
include:
•
• making recommendations to the
Board on the Group’s framework and
policy for the remuneration of the
Company Chair, Executive Directors,
Company Secretary and senior
executives;
reviewing and determining, on
behalf of the Board, executive
remuneration and incentive packages
to ensure such packages are fair and
reasonable;
reviewing Directors’ expenses;
reviewing Executive and Non-
Executive Directors against the
shareholding guidelines;
•
•
•
• determining the basis on which
the employment of executives is
terminated;
• designing the Group’s share
incentive schemes and other
performance-related pay schemes,
and to operate and administer such
schemes;
• determining 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;
• ensuring that no Director is involved
in any decisions as to his/her own
remuneration; and
•
reviewing regularly the ongoing
appropriateness and effectiveness
of all remuneration policies.
During FY2023, the Remuneration
Committee reviewed the following
matters at its meetings:
• determination of FY2022 bonuses
for the Executive Directors and
senior managers;
•
feedback on Directors’ Remuneration
Report and final outcome of 2022
AGM voting for the report;
consideration of the Group’s
proposed Remuneration Policy
to apply from 2023 AGM to 2026
AGM, including results of significant
shareholder consultation;
• determination of executive
remuneration structure and
application of the policy for FY2023
and FY2024;
• proposed FY2024 bonus scheme
for Executive Directors and
Executive Team members and
bonus arrangements for employees
generally;
• 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 PSP;
• progress of bonus achievement for
FY2023 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
and alignment to Company culture;
• performance of external
remuneration advisors;
• use of equity for employee share
plans in relation to dilution
headroom limits;
•
review of the Non-Executive
Chairman’s fee; and
• determining remuneration
arrangements for senior management
joiners and leavers.
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Annual Remuneration Report continued
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 was appointed by the Committee in 2020 following a competitive tender and has no other connection or
relationship with the Group or individual Directors and provided no other services to the Group during FY2023. FIT is a member
of the Remuneration Consultants Group and is a signatory to its Code of Conduct. Fees paid to FIT for FY2023 totalled £49,360
(excluding VAT) in respect of advice provided to the Remuneration Committee and for related matters based on a standing retainer
(with any additional time based on time and materials). Following the Committee’s annual review of its advisor and the advice
received, the Committee concluded that FIT’s advice continues to be objective and independent.
The Remuneration Committee also sought advice from the Group’s legal advisers, Pinsent Masons LLP (‘Pinsents’), in connection
with the production of this report, the 2014 Performance Share Plan and the all employee share scheme (‘SAYE’), fees paid to
Pinsents for FY2023 totalled £5,665 (excluding VAT).
Implementation of the Remuneration Policy for FY2024
Base salary
Following his appointment as Chief Executive on 1 October 2022, Dan Evans’ salary was set below the market level at £450,000.
Subject to Company and individual performance and consideration of wider workforce pay, this will be increased to no more than
£495,000 pa (i.e. closer to market levels) from 1 October 2023 (i.e. the first anniversary of appointment). As shareholders may
recall, following a positive shareholder consultation exercise carried out circa 12 months ago and as set out in last year’s Directors’
Remuneration Report, the Committee had intended to move Russell Down’s salary from £445,000 to £495,000 from 1 April 2023.
However, this increase was not ultimately implemented following notice of Russell’s retirement. Workforce aligned, or lower, base
salary increases are envisaged for Dan Evans from 2024 onwards. While bonus and PSP award levels were also set below market
levels and below current Policy maximums, it is currently envisaged that these will move towards market levels over a longer
period of time.
Pension
The pension allowance for Dan Evans will continue to be set at 3% of salary as per the average of the UK workforce.
Annual bonus
For the financial year beginning 1 April 2023, notwithstanding that the maximum annual bonus opportunity in the Remuneration
Policy is set at 125% of salary, potential will continue to be limited to 100% of salary in line with past practice. Performance
metrics will continue to be based on financial, strategic and ESG 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 Executive Directors for
FY2024 will be granted 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 2023 to 31 March 2026. The Committee has yet to
finalise the performance targets but intends to disclose them via an RNS published immediately following the grant date.
Non-Executive Directors
Current annual fee levels for Non-Executive Directors are as follows:
Non-Executive Director
Role
Committee chair role
David Shearer
David Garman
Rob Barclay
Rhian Bartlett
Shatish Dasani
Carol Kavanagh
Non-Executive Chairman
Senior Independent Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Nomination
–
Sustainability
–
Audit & Risk
Remuneration
1 April 2023¹
£150,000
£54,500
£54,500
£52,500
£54,500
£54,500
1 April 2022
£140,000
£52,000
£52,000
£45,000
£52,000
£45,000
1 The policy reflects a base Board fee of £47,500 (FY2023: £45,000); additional fees for the Chairman of the Audit & Risk, Remuneration and Sustainability
Committees of £7,000 (FY2023: £7,000), an additional fee for the Senior Independent Director (David Garman) of £7,000 (FY2023: £7,000) and for the designated
employee Non-Executive Director £5,000 (FY2023: NIL).
Strategic Report
Governance
Financial Statements
Corporate Information
123
Directors’ remuneration for FY2023 (Audited)
The emoluments of the Directors of the Company for the year under review were as follows:
Financial
year
Fees/basic
salary
£’000
Benefits
£’0004
Pension
£’0005
Total fixed
remuneration
£’000
Annual
bonus
£’0006
Value of
long-term
incentives
£’0007
Total variable
remuneration
£’000
Total
remuneration
£’000
Executive Directors
Dan Evans1
Non-Executive Directors
David Shearer
David Garman
Rob Barclay
Rhian Bartlett
Shatish Dasani
Carol Kavanagh
Former Directors
Russell Down2
James Bunn3
Totals
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
225
–
140
133
52
48
52
50
45
43
52
50
49
35
223
395
198
329
1,036
1,083
4
–
–
–
–
–
–
–
–
–
–
–
–
–
7
16
0
16
11
32
7
–
–
–
–
–
–
–
–
–
–
–
–
–
27
59
6
10
40
69
236
–
140
133
52
48
52
50
45
43
52
50
49
35
257
470
204
355
1,087
1,184
0
–
–
–
–
–
–
–
–
–
–
–
–
–
0
265
0
220
0
485
0
–
–
–
–
–
–
–
–
–
–
–
–
–
0
0
0
–
0
0
0
–
–
–
–
–
–
–
–
–
–
–
–
–
0
265
0
220
0
485
236
–
140
133
52
48
52
50
45
43
52
50
49
35
257
735
204
575
1,087
1,669
1 Dan Evans was appointed to the Board on 1 October 2022.
2 Russell Down retired from the Board on 30 September 2022.
3 James Bunn resigned from the Board on 1 November 2022.
4 Taxable benefits comprise a car or cash alternative, health insurance and life insurance.
5 Russell Down, James Bunn and Dan Evans received £27k, £8k and £10k respectively in lieu of pension contributions which are included in the Pension column
below together with any actual pension contributions made.
6 For FY2023 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.
7 For FY2023, this reflects that the 2020 PSP awards were made in November 2020 and subject to an absolute TSR performance target which will be assessed in
November 2023, the current assessment is detailed below.
Annual bonus assessment in respect of FY2023 performance (Audited)
Dan Evans (from 1 October 2022) and Russell Down (to 30 September 2022) were eligible to receive pro-rated annual bonuses in
respect of financial and operational performance in FY2023. Following his resignation, James Bunn was not eligible to receive an
annual bonus for FY2023.
Details of the performance targets and resulting bonus outcome are set out in the table below:
Measure
Adjusted PBT1
Strategic (Pricing, Return on Capital, Recruitment)
ESG (CO2 per employee, Diversity, Safety)
Total
Weighting
(% of salary)
70%
15%
15%
100%
Target
£34.2m
15%
15%
–
Max
Actual
Result
(% of salary)
£37.62m
–
–
–
£32.1m
–
–
–
0%
0%2
0%2
0%
1 Group adjusted profit before tax (‘adjusted PBT’).
2 Despite progress made against strategy delivery and ESG targets, on the basis that the threshold PBT target was not met, no assessment was made against the
Strategic targets (focussed on pricing in the context of cost inflation, maximising return on capital against budget and accelerating the recruitment of apprentices
and graduate trainees) or ESG targets (delivering a year on year reduction in CO2 per employee, making progress on diversity and proactively managing and
minimising safety incidents).
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Annual Remuneration Report continued
PSP awards due to vest in 2023 (Audited)
LTIP awards were granted to Executive Directors and senior executives on 27 November 2020. Given the difficulty in setting robust
three-year EPS targets and the Committee’s desire to see the share price return to pre-Covid levels, the 2020 PSP awards were
based on the following absolute Total Shareholder Return targets:
The Company’s compound annual growth rate of TSR1
over the three years from the grant date
Below 7.5% p.a.
7.5% p.a.
15% p.a. or above
Greater than 7.5% p.a. but less than 15% p.a.
Percentage of an Award that may Vest2
0%
25%
100%
Between 25% and 100% on a straight line basis
1 Based on one month base and end share price averages.
2 The number of Shares which may vest may be reduced (including to zero) where the Committee determines that exceptional circumstances exist which mean that
the Vesting of the Award 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 Participant).
The TSR performance period runs for three years from the date of grant (27 November 2020) and therefore has not yet concluded.
Based on the Company’s performance to 31 March 2023, 0% of the 2020 PSP awards are currently expected to vest. Actual vesting
will be assessed at the end of the three-year performance period and any change in the vesting outcome and value of the LTIP
2020 for the purposes of the single figure of remuneration will be shown in next year’s report.
Based on the above, the estimated 2020 PSP award vesting as at 31 March 2023 is as follows:
Russell Down
Dan Evans1
565,490
342,765
0
0
–
–
0
0
£0
£0
Awards
granted
Shares vesting based on
estimated performance
Dividend equivalent
shares
Total shares
expected to vest
Estimated value
at vesting
1 Granted on the same date and terms as award granted to Executive Directors in respect of his below Board Chief Operating Officer role.
The 2020 PSP award granted to James Bunn over 474,037 shares lapsed on cessation of employment.
Long-term incentive plan awards granted to Executive Directors in the year (Audited)
James Bunn was granted the following awards under the 2014 Performance Share Plan on 14 June 2021, which were structured as
nil cost options, 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
James Bunn
20/06/2022
100% of
salary
747,417
£328,500 Three years ending
31 March 2025
Three years
from grant
25% of
an award
In addition to the above, Dan Evans was granted a PSP award over 604,528 shares on the same date and terms of the award
detailed above in respect of his below Board Chief Operating Officer role.
1 Determined using the average mid-market closing share price of the Company for the five days preceding the date of grant (43.95p).
2 50% of the award is subject to an EPS condition. 25% of this part of the award vests for EPS (before amortisation and exceptional costs) of 6.17 pence with full
vesting of this part of the award for EPS of 7.72 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 2025. 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).
Strategic Report
Governance
Financial Statements
Corporate Information
125
Details of long-term incentive plan awards outstanding
Details of the Executive Directors’ interests in share-based awards1 are as follows:
Executive Director
Dan Evans2
PSP 20173
PSP 20183
PSP 20194
PSP 20205
PSP 20216
PSP 20227
Total
Russell Down8
PSP 20153
PSP 20163
PSP 20173
PSP 20183
PSP 20194
PSP 20205
PSP 20216
SAYE 20189
SAYE 20199
SAYE 20208
Total
James Bunn10
PSP 20205
PSP 20216
PSP 20227
SAYE 20219
Total
Interest at
1 April 2022
Options/
awards granted
during the year
Options/
awards
exercised
during the year
Options/
awards lapsed
during the year
Interest at
31 March 2023
Exercise price
(pence)
Normal date from which
exercisable/vested
to expiry date
(if appropriate)
23,883
60,148
294,867
342,765
338,120
–
–
–
–
–
–
604,528
1,059,783
604,528
–
–
–
–
–
–
–
–
–
294,867
–
–
–
23,883
60,148
–
342,765
338,120
604,528
(294,867)
1,369,444
nil
nil
nil
nil
nil
nil
Jun 2020 – Jun 2027
May 2021 – May 2028
May 2022 – May 2029
Nov 2023 – Nov 2030
Jun 2024 – Jun 2031
Jun 2025 – Jun 2032
226,130
943,115
314,241
309,788
617,947
565,490
551,385
6,406
6,000
3,786
3,544,288
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,406
–
–
–
–
–
617,947
–
–
–
–
–
226,130
943,115
314,241
309,788
–
565,490
551,385
–
6,000
3,786
6,406
(617,947)
2,919,935
nil
nil
nil
nil
nil
nil
nil
46.080
48.000
55.144
Aug 2018 – Aug 2025
Jun 2019 – Jun 2026
Jun 2020 – Jun 2027
May 2021 – May 2028
May 2022 – May 2029
Nov 2023 – Nov 2030
Jun 2024 – Jun 2031
Feb 2022 – Jul 2022
Feb 2023 – Jul 2023
Feb 2024 – Jul 2024
474,037
458,031
–
14,200
–
–
747,417
–
–
–
–
474,037
458,031
747,417
14,200
946,268
747,417
– (1,693,685)
–
–
–
–
–
nil
nil
nil
55.52
Nov 2023 – Nov 2030
Jun 2024 – Jun 2031
Jun 2025 – Jun 2032
Feb 2025 – Jul 2025
1 All PSP awards above were granted as nil-cost options. No consideration was paid for the grant of these options.
2 All PSP awards granted to Dan Evans were prior to his appointment to the Board on 1 October 2022.
3 Vested awards.
4 50% of the 2019 PSP award was subject to an EPS condition. 25% of this part of the award would have vested for EPS (before amortisation and exceptional costs
on a pre-IFRS 16 basis) of 6.82 pence increasing pro-rata to full vesting of this part for EPS of 8.34 pence. 50% of the 2019 PSP award was subject to a relative
TSR condition measured against FTSE 250 companies (excluding investment trusts) over three financial years ending 31 March 2022. 25% of this part of the award
would have vested if the Company’s TSR was median increasing pro-rata to full vesting of this part for upper quartile performance or better. This award lapsed in
2022 in full as a result of failing to hit the threshold EPS and TSR targets.
5 The performance conditions for the 2020 PSP awards are set out at ‘PSP awards due to vest in 2023' on page 124.
6 50% of the 2021 PSP 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
increasing pro-rata to full vesting of this part for EPS of 5.89 pence. 50% of the 2021 PSP award is subject to a relative TSR condition measured against FTSE 250
companies (excluding investment trusts) over three financial years ending 31 March 2024. 25% of this part of the award vests if the Company’s TSR is median
increasing pro-rata to full vesting of this part for upper quartile performance or better.
7 The performance conditions for the 2022 PSP awards are set out at ‘Long-term incentive plan awards granted to Executive Directors in the year' on page 124.
8 Russell Down retired from the Board on 30 September 2022. As detailed in the Board changes section below, Russell Down was treated as a good leaver in respect
of his outstanding PSP awards which will continue to vest at the normal vesting dates, subject to performance testing and time pro-rating.
9 All-employee scheme giving employees the opportunity to acquire shares at a discount of 20% of the market value of the shares at the time the invitation is
issued. The maximum monthly contribution is £250. The share price at Russell Down’s exercise of his SAYE 2018 was 48.50 pence.
10 James Bunn resigned from the Board on 1 November 2022. As detailed in the Board changes section below, James Bunn was not treated as a good leaver in
respect of his outstanding PSP awards which lapsed in full at cessation of employment.
The mid-market closing price of Speedy Hire Plc ordinary shares at 31 March 2023 was 33.65 pence and the range during the year
was 32.09 pence to 54.19 pence per share.
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Annual 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 20 June 2023, the latest practicable date before the publication of this Annual Report and Accounts, 1.56%
of the 5% limit and 4.46% of the 10% limit have been used.
Payments for Loss of Office and Payments to Past Directors (Audited)
Russell Down – On 1 August 2022, the Company announced that Russell Down was stepping down from the Board as Chief
Executive on 30 September 2022. In respect of the remuneration arrangements for Russell’s departure, he:
•
continued to receive base salary, pension and benefits totalling £319,171 up to the end of his twelve-month notice period
commencing from the 11 May 2022 announcement date;
• was entitled to receive a pro-rated annual bonus for the portion of FY2023 served as Chief Executive, (although no bonus for
FY2023 was ultimately payable);
•
•
•
continues to be entitled to unvested nil cost option award granted under the under the Company’s 2014 Performance Share
Plan (PSP) with awards continuing to vest on the normal vesting dates, subject to the achievement of the relevant performance
conditions and the application of time pro-rating;
is eligible to exercise vested but unexercised PSP awards for a period of 12 months from cessation (the two-year post vesting
holding period continues to apply to PSP awards);
is required to comply with post-employment shareholding guidelines for the two-year period following cessation. These
guidelines apply to any shares (net of tax) obtained from PSP awards granted following the 2020 AGM which vest within two
years of cessation;
•
received a contribution of £4,000 towards legal fees incurred in connection with his retirement; and
• was not eligible for any other payments for loss of office.
James Bunn – As per the announcement on 27 October 2022, James Bunn stepped down from the Board as Chief Financial Officer
on 1 November 2022 and ceased employment on 31 December 2022, this being a mutually agreed early release of James’ usual
nine-month contractual notice period. In respect of the remuneration arrangements for James’ departure, he:
•
continued to receive base salary, pension and benefits between stepping down from the Board and cessation on 31 December
2022 totalling £58,391 in line with his contractual entitlement. No further payments were paid or are payable after this date;
• was not eligible to receive an annual bonus in respect of FY2023;
• was not treated as a good leaver in respect of outstanding PSP awards. As such, all outstanding awards lapsed at cessation of
employment;
•
received a contribution of £750 towards legal fees incurred in connection with his departure; and
• was not eligible for any other payments for loss of office.
There were no payments for past Directors in the year ended 31 March 2023.
Shareholder voting at AGM
The most recent resolutions in respect of the Directors’ Remuneration Policy (2020 AGM) and Directors’ Remuneration Report
(2022 AGM) received the following votes from shareholders:
2020 AGM – Remuneration Policy
2022 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
Total votes cast (including withheld votes)
413,837,471
16,425,923
430,263,394
671,778
430,935,172
96.18
3.82
100
n/a
364,700,578
7,173,863
371,874,441
732,785
372,607,226
98.07
1.93
100
n/a
1 A vote withheld is not a vote in law and is not counted in the calculation of the proportion of votes cast ‘For’ and ‘Against’ a resolution.
Strategic Report
Governance
Financial Statements
Corporate Information
127
Directors’ interests in the share capital of the Company (Audited)
The interests of the Directors, including their connected persons, (all of which were beneficial) who held office during FY2023, are
set out in the table below:
Director
31 March 2022
31 March 2023
Unvested
Vested
Unvested
31 March 2023
Legally owned
PSP Awards
Sharesave
Total
Dan Evans1
David Shearer
David Garman
Rob Barclay
Rhian Bartlett
Shatish Dasani
Carol Kavanagh
Former Directors
Russell Down2
James Bunn3
–
500,000
75,000
48,000
74,744
61,500
14,999
–
750,000
500,000
48,000
74,744
151,500
65,075
1,285,413
–
–
–
–
–
–
84,031
–
–
–
–
–
–
–
–
–
–
–
–
–
84,031
750,000
500,000
48,000
74,744
151,500
65,075
319,186
35,981
325,592
35,981
1,116,875
–
1,793,274
–
9,786
–
2,118,866
–
Shareholding
requirement
% of salary/fee
of requirement
met
%
200
100
100
100
100
100
100
n/a
n/a
%
4
>100
>100
33
54
>100
45
n/a
n/a
1 Dan Evans was appointed to the Board on 1 October 2022, his 4% of salary achievement is calculated on the basis of an annualised salary.
2 Russell Down retired from the Board on 30 September 2022. As detailed in the Board changes section above, Russell Down was treated as a good leaver in respect
of his outstanding PSP awards which will continue to vest at the normal vesting dates, subject to performance testing and time pro-rating.
3 James Bunn resigned from the Board on 1 November 2022. The number of shares legally owned is at the date of termination of employment. As detailed in
the Board changes section above, James Bunn was not treated as a good leaver in respect of his outstanding PSP awards which lapsed in full at cessation of
employment.
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 2023 (being 37.91p) and tested against the Directors’ base salary/fee at 31 March 2023).
There have been no other changes in the interests of any current Director in the share capital of Speedy Hire Plc between 1 April
2023 and the date of this report save for time pro-rating of Russell Down’s unvested PSP awards as referenced in note 2 above and
David Shearer purchased 250,000 additional shares in the Company on 22 June 2023.
Comparison of overall performance and pay
The chart below presents the total shareholder return for Speedy Hire Plc compared to that of the FTSE 250 and FTSE SmallCap
(both excluding investment trusts). The values indicated in the graph show the share price growth plus reinvested dividends over
a ten-year period from a £100 hypothetical holding of ordinary shares in Speedy Hire Plc and in the index.
Total shareholder return
)
d
e
s
a
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(
)
£
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250
200
150
100
50
31/03/2013
31/03/2015
31/03/2017
31/03/2019
31/03/2021
31/03/2023
Speedy Hire
FTSE 250 (excl. Investment Trusts)
FTSE SmallCap (excl. Investment Trusts)
This graph shows the value, by 31 March 2023, of £100 investment in Speedy Hire on 31 March 2013, compared with the value of
£100 invested in the FTSE 250 (excl. Investment Trusts) and FTSE SmallCap (excl. Investment Trusts) indices on the same day. The
other points plotted are the values at intervening financial year-ends. The FTSE 250 and SmallCap indexes have been chosen as
appropriate comparators given that the former is used for the PSP TSR comparator group and Speedy is a constituent of the latter.
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Annual 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 (FY2014 to FY2023) 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
Dan
Evans
FY 2014
FY2014
FY2015
FY2016
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2023
Single Total
Figure of
remuneration
(£’000s)
Annual
bonus (%
of max)
PSP vesting
(% of max)
707
115
593
107
409
757
6671
1,2781
683
790
735
257
236
–
– 60.0%
82.0%
–
–
–
–
– 97.4% 54.8% 54.9%
– 70.54%3 66.9%
0%
0%
–
– 33.0% 96.4%2 50.0% 48.51%
0%
0%
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.
Russell Down stepped down and Dan Evans was appointed as Chief Executive during FY2023.
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 each Director’s total 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 FY2020 and FY2021, FY2021 and FY2022, and FY2022 and
FY2023 compared to that of the average for all UK and Ireland based employees of the Group.
Dan Evans1
David Shearer
David Garman
Rob Barclay
Rhian Bartlett2
Shatish Dasani3
Carol Kavanagh4
Former Directors
Russell Down5
James Bunn6
Average employees
% change from FY2020 to FY2021
% change from FY2021 to FY2022
% change from FY2022 to FY2023
Salary/Fee
Benefits
Bonus
Salary/Fee
Benefits
Bonus
Salary/Fee
Benefits
Bonus
n/a
(6%)
4%
(5%)
4%
n/a
n/a
(5)%
n/a
(0%)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2%
n/a
(0%)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
100%
n/a
n/a
6%
8%
5%
4%
3%
n/a
7%
1%
n/a
12%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
0%
10%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
93%
91%
11%
n/a
5%
8%
4%
5%
4%
39%
n/a
n/a
6%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
75%
1 Dan Evans was appointed to the Board on 1 October 2022. As such, there is no prior year remuneration.
2 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.
3 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 prorated up,
to enable a full year on year comparison.
4 Carol Kavanagh was appointed to the Board on 1 June 2021. As such, there was no prior year remuneration for 2021. Her 2022 numbers have been prorated up,
to enable a full year on year comparison.
5 Russell Down retired from the Board on 30 September 2022 hence no numbers are shown for 2023.
6 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 prorated
up, to enable a full year on year comparison. He resigned from the Board on 1 November 2022 hence no numbers are shown for 2023.
Strategic Report
Governance
Financial Statements
Corporate Information
129
Pay ratio of the Chief Executive to average employee
The table below compares the ratio of Chief Executive’s pay at the 25th, median and 75th percentile as at 31 March 2023 (and for
the prior year), and the pay details for the individuals at each percentile. Given the change in Chief Executive during the FY2023,
the Chief Executive’s pay for FY2023 is based on £491,766, being the total remuneration for both Russell Down and Dan Evans in
respect of their qualifying services as Chief Executive from the single figure table above.
Year
2023
2022
2021
2020
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
Option A
Option B
20:1
31:1
37:1
30:1
17:1
26:1
32:1
29:1
13:1
21:1
25:1
22:1
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.
The ratio has reduced between 2022 and 2023 primarily as a result of a 67% of maximum bonus awarded to the Chief Executive
in 2022 compared to no bonus awarded in 2023. 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 2022/23 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
2023
Salary
(Total pay and benefits)
£447,727
(£491,766)
£23,517
(£25,026)
£27,170
(£29,268)
£29,995
(£37,961)
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)
2022
123.3
11.3
6.1
2023
136.9
10.9
24.0
% change
11.0%
-3.5%
293.4%
£0.7m 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 30 June 2023.
Carol Kavanagh
Chair of the Remuneration Committee
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Independent auditors’ report to the
members of Speedy Hire plc
Report on the audit of the financial statements
Qualified opinion
In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion paragraph below,
Speedy Hire plc’s group financial statements and company financial statements (the “financial statements”):
• give a true and fair view of the state of the group’s and of the company’s affairs as at 31 March 2023 and of the group’s
profit and the group’s and company’s cash flows for the year then ended;
• have been properly prepared in accordance with UK-adopted international accounting standards as applied in
accordance with the provisions of the Companies Act 2006; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report, which comprise: the Consolidated and
Company Balance Sheets as at 31 March 2023; the Consolidated Income Statement; the Consolidated Statement of
Comprehensive Income; the Consolidated and Company Statements of Changes in Equity; and the Consolidated and
Company Cash Flow Statements for the year then ended; and the notes to the financial statements, which include a
description of the significant accounting policies.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for qualified opinion
The Group has Property, plant and equipment of £237.7m recorded on the balance sheet as at 31 March 2023 and recorded
an exceptional asset write-down of £20.4m in the year relating to hire assets that could not be located. As a result of
weaknesses in the Group’s historical record-keeping, we were unable satisfactorily to complete our testing of assets between
physical asset counts and the Group’s asset registers. Consequently, we have been unable to obtain sufficient appropriate
audit evidence in respect of these assets, and we are therefore unable to determine whether any further adjustments are
necessary to Property, plant and equipment as at 31 March 2023, and the related asset write-down, depreciation charges
and any associated tax impact recorded in the year.
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our qualified opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and
we have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were
not provided.
Strategic Report
Governance
Financial Statements
Corporate Information
131
Other than those disclosed in Note 5, we have provided no non-audit services to the company or its controlled undertakings
in the period under audit.
Our audit approach
Context
Speedy Hire is a listed provider of tools, plant and specialist hire equipment, predominantly operating in the UK. The Group’s
consolidated financial statements are primarily an aggregation of legal entities within the UK and Ireland with a joint venture
operating in Kazakhstan. 2023 is our first year as external auditors of the Group and Company, and as part of our audit
transition, we performed specific procedures over opening balances by reviewing the predecessor auditors' working papers
and risk assessment and re-evaluating the predecessor auditors' conclusions in respect of key sources of estimation
uncertainty and critical judgements in the opening balance sheet at 1 April 2022. We also performed process walkthroughs
to understand and evaluate the key financial processes and controls across the Group. As we undertook each phase of this
first year audit, we regularly reconsidered our risk assessment to reflect audit findings, including our assessment of the
Group’s control environment and the impact on our planned audit approach. Given the nature of the Group’s operations we
considered the existence and valuation of the hire fleet to be the most significant area of risk and therefore have included
this as a key audit matter.
Overview
Audit scope
• Our work incorporated full scope audits of the following legal entities: Speedy Asset Services Limited, Speedy Support
Services Limited and Speedy Transport Limited.
• We also engaged a component team in Kazakhstan to perform a full scope audit of Speedy Zholdas, the joint venture
located within that country..
Key audit matters
• Basis for qualified opinion in relation to Property, plant and equipment.
• Valuation of investments in subsidiaries and recoverability of amounts owed by subsidiaries (parent).
• Completeness and valuation of dilapidation provision (group).
Materiality
• Overall group materiality: £4.4m based on 1% of Revenue.
• Overall company materiality: £2.8m based on 1% of Total Assets.
• Performance materiality: £2.2m (group) and £1.4m (company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of
the financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any
comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Other than the matter described in the Basis for qualified opinion paragraph above, we determined the matters described
below to be the key audit matters to be communicated in our report. This is not a complete list of all risks identified by our
audit.
Key audit matter
How our audit addressed the key audit matter
Valuation of investments in subsidiaries and
recoverability of amounts owed by subsidiaries (parent)
Refer to notes 34 and 35 the Company financial
statements
Investments in subsidiaries of £93.5m (2022: £93.5m) is
material to the company financial statements. Due to the
significant write off of assets in the group, impairment
indicators exist in respect of the investments in
subsidiaries in the current year and management have
assessed these balances for impairment.
The amounts owed by subsidiary undertakings of
£183.3m (2022: £380.3) are stated after an expected
credit loss impairment of £16.7m recognised as a prior
year restatement in the earliest presented balance sheet.
These balances are material to the company financial
statements. Management has re-measured the expected
credit losses in relation to the amounts also owed by
subsidiary undertakings.
We evaluated and assessed the Company's investments in
subsidiaries with reference to the Group’s future cash flow
forecasts. We checked the allocation of this by legal entity,
the process by which they were drawn up and tested the
underlying value in use calculations as follows:
We compared the Group’s forecasts to the latest Board
approved budget and found them to be consistent. We
discussed the cash flow forecasts with management and
compared these to external market research in order to
identify any inconsistencies.
We also assessed:• Management’s key assumptions for
long-term growth rates by comparing with external forecasts
of long
term growth rates; and • the discount rates by using
valuations experts to assess the cost of capital calculations
-
for the Group and comparing against comparable
organisations.
We compared the current period’s actual results with
previous forecasts to assess historical accuracy of the
forecasts and incorporated the variances identified into the
sensitivity analysis performed.
We have considered management’s analysis of the
potential impact of reasonably possible changes in key
assumptions. This work included consideration of all key
assumptions and changes that could be considered to be
reasonably possible based on the related risks. We have
also reviewed the disclosures made regarding the
assumptions and are satisfied that these are appropriate.
As a result of these procedures, we were satisfied with the
Directors’ conclusion that no impairment was required
against the carrying value of the investments in
subsidiaries.
We have obtained management's intercompany
recoverability model and assessed whether the expected
credit loss ‘general approach’ methods applied were
consistent with IFRS 9.
We checked the calculations within the model and agreed
the figures included to the relevant financial information
included in the Group consolidation schedules. We have
obtained evidence that supports the extent to which the
counterparty could repay amounts in full, if demanded.
We also assessed the adequacy of the disclosure provided
in the company financial statements in relation to the
relevant accounting standards.
As a result of these procedures, we were satisfied with the
Directors’ conclusion that it is appropriate to recognise a
prior year restatement in relation to an expected credit loss
impairment and no further impairment was required for the
current period.
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Governance
Financial Statements
Corporate Information
133
Completeness and valuation of dilapidation provision
(group)
Refer to note 23 to the Company financial statements
We obtained management's original calculation of the
dilapidations provision, which was on a basis consistent
with prior years.
Dilapidation provisions are recognised by the Group,
representing management’s best estimate of the
contractual cost to restore leased premises to their
original condition upon the Group’s exit of a lease. The
total liability of £15.6m is shown in note 23.
We challenged management as to whether calculating the
provision including only those leases which had been exited
or a planned exit had been communicated to a landlord was
in compliance with IAS 37, as it understated the contractual
obligation
Management has calculated the dilapidation provision
based upon the total area of the leased property portfolio
multiplied by an expected cost per square foot. The
expected cost per square foot has been determined
using historic settlements and any new information
specific to the individual leases which could indicate a
different cost per square foot would be more appropriate.
The opening dilapidation provision at 1 April 2021 has
been restated to provide for costs expected to be
incurred across all leases. Historically the provision was
calculated only for leases which had been exited or the
landlord had been made aware of a planned exit, which
understated the contractual obligation.
As a result of the procedures set out above, management
recalculated the provision to include all applicable leases.
We tested the mathematical accuracy of this calculation,
confirmed the completeness of leases and the related
square footage by agreeing a sample of the leases in the
calculation to the lease agreements, we tested a sample of
historic settlements to invoices, we utilised our real estate
team to assess the cost per square foot for dilapidations
and where there were specific reasons to reduce the cost
per square foot down we have understood the reasons and
obtained evidence for the reduction. We did not identify any
material adjustment to this revised provision.
As the increased provision should have been recorded in
prior periods, we agree with management's conclusion that
the prior year should be restated and we have checked the
restatement made to the 1 April 2021 opening balance
sheet and reviewed the corresponding disclosures.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial
statements as a whole, taking into account the structure of the group and the company, the accounting processes and
controls, and the industry in which they operate.
The group is a provider of tools, plant and specialist hire equipment, predominantly operating in the UK. The group is
structured in two operating segments: Hire and Services The group financial statements are a consolidation of the
subsidiaries in UK and Ireland, in addition to there being a joint venture accounted for using the equity method based in
Kazakhstan. In establishing the overall approach to the group audit, we determined the type of work that needed to be
performed at each subsidiary and joint venture, as the group engagement team, or component auditors operating under our
instruction. Where work was performed by component auditors, we determined the level of involvement we needed to have
in this work to be able to conclude that sufficient appropriate audit evidence had been obtained. Our work incorporated full
scope audits of the following legal entities Speedy Asset Services Limited, Speedy Support Services Limited, Speedy
Transport Limited. We also engaged a component team in Kazakhstan to perform a full scope audit of Speedy Zholdas, the
joint venture disclosed within the financial statements. This scope detailed above accounted for approximately 98% of the
group’s revenue.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to understand the process management adopted to assess the
extent of the potential impact of climate risk on the Group’s financial statements and support the disclosures made within
the financial statements.
We challenged the completeness of management’s climate risk assessment by: reading external reporting made by
management; challenging the consistency of management’s climate impact assessment with internal climate plans and
board minutes; and, reading the entity’s website / communications for details of climate related impacts.
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Management has made commitments to become net zero by 2040. This commitment does not directly impact financial
reporting, as management has not yet developed a detailed pathway on how exactly they will deliver this commitment and
will only be able to model the impact further into the journey to net zero.
Management considers the impact of climate risk as at the balance sheet date does not give rise to a potential material
financial statement impact.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and
extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of
misstatements, both individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall
materiality
How we
determined it
Rationale for
benchmark
applied
Financial statements - group
Financial statements - company
£4.4m.
£2.8m.
1% of Revenue
1% of Total Assets
We considered materiality in a number of different
ways, and used our professional judgement
having applied 'rule of thumb' percentages to a
number of potential benchmarks. On the basis of
this, we concluded that 1% of revenue is an
appropriate level of materiality considering the
overall scale of the business
We believe that calculating statutory materiality
based on 1% of total assets is a typical primary
measure for users of the financial statements of
holding companies, and is a generally accepted
auditing benchmark. This has been capped to not
exceed the materiality for the consolidated
financial statements
For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality.
The range of materiality allocated across components was between £0.7m and £3.9m. Certain components were audited to
a local statutory audit materiality that was also less than our overall group materiality.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope
of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example
in determining sample sizes. Our performance materiality was 50% of overall materiality, amounting to £2.2m for the group
financial statements and £1.4m for the company financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment
and aggregation risk and the effectiveness of controls - and concluded that an amount at the lower end of our normal range
was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £0.2m
(group audit) and £0.1m (company audit) as well as misstatements below those amounts that, in our view, warranted reporting
for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group's and the company’s ability to continue to adopt the going concern
basis of accounting included:
• We obtained management’s assessment that supports the Board’s conclusions with respect to the disclosures provided
around going concern and evaluated the mathematical accuracy of the cash flow model used for this assessment;
Strategic Report
Governance
Financial Statements
Corporate Information
135
• We obtained management’s severe but plausible downside scenario and discussed the assumptions that were applied
in order to understand the rationale and the appropriateness of those assumptions;
• We corroborated the key assumptions to third party evidence and/or our knowledge of the business;
• We checked the banking agreement for the terms of the financing facilities including the post-year end extension
agreement;
• We assessed the availability of liquid resources under different scenarios modelled by management, and the impact to
any associated covenant test required; and
• We obtained the most recent management accounts and assessed the liquidity position post-year end.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group's and the company’s ability to continue as a going concern
for a period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in
the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's
and the company's ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material
to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our
auditors’ report thereon. The directors are responsible for the other information, which includes reporting based on the Task
Force on Climate-related Financial Disclosures (TCFD) recommendations. Our opinion on the financial statements does not
cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly
stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact. Except for the possible effects
of the matter described in the Basis for qualified opinion paragraph above, we have nothing to report based on these
responsibilities.
With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK
Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions
and matters as described below.
Strategic report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and
Directors' Report for the year ended 31 March 2023 is consistent with the financial statements and has been prepared in
accordance with applicable legal requirements.
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In light of the knowledge and understanding of the group and company and their environment obtained in the course of the
audit, except for the possible effects of the matter described in the Basis for qualified opinion paragraph above, we did not
identify any material misstatements in the Strategic report and Directors' Report.
Directors' Remuneration
In our opinion, the part of the Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that
part of the corporate governance statement relating to the company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review. Our additional responsibilities with respect to the corporate governance statement
as other information are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial statements and our knowledge obtained during the audit,
and we have nothing material to add or draw attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going
concern basis of accounting in preparing them, and their identification of any material uncertainties to the group’s and
company’s ability to continue to do so over a period of at least twelve months from the date of approval of the financial
statements;
• The directors’ explanation as to their assessment of the group's and company’s prospects, the period this assessment
covers and why the period is appropriate; and
• The directors’ statement as to whether they 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 of its assessment, including any related disclosures
drawing attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group and company was substantially less in
scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their statement;
checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and
considering whether the statement is consistent with the financial statements and our knowledge and understanding of the
group and company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of
the corporate governance statement is materially consistent with the financial statements and our knowledge obtained
during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable,
and provides the information necessary for the members to assess the group’s and company's position, performance,
business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s
compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the
Listing Rules for review by the auditors.
Strategic Report
Governance
Financial Statements
Corporate Information
137
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of directors’ responsibilities in respect of the Annual Report and Financial
Statements, the directors are responsible for the preparation of the financial statements in accordance with the applicable
framework and for being satisfied that they give a true and fair view. The directors are also 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.
In preparing the financial statements, the directors are responsible for assessing the group’s and the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the group or the company or to cease operations, or have no
realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
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 an auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent
to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and
regulations related to health and safety regulations, environmental laws and employment law, and we considered the extent
to which non-compliance might have a material effect on the financial statements. We also considered those laws and
regulations that have a direct impact on the financial statements such as the Companies Act 2006, UK tax legislation and the
listing rules. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements
(including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal
entries to improve financial performance, and management bias in accounting estimates and judgements. The group
engagement team shared this risk assessment with the component auditors so that they could include appropriate audit
procedures in response to such risks in their work. Audit procedures performed by the group engagement team and/or
component auditors included:
• discussions with the audit committee, management, internal audit and the in-house legal team including consideration of
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;
known or suspected instances of non-compliance with laws and regulation or fraud;
•
reviewing minutes of meetings of those charged with governance;
• auditing the tax computations to ensure compliance with tax legislation;
•
• challenging assumptions and judgements made by management in their significant accounting estimates (because of the
risk of management bias), in particular around the useful economic lives and residual values of hire assets; carrying value
of goodwill, other intangible assets, and property plant and equipment and dilapidation provisions;
reviewing financial statement disclosures and testing to supporting documentation, where appropriate, to assess
compliance with applicable laws and regulations; and
reviewed independent external counsel investigation report in relation to hire assets
•
•
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of
non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial
statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
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resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete
populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases,
we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or
assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
In respect solely of the limitation on our work relating to property, plant and equipment, described in the Basis for qualified
opinion paragraph above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit;
and
in our opinion adequate accounting records have not been kept by the company.
•
Under the Companies Act 2006 we are also required to report to you if, in our opinion:
returns adequate for our audit have not been received from branches not visited by us; or
•
• certain disclosures of directors’ remuneration specified by law are not made; or
•
the company financial statements and the part of the Remuneration Report to be audited are not in agreement with the
accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 8 September 2022 to audit
the financial statements for the year ended 31 March 2023 and subsequent financial periods. This is therefore our first year
of uninterrupted engagement.
Other matter
In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.14R, these
financial statements will form part of the ESEF-prepared annual financial report filed on the National Storage Mechanism of
the Financial Conduct Authority in accordance with the ESEF Regulatory Technical Standard (‘ESEF RTS’). This auditors’
report provides no assurance over whether the annual financial report will be prepared using the single electronic format
specified in the ESEF RTS.
Strategic Report
Governance
Financial Statements
Corporate Information
139
Jonathan Studholme (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Manchester
30 June 2023
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Consolidated Income Statement
for the year ended 31 March 2023
Revenue
Cost of sales
Gross profit
Distribution and administrative costs
Impairment losses on trade
receivables
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)
Adjusted diluted earnings per share*
(pence)
Note
2
18
5
14
8
9
10
10
12
12
10
10
Year ended 31 March 2023
Year ended 31 March 2022
Before
exceptional
items
£m
Exceptional
items¹
£m
440.6
(201.2)
239.4
(203.1)
(4.0)
32.3
6.6
38.9
(8.6)
30.3
(6.5)
–
(20.4)
(20.4)
(8.1)
–
(28.5)
–
(28.5)
–
(28.5)
5.9
23.8
(22.6)
–
23.8
–
(22.6)
Before
exceptional
items
£m
386.8
(165.7)
221.1
(185.7)
(3.8)
31.6
3.2
34.8
(5.7)
29.1
(7.7)
21.4
0.2
21.6
Exceptional
items¹
£m
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
£m
440.6
(221.6)
219.0
(211.2)
(4.0)
3.8
6.6
10.4
(8.6)
1.8
(0.6)
1.2
–
1.2
0.25
0.24
103.7
32.1
5.25
5.21
Total
£m
386.8
(165.7)
221.1
(185.7)
(3.8)
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
4.18
* earnings per share from continuing operations.
1 Detail on exceptional items is provided in note 4.
The accompanying notes form part of the financial statements.
Strategic Report
Governance
Financial Statements
Corporate Information
141
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2023
Profit for the financial year
Other comprehensive income/(expense) 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/(expense)
Total comprehensive income for the financial year
The accompanying notes form part of the financial statements.
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
Note
1.2
21.6
9
0.2
0.5
–
0.7
1.9
0.8
(0.8)
(0.2)
(0.2)
21.4
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Consolidated Balance Sheet
as at 31 March 2023
ASSETS
Non-current assets
Intangible assets
Investment in joint venture
Property, plant and equipment
Land and buildings
Hire equipment
Other
Right of use assets
Deferred tax asset
Current assets
Inventories
Trade and other receivables
Cash
Current tax asset
Derivative financial assets
Total assets
LIABILITIES
Current liabilities
Bank overdraft
Lease liabilities
Current tax creditor
Trade and other payables
Derivative financial liabilities
Provisions
Net current assets/(liabilities)
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Deferred tax liability
Total liabilities
Net assets
EQUITY
Share capital
Share premium
Capital redemption reserve
Merger reserve
Hedging reserve
Translation reserve
Retained earnings
Total equity
*
See note 32.
31 March 2023
Note
£m
31 March 2022
Restated*
£m
1 April 2021
Restated*
£m
13
14
15
15
15
16
24
17
18
21
20
21
22
19
20
23
21
22
23
24
25
27
27
27
27
27
27
25.0
9.2
13.9
207.9
15.9
83.2
–
355.1
12.7
106.0
1.1
0.3
1.2
121.3
476.4
(1.3)
(22.1)
–
(88.6)
(0.6)
(3.6)
25.9
7.8
15.6
226.9
15.2
74.2
1.7
367.3
8.1
108.7
2.5
–
–
119.3
486.6
(1.7)
(20.6)
(1.0)
(96.6)
–
(2.8)
24.7
6.2
14.0
207.2
11.9
60.0
2.1
326.1
8.2
93.3
11.7
1.1
–
114.3
440.4
(0.5)
(16.7)
–
(95.4)
(0.4)
(3.1)
(116.2)
(122.7)
(116.1)
5.1
(3.4)
(1.8)
(92.2)
(64.0)
(12.0)
(7.4)
(175.6)
(291.8)
184.6
25.8
1.9
0.7
1.0
0.3
(1.3)
156.2
184.6
(68.3)
(56.1)
(12.1)
(11.0)
(147.5)
(270.2)
216.4
25.9
1.8
0.6
1.0
0.1
(1.8)
188.8
216.4
(44.4)
(46.5)
(13.8)
(8.8)
(113.5)
(229.6)
(210.8)
26.4
1.3
–
1.0
(0.7)
(1.0)
183.8
210.8
The Consolidated Financial Statements on pages 140 to 175 were approved by the Board of Directors on 30 June 2023 and were
signed on its behalf by:
Dan Evans
Director
Company registered number: 00927680
Strategic Report
Governance
Financial Statements
Corporate Information
143
Consolidated Statement of Changes in Equity
for the year ended 31 March 2023
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Note
Merger
reserve
£m
Hedging
reserve
£m
Translation
reserve
£m
Retained
Earnings
£m
At 1 April 2021 reported
Restatement*
At 1 April 2021 restated*
Profit for the year
Other comprehensive income
Total comprehensive income
Dividends
Equity-settled share-based payments
Purchase of own shares for
cancellation or placement in treasury
Tax on items taken directly to equity
Issue of shares under the Sharesave
Scheme
At 31 March 2022 restated*
Profit for the year
Other comprehensive income
Total comprehensive income
Dividends
Equity-settled share-based payments
Purchase of own shares for
cancellation or placement in treasury
Issue of shares under the Sharesave
Scheme
At 31 March 2023
*
See note 32.
26.4
–
26.4
–
–
–
–
–
(0.6)
–
0.1
25.9
–
–
–
–
–
(0.1)
–
25.8
1.3
–
1.3
–
–
–
–
–
–
–
0.5
1.8
–
–
–
–
–
–
0.1
1.9
26
25
26
26
25
26
–
–
–
–
–
–
–
–
0.6
–
–
0.6
–
–
–
–
–
0.1
–
0.7
The accompanying notes form part of the financial statements.
1.0
–
1.0
–
–
–
–
–
–
–
–
1.0
–
–
–
–
–
–
–
(0.7)
–
(0.7)
–
0.8
0.8
–
–
–
–
–
0.1
–
0.2
0.2
–
–
–
–
(1.0)
–
(1.0)
–
(0.8)
(0.8)
–
–
–
–
–
(1.8)
–
0.5
0.5
–
–
–
–
Total
equity
£m
220.8
(10.0)
210.8
21.6
(0.2)
21.4
(11.3)
1.2
193.8
(10.0)
183.8
21.6
(0.2)
21.4
(11.3)
1.2
(6.2)
(0.1)
(6.2)
(0.1)
–
188.8
1.2
–
1.2
(10.9)
1.1
0.6
216.4
1.2
0.7
1.9
(10.9)
1.1
(24.0)
(24.0)
–
0.1
1.0
0.3
(1.3)
156.2
184.6
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2
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Consolidated Cash Flow Statement
for the year ended 31 March 2023
Cash generated from operating activities
Profit before tax including discontinued operations
Net financial expense
Amortisation
Depreciation
Share of profit from joint venture
Termination of lease contracts
Profit on disposal of hire equipment
Exceptional write-off
Loss on disposal of non-hire equipment
(Increase)/decrease in inventories
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Increase/(decrease) in provisions
Equity-settled share-based payments
Cash generated from operations before changes in hire fleet
Purchase of hire equipment
Proceeds from planned sale of hire equipment
Proceeds from customer loss/damage of hire equipment
Cash generated from operations
Interest paid
Tax paid
Net cash flow from operating activities
Cash flow used in investing activities
Purchase of non-hire property, plant and equipment*
Capital expenditure on IT development*
Proceeds from sale of non-hire property, plant and equipment
Dividends and loan repayments from joint venture
Net cash flow used in investing activities
Net cash flow before financing activities
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 or placement in treasury
Dividends paid
Net cash flow used in 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
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
Note
8
13
14
5
4
5
23
14
11
21
21
21
21
1.8
8.6
1.8
69.6
(6.6)
(0.4)
(1.7)
20.4
–
(4.6)
1.5
(3.5)
0.7
1.1
88.7
(54.2)
6.3
11.1
51.9
(8.4)
(3.1)
40.4
(8.7)
(0.9)
0.6
5.6
(3.4)
37.0
(26.5)
595.6
(572.3)
0.1
(24.0)
(10.9)
(38.0)
(1.0)
0.8
(0.2)
1.1
(1.3)
(0.2)
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)
4.8
8.8
28.6
(6.0)
(3.0)
19.6
(13.8)
(2.2)
–
1.9
(14.1)
5.5
(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
* Prior year restated to split out capital expenditure on IT development from other purchases of non-hire property, plant and equipment.
Strategic Report
Governance
Financial Statements
Corporate Information
145
Notes to the Financial Statements
1 Accounting policies
Speedy Hire Plc is a public limited company listed on the London Stock Exchange, incorporated and domiciled in the United
Kingdom. The consolidated Financial Statements of the Company for the year ended 31 March 2023 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 30 June 2023.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these
consolidated 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 with the requirements of the Companies
Act 2006 as applicable to companies reporting under those standards.
Basis of preparation
These financial statements have been prepared under the historical cost convention, with the exception of derivative financial
instruments which are measured at fair value through profit or loss.
The Directors consider the going concern basis of preparation for the Group and Company to be appropriate for the following
reasons.
The Group’s £180m asset based finance facility was entered into in July 2021 on a three year tenure. On 26 May 2023 options
for a further two one-year extensions were exercised and the facility now terminates in July 2026. There are no prior scheduled
repayment requirements. The additional uncommitted accordion of £220m remains in place through to July 2026. Cash and facility
headroom as at 31 March 2023 was £83.5m (2022: £110.8m) based on the Group’s eligible hire equipment and trade receivables.
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 covering at least 12 months from the date on which the
financial statements were authorised for issue, 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 current and 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 severe but plausible downside scenarios to the base case, which result in reduced levels of revenue
across the Group, whilst also maintaining a consistent cost base. Mitigations applied in these downturn scenarios include a
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.
Basis of consolidation
(a) Subsidiaries
Subsidiaries are entities controlled by the Company and are detailed in note 34. 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.
Interests 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.
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Notes to the Financial Statements continued
1 Accounting policies continued
New accounting standards and accounting standards not yet effective
The following new standards, amendments to standards and interpretations issued were by the International Accounting Standards
Board (‘IASB’) and became effective during the year:
International Accounting Standards (IAS)/IFRS
Amendments to IAS 37
Amendments to IAS 16
Amendments to IFRS 3
Other
There is no impact from these standards.
Onerous Contracts: Cost of Fulfilling a Contract
Property, Plant and Equipment: Proceeds before Intended Use
Reference to the Conceptual Framework
Annual Improvements to IFRS Standards 2018-2020
Effective date (periods
beginning on or after)
1 January 2022
1 January 2022
1 January 2022
1 January 2022
The following UK-adopted IFRSs have been issued at 31 March 2023 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.
The Group has not yet performed an assessment of their impact of the financial statements.
International Accounting Standards (IAS)/IFRS
IFRS 17
Amendments to IAS 1
Amendments to IAS 8
Amendments to IAS 12
Amendments to IAS 12*
Amendments to IFRS 16
Amendments to IAS 1*
Amendments to IAS 1*
Amendments to IAS 7 and IFRS 7*
* Not yet endorsed by the UKEB.
Insurance Contracts
Disclosure of Accounting Policies
Changes in Accounting Estimates
Deferred Tax related to Assets and Liabilities
Pillar Two Tax Model Rules
Lease Liability in a Sale and Leaseback
Non-current Liabilities with Covenants
Classification of Liabilities as Current or Non-current
Supplier Finance Arrangements
Effective date (periods
beginning on or after)
1 January 2023
1 January 2023
1 January 2023
1 January 2023
1 January 2023
1 January 2024
1 January 2024
1 January 2024
1 January 2024
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.
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. Lease remeasurements comprise extensions and rent reviews
not known at lease inception.
Strategic Report
Governance
Financial Statements
Corporate Information
147
Revenue
Revenue is accounted for under IFRS 15 and is measured based on the consideration specified in a contract with a customer or
a price list, net of returns, trade discounts and volume rebates. Accumulated experience is used to estimate and provide for the
rebates, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant
reversal will not occur. No other variable consideration is present.
i. Hire and related activities
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 to equipment damaged whilst on hire is recognised from the point the damage is identified.
ii. Services revenue
The Group recognises revenue for rehire services as principal on a straight-line basis over the period of hire, adjusted for
rebates. The Group controls the service to be provided to the customer and has responsibility for fulfilling the associated
performance obligations.
The Group recognises revenue for training services at a point in time upon completion of the relevant training as this is when
the performance obligation is fulfilled. Revenue for testing is recognised at a point-in-time once certification is provided,
evidencing fulfilment of the Group’s performance obligation. The Group recognises revenue on the sale of consumables at a
point-in-time, upon delivery or collection of the goods 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. The Group acts as principal when fuel is provided to customers directly from Speedy depots and
as agent when fuel provided to customers is not directly controlled by the Group before being provided to the customer.
iii. Disposals revenue
The Group generates income/proceeds from the disposal of hire equipment either through the planned sale of these assets at
the end of their useful economic life or where a customer has lost or damaged the asset beyond repair during the hire contract.
These transactions are accounted for differently.
Income earned when a customer has lost or damaged assets beyond repair is presented on a net basis within cost of sales
at the point in time the loss or damage is identified. No revenue is recognised on these transactions as they do not meet the
requirements of IAS 16 (para 68).
Income from planned disposals meets the definition in IAS 16 and therefore revenue is recognised gross at a point-in-time
when control of the asset being disposed is transferred to the customer. The key difference between the two types of income
is that for planned disposals, the assets are held for sale and are in saleable condition.
In the year ended 31 March 2023, the cash flows from these two types of transaction have been presented separately. This has
been updated in the Consolidated Cash Flow Statement, with proceeds from the planned sale of hire equipment and proceeds
from customer loss/damage of hire equipment now being shown separately.
Customer invoicing is performed multiple times a month. Consideration is payable following invoicing, in line with agreed
payment terms.
Customer rebates
Revenue is recognised net of customer rebates, which are held as a separate liability within trade and other payables (see note
19). The Group reviews its estimate of likely settlements at each reporting date and any revisions to the liability are updated
accordingly.
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.
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Notes to the Financial Statements continued
1 Accounting policies continued
Property, plant and equipment continued
The principal rates and methods of depreciation used are as follows:
Hire equipment
Tools and general equipment
Access equipment
Surveying equipment
Power equipment
Lifting equipment
Powered Access
• between one and eleven years straight-line
• between two and fifteen years straight-line
• between one and nine years straight-line
• between three and ten years straight-line
• between one and ten years straight-line
• between five and eleven years straight-line
Non-hire assets
Freehold buildings and long leasehold improvements
Short leasehold property improvements
Fixtures and fittings and office equipment (excluding IT)
IT equipment and software
Motor vehicles
• over the shorter of the lease period and 50 years straight-line
• over the period of the lease
• 25% per annum straight-line
• between three and fifteen years straight-line, or over the period of the
software licence (if shorter)
• 25% per annum straight-line
Planned disposals of hire equipment are transferred, at net book value, to inventory when they cease to be available for hire and
become held for sale, with the sale included in revenue. Profit or loss on other disposals is taken to operating profit as shown in
note 5, presented net within cost of sales.
Financing 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 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.
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
not acquired in a business combination affecting neither accounting nor taxable profit, and differences relating to investments
in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is
based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted
or substantively enacted at the balance sheet date.
IAS 12 ‘Income Taxes’, does not require all temporary differences to be provided for. In particular, the Group does not provide for
deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the
temporary difference created is not expected to reverse in the foreseeable future.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Segment reporting
The Group determines and presents operating segments based on the information that is provided internally to the Board, which is
the Group’s ‘chief operating decision-maker’.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any other member of the Group and for which discrete
financial information is available. An operating segment’s operating results are reviewed regularly by the Board to make decisions
about resources to be allocated to the segment and to assess its performance.
Segment results that are reported to the Board include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and head office expenses.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
Strategic Report
Governance
Financial Statements
Corporate Information
149
Intangible assets
• Goodwill
All business combinations are accounted for by applying the purchase method. The Group measures goodwill at the acquisition
date as:
9 the fair value of the consideration transferred; plus
9 the recognised amount of any non-controlling interests in the acquiree; plus
9 the fair value of the existing equity interest in the acquiree; less
9 the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in the income statement.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified
as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of
the contingent consideration are recognised in the income statement.
Goodwill is stated after any accumulated impairment losses and is included as an intangible asset. It is allocated to cash-generating
units and is tested annually for impairment and at each reporting date to the extent that there are any indicators of impairment.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
• Other intangible assets
Intangible assets other than goodwill that are acquired by the Group are stated at cost less accumulated amortisation and
impairment losses (note 13).
Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.
• Amortisation
Amortisation is charged to the income statement on a straight-line basis over the estimated useful economic lives of identified
intangible assets. Intangible assets excluding goodwill are amortised from the date that they are available for use. For a number of
its acquisitions, the Group has identified intangible assets in respect of customer lists and brands. The values of these intangibles
are recognised as part of the identifiable assets, liabilities and contingent liabilities acquired. The useful lives are estimated as
follows:
Customer lists
Brands
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 approved and 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.
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Notes to the Financial Statements continued
1 Accounting policies continued
Impairments
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). If
any indication of impairment exists, then the asset’s recoverable amount is estimated, being the higher of fair value less costs
to sell and value in use, and if there is an impairment loss then this loss is recognised such that the carrying amount is reduced
accordingly.
The Group have considered increased interest rates, inflation, and implications of climate change in assessing the carrying value of
both ECO and 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.
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. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
Expected credit losses
The Group recognises loss allowances for expected credit losses (ECLs) on financial assets measured at amortised cost. Loss
allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses (IFRS 9 simplified
approach).
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.
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).
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.
Regular way purchases and sales of financial assets are recognised at the trade date, being the date on which the Group commits to
purchase or sell the asset.
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Corporate Information
151
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. Overdraft facilities are presented as current liabilities
on the statement of financial position.
When settling a liability, the Group derecognises the cash and associated liability on the day the payments are made by the Group,
as opposed to when the bank itself processes the funds.
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.
Research and development expenditure
Development costs in relation to the Group’s ERP system are capitalised as intangible assets. No significant research and
development expenditure is recognised in the income statement.
Start-up expenses
Legal and start-up expenses incurred in respect of new depots are written off as incurred.
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 a reduction in retained earnings.
In respect of the share buyback programme undertaken in the year, the Group had the right to terminate the agreement at any
time with immediate effect, limiting the liability of the Group from any forward purchase of shares. At the period, the Group had a
liability only for those shares which had been purchased by the brokers (as intermediaries) but not yet repurchased by the Group.
The share buyback programme was completed on 8 March 2023, with all shares having been repurchased from the brokers by
31 March 2023, meaning no liability existed at year end in respect of these shares.
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.
Dilapidations provisions are recognised by the Group, representing the cost to restore leased premises to their original condition
upon the Group’s exit of a lease. Dilapidations may not be settled for some months following the Group’s exit of the lease and
are calculated based on estimated expenditure required to settle the landlord’s claim at current market rates. The total liability is
discounted to current values. Amounts relating to restoration are capitalised as part of the cost of the right of use asset and are
amortised over the shorter of the lease term and the useful life of the asset.
Contingent liabilities are disclosed for possible obligations whose existence will be confirmed by uncertain future events, or where
settlement values cannot be measured reliably.
Employee benefits
• Pension schemes
The Group has automatically enrolled UK employees in a defined contribution pension plan and makes contributions to personal
pension schemes for these UK employees and certain other non-UK employees. Obligations for contributions to these defined
contribution pension plans are recognised as an expense in the income statement as incurred.
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Notes to the Financial Statements continued
1 Accounting policies continued
Employee benefits continued
• Share-based payment transactions
The Group operates a number of schemes that allow certain employees to acquire shares in the Company, including the
Performance Share Plan and the all-employee Sharesave Schemes. The fair value of options granted is recognised as an employee
expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during
which the employees become unconditionally entitled to the options. The fair value of the options granted is measured, using an
appropriate option-pricing model, taking into account the terms and conditions upon which the options were granted. The amount
recognised as an expense is adjusted to reflect the actual number of share options that vest, except where it is related to market
based performance conditions. For share-based payment awards with non-vesting conditions, the grant date fair value of the
share-based payment is measured to reflect such conditions and there is no adjustment for differences between expected and
actual outcomes.
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.
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.
The consolidated – and parent only – financial statements are presented in pound sterling, which is the presentational currency of
the Group.
Exceptional items
Exceptional items are recognised for non-recurring events of a significant nature, where it is determined that separate disclosure
aids understanding of the underlying performance of the business. Further detail on such costs is provided in note 4.
Consideration of climate change
Following on from the TCFD disclosures on pages 43 to 53, the impact of climate change on the wider financial statements has
been considered. No material impact on financial reporting judgements and estimates has been identified. In particular, the impact
of climate change has been considered in respect of cash flow forecasts used in the impairment assessments undertaken and the
carrying value and useful economic lives of property, plant and equipment. The Directors are aware of the ever-changing risks
resulting from climate change and will regularly assess these risks against judgements and estimates made in the preparation of
the Group’s financial statements.
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 a significant risk of resulting in a material adjustment within the next financial year.
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Financial Statements
Corporate Information
153
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 of the internal asset team and external market information, taking into consideration the nature of the
assets involved.
At 31 March 2023, the carrying value of hire equipment was £207.9m (2022: £226.9m), representing 87.5% (2022: 88.0%) of
the total property, plant and equipment. The hire equipment depreciation charge for the year ended 31 March 2023 was £33.9m
(2022: £35.2m), which represents 8.5% (2022: 8.7%) 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 increased interest rates, inflation and implications of climate change in assessing the carrying value of
both ECO and 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. No indicators of impairment
have been noted in relation to hire equipment.
Valuation of trade receivables
The expected credit loss provision is calculated using the simplified approach under IFRS 9, 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.
At 31 March 2023, the expected credit loss provision was £3.2m (2022: £3.0m) against a total debtor book of £102.2m (2022:
£104.9m). Further detail is provided in note 18, including an ageing analysis of debt. The Group’s estimated expected credit losses
are 3.1% (2022: 2.9%) of gross trade receivables. A change of 1% in this assumption would result in an increase to the provision of
£1.0m (2022: £1.1m).
Whilst this area does not meet the definition under IAS 1 of a critical accounting estimate or significant accounting judgement,
the recognition and measurement is based on assumptions and/or subject to longer term uncertainties. No consideration is made
regarding expected credit losses across time bands as this would not provide a materially different result given the simplified
method is used, whereby assessment of lifetime expected credit losses is made.
Impairment of goodwill
In assessing any impairment of goodwill, the future cash flows expected to result from the use of the asset, and its eventual
disposal, are estimated. Actual outcomes could vary from such estimates of discounted future cash flows. The calculations involved
require assumptions to be made in relation to discount rate, long-term growth rate, the rate of inflation and also short-term
performance and cash flows, for which reference is made to external information and historical performance. Note 13 provides
details of the impairment reviews undertaken, assumptions and sensitivities in relation to goodwill.
Whilst this area does not meet the definition under IAS 1 of a critical accounting estimate or significant accounting judgement,
the recognition and measurement is based on assumptions and/or subject to longer term uncertainties.
Dilapidations provision
Dilapidations are assessed at the earliest point, being the start of the lease or due to an obligating event. Uncertainty is present in
respect of the timing and amounts of future cash flows related to lease dilapidations. The exercise of judgement to existing facts
and circumstances, which may be subject to change, is required in estimating the provision.
The provision recognised is the estimated expenditure required to settle the landlord’s claim at current market rates, discounted to
net present value. Given the cash outflow in respect of dilapidations can take place many years in the future, the carrying amount
of the provision is reviewed regularly and adjusted as needed to take account of changing facts and circumstances. Such factors
include the age and condition of the property, specific lease obligations, experience of actual spend on similar properties, third
party surveyor reports and agreements reached with landlords in respect of a given property.
Due to the large portfolio of properties, dilapidations settlement per square foot (psf) varies based on the factors noted previously.
Sensitivity has therefore been provided on an aggregate basis, as it is not deemed practical or useful to provide such information
on a site-by-site basis. A £1 per square foot increase in the average dilapidations provision would result in an increase of £1.3m in
the provision as at 31 March 2023. There are no other sensitivities on a range of reasonably possible outcomes which would result
in material adjustment to the dilapidations provision at the reporting date.
Exceptional items
As detailed in note 4, an exceptional asset write-off has been recognised in FY2023. Whilst the issue identified is not isolated to
FY2023, it is not possible to quantify the financial impact on prior periods as data was not collected in prior periods in a way that
allows for retrospective restatement. As such, the prior year comparatives have not been restated and an exceptional charge has
been recognised in FY2023 only.
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Notes to the Financial Statements continued
2 Segmental analysis
The segmental disclosure presented in the Financial Statements reflects the format of reports reviewed by the ‘chief operating
decision-maker’. 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 presented as discontinued operations in FY2022 as the assets were disposed
of on 1 March 2021.
For the year ended 31 March 2023 / As at 31 March 2023
Revenue
Cost of sales
Gross Profit
Segment result before exceptional items:
EBITDA
Depreciation2
Operating profit/(costs) before amortisation and exceptional
items
Amortisation2
Exceptional items
Operating profit/(costs)
Share of results of joint venture
Profit from operations
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 assets2
Investment in joint venture
Land and buildings
Hire equipment
Non-hire equipment
Right of use assets
Taxation assets
Other current assets
Cash
Total assets
Lease liabilities
Other liabilities
Borrowings
Taxation liabilities
Total liabilities
Hire excluding
disposals
£m
258.0
(54.8)
203.2
Services
£m
176.3
(142.9)
33.4
UK and
Ireland1
£m
440.6
(201.2)
239.4
105.6
(69.3)
36.3
(1.8)
(25.6)
8.9
–
8.9
19.1
–
13.9
207.9
15.9
83.2
–
115.2
–
455.2
(86.1)
(98.5)
–
–
Corporate
items
£m
–
–
–
(1.9)
(0.3)
(2.2)
–
(2.9)
(5.1)
6.6
1.5
5.9
9.2
–
–
–
–
0.3
4.7
1.1
21.2
–
(7.6)
(92.2)
(7.4)
(184.6)
(107.2)
Total
£m
440.6
(201.2)
239.4
103.7
(69.6)
34.1
(1.8)
(28.5)
3.8
6.6
10.4
(8.6)
1.8
(0.6)
1.2
–
1.2
25.0
9.2
13.9
207.9
15.9
83.2
0.3
119.9
1.1
476.4
(86.1)
(106.1)
(92.2)
(7.4)
(291.8)
1 UK and Ireland also includes revenue and costs relating to the disposal of hire assets.
2 Intangible assets in Corporate items relate to the Group’s ERP system, amortisation is charged to the UK and Ireland segment as this is fundamental to the trading
operations of the Group. Depreciation in Corporate items relates to computers and is recharged from the UK and Ireland based on proportional usage.
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Financial Statements
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155
For the year ended 31 March 2022 / As at 31 March 2022 Restated*
Revenue
Cost of sales
Gross Profit
Segment result:
EBITDA
Depreciation2
Operating profit/(costs) before amortisation
Amortisation2
Exceptional items
Operating profit/(costs)
Share of results of joint venture
Profit/(loss) from operations
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 assets2
Investment in joint venture
Land and buildings
Hire equipment
Non-hire equipment
Right of use assets
Taxation assets
Other current assets
Cash
Total assets
Lease liabilities
Other liabilities3
Borrowings
Taxation liabilities
Total liabilities
Hire excluding
disposals
£m
243.3
(54.5)
188.8
Services
£m
138.4
(107.8)
30.6
UK and
Ireland¹
£m
386.8
(165.7)
221.1
103.3
(66.4)
36.9
(1.0)
–
35.9
–
35.9
19.5
–
15.6
226.9
15.2
74.2
–
112.7
–
464.1
(76.7)
(103.0)
–
–
(179.7)
Corporate
items
£m
–
–
–
(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)
Total
£m
386.8
(165.7)
221.1
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
15.6
226.9
15.2
74.2
1.7
116.8
2.5
486.6
(76.7)
(111.5)
(70.0)
(12.0)
(270.2)
*
Prior year restated above to reflect what is reported to the chief operating decision maker. Change made to split out the UK and Ireland between Hire and
Services.
1 UK and Ireland also includes revenue and costs relating to the disposal of hire assets.
2 Intangible assets in Corporate items relate to the Group’s ERP system, amortisation is charged to the UK and Ireland segment as this is fundamental to the trading
operations of the Group. Depreciation in Corporate items relates to computers and is recharged from the UK and Ireland based on proportional usage.
3 See note 32.
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
* Non-current assets excluding financial instruments and deferred tax assets.
Year ended /
As at 31 March 2023
Year ended /
As at 31 March 2022
Revenue
£m
431.8
8.8
440.6
Non-current
assets*
£m
345.3
9.8
355.1
Revenue
£m
376.5
10.3
386.8
Non-current
assets*
£m
355.7
9.9
365.6
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Notes to the Financial Statements continued
2 Segmental analysis continued
Revenue by type
Revenue is attributed to the following activities:
Hire and related activities
Services
Disposals
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
258.0
176.3
6.3
440.6
243.3
138.4
5.1
386.8
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 of £0.2m in that year.
4 Exceptional items
During the year ended 31 March 2023, exceptional costs were incurred as follows:
Asset write-off
Other professional and support costs
Restructuring costs
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
20.4
1.4
6.7
28.5
–
–
–
–
Asset write-off
During the year, the Group undertook a comprehensive count of all hire equipment. As at 31 March 2022, the reported net book
value of the Group’s hire equipment assets was £226.9m. The Company categorises hire equipment into two groups: those that are
individually identifiable by a unique serial number to the asset register (‘itemised assets’, representing 78%, or £177.0m, of the
total reported net book value), and other equipment such as scaffolding towers, fencing and non-mechanical plant which does not
have a unique serial identifier and is not tracked on an individual asset basis (‘non-itemised assets’, representing 22%, or £49.9m,
of the total reported net book value). The comprehensive count covered both itemised and non-itemised assets. Whilst this count
validated the previously disclosed net book value of itemised assets, it identified a shortfall in the quantity of non-itemised assets,
resulting in a write-off of c.£20.4m.
Other professional and support costs
The Board commissioned an external investigation into the issue identified with non-itemised assets, including a review of controls
and accounting procedures. The Group has strengthened the control environment for managing its non-itemised asset fleet,
including additional counts, increased internal audit focus, enhanced control over purchases and disposals, and new procedures
for reconciliation to the fixed asset register, which also incorporate recommendations from the investigation. The associated
professional and support fees amounted to £1.4m, which are also presented within exceptional items. These fees include a further
£310k of auditor remuneration, specifically in relation to increased work over assets, including additional auditor attendance at
asset counts across the business.
Restructuring
An operational efficiency review has resulted in restructuring costs and a net depot reduction at the end of March 2023. The cost
of these closures and other restructuring costs across the business were £6.7m.
There were no exceptional items for the year ended 31 March 2022.
Strategic Report
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Financial Statements
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157
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) on disposal of hire equipment
Exceptional write-off
Loss on disposal of non-hire equipment
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 £40,000 (2022: £60,000)
Total fees
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
1.8
43.0
26.6
(1.7)
20.4
–
1.1
0.1
1.2
–
1.2
1.0
43.2
23.5
(0.5)
–
0.1
0.3
0.2
0.5
0.1
0.6
Amortisation of intangible assets is included within distribution and administrative costs.
6 Employees
The monthly average number of people employed by the Group (including Directors) during the year was as follows:
UK and Ireland
International*
Central
Year ended
31 March 2023
Year ended
31 March 2022
3,241
–
283
3,524
3,113
104
284
3,501
*
No international employees present in 2023 following the sale of the international business in 2021, and the subsequent completion of the transitional services
agreement in 2022.
The aggregate payroll costs of these employees (including bonuses) were as follows:
Wages and salaries
Social security costs
Other pension costs
Share-based payments
7 Directors’ remuneration
Directors’ emoluments
Basic remuneration, including benefits
Value of long-term incentives
Performance related bonuses
Gain on exercise of share options
Company contributions to money purchase pension schemes
Emolument of the highest paid Director
Basic remuneration, including benefits
Performance related bonuses
Termination payments
Gain on exercise of share options
Company pension contributions
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
113.9
11.3
3.3
1.0
129.5
109.2
9.9
3.0
1.2
123.3
Year ended
31 March 2023
£’000s
Year ended
31 March 2022
£’000s
1,047
–
–
–
40
1,087
230
–
–
–
27
257
1,113
–
484
–
70
1,667
412
265
–
–
59
736
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Notes to the Financial Statements continued
7 Directors’ remuneration continued
The number of Directors in respect of whose qualifying services shares were received or receivable under long term incentive
schemes, and who exercised share options during the year, is disclosed on pages 124 and 125 of the Directors’ Remuneration
Report respectively.
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
9 Taxation
Tax charged in the Income Statement from continuing operations
Current tax
UK corporation tax on profit at 19% (2022: 19%)
Adjustment in respect of prior years
Deferred tax
UK deferred tax at 25% (2022: 25%)
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
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
4.4
0.7
5.1
3.5
8.6
2.6
0.6
3.2
2.5
5.7
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
3.8
(1.0)
(3.8)
1.6
–
(2.2)
0.6
–
–
4.9
0.5
0.9
(0.6)
2.0
2.3
7.7
0.2
0.1
The adjusted effective tax rate of 20.2% (2022: 26.2%) is higher than the standard rate of UK corporation tax of 19%. The tax
charge in the Income Statement for the year of 33.3% (2022: 26.5%) is higher than the standard rate of corporation tax in the
UK and is explained as follow:
Profit before tax
Accounting profit multiplied by the standard rate of corporation tax at 19% (2022: 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
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
1.8
0.3
0.9
0.1
(1.3)
–
0.6
0.6
29.1
5.5
0.7
0.2
(0.6)
2.0
(0.1)
7.7
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Governance
Financial Statements
Corporate Information
159
10 Earnings per share
The calculation of basic earnings per share is based on the profit for the financial year of £1.2m (2022: £21.6m) and the weighted
average number of ordinary shares in issue, and is calculated as follows:
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
Vested shares not yet exercised
Shares repurchased and subsequently cancelled or placed in treasury
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 year 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)
Year ended
31 March 2023
Year ended
31 March 2022
514.0
0.2
–
2.7
(28.9)
488.0
3.5
0.2
491.7
523.8
0.4
0.1
–
(1.0)
523.3
5.7
0.8
529.8
Year ended
31 March 2023
Year ended
31 March 2022
1.2
1.8
22.6
–
25.6
0.25
(0.01)
0.24
5.25
(0.04)
5.21
21.6
0.8
–
(0.2)
22.2
4.13
(0.06)
4.07
4.24
(0.06)
4.18
* 2022 Basic and Diluted EPS include amounts relating to discontinued operations of 0.04p and 0.04p respectively.
More detail on adjusted earnings is provided in note 12.
Total number of shares outstanding at 31 March 2023 amounted to 516,983,637 (2022: 518,220,366), including 4,162,452
(2022: 4,236,422) shares held in the Employee Benefit Trust and 55,146,281 (2022: nil) shares held in treasury, which are
excluded in calculating basic earnings per share.
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 final dividend (1.45 pence on 489.5m ordinary shares)
2023 interim dividend (0.80 pence on 474.7m ordinary shares)
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
–
–
7.1
3.8
7.3
4.0
–
–
10.9
11.3
Subsequent to the end of the year and not included in the results for the year, the Directors recommended a final dividend of
1.80 pence (2022: 1.45 pence) per share, bringing the total amount payable in respect of the 2023 year to 2.60 pence
(2022: 2.20 pence), to be paid on 22 September 2023 to shareholders on the register on 11 August 2023.
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 2023, the Trust held 4,162,452 ordinary shares (2022: 4,236,422).
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Notes to the Financial Statements continued
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
Return on capital employed (ROCE)
Adjusted profit before tax
Interest
Profit before tax, interest, amortisation and exceptional items
Average gross capital employed¹
ROCE
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
3.8
1.8
28.5
34.1
69.6
103.7
1.8
1.8
28.5
32.1
32.1
8.6
40.7
280.5
14.5%
31.6
1.0
–
32.6
66.7
99.3
29.1
1.0
–
30.1
30.1
5.7
35.8
264.0
13.6%
1 See note 20 – Financial Instruments: Capital Management. Average gross capital employed (where capital employed equals shareholders’ funds and net debt)
based on a two-point average between opening and closing for the financial year.
13 Intangible fixed assets
Cost
At 1 April 2021 reported*
Restatement*
At 1 April 2021 restated*
Additions
At 31 March 2022 restated*
Additions
Disposals
At 31 March 2023
Accumulated Amortisation
At 1 April 2021 reported*
Restatement*
At 1 April 2021 restated*
Charged in year
At 31 March 2022 restated*
Charged in year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
At 31 March 2021
* Prior years restated to eliminate items with nil net book value.
Goodwill
£m
Customer lists
£m
Brands
£m
IT
development
£m
126.3
(96.4)
29.9
–
29.9
–
(12.4)
17.5
108.8
(96.4)
12.4
–
12.4
–
(12.4)
–
17.5
17.5
17.5
45.1
(36.8)
8.3
–
8.3
–
(5.4)
2.9
43.3
(36.8)
6.5
0.3
6.8
0.3
(5.4)
1.7
1.2
1.5
1.8
7.0
(4.4)
2.6
–
2.6
–
(1.3)
1.3
6.3
(4.4)
1.9
0.2
2.1
0.1
(1.3)
0.9
0.4
0.5
0.7
4.7
–
4.7
2.2
6.9
0.9
–
7.8
–
–
–
0.5
0.5
1.4
–
1.9
5.9
6.4
4.7
Total
£m
183.1
(137.6)
45.5
2.2
47.7
0.9
(19.1)
29.5
158.4
(137.6)
20.8
1.0
21.8
1.8
(19.1)
4.5
25.0
25.9
24.7
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Governance
Financial Statements
Corporate Information
161
The remaining amortisation period of each category of intangible fixed asset is the following; Customer lists one to four years
(2022: one to five years), Brands four years (2022: five years) and IT development five years (2022: six years).
During the year ended 31 March 2022, the Geason business was closed. The associated goodwill and intangible assets were
fully impaired in 2021. Geason was put into liquidation in the year ended 31 March 2023, resulting in the disposal of the related
goodwill and intangibles, as shown in the table above.
Analysis of goodwill, customer lists, brands and IT development by cash generating unit:
Allocated to
Hire
Services
At 31 March 2023
Allocated to
Hire
Services
At 31 March 2022
Goodwill
£m
Customer lists
£m
Brands
£m
IT
development
£m
16.5
1.0
17.5
16.5
1.0
17.5
0.5
0.7
1.2
0.7
0.8
1.5
0.3
0.1
0.4
0.4
0.1
0.5
5.4
0.5
5.9
5.8
0.6
6.4
Total
£m
22.7
2.3
25.0
23.4
2.5
25.9
All goodwill has arisen from business combinations and has been allocated to the cash-generating unit (CGU) 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. All intangible assets are held in the UK.
The Group tests goodwill for impairment annually and considers at each reporting date whether there are indicators that
impairment may have occurred. Other assets are assessed at each reporting date for any indicators of impairment and tested if an
indicator is identified. The Group’s reportable CGUs comprise the UK&I Hire business (Hire) and UK&I Services business (Services),
representing the lowest level within the Group at which the associated assets are monitored for management purposes. Previously
analysed segments were UK and Ireland and Corporate items only.
The recoverable amounts of the assets allocated to the CGUs are determined by a value-in-use calculation. The value-in-use
calculation uses cash flow projections based on five-year financial forecasts approved by management. The key assumptions for
these forecasts are those regarding revenue growth and discount rate, which management estimates based on past experience
adjusted for current market trends and expectations of future changes in the market. To prepare the value-in-use calculation, the
Group uses cash flow projections from the Board approved FY2024 budget, and a subsequent four-year period using the Group’s
strategic plan, together with a terminal value into perpetuity 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 CGUs and market-specific risks.
The impairment model is prepared in nominal terms. The future cash flows are based on current price terms inflated into future
values, using general inflation and any known cost or sales initiatives. The discount rate is calculated in nominal terms, using
market and published rates.
The pre-tax discount rates and terminal growth rates applied are as follows:
UK and Ireland
31 March 2023
31 March 2022
Pre-tax
discount rate
Terminal value
growth rate
Pre-tax
discount rate
Terminal value
growth rate
12.0%
2.5%
11.4%
2.5%
A single discount rate is applied to both CGUs as they operate in the same market, with access to the same shared Group financing
facility, with no additional specific risks applicable to either CGU.
Impairment calculations are sensitive to changes in key assumptions of revenue growth and discount rate. Sensitivity analysis
was undertaken on both these key assumptions, with no resulting impairment charge being identified for either CGU. There are
no reasonable variations in these assumptions that would be sufficient to result in an impairment at the 31 March 2023.
It is noted that the market capitalisation of the Group at 31 March 2023 was below the consolidated net asset position – one
indicator that an impairment may exist. In considering various factors, including the share buyback programme and recent investor
activity, it is determined that no impairment is required in this regard.
At 31 March 2023, the headroom between value in use and carrying value of related assets for the UK and Ireland was £99.2m
(2022: £52.8m) – £50.7m for Hire and £48.5m for Services. The increase from prior year is largely due to a reduction in the value
of hire equipment assets. If the lower prior year WACC was used, the combined headroom would increase significantly to £131.6m.
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Notes to the Financial Statements continued
14 Investment in joint venture
Speedy Hire plc has a 50% interest in the share capital of Turner and Hickman Limited, a joint venture company that controls
the operations of Speedy Zholdas LLP via a 90% shareholding, with the other 50% interest being held by J. & J. Denholm Group.
The proportion of ownership interest is the same as the proportion of voting rights held. 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 November 2013.
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 the full outstanding balance of £0.5m ($0.7m) (2022: repayment of
£nil ($nil)) was received during the year.
At 31 March 2023, the joint venture is considered material to the Group. The country of incorporation or registration is also their
principal place of business, with the presentation currency and functional currency being Tenge.
The joint venture has a non-coterminous year end with Speedy, reporting to 31 December each year. As such estimate reporting is
used, taking the nine month reported actuals and the further three months of the joint venture’s results for the following year, to
report twelve months to 31 March.
Speedy’s share of the joint venture is as follows:
At 1 April 2021
Share of results for the year after tax
Share of other comprehensive income
Dividends received
At 31 March 2022
Share of results for the year after tax
Share of other comprehensive income
Dividends received
Loan repayment
At 31 March 2023
Equity
investment
£m
Loan
advances
£m
5.7
3.2
0.3
(1.9)
7.3
6.6
0.3
(5.0)
–
9.2
0.5
–
–
–
0.5
–
0.1
–
(0.6)
–
Summarised financial information of Speedy Zholdas LLP is presented below. Whilst the figures are presented in Tenge in the
accounts of the joint venture, they have been translated into pound sterling below using the rate prevailing at the 31 December
2022 of 0.001786 for presentation purposes. The information disclosed reflects the amounts presented in the financial statements
of the joint venture and not Speedy Hire Plc’s share of those amounts.
Revenue
Cost of sales
Gross profit
General and administrative expenses
Operating profit
Finance costs
Other income
Foreign exchange loss, net
Profit before tax
Income tax expense
Profit for the year
Year ended
31 December
2022
£m
Year ended
31 December
2021
£m
28.3
(8.1)
20.2
(2.5)
17.7
(0.1)
–
(0.1)
17.5
(3.6)
13.9
16.0
(5.6)
10.4
(2.1)
8.3
(0.1)
0.1
–
8.3
(1.6)
6.7
Strategic Report
Governance
Financial Statements
Corporate Information
163
ASSETS
Non-current assets
Current assets
Inventories
Trade accounts receivable
Cash and cash equivalents
Other current assets
Total current assets
Total assets
LIABILITIES
Current liabilities
Trade accounts payable
Other current liabilities
Total current liabilities
Non-current liabilities
Total liabilities
Net assets
15 Property, plant and equipment
Cost
At 1 April 2021
Foreign exchange
Additions
Disposals
Transfers to inventory
At 31 March 2022
Foreign exchange
Additions
Disposals
Exceptional write-off*
Transfers to inventory
At 31 March 2023
Accumulated Depreciation
At 1 April 2021
Foreign exchange
Charged in year
Disposals
Transfers to inventory
At 31 March 2022
Foreign exchange
Charged in year
Disposals
Exceptional write-off*
Transfers to inventory
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
At 31 March 2021
* See note 4.
31 December
2022
£m
31 December
2021
£m
3.3
0.6
12.1
0.6
0.8
14.1
17.4
(1.4)
(1.5)
(2.9)
–
(2.9)
14.5
Other
£
88.5
(0.3)
7.6
(4.1)
–
91.7
–
5.5
(0.6)
–
–
96.6
76.6
(0.2)
4.1
(4.0)
–
76.5
–
4.7
(0.5)
–
–
80.7
15.9
15.2
11.9
4.1
0.6
4.8
0.7
1.5
7.6
11.7
(0.9)
(0.8)
(1.7)
(0.9)
(2.6)
9.1
Total
£m
525.7
(1.3)
82.1
(23.4)
(15.5)
567.6
(0.1)
60.9
(47.8)
(33.0)
(23.6)
524.0
292.6
(0.3)
43.2
(14.1)
(11.5)
309.9
0.2
43.0
(36.8)
(12.6)
(17.4)
286.3
237.7
257.7
233.1
Land and
buildings
£m
Hire
equipment
£m
50.6
–
6.1
(3.5)
–
53.2
–
3.3
(2.0)
–
–
54.5
36.6
–
3.9
(2.9)
–
37.6
–
4.4
(1.4)
–
–
40.6
13.9
15.6
14.0
386.6
(1.0)
68.4
(15.8)
(15.5)
422.7
(0.1)
52.1
(45.2)
(33.0)
(23.6)
372.9
179.4
(0.1)
35.2
(7.2)
(11.5)
195.8
0.2
33.9
(34.9)
(12.6)
(17.4)
165.0
207.9
226.9
207.2
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3
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Notes to the Financial Statements continued
15 Property, plant and equipment continued
The net book value of land and buildings is made up of improvements to short leasehold properties.
Of the £207.9m (2022: £226.9m) net book value of hire equipment, £32.1m (2022: 49.3m) relates to non-itemised assets.
The net book value of other – non-hire equipment – comprises, fixtures, fittings, office equipment and IT equipment. Software
with a net book value of £6.7m (2022: £6.0m) is also included in other property, plant and equipment.
At 31 March 2023, no indicators of impairment were identified in relation to property, plant and equipment.
16 Right of use assets
Cost
At 1 April 2021 restated*
Additions
Remeasurements
Disposals
At 31 March 2022 restated*
Additions
Remeasurements
Disposals
At 31 March 2023
Accumulated Depreciation
At 1 April 2021
Charged in year
Disposals
At 31 March 2022
Charged in year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
At 31 March 2021
* See note 32.
Land and
buildings
£m
132.2
6.6
12.8
(7.2)
144.4
2.1
4.1
(5.3)
145.3
86.6
12.2
(6.5)
92.3
13.1
(5.1)
100.3
45.0
52.1
45.6
Other
£m
48.2
15.9
5.7
(14.2)
55.6
28.1
3.5
(22.4)
64.8
33.8
11.3
(11.6)
33.5
13.5
(20.4)
26.6
38.2
22.1
14.4
Total
£m
180.4
22.5
18.5
(21.4)
200.0
30.2
7.6
(27.7)
210.1
120.4
23.5
(18.1)
125.8
26.6
(25.5)
126.9
83.2
74.2
60.0
Included within disposals for the year ended 31 March 2023 is £1.7m relating to exceptional disposals following the restructure
undertaken in the year (see note 4).
Land and buildings leases comprise depots and associated ancillary leases such as car parks and yards.
Other leases consist of cars, lorries, vans and forklifts.
17 Inventories
Work in progress
Finished goods and goods for resale
31 March 2023
£m
31 March 2022
£m
1.0
11.7
12.7
1.3
6.8
8.1
The amount of inventory expensed in the year amounted to £76.5m (2022: £51.3m) and is included within cost of sales. The prior
year amount of inventory expensed has been restated to include fuel expensed in the year. A provision of £0.9m (2022: £1.2m) is
recorded in respect of inventory held at the year-end.
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Financial Statements
Corporate Information
165
18 Trade and other receivables
Trade receivables
Other receivables
Prepayments*
Accrued income*
31 March 2023
£m
31 March 2022
£m
97.9
1.9
4.7
1.5
106.0
100.1
2.2
5.1
1.3
108.7
* Prior year restated to split out prepayments and accrued income.
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. 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
31 March 2023
£m
31 March 2022
£m
66.8
17.9
7.8
5.4
97.9
65.8
18.7
9.8
5.8
100.1
The valuation of trade receivables and calculation of expected credit losses (‘ECLs’) is explained in the Significant judgements and
estimates section within note 1 Accounting Policies. The related loss allowance can be analysed 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 payables2
Other payables
Accruals1,2
Customer rebates1
1 Prior year restated to present customer rebates balances separately from accruals.
2 Trade payables and accruals restated to amend classification.
31 March 2023
£m
31 March 2022
£m
3.0
4.0
(3.8)
3.2
3.5
3.8
(4.3)
3.0
31 March 2023
£m
31 March 2022
£m
39.1
11.0
27.5
11.0
88.6
42.8
10.7
32.3
10.8
96.6
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Notes to the Financial Statements continued
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.
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 – not within the scope of IFRS 13; accounted for in accordance with IFRS 16.
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.
Fair value of financial assets and liabilities
The fair values of financial assets and liabilities (other than lease liabilities) held at amortised cost are considered to be
approximately equal to the carrying values shown in the balance sheet, set out below:
Assets per the Balance Sheet
Trade and other receivables1
Cash at bank and in hand
Derivative financial assets2
31 March 2023
Fair value
through other
comprehensive
income
£m
Amortised cost
£m
31 March 2022
Fair value
through other
comprehensive
income
£m
Total
£m
Amortised cost
£m
99.8
1.1
–
100.9
–
–
1.2
1.2
99.8
1.1
1.2
102.1
101.9
2.5
–
104.4
0.4
–
–
0.4
Total
£m
102.3
2.5
–
104.8
1 Trade and other receivables excluding prepayments and accrued income.
2 2022 derivative financial assets included in trade and other receivables.
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Financial Statements
Corporate Information
167
Liabilities per the Balance Sheet
Bank overdraft
Borrowings
Lease liabilities – Current
Lease liabilities – Non-current
Trade and other payables1
Accruals
Customer rebates
Derivative financial liabilities
31 March 2023
Fair value
through other
comprehensive
income
£m
Amortised cost
£m
31 March 2022
Fair value
through other
comprehensive
income
£m
Total
£m
Amortised cost
£m
1.3
92.2
22.1
64.0
39.1
27.5
11.0
–
257.2
–
–
–
–
–
–
0.6
0.6
1.3
92.2
22.1
64.0
39.1
27.5
11.0
0.6
1.7
68.3
20.6
56.1
42.8
32.3
10.8
–
257.8
232.6
–
–
–
–
–
–
–
–
–
Total
£m
1.7
68.3
20.6
56.1
42.8
32.3
10.8
–
232.6
1 Trade and other payables excluding non-financial liabilities.
Offsetting arrangements
Under the terms of the Group’s banking facilities, net indebtedness is permitted up to the net limit of £5m. The relevant accounts
have therefore been presented net in the balance sheet, the effect of which is detailed below.
Financial assets
Cash at bank and in hand
Financial liabilities
Bank overdraft
Borrowings
31 March 2023
31 March 2022
Gross amounts
offset in the
balance sheet
£m
Net amounts
presented in
the balance
sheet
£m
Gross amounts
£m
Gross amounts
offset in the
balance sheet
£m
Net amounts
presented in
the balance
sheet
£m
Gross amounts
£m
5.8
(4.7)
1.1
31.7
(29.2)
2.5
4.6
93.6
(3.3)
(1.4)
1.3
92.2
16.0
83.2
(14.3)
(14.9)
1.7
68.3
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.
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.
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Notes to the Financial Statements continued
20 Financial instruments continued
Liquidity risk continued
At 31 March 2023, the Group had a banking facility amounting to £180.0m (2022: £180.0m), as detailed in note 21. The cash
and undrawn availability on this facility as at 31 March 2023 was £83.5m (2022: £110.8m) 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.
Derivative financial instruments are also used in the form of interest rate swaps and fuel hedges to help manage cash flows.
The following analysis is based on the undiscounted contractual maturities on the Group’s financial liabilities, including estimated
interest that will accrue, over the following financial years ended 31 March.
Asset based finance facility
Overdraft
Lease liability (principal and interest)
Bank interest payments
Trade payables
Accruals
Customer rebates
Derivative financial liabilities
Asset based finance facility
Overdraft
Lease liability (principal and interest)
Bank interest payments
Trade payables
Accruals*
Customer rebates*
Derivative financial liabilities*
Undiscounted cash flows – 31 March 2023
2024
£m
–
1.3
27.9
8.0
39.1
27.5
11.0
0.4
2025
£m
92.9
–
19.6
2.3
–
–
–
0.1
115.2
114.9
2026
£m
–
–
15.4
–
–
–
–
0.1
15.5
2027
and later
£m
–
–
36.0
–
–
–
–
–
36.0
Undiscounted cash flows – 31 March 2022
2023
£m
–
1.7
25.0
3.5
42.8
32.3
10.8
–
116.1
2024
£m
–
–
18.1
3.3
–
–
–
21.4
2025
£m
69.5
–
12.8
1.2
–
–
–
83.5
2026
and later
£m
–
–
30.6
–
–
–
–
30.6
Total
£m
92.9
1.3
98.9
10.3
39.1
27.5
11.0
0.6
281.6
Total
£m
69.5
1.7
86.5
8.0
42.8
32.3
10.8
–
251.6
* 2022 maturity analysis restated to include accruals, customer rebates and derivative financial liabilities.
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 1.3% (2022: 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 2023, if sterling had weakened or strengthened by 10% against the Euro and USD with all other variables held
constant, post-tax profit for the year would have been £0.8m (2022: £0.5m) 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.
Strategic Report
Governance
Financial Statements
Corporate Information
169
The principal derivative financial instruments used by the Group are interest rate swaps. The notional contract amount and the
related fair value of the Group’s derivative financial instruments can be analysed as follows:
Designated as cash flow hedges
Fixed interest rate swaps
31 March 2023
31 March 2022
Fair value
£m
Notional
amount
£m
Fair value
£m
Notional
amount
£m
1.0
120.0
0.4
85.0
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 3.2% (2022: 1.06%) and the instruments are for a weighted
average period of 13 months (2022: 9 months). The maximum contractual period is 24 months (2022: 36 months).
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 2023 it is estimated that an increase of 1% in interest rates would decrease the Group’s profit before tax by
approximately £0.7m (2022: £0.1m). 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), as disclosed in note 21, plus shareholders’ funds as
disclosed in the Consolidated Statement of Changes in Equity, 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.
Net debt
Total equity*
At 31 March
* See note 32.
31 March 2023
£m
31 March 2022
£m
31 March 2021
£m
92.4
184.6
277.0
67.5
216.4
283.9
33.2
210.8
244.0
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 seeks to ensure that the most attractive mix of capital growth and
income return for 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.
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Notes to the Financial Statements continued
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 debt¹
1 Key performance indicator – excluding lease liabilities.
Reconciliation of financing liabilities and net debt
Bank borrowings
Lease liabilities
Liabilities arising from financing activities
Cash at bank and in hand
Bank overdraft
Net debt
31 March 2023
£m
31 March 2022
£m
1.3
22.1
23.4
92.2
64.0
156.2
179.6
(1.1)
(86.1)
92.4
1.7
20.6
22.3
68.3
56.1
124.4
146.7
(2.5)
(76.7)
67.5
1 April 2022
£m
Non-cash
movement
£m
Cash flow
£m
31 March 2023
£m
(68.3)
(76.7)
(145.0)
2.5
(1.7)
(144.2)
0.5
(39.4)
(38.9)
–
–
(38.9)
(24.4)
30.0
5.6
(1.4)
0.4
4.6
(92.2)
(86.1)
(178.3)
1.1
(1.3)
(178.5)
The Group has a £180m asset based finance facility, which was renewed in July 2021, which is sub divided into:
(a) 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.
(b) An asset based finance facility of up to £175m, based on the Group’s itemised hire equipment and trade receivables balance.
The cash and undrawn availability of this facility as at 31 March 2023 was £83.5m (2022: £110.8m), 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 as at the balance sheet date was
repayable in July 2024, with no prior scheduled repayment requirements. Subsequent to this the facility has been extended to
be repayable in July 2026 however, as this is a non-adjusting post balance sheet event, no amendments have been made to the
undiscounted cash flows table in note 20. 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 1.82% (2022: 1.73%).
The facility is secured by fixed and floating charges over the Group’s itemised hire fleet assets and trade receivables.
The facility has the following covenants:
Minimum Excess Availability: At any time, 10 per cent of the Total Commitments. Where availability falls below the Minimum Excess
Availability, the financial covenants (below) are required to be tested. Covenants are not required to be tested where availability is
above Minimum Excess.
Leverage in respect of any Relevant Period shall be less than or equal to 3:1;
Fixed Charge Cover in respect of any Relevant Period shall be greater than or equal to 2.1:1.
Strategic Report
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Corporate Information
171
22 Lease liabilities
At 1 April 2021
Additions
Remeasurements
Repayments
Unwinding of discount rate
Terminations
At 31 March 2022
Additions
Remeasurements
Repayments
Unwinding of discount rate
Terminations
At 31 March 2023
Land and
buildings
£m
48.8
6.6
12.8
(15.0)
1.9
(1.9)
53.2
2.1
4.1
(15.5)
1.8
(0.5)
45.2
Other
£m
14.4
15.9
5.7
(12.1)
0.6
(1.0)
23.5
28.1
3.5
(14.5)
1.7
(1.4)
40.9
Total
£m
63.2
22.5
18.5
(27.1)
2.5
(2.9)
76.7
30.2
7.6
(30.0)
3.5
(1.9)
86.1
Included within terminations in the year ended 31 March 2023 is £0.8m relating to exceptional terminations of property leases,
as described in 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
23 Provisions
At 1 April 2021 restated*
Additional provision recognised
Provision utilised in the year
Unwinding of the discount
At 31 March 2022 restated*
Additional provision recognised
Provision utilised in the year
Unwinding of the discount
At 31 March 2023
* See note 32.
31 March 2023
£m
31 March 2022
£m
22.1
64.0
86.1
Dilapidations
£m
Training
provision
£m
15.7
0.3
(2.0)
0.2
14.2
2.9
(1.6)
0.1
15.6
1.2
–
(0.5)
–
0.7
–
(0.7)
–
–
20.6
56.1
76.7
Total
£m
16.9
0.3
(2.5)
0.2
14.9
2.9
(2.3)
0.1
15.6
Of the £15.6m provision at 31 March 2023 (2022: £14.9m restated*), £3.6m (2022: £2.8m) is due within one year and £12.0m
(2022: £12.1m restated*) is due after one year.
The dilapidations provision relates to amounts payable to restore leased premises to their original condition upon the Group’s exit
of the lease for the site and other committed costs. Dilapidations may not be settled for some months following the Group’s exit
of the lease and are calculated based on estimated expenditure required to settle the landlord’s claim at current market rates. The
total liability is discounted to current values. The additional provision recognised in the year relates to exceptional restructuring of
depots as described in note 4.
The movement in the year on the training provision is settlement of the costs within the provision previously set up relating to the
Geason Training business.
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Notes to the Financial Statements continued
24 Deferred tax
At 1 April 2021
Recognised in the year
At 31 March 2022
Recognised in the year
At 31 March 2023
Property, plant
and equipment
£m
Intangible
assets
£m
Share-based
payments
£m
Other items
£m
8.8
2.2
11.0
(3.1)
7.9
(0.3)
0.2
(0.1)
0.8
0.7
(0.4)
0.3
(0.1)
0.1
–
(1.4)
(0.1)
(1.5)
0.3
(1.2)
Total
£m
6.7
2.6
9.3
(1.9)
7.4
Approximately £1.7m (2022: £1.7m) of the deferred tax liability relating to property, plant and equipment and £0.3m (2022:
£0.0m) of the deferred tax liability relating to intangible fixed asset timing differences is expected to reverse within 12 months
as the depreciation and amortisation charged on the underlying assets exceeds tax allowances claimed in the period.
Approximately £0.3m (2022: £0.4m) of the deferred tax asset relating to other items is expected to reverse within 12 months
as the tax spreading adjustment in relation to the IFRS 16 transitional adjustment unwinds.
The Group has gross trading losses carried forward at 31 March 2023 amounting to approximately £5.3m (2022: £6.1m). No
deferred tax asset has been recognised in respect of these losses. The Group also has gross capital losses carried forward at
31 March 2023 amounting to approximately £1.4m (2022: £1.4m). No deferred tax asset has been recognised in respect of
these losses.
25 Share capital
Authorised, allotted, called-up and fully paid
Opening balance (ordinary shares of 5 pence each)
Exercise of Sharesave Scheme options
Purchase and cancellation of own shares
Total
31 March 2023
31 March 2022
Number
m
Amount
£m
Number
m
Amount
£m
518.2
0.2
(1.4)
517.0
25.9
–
(0.1)
25.8
528.2
1.1
(11.1)
518.2
26.4
0.1
(0.6)
25.9
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.
A further resolution was then passed in June 2022, authorising the Company to make further market purchases up to a maximum
of 50,613,543 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. In the year ended 31 March 2023,
a total of 1,051,228 ordinary shares were purchased and subsequently cancelled, with a further 55,146,281 shares repurchased
and placed in treasury.
The share buyback programme was completed on 8 March 2023, at which point all shares for which there was an obligation to
buyback from the broker had been repurchased by Speedy. In the year ended 31 March 2023, the average price paid was 42p
(2022: 54p) with a total consideration (inclusive of all costs) of £24.0m (2022: £6.2m). Related costs incurred totalled £0.2m.
During the year, 0.2m ordinary shares of 5 pence were issued on exercise of options under the Speedy Hire Sharesave Schemes
(2022: 1.1m).
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 73,970 (2022: 177,094) shares were
transferred to employees during the year. At 31 March 2023, the Trust held 4,162,452 (2022: 4,236,422) shares.
Strategic Report
Governance
Financial Statements
Corporate Information
173
26 Share incentives
The Group operates a number of share-based payment schemes, details of which are provided in the Directors’ Remuneration
Report.
At 31 March 2023, options and awards over 23,738,625 shares (2022: 19,203,929) were outstanding under employee share
schemes. The Group operates two share incentive schemes. During the year a weighted average 184,004 ordinary shares of
5 pence were issued on exercise of options under the Speedy Hire Sharesave Schemes (2022: 325,283).
As at 31 March 2023, options to acquire 11,963,956 (2022: 8,035,173) Speedy Hire Plc shares were outstanding under the Speedy
Hire Sharesave Schemes. These options are exercisable by employees of the Group at prices between 32 and 56 pence (2022: 48
and 56 pence) at dates between April 2023 and July 2026 (2022: April 2022 and July 2025). At 31 March 2023, options to acquire
11,774,670 shares (2022: 11,168,757) under the Performance Share Plans were outstanding. These options are exercisable at nil
cost between April 2023 and June 2032 (2022: April 2022 and June 2031). The weighted average fair value of the awards granted
in the year was 30 pence (2022: 55 pence).
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
31 March 2023
31 March 2022*
WAEP
pence
Number
WAEP
pence
Number
22 16,077,113
7,627,615
22
46
(255,247)
17 (2,868,438)
22 15,533,503
5,216,389
28
(1,283,036)
29
(3,389,743)
46
22 20,581,043
22 16,077,113
16
4,737,225
8
3,677,030
* Prior year numbers of shares restated to reflect historically lapsed schemes.
Options and awards outstanding at 31 March 2023 have weighted average remaining contractual lives as follows:
Exercisable at nil pence
Exercisable at 32 pence
Exercisable at 48 pence
Exercisable at 55 pence
Exercisable at 56 pence
2023
Years
1.4
2.8
–
0.8
1.8
2022
Years
1.4
–
0.8
1.8
2.8
The fair value of services received in return for share options granted and shares awarded is measured by reference to the fair
value of those instruments. The pricing models used for the schemes are Black Scholes for awards not subject to market-based
performance conditions (Sharesave and Performance Share Plan: EPS condition) and Stochastic for awards subject to market-
based conditions in order to incorporate a discount factor into the fair value for the probability of achieving the relevant targets
(Performance Share Plan: TSR condition).
For awards subject to a market condition, volatility is calculated over the period of time commensurate with the remainder of the
performance period immediately prior to the date of grant. Where an award is not subject to market conditions, volatility is usually
calculated over the period of time commensurate with the expected award term immediately prior to the date of grant.
The inputs used for the outstanding options (on a weighted average basis where appropriate) are as follows:
Speedy Hire Sharesave Schemes
Exercise price
Share price volatility
Option life
Expected dividend yield
Risk-free interest rate
December
2022
December
2021
December
2020
December
2019
32p
33.5%
3.25 years
5.6%
3.3%
56p
31.7%
3.25 years
3.6%
0.5%
55p
31.2%
3.25 years
1.1%
(0.1%)
48p
28.8%
3.25 years
2.9%
0.5%
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2
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3
2
0
2
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Notes to the Financial Statements continued
26 Share incentives continued
Performance Share Plan
Exercise price
Share price volatility
Option life
Expected dividend yield
Risk-free interest rate
June
2022
June
2021
November
2020
Nil
32.4%
3 years
Nil
2.5%
Nil
32.6%
3 years
Nil
0.1%
Nil
31.8%
3 years
Nil
(0.0%)
May
2019
Nil
27.1%
3 years
Nil
0.7%
27 Reserves
Share premium
Relates to any premiums received on the issue of share capital.
Merger reserve
Used to record the amount arising on the difference between the nominal value of shares issued on acquisition of a subsidiary
company and the Company value of the interest in the subsidiary. The merger reserve arises where more than 90% of the shares
in a subsidiary are acquired and the consideration includes the issue of new shares by the Company, and therefore the Company
adopts merger relief under the Companies Act 2006.
Hedging reserve
Used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges,
including interest rate swaps and fuel price hedges.
Capital redemption reserve
Represents the nominal value of shares repurchased and subsequently cancelled, transferred from share capital to the capital
redemption reserve.
Translation reserve
Comprises foreign currency translation differences arising from the translation of financial statements of the Group’s foreign
entities into pounds sterling.
Retained earnings
Includes all current and prior period retained profits.
28 Contingent liabilities
There are no contingent liabilities as at the 31 March 2023.
29 Commitments
The Group had contracted capital commitments amounting to £5.3m (2022: £20.2m) at the end of the financial year for which no
provision has been made. These related to hire fleet equipment on order (2022: hire fleet equipment on order).
30 Post-balance sheet events
The Group has a £180m asset-based finance facility. This facility was renewed in July 2021 for a three year term, with options to
extend by a further two years. On 26 May 2023 these options were exercised and the facility now expires in July 2026, with no
prior scheduled repayment requirements. An additional uncommitted accordion of £220m remains in place.
This extension has resulted in updates to forecasted cash flows presented in these financial statements.
Strategic Report
Governance
Financial Statements
Corporate Information
175
31 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, the remuneration of whom is disclosed in note 7. Additionally, the Interim Chief Financial Officer is a member of key
management personnel but is not a statutory director of Speedy Hire Plc and so is excluded from the Directors’ Remuneration
Report. This individual’s salary and benefits paid in 2023 total £142,000 (2022: £nil) and share based payments £nil (2022: £nil).
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. There were post-employment
benefits totalling £4,750 provided to two former Directors in the year.
Non-Executive Directors receive a fee for their services to Speedy Hire Plc.
Full details of Executive and Non-Executive Director compensation and interests in the share capital of the Company as at
31 March 2023 are given in the Directors’ Remuneration Report.
32 Prior year adjustment
The Group has previously recognised dilapidation provisions upon exit – or notification of exit – of a leased property, together
with an ongoing assessment of property conditions. This has been reviewed to assess a more comprehensive view of the future
liability on all leases in line with accounting standards, and is a change from prior years. Dilapidations are now assessed at the
earliest point, being the start of the lease or due to an obligating event. This has been corrected by restating each of the affected
financial statement line items in the balance sheet as at 1 April 2021, 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 1 April 2021 and 31 March 2022 are as follows:
Assets:
Right of use asset as at 1 April 2021
Right of use asset as at 31 March 2022
Liabilities:
Provisions as at 1 April 2021
Provisions as at 31 March 2022
Net assets:
Net assets as at 1 April 2021
Net assets as at 31 March 2022
Equity:
Retained earnings as at 1 April 2021
Retained earnings as at 31 March 2022
Reported
£m
Adjustment
£m
Restated
£m
59.1
73.3
(6.0)
(4.0)
220.8
226.4
193.8
198.8
0.9
0.9
(10.9)
(10.9)
(10.0)
(10.0)
(10.0)
(10.0)
60.0
74.2
(16.9)
(14.9)
210.8
216.4
183.8
188.8
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Company Balance Sheet
as at 31 March 2023
ASSETS
Non-current assets
Investments
Trade and other receivables
Deferred tax asset
Current assets
Trade and other receivables
Current tax receivable
Cash
Derivative financial assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Derivative 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
* See note 44.
31 March 2023
Note
£m
31 March 2022
Restated*
£m
1 April 2021
Restated*
£m
34
35
35
38
37
36
37
38
39
40
93.5
105.9
–
199.4
79.6
2.0
1.0
1.2
83.8
283.2
(14.8)
(0.2)
(15.0)
(93.6)
(0.2)
(93.8)
93.5
103.9
–
197.4
278.8
4.1
11.8
–
294.7
492.1
(201.4)
–
(201.4)
(83.1)
(0.1)
(83.2)
(108.8)
(284.6)
174.4
207.5
25.8
1.9
0.7
2.3
0.6
143.1
174.4
25.9
1.8
0.6
2.3
0.1
176.8
207.5
93.5
95.9
0.1
189.5
196.0
16.1
1.0
–
213.1
402.6
(126.5)
(0.4)
(126.9)
(56.4)
–
(56.4)
(183.3)
219.3
26.4
1.3
–
2.3
(0.7)
190.0
219.3
The company profit for the year was £0.1m (2022: £3.2m).
The accompanying notes form part of the financial statements.
The Company Financial Statements on pages 176 to 184 were approved by the Board of Directors on 30 June 2023 and were
signed on its behalf by:
Dan Evans
Director
Company registered number: 00927680
Strategic Report
Governance
Financial Statements
Corporate Information
177
Company Statement of Changes in Equity
for the year ended 31 March 2023
At 1 April 2021 reported*
Restatement*
At 1 April 2021 restated*
Profit for the financial year
Other comprehensive income
Total comprehensive income
Dividends
Equity-settled share-based payments
Purchase of own shares for
cancellation or
placement in treasury
Issue of shares under the Sharesave
Scheme
At 31 March 2022 restated*
Loss for the financial year
Other comprehensive income
Total comprehensive income
Dividends
Equity-settled share-based payments
Tax on items taken directly to equity
Purchase of own shares for
cancellation or
placement in treasury
Issue of shares under the Sharesave
Scheme
At 31 March 2023
* See note 44.
Share
capital
£m
26.4
–
26.4
–
–
–
–
–
(0.6)
0.1
25.9
–
–
–
–
–
–
(0.1)
–
25.8
Share
premium
£m
Capital
redemption
reserve
£m
Merger
reserve
£m
Hedging
reserve
£m
Retained
earnings
£m
1.3
–
1.3
–
–
–
–
–
–
0.5
1.8
–
–
–
–
–
–
–
0.1
1.9
–
–
–
–
–
–
–
–
0.6
–
0.6
–
–
–
–
–
–
0.1
–
0.7
2.3
–
2.3
–
–
–
–
–
–
–
2.3
–
–
–
–
–
–
–
–
(0.7)
–
(0.7)
–
0.8
0.8
–
–
–
–
0.1
-
0.5
0.5
–
–
–
–
–
Total
equity
£m
236.0
(16.7)
219.3
3.2
0.7
3.9
(11.3)
1.2
206.7
(16.7)
190.0
3.2
(0.1)
3.1
(11.3)
1.2
(6.2)
(6.2)
–
176.8
0.1
–
0.1
(10.9)
1.1
–
0.6
207.5
0.1
0.5
0.6
(10.9)
1.1
–
(24.0)
(24.0)
–
2.3
0.6
143.1
The accompanying notes form part of the financial statements.
0.1
174.4
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3
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2
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Company Cash Flow Statement
for the year ended 31 March 2023
Cash generated from operating activities
(Loss)/Profit before tax
Net financial income
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Equity-settled share-based payments
Cash generated from/(used in) operations
Interest paid*
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 or placement in treasury
Dividends paid
Net cash flow (used in)/generated from financing activities
(Decrease)/increase in cash and cash equivalents
Cash at the start of the financial year
Cash at the end of the financial year
* Restated to show interest paid and received separately.
The accompanying notes form part of the financial statements.
Year ended
31 March 2023
£m
Year ended
31 March 2022
£m
Note
(1.0)
(3.0)
199.8
(185.7)
1.1
13.2
(5.0)
8.3
(2.6)
13.9
595.6
(585.5)
0.1
(24.0)
(10.9)
(24.7)
(10.8)
11.8
1.0
3.2
(4.8)
(75.0)
75.2
1.2
(0.2)
(2.9)
7.6
(3.0)
1.5
482.6
(456.5)
0.5
(6.0)
(11.3)
9.3
10.8
1.0
11.8
25
11
Strategic Report
Governance
Financial Statements
Corporate Information
179
Notes to the Company Financial Statements
33 Accounting policies
The Company complies with the accounting policies defined in note 1 of the Group Consolidated Financial Statements, except as
noted below.
Statement of compliance
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
Balance sheet and the Company Statement of Changes in Equity.
The Company complies with the accounting policies defined in note 1 of the Group’s Consolidated Financial Statements, except as
noted below.
Dividends
Dividends received and receivable are credited to the Company’s income statement to the extent that they represent a realised
profit for the Company.
Finance income
Finance income comprises interest receivable from subsidiary undertakings and is recognised in the Company’s income statement
as it accrues.
Employees
The Company does not have any employees. Directors are paid by other Group companies, the details of which are disclosed in the
Directors’ Remuneration Report.
Investments in subsidiaries
Investments in subsidiary undertakings are stated at cost less any provisions for permanent diminution in value.
Intercompany receivables
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.
Significant judgements and estimates
The following are significant sources of estimation uncertainty that management has made in the process of applying the
accounting policies and that have a significant risk of resulting in a material adjustment within the next financial year.
Valuation of intercompany receivables
Intercompany expected credit losses are assessed under IFRS 9, based on the applicable repayment profile and the ability of the
borrower to repay the loan. Where the borrower has insufficient liquid assets to repay the loan, and no contractual obligation exists
to provide support for the loan, an impairment loss is recognised.
At 31 March 2023, the expected credit loss provision was £43.9m (2022: £43.9m) against a receivable balance of £183.3m
(2022: £380.3m). Further detail is provided in note 35. The Company’s estimated expected credit losses are 23.9% (2022: 11.5%)
of intercompany receivables. A change of 1% in this assumption would result in an increase to the provision of £1.8m (2022:
£3.8m).
34 Investments
Cost
At 1 April 2021, 31 March 2022 and 31 March 2023
Provisions
At 1 April 2021, 31 March 2022 and 31 March 2023
Net book value
At 1 April 2021, 31 March 2022 and 31 March 2023
Investments
in related
undertakings
£m
113.3
(19.8)
93.5
An impairment test has been performed on the Company’s carrying value of investments in related undertakings and no
impairment has been made (2022: £nil).
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180
3
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Notes to the Company Financial Statements continued
The Company’s related undertakings are as follows:
Allen Contracts Limited1
Allen Investments Limited1
Bucks Access Rentals Limited1,2
Chestview (North East) Limited1
Crewe Plant Hire Limited1,2
Drain Technology (1985) Limited2
Drain Technology Limited3
Geason Holdings Limited2,3
Geason Apprenticeships Limited2,3
Hire-A-Tool Limited1
Ian Kilpatrick Limited2,3
Prospects Training International Limited
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
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 LLP9
Speedyloo Limited1
Stockton Investments (North East) Limited1
Tidy Group Limited1
Turner & Hickman Limited9,10
Waterford Hire Services Limited1,11
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
UK
Ireland
UK
UK
UK
UK
UK
UK
UAE
Egypt
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
Kazakhstan
UK
UK
UK
UK
Ireland
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
In liquidation
In liquidation
Dormant
In liquidation
In liquidation
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
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Provision of group services
Dormant
Provision of group services
Hire services
Dormant
Dormant
Dormant
Holding company
Dormant
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
49%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
45%
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.
Strategic Report
Governance
Financial Statements
Corporate Information
181
34 Investments continued
All dormant related undertakings noted above take the s480 exemption under the Companies Act 2006 from the requirement to
have their accounts for the financial year ended 31 March 2023 audited.
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.
35 Trade and other receivables
Current
Amounts owed by Group undertakings*
Other receivables
* See note 44.
31 March 2023
£m
31 March 2022
£m
77.4
2.2
79.6
276.4
2.4
278.8
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. Inter-company loans bear interest on the same basis as external bank borrowings.
The valuation of intercompany receivables and calculation of expected credit losses (‘ECLs’) is explained in the Significant
judgements and estimates section within note 33 Accounting Policies. The related loss allowance can be analysed as follows:
At 1 April
Impairment provision charged to the Income Statement
Utilised in the year
At 31 March
31 March 2023
£m
31 March 2022
£m
43.9
–
–
43.9
44.9
1.2
(2.2)
43.9
As part of an exercise undertaken in the year, the Company has reassessed the expected timeframe for repayment of intercompany
balances. Following this, non-current amounts owed by Group undertakings have been identified as follows:
Non-Current
Amounts owed by Group undertakings
36 Trade and other payables
Amounts owed to Group undertakings*
Accruals
* See note 44.
31 March 2023
£m
31 March 2022
£m
105.9
105.9
103.9
103.9
31 March 2023
£m
31 March 2022
£m
12.7
2.1
14.8
200.6
0.8
201.4
Amounts due to other Group undertakings are repayable on demand. Interest is not payable on balances outstanding as a result of
routine intercompany trading. Intercompany loans bear interest on the same basis as external bank borrowings.
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Notes to the Company Financial Statements continued
37 Financial instruments
The basis for determination of fair values of financial instruments and the fair value hierarchy used by the Company is the same as
that stated for the Group in note 20.
Fair value of financial assets and liabilities
The fair values of financial assets and liabilities held at amortised cost are considered to be approximately equal to the carrying
values shown in the balance sheet, set out below:
Assets per the Balance Sheet
Trade and other receivables1
Cash at bank and in hand
Derivative financial assets2
31 March 2023
Fair value
through other
comprehensive
income
£m
31 March 2022
Fair value
through other
comprehensive
income
£m
Total
£m
Amortised
cost
£m
–
–
1.2
1.2
185.5
1.0
1.2
187.7
382.3
11.8
–
394.1
0.4
–
–
0.4
Amortised
cost
£m
185.5
1.0
–
186.5
Total
£m
382.7
11.8
–
394.5
1 Trade and other receivables excluding prepayments and accrued income.
2 2022 derivative financial assets presented within trade and other receivables.
Interest income of £8.3m was received in relation to amounts owed by subsidiary undertakings, accruing at an effective interest
rate of 4.5% per annum.
Liabilities per the Balance Sheet
Borrowings
Trade and other payables¹
Accruals
Derivative financial liabilities
31 March 2023
Fair value
through other
comprehensive
income
£m
Amortised cost
£m
93.6
12.7
2.1
–
108.4
–
–
–
0.2
0.2
31 March 2022
Fair value
through other
comprehensive
income
£m
–
–
–
–
–
Total
£m
Amortised cost
£m
93.6
12.7
2.1
0.2
108.6
83.1
200.6
0.8
–
284.5
Total
£m
83.1
200.6
0.8
–
284.5
1 Trade and other payables excluding non-financial liabilities.
Risks in relation to financial instruments are as discussed for the Group in note 20, except for the following:
Credit risk
Credit risk is the risk of financial loss to the Company if a Group undertaking or counterparty to a financial instrument fails to meet
its contractual obligations and arises principally from the Company’s receivables from Group undertakings.
Transactions involving derivative financial instruments are undertaken with counterparties within the syndicate of banks that
provide the Company’s asset based finance facility. Given their high credit ratings, management does not expect any counterparty
to fail to meet its obligations.
The Company establishes an allowance for impairment that is based on the ability of Group undertakings to repay amounts owed,
following consideration of the liquidity of assets that could be used to settle outstanding amounts.
Strategic Report
Governance
Financial Statements
Corporate Information
183
37 Financial instruments continued
Liquidity risk
The banking facilities of the Group detailed in note 20 are held by the Company.
The following analysis is based on the undiscounted contractual maturities on the Company’s financial liabilities, including
estimated interest that will accrue, over the following financial years ended 31 March.
Asset based finance facility
Bank interest payments
Trade and other payables
Accruals
Derivative financial liabilities
Asset based finance facility
Bank interest payments
Trade and other payables
Accruals*
Derivative financial liabilities*
Undiscounted cash flows – 31 March 2023
2025
£m
92.9
2.3
–
–
0.1
95.3
2026
£m
–
–
–
–
0.1
0.1
2027
and later
£m
–
–
–
–
–
–
Undiscounted cash flows – 31 March 2022
2024
£m
–
3.3
–
–
–
3.3
2025
£m
2026 and later
£m
69.5
1.2
–
–
–
70.7
–
–
–
–
–
–
2024
£m
–
8.0
12.7
2.1
–
22.8
2023
£m
–
3.5
200.6
0.8
–
204.9
Total
£m
92.9
10.3
12.7
2.1
0.2
118.2
Total
£m
69.5
8.0
200.6
0.8
–
278.9
* 2022 maturity analysis restated to include accruals and derivative financial liabilities.
Capital management
The Company requires capital for growth, by completing acquisitions and refinancing existing debts in the longer term. The
Company defines gross capital as net debt (cash less borrowings), as disclosed in note 38, plus shareholders’ funds as disclosed
in the Company Statement of Changes in Equity, 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.
Net debt
Total equity
At 31 March
38 Borrowings
Non-current borrowings
Maturing between two and five years
– Asset based finance facility
Total borrowings
Less: cash
Net debt¹
1 Key performance indicator – excluding lease liabilities.
31 March 2023
£m
31 March 2022
£m
92.6
174.4
267.0
71.3
207.5
278.8
31 March 2023
£m
31 March 2022
£m
93.6
93.6
(1.0)
92.6
83.1
83.1
(11.8)
71.3
Both the overdraft and asset based finance facility are secured by a fixed and floating charge over all the itemised hire fleet assets
and trade receivables of the Group and are rated pari passu.
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Notes to the Company Financial Statements continued
Reconciliation of financing liabilities and net debt
1 April 2022
£m
Non-cash
movement
£m
Cash flow
£m
31 March 2023
£m
Bank borrowings
Liabilities arising from financing activities
Cash at bank and in hand
Net debt
39 Deferred tax
Opening at 1 April 2021
Recognised in income
At 31 March 2022
Recognised in income
At 31 March 2023
(83.1)
(83.1)
11.8
(71.3)
0.5
0.5
–
0.5
(11.0)
(11.0)
(10.8)
(21.8)
(93.6)
(93.6)
1.0
(92.6)
Total
£m
0.1
(0.2)
(0.1)
(0.1)
(0.2)
40 Share capital and share incentives
The Company share capital is stated in accordance with note 25.
41 Contingent liabilities and commitments
There are no contingent liabilities nor capital commitments for the Company at the year end date.
42 Post-balance sheet events
There are no post balance sheet events not already disclosed in note 30.
43 Related party disclosures
Intercompany funding and cross guarantees
The amount outstanding from subsidiary undertakings at 31 March 2023 totalled £183.3m (2022: £380.3m). Amounts owed to
subsidiary undertakings as at 31 March 2023 totalled £12.7m (2022: £200.6m).
The Company and certain subsidiary undertakings have entered into cross guarantees of bank loans and overdrafts to the
Company, as disclosed in note 21.
Provision of Group services
The Company paid £0.8m in respect of Group services provided by its wholly owned subsidiary, Speedy Support Services Ltd
(2022: £0.5m).
44 Prior year adjustment
An assessment of the recoverability and classification of amounts owed by Group undertakings was performed in the year. This
identified that certain balances were either not considered recoverable by the Company, or not expected to be settled within
twelve months of the reporting date, and that this was also the position at prior reporting dates. This has been corrected by
restating each of the affected financial statement line items in the balance sheet as at 1 April 2021, 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 1 April 2021 and 31 March 2022 are as follows:
Non-current assets:
Amounts owed by Group undertakings as at 1 April 2021
Amounts owed by Group undertakings as at 31 March 2022
Current assets:
Amounts owed by Group undertakings as at 1 April 2021
Amounts owed by Group undertakings as at 31 March 2022
Net assets:
Net assets as at 1 April 2021
Net assets as at 31 March 2022
Equity:
Retained earnings as at 1 April 2021
Retained earnings as at 31 March 2022
Reported
£m
Adjustment
£m
Restated
£m
–
–
95.9
103.9
95.9
103.9
306.6
397.0
(112.6)
(120.6)
194.0
276.4
236.0
224.2
(16.7)
(16.7)
219.3
207.5
206.7
193.5
(16.7)
(16.7)
190.0
176.8
Strategic Report
Governance
Financial Statements
Corporate Information
185
Five-year Summary
Income Statement
Revenue
Gross profit
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
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
* See note 32.
2023
£m
440.6
219.0
3.8
6.6
(8.6)
–
(8.6)
1.8
103.7
32.1
372.9
207.9
184.6
51.9
37.0
(54.2)
1.7
2.60
5.25
35.7
50.1
14.5
23.5
1.3
0.29
20222
Restated*
£m
20212
Restated*
£m
2020
£m
20191
£m
386.8
221.1
332.3
184.9
31.6
3.2
(5.7)
–
(5.7)
29.1
99.3
30.1
422.7
226.9
216.4
28.6
5.5
(71.5)
0.5
2.20
4.24
41.8
31.2
13.6
25.7
0.9
0.20
12.5
1.2
(5.4)
–
(5.4)
8.3
85.3
17.5
386.6
207.2
210.8
72.9
69.7
(36.4)
(1.0)
1.40
2.68
39.9
15.7
8.6
25.7
0.5
0.11
406.7
224.2
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
37.8
14.4
26.4
1.0
0.31
394.7
214.4
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
44.1
11.7
26.6
1.1
0.35
3,524
183
3,501
207
3,875
180
4,071
216
3,873
222
1 2019 ROCE is calculated as adjusted profit before tax. 2020, 2021, 2022 and 2023 are calculated on adjusted EBITDA.
2 2022 and 2021 Income Statement amounts are presented for continuing operations only.
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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 7 September 2023 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, 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 +44 (0) 371 384 2769. If calling from outside of
the UK, please ensure the country code is used. 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.
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.
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.
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
Strategic Report
Governance
Financial Statements
Corporate Information
187
Registered office and advisers
Registered office
Speedy Hire Plc
Chase House
16 The Parks
Newton-le-Willows
Merseyside
WA12 0JQ
Telephone
01942 720 000
Email
investor.relations@speedyservices.com
Website
speedyservices.com/investors
Registered number
00927680
Company Secretary
Neil Hunt
Financial advisers
NM Rothschild & Sons Limited
New Court
St. Swithin’s Lane
London
EC4N 8AL
Stockbrokers
Liberum Capital Limited
Ropemaker Place
Level 12
25 Ropemaker Street
London
EC2Y 9LY
Peel Hunt LLP
100 Liverpool Street
London
EC2M 2AT
Legal Advisers
Pinsent Masons LLP
1 Park Row
Leeds
LS1 5AB
Addleshaw Goddard LLP
One St Peter’s Square
Manchester
M2 3DE
Auditors
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
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
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CBP019809
Printed by a Carbon Neutral Operation (certified: CarbonQuota) under the
PAS2060 standard.
Printed on material from well-managed, FSC™ certified forests and other controlled
sources. This publication was printed by an FSC™ certified printer that holds an
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Speedy Hire Plc
Chase House
16 The Parks
Newton-le-Willows
Merseyside
WA12 0JQ
www.speedyservices.com