![]() ### Growing ### sustainably Speedy Hire Plc #### Annual Report and Accounts 2022 ![]() ![]() Governance Strategic Report Corporate Information Financial Statements ## Strategic Report Speedy is the UK’s leading provider of tools and equipment hire, and services to the construction, infrastructure and industrial markets. Our hire and services business operates from approximately 200 locations in the UK and Ireland, including within selected B&Q stores and on-site facilities at client locations. We also operate internationally through a joint venture in Kazakhstan. CONTENTS Strategic Report Who we are 03 What we do 04 Our network 07 Markets we operate in 08 Our customer value proposition 10 Why invest in Speedy 12 Our ESG strategy 15 Chairman’s Statement 16 Chief Executive’s Review 18 Financial KPIs 22 Our strategy 24 Increasing market share 25 Retail and trade 29 Digital 31 Sustainability 33 People 36 ESG Report 39 Financial Review 80 Principal risks and uncertainties 84 Viability Statement 92 Board engagement with our stakeholders 93 Governance Chairman’s letter to shareholders 100 Directors’ Report 101 Statement of Directors’ Responsibilities 105 Board of Directors 106 Corporate Governance 108 Audit & Risk Committee Report 115 Nomination Committee Report 122 Remuneration Report 125 Independent auditor’s report to the members of Speedy Hire Plc 148 Financial Statements Consolidated Income Statement 158 Consolidated Statement of Comprehensive Income 159 Consolidated Balance Sheet 160 Consolidated Statement of Changes in Equity 161 Consolidated Cash Flow Statement 162 Notes to the Financial Statements 164 Company Balance Sheet 200 Company Statement of Changes in Equity 201 Company Cash Flow Statement 202 Notes to the Company Financial Statements 203 Five-year summary 208 Corporate Information Shareholder Information 210   Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 1 ![]() 2 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() 2.5 #### miles   they would stretch the length of New York’s Central Park (2.5 miles) Strategic Report Corporate Information Governance Financial Statements #### Our vision #### Our mission #### Our values – People First #### To inspire and innovate #### the future of hire. Speedy is the UK and #### Ireland’s leading provider #### of tools, specialistequipment and services. #### We provide exceptional customer experience, #### accelerating collective #### success towards a #### sustainable future.Ambitious 3,554 32% c.57,0002,270c.40,000 92% #### Innovative #### Inclusive #### Together #### Trusted Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 3 #### Who we are total employees of our revenue is generated from ECO   customers in the UK and  national contractors to local trades 7.65 #### miles  Platforms would reach the length of Ullswater in the Lake District shore to-shore (7.65 miles) hire product lines and  itemised assets for hire consumable products in our extensive range customer satisfaction  we have high levels of customer advocacy\* \* Based on average monthly responses to customer surveys during FY2022 #### Company facts The pressure produced by   the force produced from the thrust of a space shuttle  If we connected all of our  we could run them up and back down Mount Everest and still have some to spare If we combined the heat that all of our welding sets have  it would be as hot as the surface of the sun We lead with bravery to make anything possible.  and products emerge.  We are family; proud to work as one to make great things happen.  Our full range of hoists could take you up the  (combined mast height  ![]() #### What we do #### Services #### Hire #### Our services revenues fall into the following categories: Rehire   through our partnerships with the industry’s leading suppliers.  Through our Lloyds British business we ensure our   Powered access specialist servicing and refurbishment  we provide specialist servicing and refurbishment services for powered access equipment. Retail sales   and at a local level through our network of Speedy Service Centres and within selected B&Q stores across the UK. Fuel Management Speedy is the only UK plant hire company with its own  supply service. This includes low emission Green D+ HVO (Hydrotreated Vegetable Oil) fuel through a fully managed   Training We provide a comprehensive range of industry leading safety and skills training along with other progressive end-to-end training courses.  #### product lines through our core #### tools and specialist businesses. Tools The latest hand tools and accessories including our extensive range of environmental next generation ECO products. Lifting   supported by our Lloyds British business. Survey The most technologically advanced and accurate instruments  and calibrated by expert teams at our approved Service Centres. Power   Rail   Powered access Our ‘Speedy Powered Access’ division provides an industry leading range of equipment including sustainable hybrid  \*Approximate percentage of Group revenue 4 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 36%\* 64%\* ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 5 ![]() 6 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### During FY2022 we opened our #### pioneering Innovation Centre #### incorporating our Milton Keynes Regional Service Centre as part of a network upgrade programme, #### providing the blueprint for our future #### low carbon Service Centre network. #### Innovation Centre 6 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Strategic Report Corporate Information Governance Financial Statements #### Our network Our aim is to make it easy for   contact options to suit their needs: Regional Hubs Our regional call centres are   our regional customer base #### Customer #### contact #### options Online Through our website and mobile app Customer Relationship Centre Through our central hub in  servicing our SME customers B&Q outlets We operate within selected B&Q stores across the UK and on B&Qs website; diy.com Service Centre Network Through approximately 200 operational centres across the UK and Ireland Speedy Direct Through our central call  with dedicated desks for  Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 7 ![]() #### Markets we operate in 8 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 •  •   • New Build Housing •   •   • DIY and Home Improvement •  #### Infrastructure #### Residential Construction #### Non-Residential Construction #### Support Services and Other RMI \*\* #### Residential RMI \*\* #### Industrial Services RMI \*\* 37% \* 29% \* 3% \* 5% \* 16% \* 10% \* \*Approximate percentage of Group revenue \*\*Repair Maintenance Improvement (housing and construction) ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 9 ![]() #### ProductProduct   #### Our customer value proposition #### HireBuy  #### customer experience is    and equipment to hire or buy. In addition we have the ability to test and inspect products to maintain    and ensure their people are operating safely on-site. 10 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 We make life easy for our customers with the industry’s leading hire product   •  • Specialist plant and equipment hire • Available from our retail network across the UK and selected B&Q stores • Four-hour nationwide delivery on 350 of our most popular products  from market leading brands. •  • 450 essential hire accessories held nationally • Available from our retail network across the UK and selected B&Q stores • Central distribution function for bulk orders No capital outlay Long-term ownership ![]() #### ProductProductProduct    Strategic Report Corporate Information Governance Financial Statements #### Train #### Test #### Solutions We provide a wide range of training programmes ensuring our customers  •  organisations including IPAF and PASMA •  • Bespoke short-course training design and development •  •  working at height We ensure equipment remains safe to use and is legally compliant through the  • Testing and inspection including structural and proof load •  •  •    of customer challenges through providing expert consultancy alongside the provision of core hire and services. People competence Regulatory needs Beyond simply hire and services Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 11 ![]() #### Why invest in Speedy #### We are a market leading hire #### and services company. We have a clear customer focused growth strategy   and sustainability in our sector. 12 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### A strong balance sheet 12345678910 #### UK Infrastructure sector ESG programme UK retail sector #### Support services  #### Unique delivery promise #### Industry leading #### Innovation #### Customer satisfaction We have a strong balance sheet and  which to grow the business organically and through value enhancing acquisitions.  UK Infrastructure sector that the UK government is increasingly committed to supporting. Our ESG strategy drives our commitment   supporting our people and local communities and operating as an industry leading sustainable company. We have accelerated our penetration of the growing consumer DIY market through the launch of our dedicated consumer website and partnership with B&Q including on diy.com. We operate in RMI\* and Support Services  revenue stream. We aim to grow our services businesses;  more resilient to an economic downturn. We provide a unique industry leading national four-hour delivery promise on our 350 most popular products to both trade and consumers. We are continually improving asset utilisation and availability year-on-year which is fundamental to ensuring that we provide great customer service. We embrace state of the art technology  actively working with our suppliers through  sustainable solutions for customers.   and an ‘Excellent’ rating on Trustpilot. \*Repair Maintenance Improvement (housing and construction) \*\* Based on average monthly responses to customer surveys during FY2022 ![]() Strategic Report Corporate Information Governance Financial Statements #### We supply large national customers, including 88 of the #### UK’s top 100 contractors, as well #### as local trades and industries. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 13 ![]() #### GOING GREENER FASTER #### The Decade To Deliver 14 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Strategic Report Corporate Information Governance Financial Statements #### Our ESG strategy  sustainability and innovation. During the year we developed a new strategy to accelerate our environmental and social agenda; we call it the Decade to Deliver.   targets for the next 10 years.  Down. I Chair our ESG Committee which is made up of senior managers from across the business. We meet regularly to drive continuous improvement in our ESG KPIs which are aligned with the United Nations Sustainable Development Goals 2030 (UNSDGs). Our ESG framework aligns with the vision to inspire and innovate the future of hire. •  sustainable company building on a strong track record of safety and carbon-saving innovation. •     robust audit functions and processes.   comprehensive ESG Report. Amelia Woodley, ESG Director Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 15 ![]() #### The results we are reporting    report that both revenue and  #### continuing operations are  year pre-COVID-19. We have a strong balance sheet and   #### sustainable products that #### our customers demand while #### launching a share buyback #### programme during the year. Results Group revenue increased by 16.4% to £386.8m (FY2021: £332.3m) with a number o f new contract wins and renewals  partnership with B&Q was formalised during the year growing our market share with trade and retail customers both in stores and     as a result of increased activity following new contract awards.   supplier lead times. Notwithstanding the increased investment utilisation rates have increased to 57.0% and our net debt / EBITDA remains low. #### Chairman's statement David Shearer, Chairman “ I am pleased with the #### Group’s performance this #### year and that revenues are now ahead of the #### pre-COVID-19 period. #### We have a strong market position allowing us to #### take advantage of positive #### end markets and deliver #### continued sustainable growth. The Board looks  #### for the year ahead”. 16 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Strategic Report Corporate Information Governance Financial Statements We have enhanced our ESG proposition following the appointment of an ESG Director in April 2021. Our new strategy ‘The decade to deliver’ sets out plans to reduce our  environmental impact through the operation of a sustainable  Dividend In line with our capital allocation policy we will continue to invest in organic growth and acquisitions whilst maintaining regular returns to shareholders. Following a review of the medium-term capital needs of the Group the Board implemented a £30 million share buyback programme in January 2022. To date c£10m of shares have been purchased under this programme. The Board is pleased with the strong performance of the business  for the year (FY2021: 1.40pps). If approved at the forthcoming Annual General Meeting the dividend will be paid on 23 September 2022 to shareholders on the register at close of business on 12 August 2022. Board and people  his intention to retire. Russell will remain with the business until  The recruitment process for a replacement is underway. I would like to thank Russell both personally and on behalf of   transformed and is now well positioned for future growth with an ambitious management team. We wish him well for the future.  on 1 June 2021 as an Independent Non-executive Director.  Bartlett stepped down from the Remuneration Committee on 16 November 2021 in keeping with the Company's current policy  executive Directors. During March 2022 the Board agreed to set up a new Sustainability Committee to assist the Board in its oversight of the Group’s ESG strategy including the Group’s performance in reducing its carbon footprint. On behalf of the Board I would like to take this opportunity to thank all of my colleagues for their continued hard work and  Future I am pleased with the Group’s performance this year and that revenues are now ahead of the pre-COVID-19 period. We have a strong market position allowing us to take advantage of positive end markets and deliver continued sustainable growth. The Board  David Shearer, Chairman Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 17 ![]() I am pleased with the results that we have reported today which are in line with our expectations. Our revenue and - strating the strength of our customer value proposition. Revenues have recovered post COVID-19 and for the UK and Ireland business are now ahead of the year ended 31 March  increased market activity and new customer wins and renewals.    rail business has continued to expand through winning market  widely. In the housebuilding market we continued to see strong demand and growth in the year.   on both overheads and new equipment purchases. We have improved our governance and reporting in this area which will facilitate improved margins and the ability to implement more dynamic pricing models. Our investment in developing a retail business in partnership with B&Q has continued. We were pleased to formalise an agreement with B&Q in September 2021 and now have a presence in 36 of    longer supply chain lead times. The strength of our supply chain  have been key to achieving strong asset utilisation rates on our  Service revenues increased by 13.7% with particularly strong performance in our rehire business which had a record year. Following the phasing out of red diesel supplies to the construction industry we have also seen strong growth in our fuel management business and particularly for HVO fuel which now accounts for 12.3% (FY2021: 1.3%) of our fuel sales. #### Chief Executive’s Review Russell Down, Chief Executive 18 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### “ I am pleased to report  #### strong performance we have achieved this year. We have #### continued to progress our #### strategic goals by taking #### market share, developing a  #### experience, prioritising #### our people and leading on ESG. This performance is #### testament to the hard work #### and dedication of all #### my colleagues”. ![]() Strategic Report Corporate Information Governance Financial Statements   The Group entered into a Transitional Services Agreement with   c.600 UAE-based employees' contracts were terminated and all  underway to liquidate our trading entities in the region.   increased activity levels and contract wins. A new temporary   the JV increased to £3.2m (FY2021: £1.2m). Financing and liquidity     against its committed banking facilities of £180m; leverage at 31 March 2022 was 0.9 times. Share buyback The Board reviewed the capital allocation policy and medium- term capital needs of the Group in January 2022 and considered that a £30 million share buyback programme was appropriate.   c.£10m of shares have been purchased under this programme. Results Results and commentary are presented on a continuing  of the Middle East business in March 2021 which was treated as discontinued. Revenue increased by 16.4% to £386.8m (FY2021:  services hire and an improved H2 performance in services. Group  (FY2021: £328.1m).    (FY2021: £8.3m).    resultant increase in activity. Dividend The Board is committed to a progressive dividend policy with a pay-out ratio of between 33% and 50% of underlying  The Board is pleased with the performance of the business and  of 1.45pps for the year ended 31 March 2022 (FY2021: 1.40pps). The full year dividend will amount to 2.20pps which represents  Strategy and operational review Our vision is to inspire and innovate the future of hire. As the   accelerating mutual success with our customers working towards a sustainable future.  including 88 of the UK’s 100 largest contractors. Our customers     Redrow Homes whilst also growing our retail business in partnership with B&Q. We are further penetrating our addressable markets through cross-selling products and services to achieve a higher share of wallet. Customer service is key to  increasing market share. The Group implemented price increases in April 2022 on list   Customers have largely been receptive to the price increases  are renewed. We have increased our share of the SME market through continued growth in our Customer Relationship Centre (CRC) in South Wales. Our partnership with B&Q has been extended  B2C website we are bringing the hire proposition to consumers  B&Q outlets give retail and trade customers the option to hire tools and equipment from Speedy as part of their B&Q shopping experience enabling customers to order and collect Speedy  range of tools and equipment enables homeowners to be more  a convenient and accessible way of completing improvement   located next to the TradePoint areas so as to promote the option of hire to both retail and trade customers. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 19 ![]()   guaranteed four-hour delivery service on our most popular products nationally. This unique customer value proposition is driven by our service-led culture and is made possible by the strategic investment we have made in the tools and equipment  processes that enable it. During the year we invested £10 million  to meet rising customer demand for quick site deliveries. The  popular products.     set of trading channels. The developments we have made in the  have made it easier to do business with us. We have introduced an online availability checker which enables customers to check availability on a product before going through the checkout process and makes it easier for them to see if the products they want to hire are located nearby for collection. The results include    customers to combine our digital ordering process with their own internal approval processes to submit approved orders. These developments are attracting and retaining customers whilst  step forward in our web and app functionality. We have recently  planned in FY2023 to ensure we continue to provide an industry leading digital customer experience.  produces a dynamic forecast. Optimal stocking levels are set    enhance our utilisation rates and service to customers. During the year we successfully upgraded our ERP (Enterprise     customer experience.   they are ROCE enhancing for the Group. Our Services categories  product and consumable sales; and fuel management services. Services revenue has performed strongly due to our ability to cross-sell our complete customer proposition to larger customers.   market in the provision of sustainable hydrotreated vegetable oil (HVO) fuel and fuel management services and consequently  ESG  aligned to the new SBTi Net Zero Standard. During the year we have set science based targets to reduce our Scope 1 and 2 emissions by 50% before 2030. Our Scope 3 emissions account  from customer use of our hired assets. During FY2023 we will undertake science based modelling to create a pathway for the reduction of our Scope 3 emissions. Our carbon emissions in the UK and Ireland have reduced from  in FY2022. This reduction has been achieved through the  and the use of HVO fuel in our larger vehicles. This equates to a 23% reduction on a CO 2 per employee basis to 4.94 tonnes (2019 continuing operations: 6.45 tonnes).  used for delivery and collection of hire assets and business travel.   electric or hybrid by 2025. This commitment will play a key role in  customers as a key part of their supply chain. In the last year we invested in 64 new hybrid transit vans and are trialling a number of additional electric vehicles. We also  construction industry to deliver our powered access products. Our company car list now comprises entirely electric and hybrid  future savings of up to 260 tonnes of CO 2 annually from replacing diesel and petrol models. Our aim is for all company cars to be hybrid or electric by 2023. To support the transition we have continued to install electric vehicle charging points across our UK Regional Service Centre network. #### Chief Executive’s Review continued 20 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Strategic Report Corporate Information Governance Financial Statements We are modernising our depot footprint and in November 2021 we launched our new Innovation Centre in Milton Keynes. It   technologies. All commercial vehicles operating out of the site  2 e  The centre is powered by 670 solar panels and utilises pioneering   living wall and beehives made from repurposed hard hats. The  recycled materials to help further lower its environmental impact.  and local customers for site tours to demonstrate its sustainability credentials and inspire our customers with ideas that they have taken back to their businesses. The Innovation Centre acts as a  list of larger new Regional Service Centres launched during the  Aberdeen and Edinburgh. The brand new sites also create an improved experience for our colleagues through an enhanced and technically optimised working environment. In taking action to minimise our carbon footprint we are actively     proportion of capex during FY2023 in sustainable products in line with customer demand to help drive down carbon emissions. We have undertaken an initial evaluation of our Scope 3 emissions and during FY2023 will be undertaking further detailed analysis and evaluating strategies with our supply chain to reduce these as quickly as possible.   supported a colleague led ‘As One’ challenge to raise money for charity Mind and raise awareness of mental health issues. The   People We launched our People First strategy during the year that   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 5 years as part of our commitment to the ‘5% club’. To recognise the considerable  also introduced a ‘late careers’ mentor programme. This ensures the skills we need for the future are retained whilst passing them on to new colleagues.  established who are participating in the long-term success of the business. I have recently advised the Board of my intention to retire. I am proud to have been Chief Executive at Speedy for the last seven years and of all we have achieved during this period. I would like to take this opportunity to thank all of my exceptionally talented  wish them well for the future. Summary and outlook  we have achieved this year. We have continued to progress our   on ESG. This performance is testament to the hard work and dedication of all my colleagues. We have made an encouraging start to FY2023 with volume  Against a backdrop of positive end-markets and our unique   Russell Down, Chief Executive Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 21 ![]() KPI Why this KPI is important to our strategy How we have done FY2021 performance #### Financial KPIs Revenue £m Revenue (excluding disposals) £m EBITA 1 £m EBITA 1 margin % EBITDA 1 £m EBITDA 1 margin %  before tax 1 £m  £363.6m£386.8m £359.4m£381.7m £25.4m£32.6m 7.0%8.4% £90.5m£99.5m 24.9%25.7% £20.7m£30.1m £8.3m£29.1m A measure of the work we are undertaking. A measure of our underlying activity with customers having removed  disposal income.  generate from our revenue. Highlights how successful Speedy is in maximising its return from the revenue generated. A measure of operating return before depreciation and amortisation. Highlights value generated either through operational  the revenue.   exclude amortisation and exceptional items.  generate from our revenue activity having accounted for all costs before taxation. 22 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() KPI Why this KPI is important to our strategy How we have done FY2021 performance Strategic Report Corporate Information Governance Financial Statements Utilisation % ROCE 2 % Net debt 3 £m Net debt 3 to EBITDA 1 x NBV of property, plant and equipment £m Adjusted earnings per share 4 pence 54%57% 8.4%13.1% £33.2m£67.5m 0.5x0.9x £233.1m£257.7m 3.22p4.24p A measure of how many of our assets are on hire to customers by net book value. A measure of how well Speedy is delivering a return from the capital invested. A measure of the Company’s borrowings. A measure of how leveraged the balance sheet is. As assets are our core   scale of investment to support revenue. A measure of the return generated for the holder of each of our ordinary shares. Explanatory notes:   Financial Statements   amortisation and exceptional items divided by the average capital employed (where capital employed equals shareholders’ funds and net debt 3  last 12 months 3 See Note 21 to the Financial Statements 4 See Note 10 to the Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 23 ![]() #### Increasing market share #### Key strategic priorities for FY2023 #### Our strategy 24 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### We have a clear #### customer focused #### growth strategy #### underpinned by our #### ambitious award winning  #### Governance (ESG) #### programme. #### Sustainability #### Digital #### People #### Retail and trade ![]() Strategic Report Corporate Information Governance Financial Statements #### Increasing market share #### We aim to continuously improve our  #### experience comes as standard. Our aim is that whenever and wherever  they can expect a consistent level of  same level of experience from point of order through to delivery and collection. During FY2022 we have  improving our business to achieve this. We are focusing on further penetrating our addressable markets through cross-selling products and services to achieve an increased     we aim to drive loyalty whilst increasing market share. We are also winning contracts with new customers through the provision of our integrated proposition that includes both our core  division enabling customers to utilise Speedy as a one-stop-shop for all of their hire needs.  growing our share of the consumer market through a robust investment in marketing the Speedy DIY brand to customers nationally. In April 2022 we launched a national marketing campaign. The campaign is driving awareness targeting both  radio and through outdoor and online digital channels to drive both awareness of our brand in the market and sales through  our trade and DIY website. To fuel this growth we have invested £68.4m in growing our  need across both B2B and B2C markets. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 25 ![]() 26 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Strategy in action: #### Securing a new powered #### access contract with #### Ilke Homes In January 2022 we secured a new contract with national customer Ilke Homes. The new contract replaces the incumbent supplier at their factory facilities in Knaresborough.   green HVO fuel which was a key factor for the customer’s targets in reducing carbon on-site. Outside of the renewal of the hire agreement we are developing our relationship further with Ilke Homes by tendering for a range of services including testing and inspection  PPE consumables and the provision of industry training. " We have a long standing trusted relationship with Speedy to supply a number of product categories and were delighted to extend this relationship with them to supply our powered access needs at our manufacturing facility in Knaresborough. Key to selecting Speedy was  ability to pre-fuel and supply HVO fuel to run the machines, reducing our carbon footprint." Peter Wickes, Strategic Category Manager #### Increasing market share continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements #### Our unique four-hour delivery promise We are the only UK hire company to promise  most popular products nationwide. In July 2021 we invested £10 million in new products for our four-hour guaranteed  of customer demand for faster site deliveries.  company’s most popular 350 products through this strategic investment.   on-year increase in demand from customers for this unique service. of our most popular products available with four-hour delivery 350 invested in our new products for our four-hour guaranteed delivery promise £10m  6,800 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 27 ![]() #### Strategy in action: On site at #### Hinkley Point C      sales and partnered services.  working closely with our regional depot network and facilitating   We have a dedicated on-site team that ensure existing relationships are maintained and developed further. Since        our team of national account managers to engage with those customers in advance.  service to site, they also have the capability to back this service with  support team. Their site team are very customer focused and have developed strong, long lasting relationships with key contacts on HPC. We are looking forward to continuing to drive innovation by working closely with strategic suppliers and the client Nuclear New Build Generation Company (NNB GenCo)." Alan Wiltshire ,  28 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Increasing market share continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements #### During 2020 we developed our #### strategy to begin proactively targeting  #### commenced a trial to open Speedy #### outlets within a number of B&Q stores.   in October last year. We have now rolled out more Speedy outlets and have a presence in 36 B&Q stores across the UK. The in-store B&Q outlets give retail and trade customers the opportunity to hire tools and equipment from Speedy during their B&Q shopping experience.    our customers can now order and collect Speedy products seven days a week. The Speedy concessions are strategically located alongside the TradePoint areas to promote the opportunity of hire to  complements B&Q’s own range and includes more specialist tools    #### Retail and trade We continue to grow our SME customer base through digital marketing activities and tele-sales channels through our central hub in South Wales, dedicated to servicing our SME customers. Pictured: Graham Bell, CEO B&Q UK and Ireland and Russell Down, Chief Executive Speedy Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 29 ![]() " At B&Q we’re committed to testing new initiatives and we were delighted to  and equipment hire service in our stores with Speedy. Customers want speed and convenience when it comes to DIY, and the partnership with Speedy makes it quicker and easier to get the tools and equipment they need, when they  solution that cuts waste from unnecessary  to more and more customers across the UK and we’re excited by the potential  the positive response we’re seeing from our customers." Chris Bargate,  30 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Introducing the potential of hiring a wide range of tools and equipment empowers homeowners to be more ambitious with  accessible way of completing larger home improvements that  to purchase.  purchased may only be used a handful of times and then  economy in the re-use of DIY tools and equipment. Our existing customers will also have access to the new trade counters seven days a week to order and collect  centre network. We have launched a retail website targeting DIY customers.    videos for equipment use. A key development has been to  trade area of the website which promotes prices ex-VAT.   reach into B&Q's online customer base. #### Retail and trade continued ![]() We have created a new post of Chief   processes through new technology that   intelligence is enabling better decision making to further enhance our service to customers through improved product availability to meet demand. Implementation of a new ERP system During the year we successfully undertook the replacement of  upgrading to the cloud based Microsoft Dynamics365. The  sales and support functions to ensure all risks and issues were captured and addressed through robust testing. The new     and digital experience. #### Digital We are utilising technology to improve the customer and user experience through closely reviewing the customer journey, including on a digital basis, from point of enquiry through to delivery, collection, invoicing and cash collection. Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 31 ![]() 32 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Enhancing the digital customer experience  we continually develop our digital platforms to improve the digital customer experience on our websites and mobile app.  the digital customer experience. We introduced an online availability checker. This enables our customers to check availability on a product before going through the checkout   select. The results that are returned include both Speedy Service Centres and our retail locations in B&Q.    our digital ordering process with their own internal approval processes to submit approved orders.   during FY2023 to ensure we continue to provide an industry leading digital customer experience. Watch our video detailing our digital customer  Balanced scorecards improving performance Implementing improved dynamic management information during the year has enhanced the performance of our teams around the business. We have introduced a balanced scorecard   and service levels. This has raised the bar and delivered improved performance during the year. #### Digital continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements #### Sustainability During FY2022 we have invested £68.4m in  options for customers incorporating solar, electric and hybrid technologies. We have implemented a policy to #### ensure that we invest a minimum 50% of capex in sustainable products to support customer demand and to #### ensure we meet our own ESG targets #### in reducing carbon. Responding to this customer demand that helps drive down their carbon emissions has enabled us to win new contracts throughout the year whilst retaining and developing existing customer relationships.   The largest contributor to our carbon footprint is the emissions    the environment through this industry leading initiative. Whist this will play a key role in meeting our own carbon reduction  as a key part of their supply chain. We invested in 64 new hybrid transit vans and are trialling a number of additional electric vehicles: Mercedes Canter; 7.5t Maxus E-delivery 3; and the Maxus E-Delivery 9 chassis cab.  tonne vehicle used in the construction industry to deliver our powered access products. In 2021 we reviewed our company car list which now comprises  company cars and estimate future savings of up to 260 tonnes of CO 2 annually from replacing diesel and petrol models. Our   continuing to install electric vehicle charging points across our UK Regional service centre network. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 33 ![]()  In November we launched our new Innovation Centre in Milton    innovative equipment will help to lower contractors’ environmental     All commercial vehicles operating out of the site are electric  up to 90% less CO 2 e when compared to red diesel. This not   sites. The centre is powered by 670 solar panels and utilises  control technology. The Innovation Centre also features a  environment for our people to use when on lunch or during    made from recycled materials to help further lower its environmental impact.  and adds to the list of larger new Regional Service Centre’s   are all located to be accessible to the local and regional    art training facilities under one roof. The brand new sites also create an enhanced experience for both our customers who visit the facilities and for colleagues through an enhanced and technically optimised working environment. Throughout the year we have held a large    A strategic partner to major customers We are a strategic supplier to Balfour Beatty. Our values are aligned with them ensuring innovation is at the forefront of  on environmental sustainability through emerging technology that reduces carbon emissions. In November 2021 we were delighted to support Balfour Beatty's COP26 event where we showcased the latest in  delivery solutions including our brand-new battery operated electric truck. 34 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 PICTURED: Balfour Beatty CEO Leo Quinn with Speedy Account Director Alan Jones During FY2022 we have invested in sustainable products including: Dingli zero-emission battery powered scissor lifts and mast lifts Niftylift hybrid powered access boom units Electric SkyJack scissor and boom lifts of the industry’s  in hybrid outdoor lighting tower through an exclusive partnership with Generac  saws which have a disposal rate of  almost all the product can be recycled and reused at its end of life or incinerated to generate energy The development   generator for use on HS2 200 1,800 HS2 #### Sustainability continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements © HS2 #### Strategy in action: Providing #### bespoke sustainable solutions on HS2  enabling works with Costain Skanska Joint Venture in the South and Fusion Joint Venture in the home-counties. Initially    sales and fuel management.    on a personal service level delivered through a national network. Since the introduction of an ‘Implanted’ on-site model when  provided a physical presence at site level in the form of an implant manager who is trained to understand HS2’s complex  advice to deliver the right service or product solution. As the relationship has moved into the Main Works programme over the past three years we have focused on the key areas of  environmental and economic value. We now have deep and  on HS2. We have further developed the core areas of our hire products and related services by assisting in the client’s logistical  impact both on-site and in the local environments. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 35 ![]() #### People The core to successful and sustainable growth is the wellbeing and development of our people. Therefore, putting people  To do this we are focused on personal and professional development  recruitment of bright new graduates and apprentices to developing early and late career programmes for our existing colleagues. Colleague engagement  to our success. During the year we have set up a number of   making Speedy the best company to work for in our sector. The forums and committees are sponsored by Executive Board  at Executive Board meetings and the ESG Steering Group. Successful recruitment programmes    students on formal programmes to 5% of the total workforce by 2025. This commitment is helping us ensure that the business has  with new skills that will become the leaders of tomorrow. During the year we have taken on new graduates on a two  development and experience to develop a thorough understanding of Speedy and our business in its entirety. The    Company. We also operate a Rotational Graduate Scheme. This three year programme leads on a specialist area with graduates completing six x six month placements made up of     area each participant can start building their Speedy career. 36 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Additionally we have 82 colleagues participating in apprenticeship schemes across the business made up of a   up-skill and progress their careers. Our apprentices range from 16-40+ years old and follow various pathways; we don’t have a  In November 2021 we committed to creating equal opportunities for ex-servicemen and women and their families  nation ensuring that those who serve or who have served in   employment pathway for veterans by working with not-for-    including some of the UKs largest contractors in signing the covenant. This signals to ex-service men and women that they are armed forces friendly organisations at a time when almost   Personal and professional development Personal and professional development is at the heart of our people strategy. We are committed to investing in our people throughout their career with Speedy.  roles and introduced a ‘late careers’ mentor programme. This ensures we have the talent coming into and through  harnessing the exceptional skills we already have in the business to pass down to new colleagues. Our ‘Career Line of Sight’ scheme which launched in the prior year and supports the learning and development of our  creating a clear vision for colleagues to follow in developing their career’s at Speedy.     salaries of further roles across the business which helped to retain the key skills required to compete in the marketplace. We run a number of incentive and recognition schemes which   package as we recognise that salary is not the only component that motivates employees. We are committed to the People’s Charter with the Supply Chain  More information about our People First strategy can be found within the ESG Report. Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements \*Veterans work moving on report, 2018, Deloitte PICTURED: Chief People Officer Ellie Armour was joined by co-signatory Colonel Paul Gilby alongside veteran colleagues from across the company to sign the covenant. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 37 ![]() 38 Strategic Report Speedy Hire Plc Annual Report and Accounts 202238 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() Strategic Report Corporate Information Governance Financial Statements #### Environmental Social #### Governance Report #### Responsibility and sustainability have always #### been at the heart of everything we do at Speedy. #### The Decade to Deliver The need to accelerate how we can collectively reduce our impact on the planet as an industry and across society has never been more critical. We believe that  For over 45 years customers have trusted us to enable the successful delivery  even better. That’s why we are accelerating our ESG programme with ambitious  we’ve called our new strategy The Decade to Deliver.    investors and the environment better than ever.    successful by helping them achieve their sustainability targets.  want to ensure that both our products and logistical operations are designed to  our suppliers.  warehouses and garages getting old instead of getting used. It’s the same for equipment too. Hire can be a sustainable way to solve that problem. And we’re making it our mission to ensure consumers are aware of a more sustainable way  The famous Speedy Spirit that our people display means they’ll always go the    positive impact we can.    decade of sustainable hire. Russell Down, Chief Executive Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 39 ![]() 40 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Speeding up on sustainability #### The Decade to Deliver We have always been at the forefront of sustainability and innovation. During FY2022 #### we developed our new ESG strategy ‘The Decade to   strategy focuses on four pillars: #### Accelerating Innovation #### Climate Solutions #### Including Everyone #### Part of the Community Hire is already built for sustainability.  even more sustainable than it already is by working even harder with our   we’re all facing the heat. We’re going  our customers do the same. That means accelerating towards low carbon delivery vehicles and innovative products and services to help our customers respond rapidly. Delivering on the promise of a sustainable  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  we can really make this decade count. Speedy people are part of local communities all over the country. It is  challenges we face today and get ready for the future. A decade of supporting our communities will help make a  #### Environmental Social Governance #### Report continued ![]() #### The Decade to Deliver WORKING TOGETHER Strategic Report Corporate Information Governance Financial Statements #### Our sustainability strategy framework   Committee made up of senior members from across the   Sustainable Development Goals 2030 (UNSDGs). The ESG framework aligns with our vision ‘To inspire and innovate the future of hire’ and our mission that ‘Speedy is the   accelerating collective success towards a sustainable future.  sustainable company builds on our strong track record of safety and carbon-saving innovation. It re-enforces our commitment to      robust audit functions and processes.    as an industry leader in ESG practices by the Institutional Shareholder Services group of companies (ISS). Accelerating innovation Hire is built for sustainability. This  to make hire even more sustainable than it already is by working even harder with our  and innovators to push for even better designed products:  to be repaired and made to be recycled. Climate solutions When it comes to  we’re all facing the heat. We’re going  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. Part of the community Speedy people are part of local communities all over the country. It’s in   challenges we face today and get ready for the future. A decade of supporting our communities will help make a meaningful  Including everyone 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  can really make this decade count. A HIRE REVOLUTION:  Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 41 ![]() #### Climate Solutions     achievements include: •   (calculated as 4.94/11.0-1) reduction per employee. • A carbon reduction on a per capita basis from approximately 11 tonnes in 2015 to 4.94 tonnes in FY2022. Most of our carbon emissions are related to our fuel  We have already implemented several initiatives to reduce  •   company cars being 100% electric/hybrid vehicles by 2023. •  opportunity to change any non-electric or hybrid vehicles early to encourage our colleagues to reduce their carbon emissions. • Commencing the roll out of a low carbon commercial   with a further 150 planned for FY2023. •   saving 794T of CO 2 e. 42 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Environmental Social Governance #### Report continued ![]() Science based carbon reduction targets Climate change is one of the biggest challenges we face  business and for our customers. As part of our commitment to  hire company to sign up to the Science Based Targets (SBT) under the Science Based Targets Initiative (SBTi) to achieve  government policy. Our move to commit to a SBT reinforces our commitment to be a market leader in sustainability.   in line with the Paris Agreement to limit climate warming by 1.5 o  climate change and ensuring sustainable business growth. As a sustainability leader we believe it is important to align       effective and scientifically sound way of limiting global temperature rise to 1.5 o C. Scope 1 and 2 includes the emissions we generate from our own activities such as the fuel we use in our vehicles and the electricity and heat we purchase. Scope 3 includes the emissions generated by suppliers and end users such as our customers. In FY2022 we partnered with consultancy carbon Intelligence to set our near and long-term targets and decarbonisation roadmap. Scope 1 and 2 emissions near term targets  absolute Scope 1 and Scope 2 emissions are reduced by 50% from a 2019 baseline. We are taking a leadership position by setting our ambition slightly higher than 1.5 o C thus encouraging  business growth. Our Scope 1 emissions make up most of our scope 1 and 2 footprint of which diesel use in our company owned/controlled vehicles accounts for 88%. We are therefore focusing our    Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 43 ![]() By the end of 2023 100% of our company cars will be electric/  D+ or electric vehicles whilst in parallel working with vehicle manufacturers on hydrogen technologies. For our larger vehicles such as HGVs and tankers we have already replaced diesel with HVO D+ to reduce carbon emissions whilst we work with manufacturers on electric vehicle and hydrogen technologies. In FY2022 we saved a total 794T of CO 2 e by replacing diesel with HVO D+. For our smaller vehicles we have started to transition to electric and will be introducing a further 150 electric vehicles into the  A small proportion of our scope 1 emissions is related to our gas usage where we will transition from natural gas to alternative fuels and technologies by 2030. For our Scope 2 emissions we will continue to prioritise renewable energy procurement. In FY2022 88% of the electricity procured was renewable and we are continuing to work with our property team and landlords to transition the remaining 12% so that 100% of our electricity is renewable by 2027 in UK/IR. Scope 3 emissions near term targets  3 screening assessment to map the carbon footprint across our value chain and set near term reduction targets. Our initial   • Downstream leased assets such as the use of electricity and  over half of our scope 3 carbon footprint. • Use of Sold Products such as the fuel that we sell to our customers. • Capital Goods such as the tools we purchase.  during 2022. #### Working together with the value #### chain to achieve net zero carbon  customers and suppliers to ensure sustainability sits at the heart of everything they do and want. But we are taking our supply chain one step further. We have already started a transformation programme to align our supply  embed sustainability across our procurement processes and to  we cannot achieve this alone so our focus is deep collaboration with our suppliers and customers so that our transition to net  In FY2023 we will be focusing on our three key hotspots;  goods. We will work across our value chain to improve our Scope 3 data to reduce our carbon emissions. We are a Gold Member of the Sustainability Supply Chain School (SSCS) supporting a common approach to addressing sustainability across the supply chain. Our Chief Operating  Long term net zero target In FY2023 we will continue to work with Carbon Intelligence to set our long-term target of reducing our emissions by 90-95% before 2050. Any limited emissions that cannot be eliminated will be neutralised through carbon removals. Only at this point  latest climate science and frameworks. In FY2023 we will submit our SBT and decarbonisation  44 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### " In choosing to pursue both #### short-term and long-term #### science-based emissions #### reductions targets, Speedy #### is demonstrating leadership #### and determination to reduce its impact on the planet and #### manage its business transition #### to a net zero world." Jonathan Sykes, Executive Chair of Carbon Intelligence #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements HVO D+ emits up to 90% less carbon compared to red diesel and the switch will save the equivalent CO 2  homes for a year.  low-emission fuel and equipment in vehicles also run on     During the year we added an electric powered access delivery   The new Electra 27t all electric beavertail truck has the potential  2 e annually when compared to  for customers. The vehicle is specially designed to transport powered access   facility built to service the region’s customers and showcase our   and Birmingham. #### Strategy in action: Low carbon #### vehicles and logistics  a target of ensuring that most of our vehicles are either running on sustainable fuels such as HVO D+ or have transitioned to carbon friendly technologies such as electric and/or hydrogen by 2030. This commitment will play a key role in meeting our own science  customers as a key part of their supply chain.  vehicle used in the construction industry to deliver our powered access products. We invested in 64 new hybrid transit vans and have introduced several additional electric vehicles: Mercedes Canter; 7.5t Maxus E-delivery 3; and the Maxus E-Delivery 9 chassis cab. We are also introducing a further 150 Ford E electric transits to our   aim to reach 100% by FY2023 helping to reduce air pollutant emissions from our vehicles and improve air quality. Our company car list now consists entirely of Ultra Low  cars and estimate future savings of up to 260 tonnes of CO 2 annually from replacing diesel and petrol models. Our aim is  by the end of 2023. To support the transition we have also continued to install electric vehicle charging points across our UK Nation and Regional Service Centre network.  #### decarbonisation initiative    2 e over 12 months. The initiative covers heavy goods vehicles (HGVs) and tankers   Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 45 ![]() #### Energy usage Speedy is committed to reducing its energy usage and  detailed in our Energy Policy. We continue to roll out many energy saving initiatives including the introduction of LED  in buildings. ‘Toolbox Talks’ are also undertaken with colleagues  and savings.   robust energy management systems. Regular energy audits are conducted on an annual basis as required for the ISO  The annual quantity of carbon dioxide equivalent resulting    The annual quantity of carbon dioxide equivalent resulting   88% of our energy coming from renewable sources. The methodologies used to calculate the information provided on emissions and energy consumption adopted by Speedy to calculate carbon emissions for FY2022 was provided using the  Total CO 2 e emissions per employee for FY2022 was 4.94te. This represents a 23% reduction from the baseline year of 2019. #### Strategy in action: Net zero #### Innovation Centre In FY2022 we launched our new Innovation Centre at Milton   photo-voltaic (PV) cells. Our Innovation Centre recently went  being supplied by the photo-voltaic cells with the remaining energy being exported back to the electricity grid. We have also set a new sustainability standard for our   46 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements The Innovation Centre team at Milton Keynes. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 47 ![]()  hire even more sustainable than it already is by working even   repaired and made to be recycled. We already have a long track record in providing the energy  to aid the construction industry in its quest to be net  During the last year we have worked with our supply   with providing renewable fuel to minimise pollution. Key achievements include: •  a new line of high-performance outdoor battery powered lighting towers with Hilti. •    panels or green HVO fuel.   • Investment of over £10m in new electric and hybrid powered access products. •   • Supplied c.6 million litres of HVO D+ to our customers reducing our customers and our Scope 3 emissions by  2 e. Our ECO products represent approximately 30% of our  innovative solutions to reduce carbon. Our aim is for ECO  by 2027. 48 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Accelerating innovation #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategy in action:  #### ECO hybrid lighting tower During September 2021 we brought to market the industry’s first plug-in hybrid outdoor lighting tower. 200 new Speedy V20 Eco Hybrid units were introduced into our lighting range through an exclusive sole supply partnership with Generac.   HVO D+ (hydrotreated vegetable oil) fuel and they can operate automatically in reaction to changing light levels. An external battery pack can power the towers for up to five days at 10 hours per day. In addition we invested in a wider range of sustainable   solar powered lights for contractors to hire across the UK.  helping our customers to reduce carbon emissions through     quantity already earmarked for HS2 delivery partners. " The new, sustainable products will enable contractors to reduce carbon footprints across their projects. Working closely with Generac on the launch of the Speedy V20 ECO Hybrid towers is an excellent example of how we’re using our intermediary position in the construction supply chain to introduce new, transformative technology to the market.   greater access to high-performance and versatile lighting that’s capable of meeting the varied demands of live sites." Andy Connor, Group Innovation and Supply Chain Director Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 49 ![]() • Our target is that 30% of products will be ECO in design and operation by the end of 2022 which we have already achieved. • We’re developing fuel cell technology with key partners and reviewing alternative options. • We will market and promote alternative fuel options for diesel (HVO). • Introduce cordless tools to improve technology that replaces small engine driven products. • Our target is that 40% of product range will be ECO friendly by the end of 2023. • We will further invest in solar technology (Speedy lighting range). • Implement Stage V engines across existing range and invest in new product. • Create a circular economy and a cradle-to-cradle strategy for key fast moving and recyclable products. 50 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### ECO product development roadmap Our roadmap to growing our ECO product range: 2021/22 #### A focus on cordless technology 2022/23 #### A focus on solar technology #### Environmental Social Governance #### Report continued ![]() • Our target is that 50% of our product range will be ECO friendly by the end of 2024. • Develop fuel cell technology - Hydrogen product development established. • Optimise the infrastructure that will support hydrogen both internally and externally. • Phase out of fossil fuels by the development of substitute fuels that will work with existing ICE (Internal Combustion Engine) technology. • Take advantage of carbon capture technology for vehicles and plant. • Our target is that 70% of our product range will be ECO friendly by the end of 2027. • All products will be delivered from suppliers in ECO friendly packaging. • 110v will be replaced by cordless across the full range of products. •   • Introduce carbon reporting via telematics in place via Speedy APP. Strategic Report Corporate Information Governance Financial Statements 2023/24 #### A focus on hydrogen technology #### 2025 and beyond #### A focus on recycling During the year we were proud to light up the perimeter of the COP26 climate summit in Glasgow with a sustainable lighting system that  tonnes of CO 2 e. 6,200 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 51 ![]() #### Strategy in action: Working in #### partnership with Keltbray #### Improving air quality   red diesel demand for Hydrotreated Vegetable Oil (HVO) and its commitment to completely removing red diesel from across all  The decision followed a successful trial using the fuel supplied by Speedy and analysis on two identical Caterpillar 25tonne  HVO fuel.    being trialled to assess whether it could reduce the impact from construction plant operations.   saw an 8% reduction in CO 2 when testing newer machines. There was a 20% reduction in CO 2 when Keltbray carried out tests on older machines.  on site in bowsers with telematics which communicate with  turn reduces the frequency of fuel deliveries to site.    emission fuel which is the only HVO fuel approved for use in Speedy equipment. HVO D+ is a renewable fuel that has been produced from vegetable  carbon emissions by up to 90% compared to regular fossil fuel. It  and industrial power systems. For every 500 litres of Green D+ HVO  2 is saved versus fossil fuel. Green D+ HVO fuel is now provided as our standard low emission fuel. In support of the UK Government commitment to reduce emissions from transport to improve air quality and to support our customers   PM10) by over 86% helping to improve air quality. 52 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Environmental Social Governance #### Report continued ![]() #### How much carbon is in a drill?  cycle assessment to carbon footprint the lifecycle of a TE70 Rotary Hammer. The aim of the assessment was to identify the  carbon data to our customers to enable them to make sustainable choices. In FY2023 we will be continuing our work to carbon footprint our top products working collaboratively with our supply chain  hiring choices. #### Repair, reuse, recycle In FY2022 we partnered with Oxford Plastics to recycle end of use hard plastics barriers into new products such as the  maximising recycling and reducing whole life cycle carbon by 80%. By replacing steel road plates with the LowPro 23/05 we removed 39T of carbon from the product lifecycle. In partnership with CargoStop International we set up a collaboration to recycle CargoStraps. When CargoStraps are no longer useable they are returned to CargoStop who separate the metal clasps and rachets from the webbing. The metal is sent for processing and smelting where they can be used again. The webbing responsibly recycled making the whole product completely recyclable. We have also increased our refurbishment facilities to  carbon emissions and waste. We have adopted the circular  products as well as upgrading products to ECO solutions. This has included; •  and emissions by 50% and extending the life of the product by 7 years. •   Stage V equivalent to meet the London LEZ (London Low   Strategic Report Corporate Information Governance Financial Statements #### Going circular  the principle of circular economy further. Working within our business and across our supply chain we are designing out waste and pollution and keeping products and materials in use thus  and recycling and minimising waste disposal. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 53 ![]()  exercises and audits have been undertaken to identify our key waste streams to maximise waste reduction and increase recycling and reuse. We are also reducing our paper use across the service centre network through the introduction of electronic PDAs and transacting electronically. We also encourage customers to use the MySpeedy App for paperless transactions.  waste is sent to transfer stations for further processing and the non-recyclables are transported to Refuse-Derived Fuel (RDF) plants for incineration. Incineration from RDF plants is not harmful to the environment as the steam heats houses in the areas (district heating). In FY2023 we will be working with our waste broker and suppliers to further integrate circular economy principles to reduce waste and maximise recycling and reuse. We have set  be launching new waste initiatives throughout the business with site by site monitoring and comparison of recycling rates. Sending packaging packing  eliminate packaging which would otherwise be passed on to us to dispose of. As part of our supply chain collaboration to ISO20400 we will be working closely with our suppliers to eliminate packaging across our supply chain. Where packing is  54 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### We achieved zero waste  #### Waste and recycling #### We reduce our waste through applying the waste hierarchy of  #### and re-use for our key waste   #### and food waste. #### Environmental Social Governance #### Report continued ![]() Speedy Hire Plc Corporate Greenhouse Gas (GHG) Report This GHG Report has been compiled covering the fuels   and Republic of Ireland operations and our International business and includes the business travel and waste disposal  Combustion of Fuel and Operation of Facilities Over FY2022 Speedy reduced its fuel use and carbon emissions across its commercial vehicles and company cars. Our company car list is 100% electric/hybrid and we have  change any non-electric or hybrid vehicles early to encourage our colleagues to reduce their carbon emissions. We have transitioned our HGVs and tankers across our NSCs (National Support Centre's) and powered access depots from diesel fuel to HVO D+ to reduce our emissions by up to 90% saving 794T of CO 2 e in FY2022. We have continued to roll out electric  vehicles due in FY2023. Electricity, Heat, Steam and Cooling purchased for own use In FY2022 88% of the electricity we procured was renewable    management system and photo-volatic (PV) cells. Our  facility as the small amount of energy the centre is using is now supplied by the photo-voltaic cells. Scope 3 Business Travel – Rail and Air  air travel due to the introduction of hybrid working following the global pandemic. As a business we are continuing to encourage our colleagues to reduce travel where possible through optimising videoconferencing and when required to use rail more frequently as a more sustainable source of travel. Scope 3 – Waste Our Scope 3 emissions from waste has slightly increased in FY2022 due to greater collaboration with our waste providers in collating data across multiple waste streams. We have    waste oil and fuel along with battery waste. The overall CO 2 emitted per employee has reduced to 4.94te in  Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 55 ![]() #### Methodology We have reported on all of the emission sources required under the Companies Act 2006 (Strategic and Directors’ Report) Regulations 2013. We do not have any responsibility for any sources that are not included in our consolidated statement except those quoted in the Omissions section. We have used the GHG Protocol    Omissions The combustion of diesel for the testing of equipment/machinery could not be established for this reporting period. Carbon emissions from our Middle East operations are not included in our carbon data for FY2022 and comparison year of 2019 as the business was sold in March 2021. This is to enable like for like comparisons.   +/- 4.1. This was established using the ‘GHG Protocol guidance on uncertainty assessment in GHG inventories  Global GHG emissions The GHG emissions are from 1st April 2021 to 31st March 2022. We have seen a reduction in our CO 2 e per employee of 23%. A detailed breakdown is provided in the table below compared against the prior year: 56 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 \*Comparison to baseline calendar year Tonnes of CO 2 e Emissions From Current Reporting Year FY2022 Current Reporting Comparison 2019\* Combustion of Fuel and Operation of Facilities    236.48  Refrigerants 20.11 13.17 Total Scope 1 and 2 Emissions 16,382.57 21,628.31 Scope 3 Business Travel – Rail and Air 153.36 373.33 Scope 3 Waste 55.94 40.57 Scope 3 Transmission and Distribution of Electricity 183.00 267.05 Total Scope 3 Emissions 392.30 680.95 Tonnes CO 2 e per employee 4.94 6.45 #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements #### Task Force on Climate-Related #### Financial Disclosures report #### In accordance with Listing Rule LR 9.8.6  response to Recommendations and Recommended Disclosures of the #### Taskforce for Climate-Related Financial #### Disclosures (TCFD).  which brought risk owners from across the Group together with external climate risk experts. This document summarises our progress against the four core elements of the TCFD disclosures: #### Governance  our climate-related risks and opportunities #### Risk Management  #### Strategy The actual and potential impacts of climate-related risks and   #### Metrics and Targets How we measure and manage our performance in addressing these risks and opportunities   climate-related risks and opportunities and ensuring robust   the next priority is to take our top climate-related risks and opportunities through scenario analysis to assess and enhance our resilience. Speedy has set near-term 2030 Science-     #### Governance Board-Level Oversight The Board recognises the systemic threat posed by climate change and the urgent need for mitigating measures. Ultimate responsibility lies with the Board for ensuring that Speedy  and for approving the Company’s ESG strategy. The Board discharges these responsibilities directly and through its committees as follows: • The Audit & Risk Committee is responsible for overseeing  management and internal control processes and ensuring the Company’s compliance with its disclosure obligations. The Committee ordinarily meets four times a year. • The newly established Sustainability Committee will oversee how climate-related risks and opportunities are managed. This is part of the Committee’s responsibility for overseeing the Company’s ESG strategy and performance against targets. The Committee will meet as required and not less than twice a year. • The Remuneration Committee integrates Speedy’s climate performance metrics into the Company’s  elements of bonuses are linked to the Company’s decarbonisation progress. Each Board Committee liaises directly with relevant Management and Executive Directors and provides regular reports to the Board. The Board also receives reports directly from Executive   the Chief Executive represents the link between the ESG Steering   accordance with governance and policy set by the PLC Board. The Board also receives regular written updates for discussion. Management-Level Oversight  of the Group is overseen by the ESG Steering Committee. This broad-based group of senior leaders is chaired by the ESG Director and sponsored by the Chief Executive. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 57 ![]() The ESG Steering Committee includes standing members or periodic reports from leaders of the following functions: Risk  Fleet; Fuel; Sales; Property; Commercial; HSSEQ; ESG; Innovation and Supply Chain; HR; Marketing and Communications. This Committee meets not less than quarterly.  maintaining an up-to-date risk register covering each area of   as well as climate risk specialists. Climate-related risk is consolidated into the Group risk register which is used by the Board to assess our principal risks. #### Risk Management Identifying and Assessing Climate-Related Risks  comprehensive list of risks that includes both physical and transition risks was developed with the support of specialist  chronic (e.g. rising temperatures) while transition risks relate to the shift to a low-carbon economy. Transition risks can include  legal risks. These risks and the broader requirements of TCFD have been assessed by internal stakeholders and risk owners to evaluate their materiality based on likelihood and impact. These ratings   to our risk management framework and is based on current  Managing Climate-Related Risks  These risks are then embedded by the ESG Steering Committee into the risk management framework and a determination is   preparing to take each risk through scenario analysis in   across these scenarios will enable Speedy to better understand how climate-related risk will impact the business. Another priority for FY2023 is to review the controls we have in place that support climate related risk management   processes in mitigating our climate-related risks and develop    Integrating Climate-Related Risk into Overall Risk Management The climate-related risks in the table opposite form part of our ESG risk register which is managed by the ESG Steering Committee. The ESG risk register is embedded into the Group risk register in accordance with the Company’s risk   comprehensively into our overall risk management framework  Speedy’s risk management policies and supporting risk  assess and respond to risk. Our ESG policies underpin how we manage climate-related risk in both our operations and our supply chain. 58 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Plc Board Executive Board Audit & Risk Committee Remuneration Committee Nominations Committee Sustainability Committee ESG Committee Chief Executive ESG Director #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements #### Strategy Climate Risks, Opportunities & Impact We have explored climate risks across every aspect of the Group’s business: our products and services; our operations; our value chain; our adaptation and mitigation activities; as well as our  ten climate risks which are potentially material to the Group (Table   importance to the Group (Table 2). These climate-related risks and  we anticipate most of the impacts will occur. During FY2023 we will undertake climate-related scenario analysis to assess and enhance the resilience of our strategy. This exercise will enable the Company to ensure that our strategy correctly considers and addresses risks and uncertainties and capitalises   Table 1. Material Climate-Related Risks #### Technology #### Technology #### FuelReputation #### Customer #### demands Evolution of climate technology may not keep up with customer demand. The higher-carbon equipment in our hire assets could become obsolete based on changing customer demand and/or legislation. Increasingly limited supply of fossil fuels may lead to greater instability in fuel prices. The Company may not stay on track to meet our Science Based Target. Speedy's provision of low- emission fuel alternatives  customer demand. This could lead to unreliable new technologies and increasing costs which cannot be recouped from customers. These assets could become obsolete. This could expose Speedy to cost increases. This could lead to reputational repercussions  stakeholders and external ESG rating agencies. This could risk losing customers to competitors or straining customer relationships due to cost or supply negotiations. Long-term (5-10 years) Medium-term (2-5 years) Short-term (0-2 years) Medium-term (2-5 years) Short-term (0-2 years) Risk Description Impact Time FrameRisk Type Transition Risks Short term: 0-2 years (2022-2024) Medium term: 2-5 years (2024-2027) Long term: 5-10 years (2027-2032) Very long term: 10-28 years (2032-2050) Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 59 ![]() #### Regulation #### Extreme #### weather events #### Data #### Extreme #### weather events #### Infrastructure Without regular and  the Company may not fully comply with climate regulation across its operations. Business operations and human capital may be  increasing frequency and severity of storms.  challenges in obtaining accurate Scope 3 data. Storms and extreme wind speeds may cause physical damage to Speedy's sites and assets. Plans to increase use of electric vehicles may be hindered by a lack of infrastructure to support electric vehicles. This could lead to  and/or obsolete assets. This could negatively impact  Inaccurate or incomplete data could mean that Speedy fails to satisfy reporting requirements and rising stakeholder expectations. This could negatively impact  increase costs e.g. insurance premiums and capacity constraints. Customer satisfaction could  how quickly Speedy service customers. Short-term (0-2 years) Medium-term (2-5 years) Short-term (0-2 years) Medium-term (2-5 years) Medium-term (2-5 years) Risk Description Impact Time FrameRisk Type Risk Description Impact Time FrameRisk Type Transition Risks (cont'd) Physical Risk 60 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Environmental Social Governance #### Report continued ![]()   solutions to avoid higher-carbon equipment becoming obsolete    compared to diesel. Table 2. Material Climate-Related Opportunities Products and #### Services #### Technology #### Reputation Demand from customers for low-emission equipment and services may rise.  equipment could help customers deal with the  storms and other extreme weather events. Investment in low-emissions product technology may help Speedy achieve its climate targets. There is opportunity for Speedy to be seen as a climate leader among all stakeholder groups. This could lead to new revenue streams and greater market shares. In addition to meeting  this could lead to  opportunities for business partnerships. This could help Speedy attract and retain  new talent. Medium-term (2-5 years) Long-term (5-10 years) Medium-term (2-5 years) Opportunity Description Impact Time FrameOpportunity Type Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 61 ![]() 62 Strategic Report Speedy Hire Plc Annual Report and Accounts 202262 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Metrics and targets Speedy has set a near-term Science-Based Target (SBT) that will   3 assessment. We plan to develop a long-term Science Based  found on pages 43 to 44. Our decarbonisation pathway includes targets that cover every   improve the environmental credentials of our hire and owned    100% of our company cars will be hybrid or electric by 2023. We have also been increasing the proportion of renewable electricity we purchase as a group. Currently this represents 87.6% of our overall electricity use and we have committed that 100% of our electricity will be from renewable sources by 2027. For further details on our initiatives to reduce carbon please read on pages 42 to 53.  targets used to monitor climate risk in Speedy’s overall risk management strategy. These metrics and targets will measure physical risk (e.g. number of sites at risk of extreme weather events) and transition risk (e.g. revenue lost due to reputational damage). These metrics will help track the magnitude of these  controls. The work will also help us to capture and maximise  during the transition to a low-carbon economy. We plan to  current controls and processes to strengthen our management of climate-related risks. We use the Greenhouse Gas Protocol to calculate our Greenhouse Gas (GHG) emissions. A full overview of our GHG emissions and energy consumption data for FY2022 versus our 2019 base year can be found on pages 55 to 56. Strategic Report Corporate Information Governance Financial Statements #### Environmental Social Governance #### Report continued Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 63 ![]() Our Health and Safety Policy is constructed with the clear      and our customers’ sites our colleagues’ responsibility.   way in raising safety standards across the industry by: •  products. This includes our new App functionality launched   exposure to harmful vibration levels. •    service centres and through our on-site Toolbox Talks. • Continuing to develop and promote the use of our new    continual improvement through corrective action logging and  carbon data and deliver reductions across the business. • We have migrated our audit suites to our safety management system “EcoOnline” to consistently be able to identify NCRs raised as a result of audit or accident/incident. • Supported our safety initiatives with the roll out of Point of  again through the use of EcoOnline. • Rolling-out new bespoke training courses in Manual  powered access. • Successfully delivered IOSH training courses to 50 of the senior management team. • Introducing key messages and training through video   communications. • Established a new Speedy Safety committee which is chaired by the HSSEQ Director and meets Quarterly to discuss key   is about to roll out a new safety campaign which was the suggestion of a committee member who is based out of one of Speedy’s on-site locations. 64 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Safety of our people #### and communities #### Our commitment to safety sits #### at the heart of our business. #### Environmental Social Governance #### Report continued ![]() Health and safety reporting   • Setting annual health and safety performance targets for both leading and lagging indicators • Providing monthly reports to the PLC and Executive Boards on safety performance • Providing safety dashboards on our EcoOnline system for the business • Reporting regularly to key stakeholders on safety performance • Monitoring safety performance standards through safety  •  occurrences and near misses •  observations •  occurrence of incidents   the same. Post pandemic we have undertaken IOSH training for all our Senior Leaders including the Executive Board. We have also    still reporting on the lagging indicators. Recognition in safety FY2022 was another successful year for Speedy. For the eighth  a high level of safety performance and demonstrating well-developed occupational health and safety management systems. During the last year our safety standards were recognised by: • Network Rail – Route to Gold • RoSPA – Gold Award for Occupational Health and Safety - eighth consecutive year • Fleet News – Excellence in Safety and Compliance Award Strategic Report Corporate Information Governance Financial Statements  hours worked (FY2021: 0.22)   worked (FY2021: 0.09) 0.350.09 #### Key reporting measures #### Safety standard Recognised by Network Rail and RoSPA Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 65 ![]() Strategy in action: #### Collaborating to improve safety During March 2022 we launched a brand new manual handling innovation into the business; the AluTruk.    rounded handle for ease of movement and a rounded back   improved lifting capacity and can carry up to 300 kilogrammes.   for our drivers to mount the back of the vehicle to retrieve this piece of equipment. We have ordered over 800 units of the AluTruk and the   66 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 " This is a fantastic innovation and example of collaboration between our colleagues and our partners, helping to make it safer for our people while manual handling our products in the workshops and while delivering and collecting our products from customer sites." Andy Johnson,  #### Environmental Social Governance #### Report continued ![]() People First: Driving forward a progressive, inclusive culture  inclusive and respectful organisation. We aim to provide a good work life balance and support the communities we work in. Colleague engagement  essential to our success. Our aim is to be the best company   year we have set up several forums and committees that focus   with progress against action plans regularly reviewed at Executive Board and ESG Steering Group meetings. Equality, Diversity and Inclusion We believe in providing fair and equitable reward and recognition   to encourage inclusivity across every aspect of our business. Our recruitment team works to attract applicants from a wide variety of    engagement within the business. The working group has driven a series of educational and celebratory initiatives such as Pride and Ramadan. In June 2021 we supported Pride month by altering our brand logo and pro-actively celebrating the diversity within our business through our social media channels and on our internal communications platform ‘The Hub’. Including Everyone Delivering on the promise of a sustainable Speedy requires great people working together on shared goals. At Speedy we  another’s personal development so we can be the best we can be. Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 67 ![]() 68 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Gender Pay and Living Wage Under The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 we publish our Gender Pay Gap report. We are  pay bias. We will continue to ensure that colleagues are rewarded and recognised fairly for their contribution and that they have equal access to opportunities within all areas of the business. Speedy is also proud to be a Living Wage supporter as we believe our people deserve a wage which meets everyday needs. Below is a breakdown by gender of the number of people  other employees as at the end of the reporting period:  aiming for 30% of our workforce to be female by 2030. 30%   board. Our target is to have 30% female colleagues by 2030. Female Female Female Male Male Male #### Directors #### Senior management team #### All Speedy employees (UK and Ireland) 25.0% 18.0% 21.0% 75.0% 82.0% 79.0% #### Environmental Social Governance #### Report continued ![]() Strategy in action: #### PLUS (People Like Us) #### Network In FY2022 we set up our PLUS network to support the improvement in gender  attractive to women and to establish a more supportive culture for the females who currently work at Speedy. Our PLUS network is made up of a number of female and male Speedy colleagues. Strategic Report Corporate Information Governance Financial Statements #### Supporting veterans #### through the armed #### forces covenant In November 2021 we committed to creating equal opportunities for ex- servicemen and women and their families  a promise by the nation ensuring that those who serve or who have served in  treated fairly.  establish a tailored employment pathway   and by recognising military skills and  We already employ a number of ex- service personnel and our aim is to increase the number of colleagues from armed forces backgrounds. Having signed the Armed Forces Covenant we received    its armed forces community. We are now progressing through silver towards its gold standard.  the construction industry including some of the UKs largest contractors in signing  men and women that they are armed forces friendly organisations at a time    The business has also committed to support its colleagues with family in the armed forces by upholding several principles that include sympathetically reviewing requests for leave surrounding partners’ overseas deployment and providing paid leave for colleagues who’s  line of duty. " Signing this covenant formalises the respect we have for those that come from armed forces backgrounds and underlines our commitment to supporting them in developing their future careers. Our veteran colleagues enrich our business with the training and skills they developed while serving their country, from project management to driving heavy goods vehicles, and we recognise our duty as a major employer to give back to armed forces communities nationwide.” Ellie Armour,  Colleagues at our Innovation Centre open day.  co-signatory Colonel Paul Gilby to sign the covenant. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 69 ![]() 70 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022  We have been active in the rehabilitation of prisoners since 2006. We currently run a training workshop at HMP Garth in Lancashire for up to 20 inmates with two full time Speedy engineers.     vacancies across its National Service Centres through opening their opportunities to talented people with convictions who are wanting to move forward and start again. Partnering with Cleansheet   safer society. Colleague Consultative Committee  Colleague Consultative Committee (CCC). The aim is for members to be actively involved in representing Speedy colleagues in helping to make Speedy a great place to work. It creates the opportunity for a representative group of  and opportunities or alternatives for improvements and make comments on behalf of the teams they represent. The CCC is a UK forum attended by members of the leadership   from across the business.   and at a UK level the representatives meet twice a year to  UK. This makes the CCC’s role a valuable part of a two-way communication process around pertinent topics and critical  Remuneration Committee Chairman and designated Non-  the meetings during the year and spent some time discussing the purpose of the Remuneration Committee.   Executive Board and/or Senior Leadership Team members for further feedback from frontline colleagues. #### Environmental Social Governance #### Report continued ![]() Wellbeing Committee We recognise that mental health and wellbeing is a key issue within the construction industry. Our people feel passionate about the mental health and wellbeing of their colleagues. We have over 50 volunteer Mental   promote strategies to support the wellbeing of our colleagues. Further help is available to colleagues through our Employee Assistance Programme. Our Wellbeing Committee which is sponsored by our Chief  considers all aspects of employee welfare. During FY2022 the committee have created campaigns and initiatives promoting a  initiatives we’re delivering: • Launching an easy-to-access Wellbeing Calendar • Providing guidance and coaching to colleagues and managers regarding managing workload • Providing mental health and wellbeing training for managers • Creating fresh wellbeing content on our internal communications platform ‘The Hub’ • Hosting lunch and learn sessions on a number of topics   survey and have committed to running them periodically to check how our people are feeling towards their physical and mental  The COVID-19 pandemic presented all organisations with   2021 we conducted the survey again to understand how our    Our new action plan includes: • Video messaging from the Executive Board to acknowledge the importance that Speedy place on the mental health and wellbeing of our people and what we are doing to help •   continuous training • We have implemented a new hybrid working policy to  introduced guidelines around managing meetings remotely. • Maximising partnerships with external organisations and our charity partners to create engaging content and online events with a focus on wellbeing •  Wellbeing Roadshows to ensure all parts of our business have access to the information and support available •  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  Talk’ days. Personal development Personal and professional development is at the heart of our people strategy. We are committed to investing in our people throughout their career with Speedy. During FY2022 we have invested in early careers roles and  the strategy are: • To support business growth and contribute directly into our strategic pillars: • People First Focus – our culture and commitment to the 5% club • ESG strategy – diversity and social contribution focus • Ensure we develop our people with the skills required for the future • To harness the exceptional skills we already have in the business and pass these down to new colleagues • To provide development opportunities for all and increase internal mobility •  – we want to ‘grow our own’ and support succession planning • Develop an innovative approach which will attract talent into the business Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 71 ![]() 72 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Our ‘Career Line of Sight’ scheme which launched in FY2021 and supports the learning and development of our people at all levels  for colleagues to follow in developing their career’s at Speedy. Career Line of Sight is our promise to colleagues that we will: • Provide a framework to demonstrate what good looks like. • Invest in people development through supporting colleagues in progressing their career at Speedy. • Ensure colleagues who are happy in their current roles are able to continually develop their skills to attain maximum performance within their areas of responsibility.   business. The Career Line of Sight scheme is in place across our  High potential programme   our High Potential Programme. The programme consists of three  accredited by the Institution of Leadership and Management.    91 colleagues took part in these programmes. We operate a Senior Leadership Programme which is being delivered by two external providers. The programme is being attended by seven talented leaders from across the business. The 12 month programme is closely linked to our business  knowledge and behaviours of those taking part. The programme is made up of a number of modules around leadership and self-   the Executive Board. Graduate and apprenticeship schemes  employers working to create a shared prosperity across the  and sponsored students on formal programmes to 5% of the total workforce by 2025. This commitment is helping us ensure that the business has a  new skills that will become the leaders of tomorrow. During the year we have taken on new graduates on a two  development and experience to develop a thorough understanding of Speedy and our business in its entirety. The aim for our   planning for the future growth of the Company. The scheme  •  • Completing business experience modules • A tailored learning and development programme •  • Integration onto the High Potential Programme in year two to  We also operate a Rotational Graduate Scheme. This three year programme leads on a specialist area with graduates completing  placements and optional placements that the graduate themselves can select.    Speedy career. We currently have 10 graduates on programmes both in our rotational and specialist graduate schemes across the business.    who are using apprenticeships to up-skill and progress their careers. Our apprentices range from 16-40+ years old and follow  At 31 March 2022 we are on track to meet our 5% Club  and sponsored students on formal programmes. #### Environmental Social Governance #### Report continued ![]() Strategic Report Corporate Information Governance Financial Statements #### New training portal launched On 1 March 2022 we launched our new online training system  ‘The Hub’. The system was developed by gathering feedback and engaging   all individual mandatory training needs. The system has generated extremely positive feedback from  and a ‘one-click’ experience to access training modules. It also   training without disrupting the operations. PeopleFluent also provides more accurate training reports for managers which are instantly available from the home screen to improve management information and monitoring of training needs within teams. A focus on retail skills  and during FY2021 commenced a trial to open Speedy outlets within a number of B&Q stores. During FY2022 we cemented the  We have a successful bespoke people strategy for retail that is attracting both full and part-time colleagues with a background in sales.   arrangements. Flexible working hours are a key component to  parents and retirees to consider careers with Speedy. We have also developed a bespoke digital on-boarding and training experience  Working with the B&Q team we have been able to combine our leadership values to ensure a one-team culture exists in stores. Training    a full range of technical training courses which makes sure our  Our learning and development courses are designed to help our  behaviours which will help support Speedy’s customer led culture. All colleagues have access to a range of externally provided  either the apprenticeship levy or other government funding across the UK. These courses are across Level 2 – Level 7 and examples include: • Management • Team Leading • Customer Service • Contact Centre Operations • Improvement Technician  combination of e-learning and classroom-based training. As a member of the Sustainability Supply Chain School we also provide sustainability training as part of our High Potential Programme and Graduate and Apprenticeship Training Schemes. In FY2023 we will be rolling out a company wide sustainability training programme to engage and upskill our  #### " I was excited to implement our new training system. Developing #### the system by gathering feedback and engaging our colleagues in the process has been key to its success,  #### enhanced training experience" Rebecca Sargent,  Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 73 ![]() Performance and recognition We have a consistent Personal Development Review (PDR) process   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  employees received an award during FY2022. We host an annual Excellence Awards event where outstanding teams and individuals are publicly recognised for their performance. The awards are made over a number of categories   business. Having been unable to run the awards in the prior year  colleagues back for this most prestigious of nights to recognise their outstanding individual and collective achievements. Our long service recognition scheme celebrates loyalty for those       further roles across the business which helped to retain the key skills required to compete in the marketplace. We run a number of incentive and recognition schemes which   as we recognise that salary is not the only component that motivates employees. We are committed to the People’s Charter with the Supply Chain  74 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022  3,554 Group headcount Winners celebrate at the Speedy Excellence Awards #### Environmental Social Governance #### Report continued ![]() Communities Committee  touch the lives of thousands of families and hundreds of local  recognise our position as an opportunity to be a real force for good. Our Charity Committee was set up in 2015. In the prior year we  bringing together newly nominated ‘Community Ambassadors’ from across the business to shape our charity and community agenda moving forward.   contributing time and manpower to a wide range of worthy community causes. We also relaunched our volunteering policy to help our people to support charity and community causes close to their hearts. We are proud to support three nominated charity partners;  Foundation. We support WellChild through its Helping Hands    To help tackle issues in the construction industry we support   and their families. #### Part of the community #### Speedy people are part of local #### communities all over the country.  #### the challenges we face today and get #### ready for the future. Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 75 ![]() #### Strategy in action: New long #### term partnership with the British #### Heart Foundation During FY2022 we partnered with The British  funds for life-saving research into heart   at all of our operational locations UK wide.   communities across the country. Our commitment to help raise funds for the BHF is part of a long term partnership with the charity. The money raised will help the BHF to fund life-saving research into heart and circulatory conditions such as coronary heart  factors such as hypertension and diabetes. Colleagues are also participating in a BHF-  which includes health checks and personalised advice on decreasing cardiovascular risk. 76 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 L-R: Iain Lawrence, Aero Healthcare; Russell Down, Speedy; Hayley Gough, British Heart Foundation " The safety and wellbeing of our colleagues and customers is our number one priority. By installing AEDs at all of our sites, we can be     partner with the BHF and support a cause we are passionate about, while also helping to improve the health of our colleagues" Russell Down, Chief Executive #### Environmental Social Governance #### Report continued ![]() #### The As One Charity Challenge During FY2022 over 800 of our colleagues signed up for the ‘As One’ charity challenge to raise money for Mind and raise awareness about the importance of mental health.  swim or cycle 698 miles; the distance from our furthest southern depot in Camborne to our furthest northern depot in Inverness.         widening the net to support our communities to help make a  Creating Social Value Our work on the Including Everyone and Part of the Community   assessment of social impact and evidence of value for money to calculate the Social Value Impact (SVI) in the communities we   our Social Value Impact for FY2022 £6,251,312 Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 77 ![]() 78 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Governance #### Operating as an industry leading #### sustainable business The United Nations’ Sustainable Development Goals 2030 (UNSDGs) act as a blueprint to achieve a better and more     committed to.  with accuracy and transparency and maintaining compliance  which is also of key importance to us as a publicly listed company. Our business has robust governance controls and processes  reporting and the integrity and security of systems. This enables  and regulations whilst meeting the needs of our external stakeholders. We also believe in promoting equality and diversity within the workforce and we work hard to foster that culture within all areas of our business.     • ISO 9001 for quality management • ISO 14001 for environmental management • ISO 17020\* for the operation of various types of bodies performing inspections • ISO 27001 for information security • ISO 45001 for health & safety management (in June 21 we migrated from OHSAS 18001 to ISO 45001) • ISO 50001 for energy management \*Lloyds British National Contracts We also remain accredited to schemes that enable us to trade with  •  • Achilles UVDB Silver Plus •  •  • LEEA: Lifting Engineers Equipment Association • SafeHire for standards in tool and equipment hire • CHAS Premium Plus: Advanced Assessment SSIP Scheme inc PAS91 • Alcumus SafeContractor + SAFE PQQ • Constructionline Gold • IPAF Rental Plus • Acclaim SSIP Scheme • SMAS Worksafe SSIP Scheme • CQMS SSIP Scheme •  • PASMA: Prefabricated Access Suppliers & Manufacturers Association • Altius Assured Vendor Award •  #### Environmental Social Governance #### Report continued ![]()  colleagues are required to complete Speedy Code of Conduct and cyber security training to ensure working practices across the business are robust and secure. Similarly our practices regarding engagement with third parties   procedures to support ethical trading and regularly monitor and   Our Directors’ Remuneration Policy was last approved at our 2020 Annual General Meeting with the intention that it operates  promote the long-term success of the Group which is important  continues to review the policy to ensure it takes due account of remuneration best practice and that it remains aligned with our shareholders’ interests. Our ESG performance is linked to the remuneration of our executive board.  in place and its tax strategy is well publicised. Human rights and modern slavery  Policy applies to all employees and commits Speedy to upholding the provision of basic human rights and eliminate any discriminatory practices. These policies emphasise our compliance with the Modern Slavery Act 2015 and our  to create and maintain a work culture which allows equal human  such as forced or child labour. Our policies are communicated to all our employees through annual e-learning modules and cascaded to our supply chain. As part of our ISO20400 sustainable procurement programme we will be undertaking human rights mapping across our supply chain to identify and manage any potential risks. Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 79 ![]() Hire revenue has grown throughout the #### year and was 17.9% ahead of FY2021  #### is a more meaningful comparison. #### We continued to increase our market  renewals. The revenue performance   #### Retail proposition in B&Q stores.  underlying revenue for the year to date c.8% ahead of the comparative period in FY2022.     ECO products. Focus on asset management using predictive demand tools has further improved utilisation up to 57.0%. The Group entered FY2022 with net debt at an appropriate level  by the COVID-19 pandemic. Increased capital expenditure and the return of dividend payments increased net debt during the year but it remained below the business cycle target of 1.5x  a share buyback programme. Net debt at the end of FY2022 of £67.5m represents 0.9x leverage.  Results and commentary are presented on a continuing  of the Middle East business in March 2021. Comparative amounts  the COVID-19 pandemic. To aid understanding of the underlying  Revenue (excluding disposals) for the year to 31 March 2022 increased by 16.3% versus FY2021 to £381.7m and 3.9% versus FY2020. Revenue from disposals was £5.1m (FY2021: £4.2m); total revenue for the year increased by 16.4% to £386.8m (FY2021: £332.3m).     by sales mix.    performance versus FY2021 which was impacted by COVID-19.  to £3.2m (FY2021: £1.2m) as result of strong recovery following COVID-19 pandemic and new contract wins. The Group incurred no exceptional items in the year (FY2021: £8.4m).   #### Financial Review 80 Strategic Report Speedy Hire Plc Annual Report and Accounts 2021 James Bunn,   #### FY2022 demonstrate our #### strong performance over #### the year, underpinned by a #### commitment to excellent customer service. Market #### conditions remained positive #### and we delivered growth #### through demand driven volume improvements and #### better rates. ![]() Strategic Report Corporate Information Governance Financial Statements Hire revenue increased by 17.9% compared to FY2021 which  at the end of March 2020. Revenue showed progressive growth throughout the year and was 5% ahead of the more meaningful corresponding period in FY2020. A number of new and renewed    less impacted by COVID-19.       decision to cease the provision of NVQs and Apprenticeships from July 2021. The Group implemented price increases in April 2022 to   framework agreements and hire contracts are renewed. Gross margins increased from 55.6% to 57.2%. Hire margin  utilisation improved further and other direct costs remained tightly controlled. Asset utilisation for the year increased to   to connect customer demand with asset availability. Services margin was impacted by sales mix with comparably stronger revenue performance in lower margin services such as rehire and  overall margin to 22.1% (FY2021: 23.2%). Overheads Overheads remain well controlled with the increase versus FY2021 supporting growth across the business. Improvements have been made to simplify and standardise our operating  larger customer focused centres. The cost savings from these  omni-channel capabilities.   including 162 colleagues are now employed in B&Q stores (31 March 2021: 50).  and fuel are expected in FY2023. The Group will continue to  Group’s performance. Interest   average gross borrowings throughout the year.    recently commenced share buyback programme. Revenue and margin by type Year ended 31 March 2022 £m Year ended 31 March 2021 £m Change % Hire: Revenue 243.3 206.4 17.9% Cost of sales (54.5) (50.3)  188.8 156.1 20.9% Gross margin 77.6% 75.6% Services: Revenue 138.4 121.7 13.7% Cost of sales (107.8) (93.5)  30.6 28.2 8.5% Gross margin 22.1% 23.2% Revenue and margin analysis  Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 81 ![]() The Group’s main bank facilities were renewed in July 2021 for a three year term. Borrowings under the facility are now priced based on SONIA (LIBOR prior to renewal) plus a variable    dependent on the weighting of borrowings between receivables  period was 1.73% (FY2021: 1.80%).  SONIA with varying maturity dates to November 2024. The fair value of these hedges was not material at 31 March 2022. Taxation The Group seeks to protect its reputation as a responsible   management of tax matters in support of business performance.   UK corporation tax rate to 25% for periods from 1 April 2023 was substantively enacted on 24 May 2021. This rate has been used to calculate the deferred tax assets and liabilities and has  current standard rate of 19%. The impact of the rate change is an increase of £2.0m in the net deferred tax liability as at 31   International segment Following the disposal of the Middle East business on 1 March  arrangement in the year; the Group is in the process of formally winding up its operations in the region. Earnings per share    2022 and cancelled as part of the share buyback programme. Shares repurchased after 6 April 2022 have been placed in   settlement of the transactions to that date.   normalised tax rate (excluding the impact on deferred tax of the  share was 4.62 pence. Basic earnings per share was 4.13 pence (FY2021: 1.82 pence). Capital expenditure and disposals Total capital expenditure during the year amounted to £82.1m    chain relationships and advanced planning have meant that we received assets in a timely manner to support existing demand  £13.7m (FY2021: £7.7m) representing the investment in our properties and IT capabilities.   industry at 3.6 years. Proceeds from disposal of hire equipment were £13.6m (FY2021: £12.2m). During the year we further optimised our stockholdings across   requiring investment.   FY2022. Forward demand planning will continue to help mitigate  Balance sheet    working capital.  equivalent to 43.7 (2021: 41.8) pence per share.   which equipment for hire represents 88.0% (2021: 88.9%).  increased IT development expenditure and in particular the core system update to the latest cloud-based ERP application from Microsoft Dynamics 365. Right of use assets of £73.3m (2021: £59.1m) and corresponding lease liabilities of £76.7m (2021: £63.2m) have increased in part due to new vehicle leases to support the move  #### Financial Review continued 82 Strategic Report Speedy Hire Plc Annual Report and Accounts 2021 ![]() Strategic Report Corporate Information Governance Financial Statements  in particular customer collections. The successful collaboration   throughout the year. Gross trade receivables totaled £104.9m at 31 March 2022 (2021: £93.4m). Bad debt provisions were £3.0m  trade receivables (2021: 3.8%). The FY2021 provision included  which are no longer required. Debtor days as at 31 March 2022  low of 58.9 at March 2021. Trade payables as at 31 March 2022 were £45.3m (2021: £49.8m). Creditor days were 55.9 (2021: 47.8).      (FY2021: £69.7m). Net debt increased by £34.3m from £33.2m at the beginning of the year to £67.5m at 31 March 2022. Excluding the impact of  retained substantial headroom within its bank facility throughout the year with cash and undrawn facility availability of £110.8m as at 31 March 2022 (2021: £142.3m).   uncommitted options exist for a further two one-year extensions until July 2026. The additional uncommitted accordion of £220m remains in place through to July 2024. The terms of the facility are broadly similar to the expired facility and give the Group headroom with which to support organic growth and acquisition opportunities.  covenant tests which are only applied if headroom in the facility   measures throughout the year. Dividend  pence per share (FY2021: 1.40 pence per share) to be paid on 23 September 2022 to shareholders on the register on 12 August 2022. The cash cost of this dividend is expected to be c.£7.6m. This takes the total dividend for FY2022 to 2.20 pence per share (FY2021: 1.40 pence per share) following an interim dividend of 0.75 pence per share (FY2021: nil pence per share). Capital allocation policy The Board intends to continue to invest in the business in order    and are returns accretive.   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  our customers; • Regular returns to shareholders: the Board intends to pay a    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  Board has adopted a target leverage of 1.5x through the  if circumstances warrant. The Board will continue to review   to shareholders if and when appropriate. During FY2022 the Board reviewed the medium-term capital needs of the Group and as a result commenced a share buyback  consideration of £30 million. The programme is expected to continue until the 2022 Annual General Meeting which is to be  Return on capital ROCE is a key performance measure for the Group and increased     to achieve its ROCE aspirations of c.15% over the medium term. James Bunn, . Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 83 ![]() Description and potential impact Strategy for mitigation #### 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      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. 84 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Trading performance Whilst the Group performed well during the UK & Ireland    there remains a risk of future restrictions in the event of new variants emerging. There are risks that the people and supply chain risks described for the Group below may also impact our customers’ businesses and reduce our ability to achieve revenue targets. People The COVID-19 pandemic has led to shortages in the workforce as a direct result of illness or isolation   our customers’ requirements. Supply chain  the availability of spares) may be disrupted or there may be delays introduced into the supply chains. This  customers’ requirements. We continue to monitor Government guidance and  we support customers. We have implemented COVID-19 safe ways of working  perform duties from home utilising our secure and robust infrastructure and technology platforms.    customer service.   that the Group can withstand a prolonged period of  further national lockdown. #### COVID-19 pandemic ![]() Description and potential impact Strategy for mitigation Strategic Report Corporate Information Governance Financial Statements Serious injury or death  a wide range of machinery. Without rigorous safety   Environmental hazard    of spillage. The Group is recognised for its industry-leading position in promoting enhanced health and safety      the environment. We maintain systems that enable us to hold appropriate industry recognised accreditations supported by a specialist software platform for managing data and reporting in   trained and provided with appropriate equipment to manage small scale spills. In the case of more serious  specialist who would undertake any clean-up operation as necessary. #### Safety, health and environment We operate an industry leading four-hour service promise under “Trust Speedy to Deliver” which covers a wide range of our assets. Our use of personal digital assistants (PDAs) and online based customer feedback system are fully embedded into our business and these are used to improve the on- site customer experience. Speedy liaises with its customer base and takes into  to ensure that work on resolving those issues is prioritised accordingly. We have introduced a Net Promoter Score metric into our business to drive improvement through dashboard reporting at depot level. During the year we successfully concluded the implementation of a new ERP system; Microsoft Dynamics365. This provides opportunities for future enhancements to customer service by utilising standard and bespoke modules from the system. Provision of equipment Speedy’s commitment is to provide well maintained equipment to its customers on a consistent and dependable basis.  It is important that Speedy is able to provide timely and  with accurate invoices and supporting documentation.   level of business such customers undertake with Speedy. #### Service Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 85 ![]() 86 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Principal risks and uncertainties continued Description and potential impact Strategy for mitigation Climate change There is a risk that climate change may impact  there is a risk that Speedy will fail to meet internal or external targets designed to reduce the Group’s impact on climate change.   capture relevant data accurately. Sustainability There is a risk that the Groups business model may  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   future funding. The Group has built on its strong position of embracing the ESG agenda with the creation of the Sustainability Committee to oversee the development of the sustainability and climate change response plan. Robust science-based targets have been set and a  reporting directly to the Chief Executive. Speedy has incorporated hybrid and fully electric vehicles into both the commercial and company car   mitigating actions in relation to sustainability and climate change are detailed in the Taskforce for Climate-Related Financial Disclosures (TCFD) section of this report from page 57. #### Sustainability and Climate Change #### Revenue and trading performance    supplemented by its rehire division for specialist equipment. The Group monitors the performance of  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  further mitigates against this risk as it demonstrates  hire companies. Whilst we develop and maintain strategic relationships  accounts for more than 10% of revenue or receivables. We have been successful in growing our SME and retail  Competitive pressure The hire market is fragmented and highly competitive.  with minimal disruption to their own business activity.  route to market for consumer rentals and this could lead to a missed opportunity that is capitalised upon by our competition.  customers resist price increases. This risk is higher in a small number of cases where larger customers may be on  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. ![]() Strategic Report Corporate Information Governance Financial Statements Description and potential impact Strategy for mitigation  which allows the Group to directly access a marketplace  supported by a link from B&Q’s diy.com website directly  operational management team includes a managing director dedicated to retail based routes to market.    which our customers can do business with Speedy. #### Revenue and trading performance (continued) The Group has a defined process for monitoring and  and other third parties. All potential business combinations are presented  for approval.  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.   effective integration into the Group. These teams  specifically address any risks identified during the due diligence phase. An established Programme Management Office function has clearly defined governance in place to oversee all change initiatives. During the year this capability has been improved with the adoption of a change management methodology designed to  Acquisitions Our strategy includes value enhancing acquisitions that complement or extend our existing business in specialised markets. There is a risk that suitable targets   integrated into the existing Group. #### Project and change management Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 87 ![]() 88 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Principal risks and uncertainties continued Description and potential impact Strategy for mitigation Employee excellence   and motivate employees who possess the right skills for   Labour availability There is a risk that with increased numbers of people    requirements for training.   recruitment and retention of drivers and engineers. We have reviewed our reward packages for these colleagues and are actively seeking alternative routes to meet the  Armed Services Covenant. Skill and resource requirements for meeting the Group’s   identify talent within the Group and is formally reviewed  focusing on both short and long-term successors for the key roles within the Group.   are tailored to the requirements of the various business units within the Group. The Group regularly reviews remuneration packages   incentive schemes. #### People 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.   individual suppliers. Supply chain Speedy procures assets and services from a wide range of   The COVID-19 pandemic has resulted in some supply chain delays which may increase the likelihood of this risk impacting the Group. It is possible that the war in Ukraine may result in disruption to the supply chain. Partner reputation   party partner. Speedy’s ability to supply assets with the expected customer service is therefore reliant on the performance of others with  Speedy and hence future revenues may be adversely impacted. #### Partner and supplier service levels ![]() Strategic Report Corporate Information Governance Financial Statements Description and potential impact Strategy for mitigation The Group has a purchasing policy in place to negotiate    dependency and creating a competitive supply-side  by a dedicated supply chain team with structured supplier selection procedures in place. Property costs are managed by an in-house team of specialists who manage the estate.  are maintained to support our brand image. This includes a growing number of Electric and hybrid vehicles. Fuel is purchased through agreements controlled by our supply chain processes.  this risk as these activities have a greater proportion of variable overheads. #### Operating costs Fixed cost base    Fuel management As a result of changes in the worldwide fuel supply   This may impact both our own cost base and our ability to supply fuel to our customers. 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  formal approval.   system unavailability and improved system performance. Management information is provided in all key areas from dashboards that are based on real time data drawn from central systems. We have a dedicated data management team which is responsible for putting in place procedures to maintain accuracy of the information provided by data owners across the business. Mitigations for IT data recovery are described below under business continuity as these risks are linked. We have an established cyber security governance committee which meets regularly to monitor our control framework and reports on a routine basis to the Audit & Risk Committee. Speedy’s IT systems are protected against external unauthorised access. These protections are tested regularly by an independent provider. All mobile devices  encryption is applied. IT system availability Speedy is increasingly reliant on IT systems to support our business activities. Interruption in availability or a failure to innovate will reduce current and future trading opportunities respectively. Data accuracy The quality of data held has a direct impact on how both strategic and operational decisions are made. If decisions are made based on erroneous or incomplete data there could be a direct impact on the performance of the Group. Data security  commercially sensitive and in some cases personal in nature. There is a risk that disclosure or loss of such data  competitive advantage or as a breach of law or regulation. #### Cyber Security and data integrity Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 89 ![]() 90 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Principal risks and uncertainties continued Description and potential impact Strategy for mitigation    advantage of strategic opportunities or it might be   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  funding facilities that should be in place to support the Group’s activities.    extensions available.     in order that its requirements can be managed with appropriate levels of spare capacity. #### Funding 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  operational budgeting and forecasting process.  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      The Group implemented price increases in April 2022   equipment purchases. Economy Any changes in construction/industrial market conditions  Group’s revenue.  Group strategy will need to be aligned accordingly.  the Group’s revenue.   and employee costs impacting margins that the Group is   War   impact the global economy. This may result in a range  availability and disruption to the supply chain. #### Economic vulnerability ![]() Strategic Report Corporate Information Governance Financial Statements Description and potential impact Strategy for mitigation   pandemic. Management acted promptly in line with our documented plan to establish a crisis management team which co-ordinated the activities required in a rapidly changing environment.  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.  through regular contact with the expat management team and will take action as may be necessary to ensure the safety of our colleagues. Business interruption    current and future trading as customers could readily migrate to competitors. This could range from short-term impact in processing   Joint venture   Ukraine. This may be a direct result of military activity   maintained strong links with Russia. The main impact that the Group has faced to date has been the impact  #### Asset holding and integrity 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  by asset class. By structuring our depot network  of specialist assets. We constantly review our range of assets and introduce innovative solutions to our customers as new products come to market. Asset range and availability Speedy’s business model relies on providing assets    hold a range of assets that is optimally utilised. #### Business continuity Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 91 ![]() 92 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 #### Viability Statement The Group operates an annual planning     as part of its strategy review and budget approval processes. The Board has considered the impact of the principal   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    in place through to July 2024 with uncommitted extension options for a further two years on the same terms. The Strategic Plan assumes the facility will be extended to meet the Group’s capital investment and acquisition strategies.   facing the business in distressed but reasonable scenarios and  include reduced levels of revenue across the Group and  these downturn scenarios include a reduction in planned capital expenditure.  expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period to March 2025. The going concern statement and further information can be  ![]() Strategic Report Corporate Information Governance Financial Statements #### Board engagement with our stakeholders #### Section 172(1) statement Section 172 of the Companies Act 2006 requires a director of  would most likely promote the success of the company for  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  • the impact of the company’s operations on the community and environment; • the desirability of the company maintaining a reputation for high standards of business conduct; and • the need to act fairly as between members of the company. Each Director and the Board collectively gives careful consideration to the factors set out above and have acted in a way they consider complies in all respects with their Section 172(1) duties. Details of how the Board discharged its duties are set out in the Strategic Report on pages 93 to 96 and   To help facilitate this before each scheduled Board meeting all Directors receive appropriate reports addressing key    and briefings from senior executives. The Chief 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. Stakeholder engagement Engagement with relevant stakeholders is a key consideration  Pages 94 to 96 detail Speedy’s key stakeholders and how we engage with them. As mentioned above the Board receives reports from  in a business relationship with the Company which it takes into account in its discussions and also in the Section 172(1) decision making process. The Board has also received training relating to its obligations under Section 172(1) and the consideration of the Company’s stakeholders. Employee engagement In addition to the Board receiving reports from management concerning its employees the Board engages directly with its employees in a variety of ways. This includes via its Colleague   via its Excellence Awards and Chief Executive and Chief Financial Officer ‘Up to Speed’ and ‘The Hub’ communications and updates. Also in a typical year where COVID-19 restrictions do not apply engagement with employees would additionally be via the Company’s annual Expo. Further information on employee engagement can be found at pages 64 to 77. Board decisions and stakeholders We set out on page 71 an example of how the Directors have had regard to Section 172(1) when discharging their duties and the effect that this regard had on the decisions being made. Speedy’s approach to connecting with our   ESG programme. Our mission is to provide exceptional   future of hire. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 93 ![]() 94 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 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  Ways we engage Areas discussed #### Customers • Face to face meetings (where  and calls • Speedy’s Trade and DIY websites and mobile apps • Social media • Tendering and RfP processes •  and services • Customer service centres – Speedy Direct • Regional Hubs – our regional call centres are located  dedicated staff servicing our regional customer base • Customer Relationship Centre – through our central hub in South  our SME customers • Service Centre network – through 200 operational centres across the UK and Ireland • B&Q – through a presence in a growing number of stores across the UK and on diy.com • Real time customer satisfaction surveys • Product videos and peer reviews • Advertising campaigns • Speedy Expo • Availability of products and services (including use of AI) • Improved customer service • Range of products and services • Value for money • Access to customer services e.g. Speedy App and tracking • Four hour service commitment to customers on our top selling products (Capital Commitment) • ‘One Speedy’ for first class customer experience • Sustainability solutions • Product development Key stakeholder 1 During FY2022 the Speedy Expo could not take place, however, this is a key event in the annual calendar which will be continued. #### Board engagement with our #### stakeholders continued ![]() Strategic Report Corporate Information Governance Financial Statements Ways we engage Areas discussed #### Employees • Colleague Consultative Committee meetings (including NED attendance) • People Matters Survey and pulse surveys • Wellbeing surveys • Apprenticeship and graduate programmes (Commitment to the 5% Club initiative) • Career Line of Sight • Benchmarking of key roles within the business • ‘The Hub’ communications platform to enhance the employee intranet and engagement • ‘Up to Speed’ e-communications • Mobile phone and PDA text messaging • Roadshows and senior management meetings held at various UK and Ireland locations • Training Academy schedule of  training courses • Personal Development Reviews • ‘Celebrating Excellence’ scheme and Excellence Awards dinner • Long service recognition scheme  • Speedy Expo 1 • Inclusion in cross functional  development • Diversity and Inclusion Committee •  balance group • Career opportunities • Wellbeing (including mental health) • Training and development (including safety) • Pay and conditions • Colleague engagement Key stakeholder 1 During FY2022 the Speedy Expo could not take place, however, this is a key event in the annual calendar which will be continued. Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 95 ![]() 96 Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 Ways we engage Areas discussed #### Suppliers • Tendering processes • Visits and meetings (including via video conference) • Supplier conferences • Partnership Programme  and peer groups on key sustainability issues • Pioneering use of electric vans reducing CO 2 • Industry trade shows • Product innovation days • Speedy Expo • Quality management • Cost efficiency • Ethical Trading policy • Long-term relationships • Sustainability as part of our ESG programme • Product development Key stakeholder Ways we engage Areas discussed #### Investors • Annual report • Annual General Meeting • RNS announcements • Investor presentations and roadshows • Corporate website • One-on-one meetings • Information requests • Consultation letters • Financial and operating performance • Dividends • Risk information • Access to Management • Strategy • Sustainability • Remuneration Policy Key stakeholder 1 During FY2022 the Speedy Expo could not take place, however, this is a key event in the annual calendar which will be continued. #### Board engagement with our #### stakeholders continued ![]() Strategic Report Corporate Information Governance Financial Statements Strategic Report Speedy Hire Plc Annual Report and Accounts 2022 97 ![]() 98 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() ## Governance CONTENTS Governance Chairman’s letter to shareholders 100 Directors’ Report 101 Statement of Directors’ Responsibilities 105 Board of Directors 106 Corporate Governance 108 Audit & Risk Committee Report 115 Nomination Committee Report 122 Remuneration Report 125 Independent auditor’s report to the members of Speedy Hire Plc 148 Governance Strategic Review Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 99 ![]() #### Chairman’s letter to shareholders #### Dear Shareholder  to present the Governance Report for FY2022. This section of the Annual #### Report highlights the Company’s #### corporate governance processes (alongside the work of the Board and #### Board Committees). During the year Speedy has operated in compliance with the UK Government COVID-19 related guidance and its relaxation   the increasing return to business as usual where possible. Our  resourcefulness to meet these challenges and help maintain and promote the success of the Company. Throughout the year the Board has maintained high standards of corporate  the challenges of the pandemic. This has been achieved    in full compliance with the provisions of the UK Corporate Governance Code 2018 throughout the year. Speedy has long been committed to sustainable growth and recognises the increasing stakeholder focus on climate  considerations within its business. To support this a new Sustainability Committee of the Board has been established to assist the Board in its oversight of the Company’s ESG strategy and support the Board on all sustainability matters. This will include supporting the Board’s ongoing evaluation of environmental risks and our reporting under the Taskforce for Climate Related Financial Disclosures. Speedy’s initial disclosures are detailed at pages 57 to 63 of the ESG report. On 11 May 2022 the Company announced that Russell Down  successor has been found. Russell Reynolds Associates have been appointed to undertake a comprehensive search for a new Chief Executive and the process is being led by the Nomination Committee under my chairmanship.  Non-Executive Director and a member of the Remuneration Committee on 1 June 2021 and was subsequently elected at the 2021 Annual General Meeting. This has further strengthened the skills and diversity at board level. After  stepped down from the Remuneration Committee on 16 November 2021. This was in keeping with the Company’s  than three Independent Non-Executive Directors. This year the Board and Board Committees’ evaluations were again undertaken internally led by our Senior Independent   followed and outcome are reported on page 111. This has resulted in some changes to Non-Executive Director roles which are detailed on page 123. The changes take advantage of the increased diversity of the Board and balances director  Committee amongst the Non-Executive Directors. In accordance with the Code and the Company’s Articles of  General Meeting will be submitting themselves for re-election.     new UK Government COVID-19 guidance in place at the time of the meeting). David Shearer Chairman 100 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Directors’ Report This section contains additional information which the Directors are required by law and regulation to include within the Annual Report and Accounts. This section along with    Nomination and Remuneration Committees on pages 115   Directors’ Report in accordance with the Companies Act 2006. The Strategic Report was approved by the Board and authorised for issue on 27 May 2022. Results and dividends The consolidated profit after taxation for the year was £21.6m (2021: £9.5m). This includes profit from discontinued operations and is after a taxation charge of £7.7m (2021: £2.8m) representing an effective rate of 26.5% (2021: 22.8%). An interim dividend of 0.75 pence per share was paid during the year. The Directors propose that a final dividend   dividend distribution in respect of the year of 2.20 pence per  be paid on 23 September 2022 to all shareholders on the register at 12 August 2022. Related party transactions  have any material transactions or transactions of an unusual  period in which any Director is or was materially interested. Buy-back of shares  a special resolution was passed to authorise the Company to make purchases on the London Stock Exchange of up to 10% of its ordinary shares.  Board undertook to review the medium-term capital needs of the Group and consider potential returns to shareholders. The Company subsequently announced a share buyback programme on 27 January 2022 of up to £30 million. The Board considered that a £30 million share buyback  ability of the Group and maintained a strong balance sheet consistent with its capital allocation policy. As at 26 May     settlement of the transactions to that date). Shareholders will be requested to renew the usual authority to make purchases of up to 10% of its ordinary shares at the forthcoming Annual General Meeting on 8 September 2022. Financial instruments The Group holds and uses financial instruments to finance its operations and manage its interest rate and liquidity risks. Full details of the Group’s arrangements are contained in Note 20 to the Financial Statements. Going concern The Directors consider that the Group has adequate financial resources and has access to sufficient borrowing facilities to continue operating for the foreseeable future. The Directors believe that contingency plans against known  the Company to continue to maximise growth opportunities.   concern basis in preparing the Annual Report and Accounts. Substantial shareholders    Rules of the following holders of shares with 3% or more of the total voting rights in the issued share capital of the Company. Shareholder name Percentage of voting rights Schroders Plc 12.56 Polar Capital LLP 7.62 Lombard Odier Asset Management (Europe) Limited 6.48 Abrdn Plc 6.36 Jupiter Fund Management Plc 5.04 Aberforth Partners LLP 4.00 Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 101 ![]() Directors The Directors who served during the year and the interests of Directors in the share capital of the Company are set out on pages 144 and 145. In accordance with the Company’s Articles of Association and   following their appointment and all other Directors submit for re-election at each Annual General Meeting.    No Director had any interest in the shares of any subsidiary company during the year. Equal opportunities  31 March 2022. The Group has a clear policy that employees are recruited and promoted solely based on aptitude and ability. The Group does      continued employment as well as to ensure that any disabled employees receive equal treatment in matters such as career    Further information on equal opportunities within the Group  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    communications. The Group has also established a Colleague Consultative Committee (formerly the Employee Forum) in  six monthly basis with the Chief Executive and the Chief People  Executive Director for employee engagement annually attends this meeting. His attendance helps ensure the employee voice is heard in the boardroom. This enables a greater understanding of workforce concerns and their consideration in Board decisions. Further illustrations are on pages 93 to 95 along with other methods of engagement with the workforce.  It is the Group’s policy that employees should generally be eligible to participate in some form of incentive scheme as soon  of any relevant probationary period. Details of annual incentive arrangements for Executive Directors are summarised in the Remuneration Committee’s Report on pages 125 to 147. The Group has a people strategy in place aimed at being an  pages 67 to 74 of the Strategic Report. The Group makes a  engagement and development. The Board sees employee engagement as a key part of its success. Further details of how the Board engages with employees and how it has regard for their interests and views can be seen on pages 93 to 95 of the Strategic Report. Exercise of Board powers In performing its duty to promote the success of the Company  engagement and the fostering of relationships with all relevant stakeholders which is illustrated on pages 93 to 96. To help     its decision making process allowing regard to the matters within Section 172 of the Companies Act 2006. Further information and a statement on how the Directors have had regard to the matters set out in Section 172 when discharging their duties is provided on pages 93 and 94 of the Strategic Report. Disclosure of information to auditors   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  interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. #### Directors’ Report continued 102 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Auditors KPMG LLP was reappointed at the Annual General Meeting of the Company held on 9 September 2021 and its appointment expires at the conclusion of this year’s Annual General Meeting.  was completed in order to comply with mandatory rotation  appointment of PricewaterhouseCoopers LLP (‘PwC’) as auditors of the Group for FY2023. PwC has expressed its willingness to take over as external auditors of the Group. Separate resolutions proposing the appointment of PwC and to authorise the Directors to determine the auditors’ remuneration will be put to the forthcoming Annual General Meeting on 8 September 2022. Takeover Directive information  information required for shareholders as a result of the implementation of the Takeover Directive into English law is set out below. Share capital  single class of ordinary shares of 5 pence each. As at 31 March  ordinary shares of 5 pence each. There are no special rights or obligations attaching to the ordinary shares. Restrictions on share transfers The Company’s Articles of Association provide that the Company may refuse to transfer shares in the following customary circumstances: • where the share is not a fully paid share; • where the share transfer has not been duly stamped with the correct amount of stamp duty; • where the transfer is in favour of more than four  •   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  exercising voting rights and appointing a proxy or proxies to vote in relation to resolutions to be passed at the Annual General  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  Meeting after having been appointed by the Board. Thereafter  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  shareholders will be asked to renew the Directors’ power to allot shares and buy back shares in the Company and to renew  in line with current best practice. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 103 ![]()    of control following a takeover bid other than in relation to: (i)  which would become repayable on a takeover being completed. Shares in the Company are held in the Speedy Hire Employee  under the Company’s Performance Share Plan. Unless otherwise  voting on any shares held in the Trust in respect of which the     Company (0.82% of the issued share capital).  There are no agreements between the Company and its Directors or employees providing for compensation for loss of  redundancy or otherwise) that occurs in the event of a bid for the Company or takeover. Directors’ indemnities    itself and its Directors. As permitted by the Companies Act 2006  policy to indemnify its Directors. Qualifying deeds of indemnity are put in place for all Directors on appointment. Political contributions No political donations were made during the year (2021: nil). Research and Development The Company undertakes research and development activities in order to develop its information technology. Further details are available on pages 31 and 32 of the Strategic Report. Carbon and Energy Reporting All disclosures concerning the Group’s carbon and energy consumption (as required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018) are included in the ESG section of the Strategic Report on pages 39 to 79. Annual General Meeting     be sent separately to shareholders. This report was approved by the Board and signed on its behalf  May 2022. Russell Down Chief Executive #### Directors’ Report continued 104 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() The Directors are responsible for preparing the Annual Report and the Group and parent Company financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and applicable law and have elected to prepare the parent Company financial statements on the same basis. In addition the Group financial statements are required under the UK Disclosure Guidance and Transparency Rules to be prepared in accordance with International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 (“Adopted IFRS”). In accordance with Disclosure Guidance and Transparency  annual financial report prepared using the single electronic reporting format under the TD ESEF Regulation. The auditor's report on these financial statements provides no assurance over the ESEF format. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent Company and of the Group’s profit or loss for that period. In preparing each of the Group and parent Company  • select suitable accounting policies and then apply them consistently; •  relevant and reliable; • state whether they have been prepared in accordance with international accounting standards in conformity   • assess the Group and parent Company’s ability to  matters related to going concern; and • use the going concern basis of accounting unless they either intend to liquidate the Group or the parent  alternative but to do so. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial   for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.   Directors’ Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may  Responsibility statement of the Directors in respect of the Annual Financial Report We confirm that to the best of our knowledge: •    and profit or loss of the company and the undertakings included in the consolidation taken as a whole; and • the Strategic Report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included  description of the principal risks and uncertainties that they face.   information necessary for shareholders to assess the Group’s  Approved by the Board on 27 May 2022 and signed on its behalf by: David Shearer Russell Down Chairman Chief Executive #### Statement of Directors’ Responsibilities #### in respect of the Annual Report and Financial Statements Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 105 ![]() 1. David Shearer Non-Executive Chairman 2. Russell Down Chief Executive Appointed to the Board as Non-Executive Chairman on 1 October 2018. Prior to this appointment David was a Non- Executive Director of Speedy from 9 September 2016. David is also Chairman of the Nomination Committee and has previously  and Remuneration Committees. Skills and experience  and turnaround specialist. He is currently Executive Chairman of Esken Limited and Non-Executive Chairman of Amber River Group Limited and the Scottish Edge Fund. David was previously senior partner for Scotland & Northern Ireland and a UK Executive Board   and a Non-Executive Director of City Inn Limited in each case standing down after completing the successful restructuring of these businesses. He was also Non-Executive Chairman of Aberdeen New    a Non-Executive Director of Mithras Investment Trust plc and a Governor of The Glasgow School of Art. #### Board of Directors N Appointed to the Board as Group Finance Director in April 2015 and promoted to Chief Executive in July 2015. Russell is also a member of the Sustainability Committee. Skills and experience Russell was formerly Group Finance Director (from 2008 to 2015)  engineering consultancy. He spent 17 years in total at Hyder in  Controller and six years as Regional Finance and Commercial Director for the Middle East operations based in Dubai. Russell is a Fellow of   leasing company Cronos as Director of Accounting. 3. James Bunn   September 2020. Skills and experience   PLC in 2012 as Finance Director for its UK Digital business and has    Director: Commercial from 2008 to 2012. He is a member of the Institute of Chartered Accountants in England and Wales. 4. David Garman Senior Independent Director 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  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   Foods plc and held a variety of management roles at United Biscuits. He was also the Senior Independent Director at St Modwen Properties  and Victoria plc. N, R 106 Governance Speedy Hire Plc Annual Report and Accounts 2022 5 1 4 6 2 8 3 7 ![]() 5. Rob Barclay Independent Non-Executive Director Appointed to the Board in April 2016 as Non-Executive Director. Rob is Chairman of the Remuneration and Sustainability Committees and a member of the Audit & Risk Committee. Rob has previously been a member of the Nomination Committee. Skills and experience  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.   to the building and construction industry between January 2013  management roles within the business including Managing Director     where he originates. R S 6. Rhian Bartlett Independent Non-Executive Director A, N, S Appointed to the Board on 1 June 2019 as Non-Executive  Sustainability Committees and has previously been a member of the Remuneration Committee. Skills and experience  having previously held the position of Director of Fresh Foods. Prior     Sainsbury plc (including Business Unit Director and Head of On-line Merchandising) and was a Category Manager and Head of Online Marketing at Homebase. 7. Shatish Dasani Independent Non-Executive Director Appointed to the Board on 1 February 2021 as Non-Executive Director. Shatish is Chairman 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. He is also a Trustee       plc and has also been alternate Non-Executive Director of Camelot Group plc and Public Member at Network Rail plc. Shatish is a Fellow  has extensive international experience including as regional CFO based in South America. A 8. Carol Kavanagh Independent Non-Executive Director R Appointed to the Board on 1 June 2021 as Non-Executive Director. Carol is a member of the Remuneration Committee. Skills and experience Carol has over 20 years of experience working in senior public  including as Group HR Director for Travis Perkins Plc from 2007 to 2020. Carol has also held senior positions at Home Retail Group  responsibilities extended across all of the Group’s businesses at that   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   part owned by the TP Group. Carol is also currently an independent remuneration committee member for British Swimming. N Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 107 ![]() #### Corporate Governance Governance progress During the year the Company continued to build upon its governance practices in light of the UK Corporate Governance Code 2018 and the agreed key actions from its internal Board  developing best practice and are suitable for a company of its  the year and the outcome of this year’s internal evaluation are reported on page 111. The Board’s appointment of Carol Kavanagh as a Non-Executive   tenure and succession planning. The gender balance of the Board as at the end of FY2022 was 25% female representation. The Board remains committed to maintaining and building on its diversity as recruitment opportunities arise. Speedy has long been committed to sustainable growth and recognises the increasing stakeholder focus on climate  considerations within its business. A new Sustainability Committee of the Board has been established to assist the Board in its oversight of the Company’s ESG strategy and support the Board on all sustainability matters. This will include supporting the Board’s ongoing evaluation of environmental risks and our reporting under the Taskforce for Climate Related Financial Disclosures. UK Corporate Governance Code compliance The Board is committed to maintaining high standards of    complied in full with the Combined Code (now the UK Corporate Governance Code) and continued to develop its approach to  in the context of an evolving business. This year the Company is reporting against the UK Corporate Governance Code 2018 (the ‘Code’). A copy of the 2018 edition of the Code is available to view on the website of the Financial Reporting Council at  Company has been in full compliance with the provisions set out in the Code. Directors The Board    across the annual scheduled programme. The Board also meets  including the consideration and approval of matters that are reserved to the Board. The table below lists the Directors’ attendance at the scheduled Board meetings and Committee meetings during the year ended 31 March 2022. Carol Kavanagh was appointed to the Board on 1 June 2021 as a Non-Executive Director and a member of the Remuneration   from 16 November 2021. Board and Committee attendance at scheduled meetings Board (8) Audit & Risk Committee (4) Nomination Committee (2) Remuneration Committee (4) Executive Directors Russell Down 7/8 James Bunn 8/8 Non-Executive Directors David Shearer 8/8 0/0 2/2 0/0 David Garman 8/8 0/0 2/2 4/4 Rob Barclay 8/8 4/4 0/0 4/4 Rhian Bartlett 1 8/8 4/4 2/2 3/3 Shatish Dasani 8/8 4/4 2/2 0/0 Carol Kavanagh 2 7/7 0/0 0/0 3/3 1  2  108 Governance Speedy Hire Plc Annual Report and Accounts 2022108 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Directors who are not a member of a Board Committee may attend meetings at the invitation of the relevant Committee Chair. The Board has approved a schedule of matters reserved for decision by it. That schedule is available for inspection at the  matters reserved for decision by the Board can be subdivided into  •   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  and provides the information necessary for shareholders to  model and strategy; •  arrangements; •  acquisitions and disposals); • Stock Exchange/Listing Authority matters (including the issue  the market); • approval of the policies and framework in relation to remuneration across the Group (following appropriate recommendations from the Remuneration Committee); •  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; •   recommendations from the Nomination Committee); and •    Matters requiring Board or Committee approval are generally the   of the Board or Committee papers made available prior to the relevant   allow proper time for review and ensure the best use of the Directors’     Chairman and Chief Executive The posts of Chairman and Chief Executive are held by David  A statement as to the division of the responsibilities between the Chairman and Chief Executive is available on the Company’s   10 of the Code. The Board has an established policy that the Chief Executive should not go on to become Chairman. Board balance and independence     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  clearly indicates that their views carry appropriate weight in the Board’s decisions. The Board considers that each of David   Provision 10 of the Code and are free from any business or other relationship which could materially interfere with the exercise of  Board Committees The Audit & Risk Committee is chaired by Shatish Dasani. Its other members are Rob Barclay and Rhian Bartlett. Details of its activities during the year are detailed in the Audit & Risk Committee Report on pages 115 to 120. The Remuneration Committee is chaired by Rob Barclay. The other members are David Garman and Carol Kavanagh. The Committee  and Directors Remuneration Report are on pages 125 to 147. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 109 ![]() Board Committees (continued) The Nomination Committee is chaired by David Shearer. The    independent Non-Executive Directors. The report on the activities of the Committee is contained on pages 122 to 124. The Board has established a new Sustainability Committee to assist the Board in its oversight of the Company’s ESG strategy and support the Board on all sustainability matters. The terms of reference of the Committee are published on the Company’s website. Rob Barclay has been appointed Chair of  Down. A report of the Committee’s activities will be included in future annual reports. The Chairman and other Non-Executive Directors meet after every  the Chairman regularly briefs the other Non-Executive Directors on relevant developments regarding the Company as necessary. The Senior Independent Director and the other Non-Executive Directors  also undertake an annual appraisal of the Chairman’s performance as part of the Board's annual appraisal process. The minutes of all meetings of the Board and each Committee are taken by the Company Secretary or Assistant Company    the reports included in the Board or Committee papers circulated prior to the relevant meeting. Any unresolved concerns are recorded in the minutes.  Non-Executive Director are circulated by the Chairman to the remaining members of the Board.   and is reviewed annually.  public companies to authorise a situation in which a director    Company’s Articles of Association give the Board authority to authorise matters which may otherwise result in the Directors  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   most likely to promote the success of the Company. The Directors are able to impose limits or conditions when giving authorisation  Board and any authorisations given are recorded in the Board  annually by the Board. The Board considers that its procedures to   The Board is both balanced and diverse in respect of its experience and skills. The Board remains committed to maintaining and building on its diversity and encouraging that within senior management levels as recruitment opportunities arise. Any succession planning for the Board recognises this and diversity in all its aspects is considered in the shortlisting of candidates. Appointments to the Board The Board has established a Nomination Committee. The terms of reference of the Nomination Committee are published on the  but at least twice a year. Its activities are set out in more detail in the Nomination Committee Report on pages 122 to 124. The principal functions of the Nomination Committee are to consider and review the structure and composition of the Board and membership of Board Committees. It also considers candidates  re-election to the Board for those candidates standing for annual election or re-election at the Annual General Meeting and    of division of responsibilities between the Chairman and Chief Executive. Details of the Chairman’s other material commitments are set out on page 106 having been disclosed to the Board in advance and included in a register of the same maintained by the Company Secretary. The terms and conditions of appointment of all the Non-Executive      Nomination Committees. Details of other material commitments are disclosed to the Board and a register of the same is maintained by the Company Secretary. #### Corporate Governance continued 110 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() During the year Carol Kavanagh was appointed to the Board as a Non-Executive Director. The search and selection of Carol Kavanagh was supported by external recruitment consultants Russell Reynolds Associates who have no other connection with the Company or any of its Directors. No Director is a Non-Executive Director or Chairman of a FTSE 100 company. Diversity The Board recognises the value of diversity in the boardroom    seeks to select individuals who are best able to meet the recommended requirements of the role and improve overall diversity of the Board. Information and professional development Before each scheduled Board meeting all Directors receive   where relevant additional reports from senior executives) address    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  particularly regarding new laws and regulations which relate to or     members of their professional bodies. Procedures are in place to enable Directors to take independent  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   followed and applicable rules and regulations are complied with. The appointment or removal of the Company Secretary is a matter  Performance evaluation This year the Board evaluation was conducted internally and was led by the Senior Independent Director. Each of the Directors  results were reviewed by the Senior Independent Director in a one-to-one meeting with the relevant Board member. The  for discussion led by the Chairman. The internal evaluation  that overall the Board and its Committees were generally  Independent Director had noted the level of openness and constructive self-criticism within the Board during the evaluation had remained good. As the Company was not required to undertake an external evaluation it has been agreed to continue with an internal evaluation in FY2023 and review the position again thereafter. The discussion following the Board evaluation had considered the balance of Non-Executive Directors roles and  of the new Board Sustainability Committee which resulted in the changes proposed by the Nomination Committee as detailed on page 123. The Chairman reviewed the performance and development needs of each of the Executive and Non-Executive Directors.   Independent Director discussed the results of that assessment with the Chairman. No actions were considered necessary as a  Chairman’s commitment and performance. Re-election Pursuant to the Code and under the Company’s Articles of Association all Directors must submit to re-election (or where they are a new Director appointed to the Board since the last Annual General Meeting they will retire and seek election) at each Annual General Meeting. Biographical details of all the Directors are included in this report in order to enable shareholders to take an informed decision on any election/re-election resolution. The letters of appointment of each of the Non-Executive Directors and  and that reappointment is not automatic. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 111 ![]() Directors’ remuneration The performance related elements of the remuneration of the  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   a regular basis including the design of performance related remuneration schemes. Such performance related elements have been designed with a view to aligning the interests of the Executive Directors with those of shareholders and to incentivise performance at the highest level. The service contracts for Russell Down and James Bunn provide for termination by the Company on one year’s and nine months’ notice respectively. It is the Company’s current policy that notice periods on termination of Directors’ contracts should not exceed 12 months. The policy of the Board is that the remuneration of the Non- Executive Directors should be consistent with the levels    Committees. It is the policy of the Board that remuneration for Non-Executive Directors should not include share options or any other share based incentives. The remuneration of the Non-Executive Chairman is dealt with by the Remuneration Committee and details are reported in the Directors’ Remuneration Report. The remuneration of other Non- Executive Directors is dealt with by a Committee of the Board   presence of the Non-Executive Directors. The remuneration  however no review had been undertaken for two years. The remuneration of Non-Executive Directors was reviewed at the end of FY2022. The conclusion was that the base fees be increased to   remuneration of Non-Executive Directors are set out on page 139. Procedure The Board has constituted a Remuneration Committee which met four times during the year. The terms of reference of the Remuneration Committee are published on the Company’s website and are fully compatible with Provision 33 of the  David Garman and Carol Kavanagh who are independent of management and free from any business or other relationship which could materially interfere with the exercise of their   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  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  current best practice in remuneration and related issues. The Board’s      circumstances. The Company’s current long-term incentive scheme was approved by shareholders in 2014 and will be reviewed during FY2023. A more detailed summary of the work of the Remuneration  which was approved at the Company’s 2020 Annual General Meeting and which will apply until its Annual General Meeting in 2023 is contained on pages 125 to 147. Accountability and audit Financial reporting The Directors’ Report and independent auditor’s report appear on pages 101 to 104 and pages 148 to 156 respectively and comply with Provisions 27 and 30 of the Code. Audit & Risk Committee and auditors The Board has established an Audit & Risk Committee which met four times during the year. The terms of reference of the Audit & Risk Committee are published on the Company’s website. Such terms of reference comply with Provision 25 of the Code.  Rhian Bartlett who are independent of management and free from any business or other relationship which could materially   of Risk & Assurance and the external auditors attend by invitation.   #### Corporate Governance continued 112 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]()  a whole has competence relevant to the sector in which the Company operates. In addition to responsibility for the Group’s systems of internal    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  Group’s internal audit function is one of the matters reviewed in  The Audit & Risk Committee has primary responsibility for  and removal of the external auditors. The policy of the  independence is safeguarded at all times. As further detailed  Company’s auditors are independent. A more detailed description of the work of the Audit & Risk Committee during the year is contained in the separate report of the Committee on pages 115 to 120. Internal control The Board is responsible for the Company’s internal control  such systems.    operational and compliance controls and risk management   and Related Financial and Business Reporting (formerly the Turnbull Guidance). A formal report is prepared by the external     Finance and the Head of Risk and Assurance. The Committee also considers formal reports prepared and presented by the  of the Committee are then formally reported to the Board for detailed consideration. Relations with shareholders Dialogue with institutional shareholders           shareholders in order to understand their issues and concerns    Constructive use of the Annual General Meeting   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  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. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 113 ![]() 114 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Audit & Risk Committee Report The Audit & Risk Committee presents  31 March 2022. Objectives and terms of reference  oversight and governance over the effectiveness of the   of key risks. The role of the Audit & Risk Committee in monitoring the integrity of the Group’s financial affairs is   closely with management and external and internal auditors to ensure a best practice approach to policies and controls.   The Audit & Risk Committee is satisfied that the Group’s internal and external processes are robust and appropriately aligned to delivering good financial reporting and governance. The Directors confirm that they have carried out a comprehensive assessment of the principal risks facing    include all matters referred to in the UK Corporate Governance  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. Composition of the Audit & Risk Committee The Audit & Risk Committee comprises three Non-Executive  Bartlett. All members are considered by the Board to be independent. Biographies of each of the members of the Audit & Risk Committee are set out on page 107.  chartered accountant with over 25 years’ experience in senior     experience and that the Committee as a whole has an  sector related knowledge. Attendance The Audit & Risk Committee’s agenda is linked to events in  occasions during the year. Details of the attendance at Audit & Risk Committee meetings are set out below. Audit & Risk Committee members and meetings attended: Name Position Meetings attended Shatish Dasani (Chairman)   Director 4/4 Rob Barclay  Director 4/4 Rhian Bartlett  Director 4/4 Shatish Dasani Chairman of the Audit & Risk Committee Governance Strategic Review Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 115 Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 115 ![]() Operation and responsibilities of the Audit & Risk Committee     Committee reserves time for discussions without any invitees being present. The external auditors and the Head of Risk and Assurance meet privately with the Audit & Risk Committee to advise the Committee of any matters which they consider should be brought to their attention without the Executive Directors present. The external auditors and the Head of Risk and Assurance may also request a meeting with the Committee if they consider it necessary. The Risk and Assurance department carries out the Group’s internal audit work. The Chairman of the Committee also holds private meetings both with the Head of Risk and Assurance and the external auditors on a regular basis. The Company Secretary acts as secretary to the Audit & Risk   independent professional advice at the Company’s expense. The Committee undertakes its activities in line with an annual programme of business. The Audit & Risk Committee’s principal duties are: Internal controls and risk • monitoring the effectiveness and appropriateness of internal controls; • evaluating the process for identifying and managing significant risk in the business; • considering the effectiveness and resourcing of the internal audit function; • determining and directing the scope of the internal audit programme; • appointing or replacing the Head of Risk and Assurance; • reviewing matters reported through the Group’s whistleblowing policy; and • monitoring performance of the Group’s senior finance personnel and ensuring their development. External auditors • monitoring the effectiveness of the external audit  appointment and remuneration of the external auditors; • overseeing the rotation of the lead audit partner at  •  external auditors for non-audit work in line with its policy; •  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  appropriateness of materiality and the key findings. Financial Statements • monitoring the integrity of the Group’s Financial Statements and formal announcements relating to the Group’s performance; •    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  conclude that the Annual Report and Financial Statements is  information necessary to enable shareholders to assess the  As part of its annual programme of business the Audit & Risk Committee regularly receives updates from the external auditors  and members are expected to participate personally in relevant  #### Audit & Risk Committee Report continued 116 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Significant areas considered during FY2022  discussed with the external auditors and management the following items: • the valuation of hire equipment; • the going concern basis for the preparation of the Financial Statements; • the valuation of trade receivables; and • Cybersecurity.  along with any corresponding impact on the Group’s Financial  Valuation of hire equipment   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  asset management processes. The summary findings of these reviews are provided to the Committee. In addition to considering the appropriateness of the Group’s  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.   Risk Committee is satisfied that hire equipment assets are appropriately valued. Going concern basis for the preparation of the Financial Statements The Group has adopted a going concern basis for the preparation of the Financial Statements. Judgement over the future cash flows of the business (for a period of at least 12 months from signing the accounts) and 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  cash flows and availability of finance from existing facilities. On 6 July 2021 the Group’s £180m asset-based finance  July 2024 with no prior scheduled repayment requirements. Further uncommitted options exist for two one-year extensions until July 2026. The additional uncommitted accordion (£220m) remains in place through to July 2024. The facility includes quarterly leverage and fixed charge cover covenant tests which are only applied if headroom in the facility falls below £18m. No covenant test was required  headroom against these measures. Based on the expectations of future cash flows (including the consideration of severe but plausible downside modelling)  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. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 117 ![]() 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  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  account management’s assessment of the receivables balance  experienced by the business and the economic climate in which the customers operate. It also reviews the findings from the work carried out by the external auditors.  that trade receivables are appropriately valued. Cybersecurity   increased risk from cyberattack which may cause disruption to its operations. As the Group continues to expand its digital  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  Company commissioned an external specialist to review the Group’s control framework measured against the industry standard CIS Critical Security Controls. Whilst this showed  review made a number of recommendations to strengthen the robustness of the infrastructure. As a result management have   market in which it operates.  that the cybersecurity risk is being actively managed to an appropriate level. Internal control and risk management The Board is responsible for the Group’s system of internal control and risk management and for reviewing its effectiveness. The detailed review of internal controls has been delegated by the Board to the Audit & Risk Committee. The Risk and Assurance Department includes the Group’s internal audit function. The Head of Risk and Assurance reports to the Board and to the Audit & Risk Committee. The internal audit function is involved in the assessment of the quality of risk management and internal controls. It helps to promote and develop further effective risk management  registers and risk management procedures within individual business areas. The Committee receives detailed reports from the Risk and Assurance Department at each meeting. The Committee ensured that questionnaires were circulated to senior management requesting they notify internal audit of any  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  and external auditors. The Committee has concluded that internal controls have operated effectively during FY2022.  internal audit The Audit & Risk Committee reviews the effectiveness of the Group’s internal audit function. This review includes the audit  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  resolve matters reported. Although internal audit has raised recommendations for improvement in the normal course of  these constituted significant control failings during FY2022. In accordance with Attribute Standard 1312 of the Chartered Institute of Internal Auditors (‘CIIA’) International Professional  audit was undertaken during the year. The review concluded  independent assurance to the organisation and complies with CIIA standards.’ It made some recommendations for improvement   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. #### Audit & Risk Committee Report continued 118 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() On an annual basis the Audit & Risk Committee circulates a questionnaire to Directors and senior management inviting comments on the Risk and Assurance function. The responses are considered by the Audit & Risk Committee and are used  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   Head of Risk and Assurance is independent and will robustly challenge management appropriately.  Group’s internal audit function remains effective. The Internal Audit Charter was reviewed by the Audit & Risk Committee during the financial year and it was determined  the reporting line of the Head of Risk & Assurance.  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’    professional and regulatory requirements. The Committee    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  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  should not exceed 100% of the audit related fees paid in  to the auditor should not exceed 50% of the annual audit fees. The policy further requires that the provision of any  approval by the Audit & Risk Committee. The Committee closely monitors the amount the Company spends with the external auditors on non-audit services. The only non-audit service provided by the auditors in the year relates to the review of the Company’s half-year results which the Committee accepted was work best undertaken by the external auditors. These fees represented 10.2% of the annual audit fees and the three-year average was 9.2%.  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  the Group. External Audit Tender  a competitive tender process for the appointment of a new external auditor to commence with the audit for FY2023.  participate in the tender and the necessary independence checks were carried out. KPMG LLP (‘KPMG’) was not invited to re-tender as re-appointment would mean exceeding the  auditors will bring KPMG’s 20 year tenure to an end and satisfy the mandatory rotation requirements. The Board and the   their tenure. The audit partner responsible within KPMG has been regularly rotated as required during the appointment. The Committee created a tender panel led by the Committee  Secretary; Director of Finance; and the Group Finance Manager to run the day-to-day tender process. As part of the formal tender    and various meetings with management before submission of their written proposals. Following submission and review of their  to the tender panel followed by a question and answer session. The tender panel reviewed the proposals against the agreed    Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 119 ![]() a quality audit of Speedy. Based on the evaluation criteria  PricewaterhouseCoopers LLP (‘PwC’) to the Committee. Following careful consideration of the recommendation and the performance against the selection criteria the Committee agreed to recommend PwC as auditor. The Board considered and endorsed the Committee’s recommendation to appoint PwC as   expressed its willingness to take over as external auditors of the Group. Separate resolutions proposing PwC’s appointment and the determination of its remuneration will be proposed at the Annual General Meeting to be held on 8 September 2022. KPMG  Annual General Meeting.    meeting in May 2022. Code of Conduct The Company remains committed to the highest standards  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  online training course for existing employees. Communicating with shareholders The Company places considerable importance on  institutions and private shareholders. The Group’s Chief Executive and Chief Financial Officer manage the investor  regular basis. The Group’s Chairman also meets with investors.  to the Board and are regularly discussed at meetings of the   Approval of Annual Report and Financial Statements Having reviewed the Annual Report and Financial Statements  the Audit & Risk Committee advised the Board that in its  balanced and understandable overall and provides all the information necessary to enable shareholders to assess the  This report was approved by the Board on 27 May 2022. Shatish Dasani Chairman of the Audit & Risk Committee #### Audit & Risk Committee Report continued 120 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Governance Strategic Review Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 121 ![]() #### The Nomination Committee presents  #### year ended 31 March 2022.  Nomination Committee are to review the structure and   to undertake succession planning for Board and senior management positions. Composition of the Nomination Committee    Appointments and attendance at meetings during the year are set out below. Biographies of the members of the Nomination Committee are set out on pages 106 and 107. The terms of reference of the Nomination Committee are reviewed annually by the Committee and changes proposed to the Board. The current terms are published on the Company’s website at speedyservices.com/investors and are also available in hard copy form on application to the Company Secretary. Attendance The Nomination Committee met on two scheduled occasions during the year but can meet more regularly if required. Details of the attendance at scheduled Nomination Committee meetings are set out in the table below. At the invitation of   particularly where discussions are taking place around succession planning within the Group. Nomination Committee members and scheduled meetings attended during the year: Operation of the Nomination Committee The Company Secretary acts as secretary to the Nomination   independent professional advice at the Company’s expense. #### Nomination Committee Report Name Position Meetings attended David Shearer (Chairman)  Chairman 2/2 David Garman  Director 2/2 Rhian Bartlett  Director 2/2 Shatish Dasani  Director 2/2 David Shearer Chairman of the Nomination Committee 122 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]()  • 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; •  with membership of Board Committees; •  experience on the Board; • ensuring that succession planning is in place for the Board and senior management; • ensuring that Non-Executive Directors are able to devote sufficient time to discharge their duties; • making recommendations to the Board in respect of Directors standing for re-election at the AGM; and • overseeing the development of a diverse pipeline for succession to the Board. The Nomination Committee leads the process for all Board  Board and how these may be best balanced and enhanced   recommendations to the Board for appointment. In selecting    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 for key management roles and development across the Group. Board  composition of the Board and its Committees and the balance        would step down from the Remuneration Committee on 16 November 2021 as previously envisaged. This was part of the programme of reducing the number of Non-Executive Directors on the Board Committees to balance director responsibilities and strengthen engagement and challenge between the Board and its Committees. The Committee recommended the one-year extension of the term of appointment of Rob Barclay to expire  consider succession for the role of Chair of the Remuneration Committee in advance of preparation for the triennial review and approval of the Directors Remuneration Policy. Having regard to the Company’s long commitment to sustainable growth and the increased stakeholder focus on climate   for a Sustainability Committee to assist the Board in its oversight of the Company’s ESG strategy and support the Board on all sustainability matters. The Committee members participated in the review and fully supported the decision to create a Sustainability Committee of the Board. Following year end the Nomination Committee also recommended the three-year extension of the term of appointment of Rhian Bartlett to expire on 31 July 2025. Following the annual evaluation of the Board and its Committees and further discussion of balancing Non- Executive Directors roles and commitments on the Board and its Committees and the staffing of the new Board  recommended the following which were approved by the Board on 27 May 2022: •  appointed to the Sustainability Committee. Russell being appointed as it was agreed the Chief Executive would be a standing member of that Committee; • Carol Kavanagh to take over as Chair of the Remuneration  allowing Carol to lead the Remuneration Committee’s review of the Directors Remuneration Policy in advance of presentation for shareholder approval at the 2023 AGM. Rob Barclay will remain on the committee; and • Rhian Bartlett to take over as the designated Non- Executive Director for employee engagement from Rob Barclay on 30 September 2022. Governance Strategic Report Corporate Information Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 123 ![]() Chief Executive Russell Down has advised the Board of his intention to retire. Russell will remain with the business until a successor is in place to ensure a smooth and orderly transition. As with  leading the process for the appointment of his successor and external search consultants Russell Reynolds Associates have been retained. Diversity Continuing to develop an increasingly diverse and inclusive workforce is an important factor in supporting the Company’s strategy which additionally helps create a sustainable and prosperous business. The Board recognises the value of     transformation and people related matters has further strengthened the expertise of the Board in these areas and further broadened its diversity. More generally the Group’s approach to equality and diversity can be seen on pages 67  balance of those personnel in senior management and their direct reports. The Nomination Committee has recommended the re-election of all Directors standing for re-election at the forthcoming  he will remain with the business until a successor is in place. Russell is therefore required to submit to the usual annual re-election with the rest of the Board and will then step down from the Board at the end of the transition period. This report was approved by the Board on 27 May 2022. David Shearer Chairman of the Nomination Committee #### Nomination Committee Report continued 124 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Remuneration Report #### The Remuneration Committee presents its report in relation to the  #### Annual Statement This year’s report has been split into three sections: •  and any relevant changes to remuneration; •  out the Group’s policy on the remuneration of the Executive and Non-Executive Directors; and • the Annual Report on Remuneration outlining how the Group’s Remuneration Policy was implemented in FY2022 and how it will be implemented in FY2023. As the Committee is not proposing any changes to the three-year Remuneration Policy (originally approved by the Shareholders at the 2020 Annual General Meeting (‘AGM’)) only this Annual Statement and the Annual Report on Remuneration  current Remuneration policy nears the end of its three-year   will conduct a full policy review during FY2023 and will consult  representative bodies in advance of the 2023 AGM. Performance for FY2022    which leaves us well positioned for future growth. Implementation of the Remuneration Policy for FY2022 Executive Directors were awarded workforce aligned salary increases from 1 April 2021. This equated to a 2% increase for the Chief Executive and a 1% increase for the Chief Financial  In respect of the variable pay out-turns for Executive Directors for the year ended 31 March 2022: • In line with past practice the annual bonus opportunity  notwithstanding that the maximum opportunity in the Remuneration Policy was increased to 125% of salary at the 2020 AGM. Performance metrics were based on     66.9% of salary; and • The Performance Share Plan (‘PSP’) awards granted in 2019 lapsed on 24 May 2022 as a result of performance against the EPS (50% of awards) and Total Shareholder Return   relevant thresholds. PSP awards for FY2022 were granted to Russell Down and James Bunn on 14 June 2021 over shares equal to 100% of salary (i.e. below the 150% of salary maximum) with 50% of    the Annual Report on Remuneration. The Committee is satisfied that total remuneration paid to the Executive Directors in respect of FY2022 was appropriate. Application of Discretion for FY2022 The Committee did not apply discretion (positive or negative) during the year ended 31 March 2022. Implementation of the Remuneration Policy in FY2023 Details of how the Committee intends to implement the Remuneration Policy for the year ending 31 March 2023 are set out below. While the Remuneration Committee has   announcement on the implementation of the Remuneration  Base salary  following a detailed review of Russell Down’s base salary in advance of the normal 1 April 2021 review date (noting that the 1 April 2020 review date was postponed and ultimately     aligned increase of 2% from 1 April 2021 (taking the salary to Rob Barclay Chairman of the Remuneration Committee Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 125 ![]()   on a phased basis.        implemented following the announcement of Russell’s forthcoming retirement.  increased in line with the workforce from 1 April 2022 by  Pension To the extent that Russell Down remains in employment  salary will be reduced to 3% of salary to be fully aligned to the  pension allowance for James Bunn will continue to be set at 3% of salary. Annual bonus  that the maximum annual bonus opportunity in the  limited to 100% of salary in line with past practice. Performance    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   to continued employment and performance. PSP awards for FY2023 will be granted to James Bunn over shares equal to no more than 100% of salary (i.e. below the normal 150% of salary maximum) and the Committee will consider the prevailing share price at the time of grant. 50% of the awards will be   performance against the constituents of the FTSE 250 (excluding investment trusts) measured over three years from 1 April 2022 to 31 March 2025. Details of the performance targets will be set out in the RNS issued immediately after the grant date. Russell Down will not receive a PSP award for FY2023 given his forthcoming retirement. Pay and practices in the wider Group When considering the Remuneration Policy for the Executive  pay and employment conditions across the Company. Every employee in Speedy participates in a discretionary bonus or    which continues to ensure that all employees are paid above  to employees in key roles where recruitment and retention is a priority. Our apprentices are paid well above the relevant  least the relevant minimum or living wage until they transfer   we have disclosed the ratio between the Chief Executive’s  of UK employees. Further details can be found on page 147. Shareholder engagement The Committee takes an active interest in any shareholder views on the Company’s executive remuneration and is mindful of the concerns of shareholders and other stakeholders. In this  main shareholder representatives in advance of the 2021 AGM   against the resolution to approve the Directors’ Remuneration Report at the 2021 AGM primarily in connection with the  the Committee wrote to those shareholders which abstained or voted against to seek further feedback and provide the   of the proposal to increase Russell Down’s base salary. We will continue to take into account the views of our shareholders as appropriate. Conclusion Our Directors’ Remuneration Policy continues to drive the intended performance from the Executive Directors. I hope   receiving continued shareholder support for the related shareholder resolution at our 2022 AGM. This report was prepared by the Remuneration Committee and approved by the Board on 27 May 2022. Rob Barclay Chairman of the Remuneration Committee #### Remuneration Report continued 126 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Directors’ Remuneration Policy Report This part of the Directors’ Remuneration Report sets out a summary of the Directors’ Remuneration Policy which was approved at the 10 September 2020 AGM. The full Remuneration Policy as approved by shareholders can be found in the 2020 Annual Report. Policy overview  promote the long-term success of the Group. In working  Committee takes into account a number of factors when setting the Remuneration Policy for the Executive Directors including the following: •  Executive Directors and senior management; •  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   Our remuneration structure is intended to be simple and  performance culture. The main elements of the remuneration    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  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   Company and personal performance; • Risk is appropriately managed: the remuneration of Executive Directors provides an appropriate balance   remuneration based on variable pay linked to performance; • Alignment to culture: the remuneration principles encourage behaviour that the Committee expects; and • Proportionality: delivery of strategy and the long-term performance of the Group is clear.  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. Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 127 ![]() #### Remuneration Report continued Directors’ Remuneration Policy table #### Salary   from over reliance on variable income. Purpose and link to strategy  Paid in cash on a monthly basis. Pensionable. Comparison against companies with similar characteristics and sector peers are taken into account in review.  individual performance are also taken into account. Operation 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.   role and/or to take account of relevant market movements.  may be given (in addition to the factors listed above) in order to achieve the desired salary  Maximum  alongside the factors described in how we operate the salary policy. Performance targets 128 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Directors’ Remuneration Policy table   To promote recruitment and retention. Purpose and link to strategy  insurance.   introduced for the wider workforce on broadly similar terms. Any reasonable business related expenses can be reimbursed (including the tax thereon if  Executive Directors are also eligible to participate in any all employee share plans operated by the  eligible employees.  Operation   Company and varies according to individual circumstances.  lower cap set by the Company). Maximum N/A Performance targets #### Pension Purpose and link to strategy  Operation   of salary. For incumbent Executive Directors the maximum pension is 15% of basic salary p.a. which will be  policy period. Maximum N/A Performance targets Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 129 ![]() #### Bonus #### Remuneration Report continued  annual goals. Maximum bonus only payable for achieving demanding targets. Purpose and link to strategy  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  All bonus payments are at the ultimate discretion of the Committee and the Committee retains an   Annual bonus awards up to 100% of salary are normally payable in cash (although the Committee reserves the right to deliver some or all of the bonus in shares which may be deferred).   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  reputational damage. Participants may also be entitled to receive dividend equivalents on vested shares. Any dividend equivalents would normally be delivered in shares. Operation Directors’ Remuneration Policy table  Maximum    Personal and/or strategic KPIs may apply for a minority of the bonus. The performance metrics and targets are reviewed annually to ensure they remain appropriate. The Committee retains the discretion to set alternative metrics as appropriate.  No more than 50% of the maximum opportunity will be payable for on-target performance. Performance targets 130 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]()  Align Executive Directors’ interests with those of shareholders. To recruit and retain Executive Directors. Purpose and link to strategy Discretionary conditional awards or nil or nominal cost options are normally granted annually. The Committee reviews the quantum of awards annually and monitors the continuing suitability of the performance measures.    of awards. Malus and clawback provisions apply to allow recoupment for a period of three years following the    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.  Operation Maximum Performance normally measured over three years. Awards currently vest based on performance against stretching relative Total Shareholder Return   of the business at that time. Performance underpins may also apply. A maximum of 25% vests at threshold increasing to 100% vesting at maximum on a straight line basis. The Committee retains discretion to override formulaic outcomes in deciding the level of vesting to  Performance targets Directors’ Remuneration Policy table #### Performance Share Plan Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 131 ![]() To strengthen the alignment between the interests of the Executive Directors and those of shareholders. Purpose and link to strategy #### Remuneration Report continued Directors’ Remuneration Policy table #### Shareholding requirements Operation Executive Directors will normally be required to retain at least 50% of the shares acquired on the    a net of tax basis. Newly appointed Executive Directors would normally be expected to achieve the required  Existing Executive Directors would normally be expected to achieve the increased requirement within a reasonable timeframe of the adoption of the policy. In-employment shareholding requirement Executive Directors will normally be required to retain a shareholding until the second anniversary of the date they ceased to be an Executive Director. The post-cessation shareholding requirement applies to shares acquired (net-of-tax) under awards granted under this policy. Shares acquired under all employee share plans or purchased from the Executive Directors’ own funds are not included. Post-employment shareholding requirement 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  post employment; reducing to 50% of the year one holding for the subsequent 12 months. Maximum N/APerformance targets 132 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() 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.  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  Non-Executive Directors do not participate in incentive or pension plans and are not eligible to  Operation To attract and retain high calibre Non-Executive Directors.Purpose and link to strategy Directors’ Remuneration Policy table #### Non-Executive Directors Notes:   to ensure that Executive Directors are incentivised to deliver across a range of objectives for which they are accountable. The Remuneration Committee has  at the time they are set. 2 The performance conditions applicable to the PSP awards were selected by the Remuneration Committee on the basis that a combination of relative TSR     material change to the choice or weighting of the PSP performance measures. 3 The Remuneration Committee operates the annual bonus, PSP and all employee share plans in accordance with the relevant plan rules and where appropriate, the Listing Rules and HMRC legislation. The Remuneration Committee, consistent with market practice, retains discretion over a number of areas relating to the operation and administration of the plans. These include, for example, selecting the participants, the timing and quantum of awards and setting performance criteria each year, determining “good leaver” status, determining the extent of vesting based on the assessment of performance, form of payment, discretion to retrospectively amend performance targets in exceptional circumstances (providing the new targets are no less challenging than originally envisaged) and in respect of share awards, to adjust the number of shares subject to an award in the event of a variation in the share capital of the Company. 4 Consistent with HMRC legislation, the all employee Sharesave scheme does not have performance conditions. 5 Directors are eligible to receive payment, and any existing award may vest, in accordance with the terms of any such award made prior to the approval of the Remuneration Policy detailed in this report, and in accordance with the provisions of the Remuneration Policy in force at the time such award or right to receive payment was made or granted. There is no prescribed maximum fee or fee increase. Total fees for the Non-Executive Directors are   Maximum N/A Performance targets Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 133 ![]() #### Remuneration Report continued How employees’ pay is taken into account Pay and conditions across the Group are considered when designing the policy for Executive Directors and continue to be considered in relation to implementation of the policy. The Remuneration Committee regularly interacts with the HR function and senior operational executives and monitors pay trends across the workforce. Salary increases will ordinarily be (in percentage of salary terms) in line with those of the wider workforce. The requirement to consider wider pay and employment conditions elsewhere in the Group is considered by the Remuneration Committee to be a key    quartile and the year-on-year trends will be considered in the wider context of employee pay at Speedy.  employee Non-Executive Director) annually attends Colleague Consultative Committee meetings (formerly the Employee Forum) which are held every six months. In addition to the normal agenda items and in accordance with provision 41 of the  uses this forum to explain how executive remuneration aligns with wider Company pay policy. How the Executive Directors’ Remuneration Policy relates to the wider Group The Remuneration Policy described above provides an overview of the structure that operates for the most senior executives in the Group. Employees below executive level have a lower proportion of their total remuneration made up of incentive  comparators and the impact of the role in question. Long-term   growth and share price performance. Consistent with the Group’s approach of recognising the      are popular amongst employees and the Group believes that  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.  shareholders on the Remuneration Policy and revisions were made to take account of the feedback received where   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  monitors developments in institutional investors’ best practice expectations.  representative bodies during FY2022 are set out in the Annual Statement. Approach to recruitment and promotions The remuneration package for a new Executive Director would be set in accordance with the terms of the approved Remuneration Policy prevailing at the time of appointment and  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  short and long-term variable pay that takes into account the complexity of the role. Salary would be provided at such a level as required to attract the most appropriate candidate and may be set initially at a below market level on the basis that it may progress towards a competitive market level once expertise and performance have been proven and sustained. Salary will be considered in the context of the total remuneration package. 134 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Approach to recruitment and promotions (continued) The maximum level of variable pay which may be awarded    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  ensure that these awards are consistent with awards forfeited in  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.   initial awards made following appointment under the annual   recruitment merit such alteration. A PSP award can be made shortly following an appointment (assuming the Company is not in a closed period).  element awarded in respect of the prior role may be allowed to  to take account of the new appointment. For external and  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  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 relevant dates of service contracts and notice periods for the current Executive Directors are set out as follows:   levels by 31 December 2022 and to update the restrictive covenants.  or her service contract for the payment of pre-determined compensation in the event of termination of employment. It is the Remuneration Committee’s policy that the service contracts of Executive Directors will provide for termination of employment by giving notice or by making a payment of an amount equal to the monthly basic salary and pension contributions in lieu of notice. The policy also provides that no Executive Director should be entitled to a notice period or payment on termination of employment in excess of the levels set out in his or her service  the Remuneration Committee will take into consideration the Executive Director’s duty to mitigate his or her loss when determining the amount of compensation. Executive Director Date of contract Notice period Russell Down 8 January 2015 (amended 14 September 2021\*) 12 months James Bunn 26 August 2020 9 months Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 135 ![]() Annual bonus may be payable with respect to the period of   targets may be set for the remainder of this bonus period  based entitlements granted to an Executive Director under the Company’s share plans will be determined based on the relevant      of the relevant performance conditions at that time (including an overall performance underpin attached to the award) and   Committee has discretion to determine that awards vest at cessation of employment and/or to disapply the time pro-rating requirement if it considers it appropriate to do so.  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  untaken holiday entitlement. There is no provision for additional compensation on a  awards will normally vest on (or shortly before) the change of    of the vesting period served. Outstanding awards under any all-employee share plans will vest in accordance with the    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  approval by the Board. No Non-Executive Directorships in a listed company were held by the Executive Directors during the year. Non-Executive Directors The Chairman and Non-Executive Directors do not have   by shareholders at the AGM and may be terminated by three months’ notice on either side. The letters of appointment of      Dasani and Carol Kavanagh. Relevant appointment letter and term dates of Non-Executive Directors are set out as follows: Non- Executive Director Appointment letter date 1 Month of last election Expected month of expiry of current term 2 David Shearer 3 18 July 2018 September 2021 July 2024 David Garman 25 May 2017 September 2021 July 2023 Rob Barclay 30 March 2016 September 2021 April 2023 Rhian Bartlett 14 May 2019 September 2021 July 2025 Shatish Dasani 22 January 2021 September 2021 July 2024 Carol Kavanagh 4 30 April 2021 September 2021 July 2024 1 Appointment letter date is that of the original letter of appointment. Appointment letters are varied and updated from time to time. 2 Subject to annual re-election by shareholders at the AGM. 3   4  #### Remuneration Report continued 136 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### Annual Remuneration Report The sections of the Annual Remuneration Report that have been audited by KPMG LLP are page 139 from ‘Non-Executive Directors’ to page 145 up to and including ‘Directors’ interests  concerning ‘Details of long-term incentive plan awards  Remuneration Committee role and membership The Remuneration Committee comprises three members:  Rhian Bartlett also served during the year as detailed below. All members are considered by the Board to be independent Non-Executive Directors. Biographies of the members of the Remuneration Committee are set out on pages 106 and 107. Details of the attendance at Remuneration Committee meetings are set out below. Remuneration Committee members and scheduled meetings attended:  other members of the Board and senior management may  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   at the Group’s expense. The Remuneration Committee’s duties include: • to make recommendations to the Board on the Group’s framework and policy for the remuneration  senior executives; •  executive remuneration and incentive packages to ensure such packages are fair and reasonable; • to review Directors’ expenses; • to review Executive and Non-Executive Directors against the shareholding guidelines; • to determine the basis on which the employment of executives is terminated; • to design the Group’s share incentive schemes and other  administer such schemes; • to determine whether awards made under performance   executives and the performance targets to be used; • to ensure that no Director is involved in any decisions as to his/her own remuneration; and • to review regularly the ongoing appropriateness and effectiveness of all remuneration policies.  following matters at its meetings: • determination of FY2021 bonuses for the Executive Directors and senior managers; • selection and appointment of a new all-employee share scheme administrator; • determination of executive remuneration structure and application of the policy for FY2022 and FY2023; • Executive Director post-employment shareholding requirement; • interim and final progress of employee share plan performance measures against targets and consequent approval of any vesting of awards; • grant of awards to be made under the performance share plan; Name Position Meetings attended Rob Barclay (Chairman)  Director 4/4 David Garman  Director 4/4 Carol Kavanagh 1  Director 3/3 Former Member Rhian Bartlett 2  Director 3/3 1 Carol Kavanagh was appointed on 1 June 2021 as a member of the Remuneration Committee. 2 Rhian Bartlett stepped down as a member of the Remuneration Committee  Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 137 ![]() • progress of bonus achievement for FY2022 executive bonuses; • approval of 25-year long service awards for eligible employees and consideration of other awards based on long-service; •  Remuneration Committee; • ongoing appropriateness and effectiveness of remuneration and benefits policies for Executive Directors and employees generally; • performance of external remuneration advisers; • use of equity for employee share plans in relation to dilution headroom limits; • review of the Non-Executive Chairman’s fee; • determining remuneration arrangements for senior  •  remuneration and FY2022 Remuneration Report. The Remuneration Committee’s terms of reference are published on the Company’s website at speedyservices.com/ investors and are also available in hard copy on application to the Company Secretary. Advisers  independent advice from FIT Remuneration Consultants LLP  the provision of general guidance on market and best practice and the production of this report. FIT has no other connection or relationship with the Group and provided no other services to the Group during FY2022. FIT is a member of the Remuneration Consultants Group and is a signatory to its Code of Conduct. Fees paid to FIT for FY2022 totalled  the Remuneration Committee and for related matters. The Remuneration Committee also sought advice from the Group’s   and the all employee share scheme (‘SAYE’). Implementation of the Remuneration Policy for FY2023 Base salary  following a detailed review of Russell Down’s base salary in advance of the normal 1 April 2021 review date (noting that the 1 April 2020 review date was postponed and ultimately  Russell Down’s base salary was significantly below market   workforce aligned increase of 2% from 1 April 2021 (taking  intention of moving Russell’s salary towards the market level       increase and were supportive. While a second increase to  be implemented following the announcement of Russell’s forthcoming retirement.  increased in line with the workforce from 1 April 2022 by  Pension To the extent that Russell Down remains in employment beyond  will be reduced to 3% of salary to be fully aligned to the level  allowance for James Bunn will continue to be set at 3% of salary. Annual bonus  that the maximum annual bonus opportunity in the  will be limited to 100% of salary in line with past practice. Performance metrics will continue to be based on group profit  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. #### Remuneration Report continued 138 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() PSP   granted to James Bunn over shares equal to no more than 100% of salary (i.e. below the normal 150% of salary maximum)   constituents of the FTSE 250 (excluding investment trusts) measured over three years from 1 April 2022 to 31 March 2025. Details of the performance targets will be set out in the RNS issued immediately after the grant date. Russell Down will not receive a PSP award for FY2023 given his forthcoming retirement. Non-Executive Directors Current annual fee levels for Non-Executive Directors are as follows: Non-Executive Director Role Committee chair role 1 April 2022¹ 1 April 2021 David Shearer Non-Executive Chairman  £140,000  David Garman Senior Independent Director - £52,000  Rob Barclay Non-Executive Director Remuneration £52,000  Rhian Bartlett Non-Executive Director - £45,000  Shatish Dasani Non-Executive Director Audit & Risk £52,000  Carol Kavanagh Non-Executive Director - £45,000 - 1   Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 139 ![]() Financial year Fees/basic salary £’000¹  £’000² Pension £’000  remuneration £’000 Annual bonus £’000 Value of long-term incentives £’000 Total variable remuneration £’000 Total remuneration £’000 Executive Directors Russell Down 2022 2021 395 368 16 14 59 58 470 440 265 137 0 213 265 350 735 790 James Bunn 2022 2021 329 179 16 7 10 6 355 192 220 115 - - 220 115 575 307 Non-Executive Directors David Shearer 2022 2021 133 126 - - - - 133 126 - - - - - - 133 126 David Garman 2022 2021 48 44 - - - - 48 44 - - - - - - 48 44 Rob Barclay 2022 2021 50 47 - - - - 50 47 - - - - - - 50 47 Rhian Bartlett 2022 2021 43 40 - - - - 43 40 - - - - - - 43 40 Shatish Dasani 2022 2021 50 8 - - - - 50 8 - - - - - - 50 8 Carol Kavanagh 2022 2021 35 - - - - - 35 - - - - - - - 35 - Totals 2022 2021 1,083 812 32 21 69 64 1,184 897 485 252 0 213 485 465 1669 1362 Directors’ remuneration for FY2022 The emoluments of the Directors of the Company for the year under review were as follows: #### Remuneration Report continued 1  COVID-19. 2  December 2021 (being the value of the discount under the scheme). 3  together with any actual pension contributions made. 4  targets (15%) and ESG targets (15%). Details of actual performance against targets is set out below. 5  6 James Bunn was appointed to the Board on 14 September 2020. 7 David Garman was appointed as Senior Independent Director from 1 August 2020. 8 Shatish Dasani was appointed to the Board on 1 February 2021. 9 Carol Kavanagh was appointed to the Board on 1 June 2021. 140 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() Measure Weighting (% of salary) Target Max Actual Result (% of salary) CEO Bonus Award (100% of salary max) CFO Bonus Award (100% of salary max)  70% £30m (35% of salary) £33m (70% of salary) £31.0m 46.9%   Strategic 15% 15% - - 5% (See Table 1)   ESG 15% 15% - - 15% (See Table 2)   Total 100% - - - 66.9% £264,559 £219,767  Annual bonuses awarded in respect of FY2022 performance Russell Down and James Bunn were eligible to receive bonuses with a maximum opportunity of 100% of salary in respect of financial and operational performance in FY2022. Details of the performance targets and resulting bonus outcome are set out in the table below: Target Committee Assessment Deliver revenue growth in consumer/retail sector The Committee was pleased to note the formal agreement to partner with B&Q providing further opportunities in the B2C sector and the good progress that has been made on revenue growth more generally. Maximise Return on Capital Return on Capital Employed for FY2022 was slightly lower than target due to an acceleration of the capital expenditure programme to mitigate supply chain pressures. Optimise asset utilisation  the increased capex and impact of Covid-19 in the early months of FY2022. Total 5% out of 15% of salary Table 1 – Strategic Targets Target Committee Assessment Deliver a 10% improvement on C0 2 per employee from FY2020 The Committee was pleased to note a 23% reduction in CO 2 per employee from 6.45 tonnes (excluding MENA) for FY2020 (i.e. using a pre-Covid base year for comparative purposes) to 4.94 (excluding MENA) for FY2022.  improvement in the HACT value   Proactively manage / minimise safety incidents  reduction in the RIDDOR rate from 0.4 (excluding MENA) for FY2020 (i.e. using a pre-Covid base year for comparative purposes) to 0.35 (excluding MENA) for FY2022. Total 15% out of 15% of salary Table 2 – ESG Targets    Committee is satisfied that total bonus awards of 66.9% of salary for both Russell Down and James Bunn are appropriate. Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 141 ![]() Executive Director Date of grant Basis of award Maximum shares under award Face value of awards  Performance period  Vesting period % vesting at threshold Russell Down 14/06/2021 100% of salary   Three years ending 31 March 2024 Three years from grant 25% of an award James Bunn 14/06/2021 100% of salary   Three years ending 31 March 2024 Three years from grant 25% of an award Performance share awards granted in 2019 and vesting in 2022 No awards vested in respect of the performance share awards granted in 2019 with three-year EPS and TSR performance periods ended 31 March 2022. Details of the performance targets set for the award and actual achievement against them are set out in the table below. Long-term incentive plan awards granted in the year Russell Down and James Bunn were granted the following awards under the 2014 Performance Share Plan on 14 June 2021 as set out below: Performance measure Weighting Performance period end Threshold hurdle (25% vesting) Stretch performance hurdle (100% vesting) Actual % vesting for this part of the award Adjusted earnings per share before the impact of IFRS 16 50% 31 March 2022 6.82p 8.34p 4.13p 0% Total shareholder return versus the constituents of the FTSE 250 (excluding Investment Trusts) 50% 31 March 2022 Median Upper Quartile Below Median 0% 1  2 50% of the award is subject to an EPS condition. 25% of this part of the award vests for EPS (before amortisation and exceptional costs) of 5.33 pence with full vesting of this part of the award for EPS of 5.89 pence. A sliding scale operates between these points. 50% of the award is subject to a TSR condition   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). #### Remuneration Report continued 142 Governance Speedy Hire Plc Annual Report and Accounts 2022 ![]() 1 The Performance Share Plan awards above were granted as nil-cost options.  2 50% of each 2015, 2016, 2017, 2018, 2019 and 2021 Performance Share Plan award is subject to an EPS condition. All EPS measures referenced in this footnote are quoted on a pre-IFRS 16 basis (save for the 2021 award). 25% of this part of the award vests in respect of the 2015 award: for EPS (before amortisation and exceptional costs) of 4.00 pence, with full vesting of this part of the award for EPS of 4.70 pence or better; in respect of the 2016: award for EPS (before amortisation and exceptional costs) of 2.92 pence, with full vesting of this part of the award for EPS of 5.11 pence or better; in respect of the 2017: award for EPS (before amortisation and exceptional costs) of 5.41 pence, with full vesting of this part of the award for EPS of 6.95 pence or better; in respect of the 2018: award for EPS (before amortisation and exceptional costs) of 6.13 pence, with full vesting of this part of the award for EPS of 7.67 pence or better; in respect of the 2019 award: award for EPS (before amortisation and exceptional costs) of 6.82 pence, with full vesting of this part of the award for EPS of 8.34 pence or better; and in respect of the 2021 award: award for EPS (before amortisation and exceptional costs) of 5.33 pence, with full vesting of this part of the award for EPS of 5.89 pence or better. A sliding scale operates between the points. 50% of each 2015, 2016, 2017, 2018, 2019 and 2021 Performance Share Plan award  250 companies (excluding investment trusts) as at the date of grant. 25% 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  the award which is subject to TSR performance may vest unless the Committee is  performance over the performance period. 3 The performance conditions for the 2021 Performance Share Plan awards  on page 142. 4 100% of 2020 Performance Share Plan award is subject to absolute TSR condition, as follows: 5 All-employee scheme giving employees the opportunity to acquire shares at a discount of 20% of the market value of the shares at the time the  6 Following the year-end, the 2019 Performance Share Plan lapsed in full as a result of failing to hit the threshold EPS and TSR targets. Details of long-term incentive plan awards outstanding Details of the Executive Directors’ interests in share-based awards are as follows: The mid-market closing price of Speedy Hire Plc ordinary shares at 31 March 2022 was 54.3 pence and the range during the year was 47.4 pence to 80.9 pence per share.  growth rate of TSR over the three years from grant Percentage of an Award that may Vest Below 7.5% p.a. 0% 7.5% p.a. 25% 15% p.a. or above 100% Greater than 7.5% p.a. but less than 15% p.a. Between 25% and 100% on a straight line basis Executive Director Interest at 1 April 2021 Options/ awards granted during the year Options/ awards exercised during the year Options/ awards lapsed during the year Interest at 31 March 2022 Exercise price (pence) Normal date from which exercisable/ vested to expiry date (if appropriate) Russell Down PSP 2015 1,2  - - -  nil Aug 2018 – Aug 2025 PSP 2016 1,2  - - -  nil Jun 2019 – Jun 2026 PSP 2017 1,2  - - -  nil Jun 2020 – Jun 2027 PSP 2018 1,2  - -   nil May 2021 – May 2028 PSP 2019 1,2,6  - - -  nil May 2022 – May 2029 PSP 2020 1,4  - - -  nil Nov 2023 – Nov 2030 PSP 2021 1,2,3 -  - -  nil Jun 2024 – Jun 2031 SAYE 2018   - - -  46.080 Feb 2022 – Jul 2022 SAYE 2019   - - -  48.000 Feb 2023 – Jul 2023 SAYE 2020   - - -  55.144 Feb 2024 – Jul 2024 Total 3,321,723 551,385 - (328,820) 3,544,288 - - James Bunn PSP 2020 1,4  - - -  nil Nov 2023 – Nov 2030 PSP 2021 1,2,3 -  - -  nil Jun 2024 – Jun 2031 SAYE 2021 5 -  - -  55.52 Feb 2025 – Jul 2025 Total 474,037 472,231 - - 946,268 - - Strategic Report Corporate Information Governance Financial Statements Strategic Report Corporate Information Governance Financial Statements Governance Speedy Hire Plc Annual Report and Accounts 2022 143 ![]() 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  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  practicable date before the publication of this Annual Report  limit have been used. Termination payments No Executive Director left in the year and no compensation for loss of office was paid. The principles governing compensation for loss of office payments are set out on pages 135 and 136. Shareholder voting at AGM The most recent resolutions in respect of the Directors’ Remuneration Policy (2020 AGM) and Directors’ Remuneration Report (2021 AGM) received the following votes from shareholders: #### Remuneration Report continued Directors’ interests in the share capital of the Company  Legally owned PSP Awards Sharesave Total Shareholding requirement % of salary/fee of requirement met Director 31 March 2021 31 March 2022 Unvested Vested Unvested 31 March 2022 % % Russell Down 319,186 319,186 1,734,822 1,793,274 16,192 2,112,460 200 85 James Bunn - 35,981 932,068 - 14,200 35,981 200 3 David Shearer 500,000 500,000 - - - 500,000 100 >100 David Garman 75,000 75,000 - - - 75,000 100 87 Rob Barclay 48,000 48,000 - - - 48,000 100 54 Rhian Bartlett 74,744 74,744 - - - 74,744 100 97 Shatish Dasani 35,000 61,500 - - - 61,500 100 69 Carol Kavanagh - 14,999 - - - 14,999 100 20 144 Governance Speedy Hire Plc Annual Report and Accounts 2022 Details of the Committee’s engagement with shareholders in respect of the 21.4% vote against at the 2021 AGM are set out in the Annual Statement. 1  2020 AGM – Remuneration Policy 2021 AGM - Remuneration Report Total number of votes % of votes cast Total number of votes % of votes cast For  96.18  78.64 Against  3.82  21.36 Total votes cast (for and against)  100  100 Votes withheld  n/a  n/a Total votes cast (including withheld votes)   ![]() Strategic Report Corporate Information Governance Financial Statements Note that only legally owned shares and vested but unexercised PSP awards (on a net of tax basis) count towards the shareholding requirement. Shareholdings are valued on the basis of the average daily closing share price (of the three months prior to the 31 March (being 55.39p) and tested against the Directors’ base salary/fee at 31 March).  any current Director in the share capital of Speedy Hire Plc between 1 April 2022 and the date of this report. Comparison of overall performance and pay The chart below presents the total shareholder return for Speedy Hire Plc compared to that of the FTSE 250 and FTSE SmallCap (both excluding investment trusts). The values indicated in the graph show the share price growth plus reinvested dividends over a ten-year period from a £100 hypothetical holding of ordinary shares in Speedy Hire Plc and in the index. Total shareholder return Speedy Hire FTSE 250 (excl. investment trusts) Value (£ - rebased) 31/03/12 0 50 100 150 200 250 300 350 31/03/13 31/03/14 31/03/15 31/03/16 31/03/17 31/03/18 31/03/19 31/03/20 31/03/21 31/03/22 FTSE SmallCap (excl. investment trusts)  of £100 invested in the FTSE 250 (excl. Investment Trusts) and FTSE SmallCapp (excl. Investment Trusts) indices on the same day. The other points plotted are the values at intervening financial year-ends. Source: Refinitiv Eikon Governance Speedy Hire Plc Annual Report and Accounts 2022 145 ![]() The total remuneration figures for the Chief Executive during each of the last ten financial years are shown in the table below. The total remuneration figure includes the annual bonus based on that year’s performance (FY2013 to FY2022) and PSP awards   Steve Corcoran stepped down and Mark Rogerson was appointed as Chief Executive during FY2014. Mark Rogerson stepped down and Russell Down was appointed as Chief Executive during FY2016. 1 Total remuneration for 2018 includes the EPS element of the 2015 PSP grant (of which 15% of the maximum vested). Total remuneration for 2019 includes the TSR element of 2015 PSP grant (of which 18.51% of the maximum vested) and both the EPS and TSR element of the 2016 PSP grant (of which 96.41% vested). 2 The vesting percentage for 2018 shows the vesting of the 2015 PSP grant (EPS and TSR elements). The vesting percentage for 2019 shows the vesting of the 2016 PSP grant only. 3 The annual bonus potential was limited to 50% of salary over the second half of FY2021. Steve Corcoran Mark Rogerson Russell Down FY 2013 FY 2014 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Single Total Figure of remuneration  553 707 115 593 107 409 757 667 1,278 683 790 735 Annual bonus (% of max) 37.0% - - 60.0% - - 97.4% 54.8% 54.9% - 70.54% 66.9% PSP vesting (% of max) - 82.0% - - - - - 33.0% 96.4% 50.0% 48.51% 0% #### Remuneration Report continued 146 Governance Speedy Hire Plc Annual Report and Accounts 2022 Percentage change in Chief Executive’s remuneration The table below shows the percentage change in each Director’s total remuneration (excluding the value of any long-term incentives and pension benefits receivable in the year) between FY2021 and FY2022 compared to that of the average for all UK and Ireland based employees of the Group. Prior year comparatives are also presented. % change from FY2020 to FY2021 % change from FY2021 to FY2022 Salary/Fee  Bonus Salary/Fee  Bonus Russell Down (5%) 2% 100% 7% 0% 93% James Bunn    1% 10% 91% David Shearer (6%)   6%   David Garman 4%   8%   Rob Barclay (5%)   5%   Rhian Bartlett (4%)   4%   Shatish Dasani    3%   Carol Kavanagh       Average employees (0%) (0%)  12% 0% 11% 1  2 James Bunn was appointed to the Board on 14 September 2020. As such, there was no prior year remuneration for 2020. His 2021 numbers have been pro- rated up, to enable a full year on year comparison. 3 David Garman was appointed as Senior Independent Director from 1 August 2020. 4 Rhian Bartlett was appointed to the Board on 1 June 2019. Her 2020 numbers have been pro-rated up to enable a full year on year comparison. 5 Shatish Dasani was appointed to the Board on 1 February 2021. As such, there was no prior year remuneration for 2020. His 2021 numbers have been pro- rated up, to enable a full year on year comparison. 6 Carol Kavanagh was appointed to the Board on 1 June 2021. As such, there was no prior year fee. ![]() Strategic Report Corporate Information Governance Financial Statements Pay ratio of the Chief Executive to average employee   Year Method of calculation adopted 25th percentile pay ratio (Chief Executive : UK employees) Median pay ratio (Chief Executive : UK employees) 75th percentile pay ratio (Chief Executive : UK employees) 2022 Option A 31:1 26:1 21:1 2021 Option A 37:1 32:1 25:1 The Committee notes that the ratio has decreased from 32:1 to 26:1. This is primarily a function of a higher annual bonus for FY2022  the CEO’s total remuneration.    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.   reward and progression policies for the Company’s UK employees taken as a whole.  employees (and for the prior year) are as follows: 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. £1.3m of the staff costs figures relate to pay for the Executive Directors. This is different from the aggregate of the single figures for the year under review due to the way in which the share-based awards are accounted for. The dividend figures relate to amounts paid in the relevant financial year and the share buyback figure for committed transactions in the relevant financial year. This report was approved by the Board on 27 May 2022. Rob Barclay Chairman of the Remuneration Committee Chief Executive UK Employees 25th percentile Median 75th percentile 2022 Salary  £395,494 (£735,461) £21,996 (£24,020) £26,483 (£27,889) £32,959 (£35,820) 2021 Salary      2021 2022 % change  109.5 123.3 12.6  - 11.3 100  - 6.1 100 Governance Speedy Hire Plc Annual Report and Accounts 2022 147 ![]() 2. Key audit matters: our assessment of risks of material misstatement Key audit m atters are those m atters that, in our professional judgement, were of most significance in the audit of the financial statem ents and include the most significant assessed risks of m aterial misstatem ent (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagem ent team . We sum m arise below the key audit m atters, in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those m atters and, as required for public interest entities, our results from those procedures. These m atters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statem ents as a whole, and in form ing our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these m atters. The risk Our response Carrying amount of hire equip ment (£226.9 m illion; 2021: £207.2 million) Refer to page 117 (Audit & Risk Committee Report), page 172 (accounting policy) and page 185 (financial disclosures). Sub jective estimate Judgem ent is applied by the Group in the estim ation of useful econom ic lives and residual values. These judgements are based on historical experience, industry regulation, an assessm ent of the nature of the assets involved and the future expected usage and m arket for the sale of assets. The judgem ents m ade are profit im pacting and therefore there is an incentive for m anagem ent to m anipulate the judgements m ade. The effect of these matters is that, as part of our risk assessm ent, we determ ined that the estim ation of useful econom ic lives and residual values have a high degree of estim ation uncertainty, with potential range of reasonable outcom es greater than our m ateriality for the financial statem ents as a whole and potentially m any times that am ount. This is of particular importance as the residual values and useful econom ic lives of assets m ay be im pacted by the current econom ic conditions and carbon reduction objectives and requirem ents. Our procedures included: — Control design and re-p erformance: Testing the design over the controls around the estim ation of UELs and residual values. — Test of details: Using data analytics techniques to com pare the hire equipment register for the current year to prior year to determine any changes m ade to useful econom ic lives and residual values and challenging any changes to assess whether they are consistent with accounting policies and reflective of the planned usage for those assets. Evaluating the profit or loss on disposal of hire equipm ent to support the reasonableness of the useful econom ic lives and residual values applied. — Test of details: Comparing the hire equipment register to hire revenue inform ation to identify the quantity and net book value of assets with a history of low utilisation. Identifying from this analysis those assets we consider to be at highest risk of obsolescence, challenging the com pany to provide evidence over the carrying am ount of these assets and inspecting this evidence. — Test of details: For those hire assets identified as not m eeting the low carbon targets of the com pany or its custom ers, com paring net book value with current and forecasted levels of hire revenue and profits to identify those assets at highest risk of a reduction in useful econom ic life or residual value and challenging m anagem ent to provide evidence to support the carrying am ount of these assets. — Assessing transparency: Assessing the adequacy of the Group’s disclosures in respect of the judgements and estimates involved in arriving at the carrying am ount of hire equipm ent. We perform ed the tests above rather than seeking to rely on any of the group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our results — As a result of our work we found that the carrying am ount of hire equipment were acceptable (2021: acceptable). 149 1. Our opinion is unmodified We have audited the financial statem ents of Speedy Hire Plc (“the Com pany”) for the year ended 31 March 2022 which com prise the consolidated incom e statem ent, consolidated statem ent of com prehensive incom e, consolidated balance sheet, consolidated statem ent of changes in equity, consolidated cash flow statem ent, com pany balance sheet, com pany statem ent of changes in equity, com pany cash flow statem ent and the related notes, including the accounting policies in note 1. In our opinion: — the financial statem ents give a true and fair view of the state of the Group’s and of the parent Com pany’s affairs as at 31 March 2022 and of the Group’s profit for the year then ended; — the Group financial statem ents have been properly prepared in accordance with international accounting standards in conform ity with the requirem ents of UK-adopted international accounting standards; — the parent Com pany financial statem ents have been properly prepared in accordance with international accounting standards in conform ity with the requirem ents of, and as applied in accordance with the provisions of, UK-adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006; and — the financial statem ents have been prepared in accordance with the requirem ents of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the Audit & Risk Comm ittee. We were first appointed as auditor by the Directors in October 2000. The period of total uninterrupted engagem ent is for the 22 financial years ended 31 March 2022. We have fulfilled our ethical responsibilities under, and we rem ain independent of the Group in accordance with, UK ethical requirem ents including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided. # Independent # auditor’s report #### to the members of Speedy Hire Plc Overview Materiality: group financial statements as a whole £1.4m (2021:£1.1m ) 4.8% (2021: 4.1%) of profit before tax, (2021: profit before tax norm alised to exclude exceptional item s and discontinued operations and by averaging over the last three years) Coverage 88%(2021: 90%) of group profit before tax Key audi t matters vs 2021 Recurri ng risks Group – Carrying am ount of hire equipm ent ▼ Group – Provision for trade receivables ◄► Parent Comp any – Recoverability of parent’s debt due from group entities ◄► 148 ![]() 2. Key audit matters: our assessment of risks of material misstatement Key audit m atters are those m atters that, in our professional judgement, were of m ost significance in the audit of the financial statem ents and include the m ost significant assessed risks of m aterial misstatem ent (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagem ent team . We sum m arise below the key audit m atters, in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those m atters and, as required for public interest entities, our results from those procedures. These m atters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statem ents as a whole, and in form ing our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these m atters. The risk Our response Carrying amount of hire equip ment (£226.9 m illion; 2021: £207.2 million) Refer to page 117 (Audit & Risk Committee Report), page 172 (accounting policy) and page 185 (financial disclosures). Sub jective estimate Judgem ent is applied by the Group in the estim ation of useful econom ic lives and residual values. These judgements are based on historical experience, industry regulation, an assessm ent of the nature of the assets involved and the future expected usage and m arket for the sale of assets. The judgem ents m ade are profit im pacting and therefore there is an incentive for m anagem ent to m anipulate the judgements m ade. The effect of these matters is that, as part of our risk assessm ent, we determ ined that the estim ation of useful econom ic lives and residual values have a high degree of estim ation uncertainty, with potential range of reasonable outcom es greater than our m ateriality for the financial statem ents as a whole and potentially m any times that am ount. This is of particular importance as the residual values and useful econom ic lives of assets m ay be im pacted by the current econom ic conditions and carbon reduction objectives and requirem ents. Our procedures included: — Control design and re-p erformance: Testing the design over the controls around the estim ation of UELs and residual values. — Test of details: Using data analytics techniques to com pare the hire equipment register for the current year to prior year to determine any changes m ade to useful econom ic lives and residual values and challenging any changes to assess whether they are consistent with accounting policies and reflective of the planned usage for those assets. Evaluating the profit or loss on disposal of hire equipm ent to support the reasonableness of the useful econom ic lives and residual values applied. — Test of details: Comparing the hire equipment register to hire revenue inform ation to identify the quantity and net book value of assets with a history of low utilisation. Identifying from this analysis those assets we consider to be at highest risk of obsolescence, challenging the com pany to provide evidence over the carrying am ount of these assets and inspecting this evidence. — Test of details: For those hire assets identified as not m eeting the low carbon targets of the com pany or its custom ers, com paring net book value with current and forecasted levels of hire revenue and profits to identify those assets at highest risk of a reduction in useful econom ic life or residual value and challenging m anagem ent to provide evidence to support the carrying am ount of these assets. — Assessing transparency: Assessing the adequacy of the Group’s disclosures in respect of the judgements and estimates involved in arriving at the carrying am ount of hire equipm ent. We perform ed the tests above rather than seeking to rely on any of the group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our results — As a result of our work we found that the carrying am ount of hire equipment were acceptable (2021: acceptable). 149 ![]() The risk Our response Recoverab ility of p arent’s deb t due from Group entiti es (£397.0 million; 2021: £306.6 million) Refer to page 170 (accounting policy) and page 206 (financial disclosures). Low risk, high value: The carrying am ount of the intra-group debtor balance represents 78% (2021: 73%) of the parent Company’s total assets. The recoverability is not at a high risk of significant misstatement or subject to significant judgement. However, due to its m ateriality in the context of the parent Com pany financial statem ents, this is considered to be the area that had the greatest effect on our overall parent Company audit. Our procedures included: — Tests of detail: Assessing 100% of Group debtors to identify whether the intercom pany debtor is expected to have access to sufficient liquidity to settle the debt, with reference to the relevant debtors’ draft balance sheet, and therefore coverage of the debt owed, as well as assessing whether those debtor com panies have historically been profit m aking. — Assessing subsidiary audits: Assessing the work perform ed by the subsidiary audit team s, and considering the results of that work, on those net assets, including assessing the liquidity of the assets and therefore the ability of the subsidiary to fund the repaym ent of the receivable. We perform ed the tests above rather than seeking to rely on any of the com pany's controls because the sm all num ber of transactions m eant that detailed testing is inherently the m ost effective m eans of obtaining audit evidence. Our results — We found the conclusion that there is no impairment of the intra-group debtor balance to be acceptable (2021: acceptable). 2. Key audit matters: our assessment of risks of material misstatement (continued) We continue to perform procedures over the existence of hire equipment. However, we reassessed our determ ination of the risk related to the existence of hire equipm ent and we have not assessed this as one of the m ost significant risks in our current year audit and, therefore, it is not separately identified in our report this year. 151 2. Key audit matters: our assessment of risks of material misstatement (continued) The risk Our response Provision for trade receivab les (Net trade receivables: £100.1 million; 2021: £88.5 million) (ECL Provision: £3.0 m illion; 2021: £3.5 million) Refer to page 118 (Audit & Risk Committee Report), page 172 (accounting policy) and page 188 (financial disclosures). Sub jective estimate: The Group’s custom ers operate m ainly in the construction market, which entails a higher risk of non-recoverability of trade receivables as evidenced by a num ber of custom ers entering adm inistration or going into liquidation in previous years. The risk of recoverability of all trade receivables has been heightened at least in the short term by the impact of Coronavirus and expected cost inflationary pressures. The effect of these matters is that, as part of our risk assessm ent, we determ ined that the provision for doubtful debts has a high degree of estimation uncertainty, with a potential range of reasonable outcom es greater than our materiality for the financial statem ents as a whole. The financial statem ents (note 1) disclose the sensitivity estimated by the Group. Our procedures included: — Control design and implementation: Testing the design and implementation of key controls including m anagem ent’s review of customer credit limits, authorisation of sales returns and credit notes and authorisation of new custom ers. — Test of details: Assessing the m ethodology used to calculate the estimated credit loss provision recorded against trade receivables, challenging the appropriateness of these provisions against IFRS 9 and based on historical write offs, collection rates and the forecasted impact of Coronavirus. — Tests of details: Identifying a risk based sample of receivables and analysing the level of cash receipts post year end. For this sam ple, assessing the recoverability of the balance by evaluating the paym ent status of the receivable balance and the custom er’s likelihood of paym ent, including independently agreeing the custom er’s latest credit score and assessing the legal status of balances. — Benchmarking assumptions: Assessing the directors’ assum ptions behind the provision for trade receivables against externally available data on trade credit exposures; — Assessi ng transp arency: Assessing the adequacy of the Group’s disclosures in relation to the degree of estimation involved in arriving at the carrying am ount of the trade receivables balance. We performed the tests above rather than seeking to rely on any of the group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our results — We found the provision for trade receivables to be acceptable (2021: acceptable). 150 ![]() The risk Our response Recoverab ility of p arent’s deb t due from Group entiti es (£397.0 million; 2021: £306.6 million) Refer to page 170 (accounting policy) and page 206 (financial disclosures). Low risk, high value: The carrying am ount of the intra-group debtor balance represents 78% (2021: 73%) of the parent Company’s total assets. The recoverability is not at a high risk of significant misstatement or subject to significant judgement. However, due to its m ateriality in the context of the parent Com pany financial statem ents, this is considered to be the area that had the greatest effect on our overall parent Company audit. Our procedures included: — Tests of detail: Assessing 100% of Group debtors to identify whether the intercom pany debtor is expected to have access to sufficient liquidity to settle the debt, with reference to the relevant debtors’ draft balance sheet, and therefore coverage of the debt owed, as well as assessing whether those debtor com panies have historically been profit m aking. — Assessing subsidiary audits: Assessing the work perform ed by the subsidiary audit team s, and considering the results of that work, on those net assets, including assessing the liquidity of the assets and therefore the ability of the subsidiary to fund the repaym ent of the receivable. We perform ed the tests above rather than seeking to rely on any of the com pany's controls because the sm all num ber of transactions m eant that detailed testing is inherently the m ost effective m eans of obtaining audit evidence. Our results — We found the conclusion that there is no impairment of the intra-group debtor balance to be acceptable (2021: acceptable). 2. Key audit matters: our assessment of risks of material misstatement (continued) We continue to perform procedures over the existence of hire equipment. However, we reassessed our determ ination of the risk related to the existence of hire equipm ent and we have not assessed this as one of the m ost significant risks in our current year audit and, therefore, it is not separately identified in our report this year. 151 2. Key audit matters: our assessment of risks of material misstatement (continued) The risk Our response Provision for trade receivab les (Net trade receivables: £100.1 million; 2021: £88.5 million) (ECL Provision: £3.0 m illion; 2021: £3.5 million) Refer to page 118 (Audit & Risk Committee Report), page 172 (accounting policy) and page 188 (financial disclosures). Sub jective estimate: The Group’s custom ers operate m ainly in the construction market, which entails a higher risk of non-recoverability of trade receivables as evidenced by a num ber of custom ers entering adm inistration or going into liquidation in previous years. The risk of recoverability of all trade receivables has been heightened at least in the short term by the impact of Coronavirus and expected cost inflationary pressures. The effect of these matters is that, as part of our risk assessm ent, we determ ined that the provision for doubtful debts has a high degree of estimation uncertainty, with a potential range of reasonable outcom es greater than our materiality for the financial statem ents as a whole. The financial statem ents (note 1) disclose the sensitivity estimated by the Group. Our procedures included: — Control design and implementation: Testing the design and implementation of key controls including m anagem ent’s review of customer credit limits, authorisation of sales returns and credit notes and authorisation of new custom ers. — Test of details: Assessing the m ethodology used to calculate the estimated credit loss provision recorded against trade receivables, challenging the appropriateness of these provisions against IFRS 9 and based on historical write offs, collection rates and the forecasted impact of Coronavirus. — Tests of details: Identifying a risk based sample of receivables and analysing the level of cash receipts post year end. For this sam ple, assessing the recoverability of the balance by evaluating the paym ent status of the receivable balance and the custom er’s likelihood of paym ent, including independently agreeing the custom er’s latest credit score and assessing the legal status of balances. — Benchmarking assumptions: Assessing the directors’ assum ptions behind the provision for trade receivables against externally available data on trade credit exposures; — Assessi ng transp arency: Assessing the adequacy of the Group’s disclosures in relation to the degree of estimation involved in arriving at the carrying am ount of the trade receivables balance. We performed the tests above rather than seeking to rely on any of the group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our results — We found the provision for trade receivables to be acceptable (2021: acceptable). 150 ![]() 3. Our application of materiality and an overview of the scope of our audit (continued) The Group team approved the component m aterialities, which ranged from £0.075m to £1.2m (2021: £0.055m to £1.0m), having regard to the mix of size and risk profile of the Group across the components. All work on the fifteen components including the audit of the parent company, was performed by the Group team (2021: work on three of the sixteen com ponents was performed by component auditors and the rest by the Group team ). The group team performed procedures on the exceptional item s excluded from norm alised group profit before tax in 2021. The scope of the audit work perform ed was predominately substantive as we placed limited reliance upon the Group's internal control over financial reporting. 4. The impact of climate change on our audit In planning our audit, we have considered the potential impact of risks arising from climate change on the Group’s business and its financial statem ents. The Group has set out its commitm ents under the Paris Agreement to be net zero by 2050. Further information is provided in the Group’s Task Force for Clim ate-Related Financial Disclosures (‘TCFD’) recommended disclosures on page 57. As a part of our audit we have perform ed a risk assessment, including m aking enquiries of m anagem ent, reading board m eeting minutes a nd applying our knowledge of the Group and sector in which it operates to understand the extent of the potential im pact of climate change risk on the Group’s financial statements. Our ‘Carrying amount of hire equipm ent’ Key Audit Matter describes the risk and response in relation to carbon reduction objectives and requirements. In the course of our audit work, we took climate change factors into account in evaluating the directors’ estim ation of the useful econom ic lives and residual values of hire equipment. We have read the Group’s TCFD in the front half of the annual report and considered consistency with the financial statem ents and our audit knowledge. We have not been engaged to provide assurance over the accuracy of the climate risk disclosures set out on pages 57 to 61 in the Annual Report. 5. Going concern The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Com pany or to cease their operations, and as they have concluded that the Group’s and the Company’s financial position m eans that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). We used our knowledge of the Group, its industry, and the general econom ic environm ent to identify the inherent risks to its business m odel and analysed how those risks m ight affect the Group’s and Company’s financial resources or ability to continue operations over the going concern period. The risk that we considered m ost likely to adversely affect the Group’s and Company’s available financial resources over this period was: — The general econom ic environm ent as a result of the Coronavirus pandem ic and expected cost inflationary pressures. We considered whether this risk could plausibly affect the liquidity or covenant com pliance in the going concern period by com paring severe, but plausible downside scenarios that could arise from the risk individually and collectively against the level of available financial resources and covenants indicated by the Group’s financial forecasts. Our procedures also included: — Critically assessing assumptions in base case and downside scenarios relevant to liquidity and covenant metrics, in particular in relation to the current economic environm ent by com paring to historical trends in severe econom ic situations, including the Group’s experience during the first national lockdown, and considering knowledge of the Group’s plans based on approved budgets and our knowledge of the Group and the sector in which it operates. In doing so, assessing the achievability of any m anagem ent m itigations in the downside scenario. — Assessing the level of headroom on cash and covenants on m anagem ent’s base case and downside scenarios. — Assessing whether downside scenarios applied m utually consistent and severe assum ptions in aggregate, using our assessm ent of the possible range of each key assum ption and our knowledge of inter-dependencies. — Assessing the working capital assum ptions inherent in the forecasts to actual recent experience and existing supplier/ custom er arrangem ents. — We also com pared past budgets to actual results to assess the Directors' track record of budgeting accurately. — We inspected the confirm ation from the lenders of the level of com m itted financing, and the associated covenant requirem ents. As part of this we inspected the latest correspondence surrounding the refinancing of the loan facility. — We inspected the finance agreem ent to assess the restrictions on the use of funds and com pared these restrictions to m anagem ent's m odel. — We considered whether the going concern disclosure in note 1 to the financial statem ents gives a full and accurate description of the Directors' assessment of going concern, including the identified risks, dependencies and related sensitivities. We assessed the com pleteness of the going concern disclosure. 153 3. Our application of materiality and an overview of the scope of our audit Materiality for the group financial statements as a whole was set at £1.4m (2021: £1.1m ), determined with reference to a benchm ark of group profit before tax (2021: profit before tax normalised to exclude exceptional item s of £8.4m and discontinued operations and by averaging over the previous three years due to fluctuations in the business cycle caused by Coronavirus), of which it represents 4.8% (2021: 4.1%). Materiality for the parent company financial statements as a whole was set at £1.2m (2021: £1.0m ), determined with reference to a benchmark of com pany total assets, of which it represents 0.2% (2021: 0.3%). In line with our audit m ethodology, our procedures on individual account balances and disclosures were perform ed to a lower threshold, performance m ateriality, so as to reduce to an acceptable level the risk that individually immaterial m isstatements in individual account balances add up to a m aterial am ount across the financial statements as a whole. Performance materiality was set at 75% (2021: 75%) of m ateriality for the financial statements as a whole, which equates to £1.05m (2021: £0.825m) for the group and £0.9m (2021: £0.75 m) for the parent com pany. We applied this percentage in our determ ination of performance m ateriality because we did not identify any factors indicating an elevated level of risk. We agreed to report to the Audit & Risk Com m ittee any corrected or uncorrected identified misstatements exceeding £0.07m (2021: £0.05 5m), in addition to other identified m isstatements that warranted reporting on qualitative grounds. Of the group’s fifteen (2021: sixteen) reporting com ponents, we subjected six (2021: nine) to full scope audits for group purposes and none (2021: one) to specified risk-focused audit procedures. The latter in 2021 was not individually financially significant enough to require a full scope audit for group purposes, but did present specific individual risks over staff costs that needed to be addressed. We conducted reviews of financial inform ation (including enquiry) at a further one (2021: one) non-significant component. The com ponent for which we performed a review of financial inform ation (including enquiry) was not individually significant enough to require an audit for group reporting purposes but a review was performed in order to address the risk related to an equity accounted entity. The com ponents within the scope of our work accounted for the percentages illustrated opposite. The rem aining 0% (2021: 0%) of total group revenue, 12% (2021: 10%) of group profit before tax and 0% (2021: 0%) of total group assets is represented by nine (2021: five) reporting com ponents, none of which individually represented m ore than 0.4% (2021: 0.2%) of any of total group revenue, group profit before tax or total group assets. For these components, we perform ed analysis at an aggregated group level to re- exam ine our assessment that there were no significant risks of m aterial misstatement within these. 100 100 90 88 Group p rofit b efore tax 100% (2021 100%) 88% (2021 90%) Group revenue Group total assets Group profit before exceptional items and tax 100 100 100% (2021 100%) 91 88 88% (2021 91%) Key: Full scope for group audit purposes 2022 Full scope for group audit purposes 2021 Residual components Group p rofit b efore tax £29.1m (2021: £27.1m) Group materiality £1.4m (2021: £1.1m) Normalise d PBT Group materiality £1.4m Whole financial statements materiality (2021: £1.1m) £1.2m Range of materiality at 6 components (£0.075m - £1.2m) (2021: 10 components, £0.055m - £1.0m) £1.05m Whole financial statements performance materiality (2021: £0.825m) £0.07m Misstatements reported to the Audit & Risk Committee (2021: £0.055m) 152 ![]() 3. Our application of materiality and an overview of the scope of our audit (continued) The Group team approved the component m aterialities, which ranged from £0.075m to £1.2m (2021: £0.055m to £1.0m), having regard to the mix of size and risk profile of the Group across the components. All work on the fifteen components including the audit of the parent company, was performed by the Group team (2021: work on three of the sixteen com ponents was performed by component auditors and the rest by the Group team ). The group team performed procedures on the exceptional item s excluded from norm alised group profit before tax in 2021. The scope of the audit work perform ed was predominately substantive as we placed limited reliance upon the Group's internal control over financial reporting. 4. The impact of climate change on our audit In planning our audit, we have considered the potential impact of risks arising from climate change on the Group’s business and its financial statem ents. The Group has set out its commitm ents under the Paris Agreement to be net zero by 2050. Further information is provided in the Group’s Task Force for Clim ate-Related Financial Disclosures (‘TCFD’) recommended disclosures on page 57. As a part of our audit we have perform ed a risk assessment, including m aking enquiries of m anagem ent, reading board m eeting minutes a nd applying our knowledge of the Group and sector in which it operates to understand the extent of the potential im pact of climate change risk on the Group’s financial statements. Our ‘Carrying amount of hire equipm ent’ Key Audit Matter describes the risk and response in relation to carbon reduction objectives and requirements. In the course of our audit work, we took climate change factors into account in evaluating the directors’ estim ation of the useful econom ic lives and residual values of hire equipment. We have read the Group’s TCFD in the front half of the annual report and considered consistency with the financial statem ents and our audit knowledge. We have not been engaged to provide assurance over the accuracy of the climate risk disclosures set out on pages 57 to 61 in the Annual Report. 5. Going concern The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Com pany or to cease their operations, and as they have concluded that the Group’s and the Company’s financial position m eans that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). We used our knowledge of the Group, its industry, and the general econom ic environm ent to identify the inherent risks to its business m odel and analysed how those risks m ight affect the Group’s and Company’s financial resources or ability to continue operations over the going concern period. The risk that we considered m ost likely to adversely affect the Group’s and Company’s available financial resources over this period was: — The general econom ic environm ent as a result of the Coronavirus pandem ic and expected cost inflationary pressures. We considered whether this risk could plausibly affect the liquidity or covenant com pliance in the going concern period by com paring severe, but plausible downside scenarios that could arise from the risk individually and collectively against the level of available financial resources and covenants indicated by the Group’s financial forecasts. Our procedures also included: — Critically assessing assumptions in base case and downside scenarios relevant to liquidity and covenant metrics, in particular in relation to the current economic environm ent by com paring to historical trends in severe econom ic situations, including the Group’s experience during the first national lockdown, and considering knowledge of the Group’s plans based on approved budgets and our knowledge of the Group and the sector in which it operates. In doing so, assessing the achievability of any m anagem ent m itigations in the downside scenario. — Assessing the level of headroom on cash and covenants on m anagem ent’s base case and downside scenarios. — Assessing whether downside scenarios applied m utually consistent and severe assum ptions in aggregate, using our assessm ent of the possible range of each key assum ption and our knowledge of inter-dependencies. — Assessing the working capital assum ptions inherent in the forecasts to actual recent experience and existing supplier/ custom er arrangem ents. — We also com pared past budgets to actual results to assess the Directors' track record of budgeting accurately. — We inspected the confirm ation from the lenders of the level of com m itted financing, and the associated covenant requirem ents. As part of this we inspected the latest correspondence surrounding the refinancing of the loan facility. — We inspected the finance agreem ent to assess the restrictions on the use of funds and com pared these restrictions to m anagem ent's m odel. — We considered whether the going concern disclosure in note 1 to the financial statem ents gives a full and accurate description of the Directors' assessment of going concern, including the identified risks, dependencies and related sensitivities. We assessed the com pleteness of the going concern disclosure. 153 3. Our application of materiality and an overview of the scope of our audit Materiality for the group financial statements as a whole was set at £1.4m (2021: £1.1m ), determined with reference to a benchm ark of group profit before tax (2021: profit before tax normalised to exclude exceptional item s of £8.4m and discontinued operations and by averaging over the previous three years due to fluctuations in the business cycle caused by Coronavirus), of which it represents 4.8% (2021: 4.1%). Materiality for the parent company financial statements as a whole was set at £1.2m (2021: £1.0m ), determined with reference to a benchmark of com pany total assets, of which it represents 0.2% (2021: 0.3%). In line with our audit m ethodology, our procedures on individual account balances and disclosures were perform ed to a lower threshold, performance m ateriality, so as to reduce to an acceptable level the risk that individually immaterial m isstatements in individual account balances add up to a m aterial am ount across the financial statements as a whole. Performance materiality was set at 75% (2021: 75%) of m ateriality for the financial statements as a whole, which equates to £1.05m (2021: £0.825m) for the group and £0.9m (2021: £0.75 m) for the parent com pany. We applied this percentage in our determ ination of performance m ateriality because we did not identify any factors indicating an elevated level of risk. We agreed to report to the Audit & Risk Com m ittee any corrected or uncorrected identified misstatements exceeding £0.07m (2021: £0.05 5m), in addition to other identified m isstatements that warranted reporting on qualitative grounds. Of the group’s fifteen (2021: sixteen) reporting com ponents, we subjected six (2021: nine) to full scope audits for group purposes and none (2021: one) to specified risk-focused audit procedures. The latter in 2021 was not individually financially significant enough to require a full scope audit for group purposes, but did present specific individual risks over staff costs that needed to be addressed. We conducted reviews of financial inform ation (including enquiry) at a further one (2021: one) non-significant component. The com ponent for which we performed a review of financial inform ation (including enquiry) was not individually significant enough to require an audit for group reporting purposes but a review was performed in order to address the risk related to an equity accounted entity. The com ponents within the scope of our work accounted for the percentages illustrated opposite. The rem aining 0% (2021: 0%) of total group revenue, 12% (2021: 10%) of group profit before tax and 0% (2021: 0%) of total group assets is represented by nine (2021: five) reporting com ponents, none of which individually represented m ore than 0.4% (2021: 0.2%) of any of total group revenue, group profit before tax or total group assets. For these components, we perform ed analysis at an aggregated group level to re- exam ine our assessment that there were no significant risks of m aterial misstatement within these. 100 100 90 88 Group p rofit b efore tax 100% (2021 100%) 88% (2021 90%) Group revenue Group total assets Group profit before exceptional items and tax 100 100 100% (2021 100%) 91 88 88% (2021 91%) Key: Full scope for group audit purposes 2022 Full scope for group audit purposes 2021 Residual components Group p rofit b efore tax £29.1m (2021: £27.1m) Group materiality £1.4m (2021: £1.1m) Normalise d PBT Group materiality £1.4m Whole financial statements materiality (2021: £1.1m) £1.2m Range of materiality at 6 components (£0.075m - £1.2m) (2021: 10 components, £0.055m - £1.0m) £1.05m Whole financial statements performance materiality (2021: £0.825m) £0.07m Misstatements reported to the Audit & Risk Committee (2021: £0.055m) 152 ![]() 6. Fraud and breaches of laws and regulations – ability to detect (continued) Iden tifying an d responding to risks of m aterial misstatement due to n on-compliance with laws and regulations (continued) Secondly , the Group is subject to m any other laws and regulations where the consequences of non-compliance could have a m aterial effect on am ounts or disclosures in the financial statem ents, for instance through the im position of fines or litigation. We identified the following areas as those m ost likely to have such an effect: health and safety, anti-bribery, em ploym ent law, regulatory capital and liquidity and certain aspects of com pany legislation recognising the financial and regulated nature of the Group’s activities and its legal form . Auditing standards limit the required audit procedures to identify non- com pliance with these laws and regulations to enquiry of the Directors and other m anagem ent and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the audit to detect fraud or breach es of law or regulation Owing to the inherent lim itations of an audit, there is an unavoidable risk that we m ay not have detected som e m aterial misstatem ents in the financial statem ents, even though we have properly planned and perform ed our audit in accordance with auditing standards. For exam ple, the further rem oved non-com pliance with laws and regulations is from the events and transactions reflected in the financial statem ents, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there rem ained a higher risk of non-detection of fraud, as these m ay involve collusion, forgery, intentional omissions, m isrepresentations, or the override of internal controls. Our audit procedures are designed to detect m aterial misstatem ent. We are not responsible for preventing non-com pliance or fraud and cannot be expected to detect non-com pliance with all laws and regulations. 7. We have nothing to report on the other information in the Annual Report The Directors are responsible for the other inform ation presented in the Annual Report together with the financial statem ents. Our opinion on the financial statem ents does not cover the other inform ation and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other inform ation and, in doing so, consider whether, based on our financial statem ents audit work, the inform ation therein is m aterially m isstated or inconsistent with the financial statem ents or our audit knowledge. Based solely on that work we have not identified m aterial m isstatem ents in the other inform ation. Strategic report an d Directors’ report Based solely on our work on the other inform ation: — we have not identified m aterial misstatem ents in the strategic report and the Directors’ report; — in our opinion the inform ation given in those reports for the financial year is consistent with the financial statem ents; and — in our opinion those reports have been prepared in accordance with the Com panies Act 2006. Directors’ rem uneration report In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. Disclosures of em erging and prin cipal risks an d longer- term viability We are required to perform procedures to identify whether there is a m aterial inconsistency between the Directors’ disclosures in respect of em erging and principal risks and the viability statem ent, and the financial statem ents and our audit knowledge. Based on those procedures, we have nothing m aterial to add or draw attention to in relation to: — the Directors’ confirmation within Directors’ Viability Statement on page 92 that they have carried out a robust assessment of the em erging and principal risks facing the Group, including those that would threaten its business m odel, future performance, solvency and liquidity; — the Principal Risks disclosures describing these risks and how em erging risks are identified, and explaining how they are being m anaged and m itigated; and — the Directors’ explanation in the Directors’ Viability Statem ent of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statem ent as to whether they have a reasonable expectation that the Group will be able to continue in operation and m eet its liabilities as they fall due over the period of their assessm ent, including any related disclosures drawing attention to any necessary qualifications or assum ptions. We are also required to review the Directors’ Viability Statement set out on page 92 under the Listing Rules. Based on the above procedures, we have concluded that the above disclosures are m aterially consistent with the financial statements and our audit knowledge. Our work is lim ited to assessing these m atters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events m ay result in outcom es that are inconsistent with judgements that were reasonable at the time they were m ade, the absence of anything to report on these statem ents is not a guarantee as to the Group’s and Com pany’s longer-term viability. 155 As required by auditing standards, and taking into account possible pressures to m eet profit targets and our overall knowledge of the control environm ent, we perform procedures to address the risk of m anagem ent override of controls, in particular the risk that Group and component m anagem ent m ay be in a position to m ake inappropriate accounting entries and the risk of bias in accounting estim ates and judgements such as the estimation of useful econom ic lives and residual values and the expected credit loss provision. On this audit we do not believe there is a fraud risk related to revenue recognition because there is little opportunity for m anagem ent to m anipulate revenue in the year or at the year end. We did not identify any additional fraud risks. Further detail in respect of the fraud risk from the ability for m anagem ent to m anipulate useful econom ic lives and residual values is set out in the key audit m atter disclosures in section 2 of this report. We also perform ed procedures including: — Identifying journal entries and other adjustm ents to test for all full scope com ponents based on risk criteria and com paring the identified entries to supporting docum entation. These included those posted to unexpected or unusual accounts and those posted between hire equipment and profit/ loss on disposal of hire equipment within adm inistration costs in the profit and loss account. — Evaluated the business purpose of significant unusual transactions. — Assessing significant accounting estimates for bias. We discussed with the Audit & Risk Comm ittee other matters related to actual or suspected fraud, for which disclosure is not necessary, and considered any im plications for our audit. Iden tifying an d responding to risks of m aterial misstatement related to compliance with laws an d regulations We identified areas of laws and regulations that could reasonably be expected to have a m aterial effect on the financial statem ents from our general com m ercial and sector experience and through discussion with the Directors and other m anagem ent (as required by auditing standards), and from inspection of the Group’s regulatory and legal correspondence and discussed with the Directors and other m anagem ent the policies and procedures regarding com pliance with laws and regulations. As the Group is regulated, our assessm ent of risks involved gaining an understanding of the control environm ent including the entity’s procedures for com plying with regulatory requirem ents. We com m unicated identified laws and regulations throughout our team and rem ained alert to any indications of non-com pliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statem ents including financial reporting legislation (including related com panies legislation), distributable profits legislation and taxation and we assessed the extent of com pliance with these laws and regulations as part of our procedures on the related financial statement items. 5. Going concern (continued) Our conclusions based on this work: — we consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial statem ents is appropriate; — we have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, m ay cast significant doubt on the Group’s or Company's ability to continue as a going concern for the going concern period; — we have nothing m aterial to add or draw attention to in relation to the Directors’ statem ent in note 1 to the financial statem ents on the use of the going concern basis of accounting with no m aterial uncertainties that m ay cast significant doubt over the Group and Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be acceptable; and — the sam e statem ent is m aterially consistent with the financial statem ents and our audit knowledge. However, as we cannot predict all future events or conditions and as subsequent events m ay result in outcom es that are inconsistent with judgements that were reasonable at the time they were m ade, the above conclusions are not a guarantee that the Group or the Company will continue in operation. 6. Fraud and breaches of laws and regulations – ability to detect Iden tifying an d responding to risks of m aterial misstatement due to fraud To identify risks of m aterial m isstatem ent due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to com m it fraud or provide an opportunity to com m it fraud. Our risk assessm ent procedures included: — Enquiring of Directors, the Audit & Risk Comm ittee, Internal Audit and the Group’s legal counsel and inspection of policy docum entation as to the Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit function and the Group’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud. — Reading Board, Audit & Risk Com m ittee and Remuneration Comm ittee m eeting m inutes. — Considering rem uneration incentive schem es and perform ance targets for m anagem ent and Directors including the EPS target for m anagem ent rem uneration. — Using analytical procedures to identify any unusual or unexpected relationships. We com m unicated identified fraud risks throughout the audit team and rem ained alert to any indications of fraud throughout the audit. 154 ![]() 6. Fraud and breaches of laws and regulations – ability to detect (continued) Iden tifying an d responding to risks of m aterial misstatement due to n on-compliance with laws and regulations (continued) Secondly , the Group is subject to m any other laws and regulations where the consequences of non-compliance could have a m aterial effect on am ounts or disclosures in the financial statem ents, for instance through the im position of fines or litigation. We identified the following areas as those m ost likely to have such an effect: health and safety, anti-bribery, em ploym ent law, regulatory capital and liquidity and certain aspects of com pany legislation recognising the financial and regulated nature of the Group’s activities and its legal form . Auditing standards limit the required audit procedures to identify non- com pliance with these laws and regulations to enquiry of the Directors and other m anagem ent and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the audit to detect fraud or breach es of law or regulation Owing to the inherent lim itations of an audit, there is an unavoidable risk that we m ay not have detected som e m aterial misstatem ents in the financial statem ents, even though we have properly planned and perform ed our audit in accordance with auditing standards. For exam ple, the further rem oved non-com pliance with laws and regulations is from the events and transactions reflected in the financial statem ents, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there rem ained a higher risk of non-detection of fraud, as these m ay involve collusion, forgery, intentional omissions, m isrepresentations, or the override of internal controls. Our audit procedures are designed to detect m aterial misstatem ent. We are not responsible for preventing non-com pliance or fraud and cannot be expected to detect non-com pliance with all laws and regulations. 7. We have nothing to report on the other information in the Annual Report The Directors are responsible for the other inform ation presented in the Annual Report together with the financial statem ents. Our opinion on the financial statem ents does not cover the other inform ation and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other inform ation and, in doing so, consider whether, based on our financial statem ents audit work, the inform ation therein is m aterially m isstated or inconsistent with the financial statem ents or our audit knowledge. Based solely on that work we have not identified m aterial m isstatem ents in the other inform ation. Strategic report an d Directors’ report Based solely on our work on the other inform ation: — we have not identified m aterial misstatem ents in the strategic report and the Directors’ report; — in our opinion the inform ation given in those reports for the financial year is consistent with the financial statem ents; and — in our opinion those reports have been prepared in accordance with the Com panies Act 2006. Directors’ rem uneration report In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. Disclosures of em erging and prin cipal risks an d longer- term viability We are required to perform procedures to identify whether there is a m aterial inconsistency between the Directors’ disclosures in respect of em erging and principal risks and the viability statem ent, and the financial statem ents and our audit knowledge. Based on those procedures, we have nothing m aterial to add or draw attention to in relation to: — the Directors’ confirmation within Directors’ Viability Statement on page 92 that they have carried out a robust assessment of the em erging and principal risks facing the Group, including those that would threaten its business m odel, future performance, solvency and liquidity; — the Principal Risks disclosures describing these risks and how em erging risks are identified, and explaining how they are being m anaged and m itigated; and — the Directors’ explanation in the Directors’ Viability Statem ent of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statem ent as to whether they have a reasonable expectation that the Group will be able to continue in operation and m eet its liabilities as they fall due over the period of their assessm ent, including any related disclosures drawing attention to any necessary qualifications or assum ptions. We are also required to review the Directors’ Viability Statement set out on page 92 under the Listing Rules. Based on the above procedures, we have concluded that the above disclosures are m aterially consistent with the financial statem ents and our audit knowledge. Our work is lim ited to assessing these m atters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events m ay result in outcom es that are inconsistent with judgements that were reasonable at the time they were m ade, the absence of anything to report on these statem ents is not a guarantee as to the Group’s and Com pany’s longer-term viability. 155 As required by auditing standards, and taking into account possible pressures to m eet profit targets and our overall knowledge of the control environm ent, we perform procedures to address the risk of m anagem ent override of controls, in particular the risk that Group and component m anagem ent m ay be in a position to m ake inappropriate accounting entries and the risk of bias in accounting estim ates and judgements such as the estimation of useful econom ic lives and residual values and the expected credit loss provision. On this audit we do not believe there is a fraud risk related to revenue recognition because there is little opportunity for m anagem ent to m anipulate revenue in the year or at the year end. We did not identify any additional fraud risks. Further detail in respect of the fraud risk from the ability for m anagem ent to m anipulate useful econom ic lives and residual values is set out in the key audit m atter disclosures in section 2 of this report. We also perform ed procedures including: — Identifying journal entries and other adjustm ents to test for all full scope com ponents based on risk criteria and com paring the identified entries to supporting docum entation. These included those posted to unexpected or unusual accounts and those posted between hire equipment and profit/ loss on disposal of hire equipment within adm inistration costs in the profit and loss account. — Evaluated the business purpose of significant unusual transactions. — Assessing significant accounting estimates for bias. We discussed with the Audit & Risk Comm ittee other matters related to actual or suspected fraud, for which disclosure is not necessary, and considered any im plications for our audit. Iden tifying an d responding to risks of m aterial misstatement related to compliance with laws an d regulations We identified areas of laws and regulations that could reasonably be expected to have a m aterial effect on the financial statem ents from our general com m ercial and sector experience and through discussion with the Directors and other m anagem ent (as required by auditing standards), and from inspection of the Group’s regulatory and legal correspondence and discussed with the Directors and other m anagem ent the policies and procedures regarding com pliance with laws and regulations. As the Group is regulated, our assessm ent of risks involved gaining an understanding of the control environm ent including the entity’s procedures for com plying with regulatory requirem ents. We com m unicated identified laws and regulations throughout our team and rem ained alert to any indications of non-com pliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statem ents including financial reporting legislation (including related com panies legislation), distributable profits legislation and taxation and we assessed the extent of com pliance with these laws and regulations as part of our procedures on the related financial statement items. 5. Going concern (continued) Our conclusions based on this work: — we consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial statem ents is appropriate; — we have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, m ay cast significant doubt on the Group’s or Company's ability to continue as a going concern for the going concern period; — we have nothing m aterial to add or draw attention to in relation to the Directors’ statem ent in note 1 to the financial statem ents on the use of the going concern basis of accounting with no m aterial uncertainties that m ay cast significant doubt over the Group and Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be acceptable; and — the sam e statem ent is m aterially consistent with the financial statem ents and our audit knowledge. However, as we cannot predict all future events or conditions and as subsequent events m ay result in outcom es that are inconsistent with judgements that were reasonable at the time they were m ade, the above conclusions are not a guarantee that the Group or the Company will continue in operation. 6. Fraud and breaches of laws and regulations – ability to detect Iden tifying an d responding to risks of m aterial misstatement due to fraud To identify risks of m aterial m isstatem ent due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to com m it fraud or provide an opportunity to com m it fraud. Our risk assessm ent procedures included: — Enquiring of Directors, the Audit & Risk Comm ittee, Internal Audit and the Group’s legal counsel and inspection of policy docum entation as to the Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit function and the Group’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud. — Reading Board, Audit & Risk Com m ittee and Remuneration Comm ittee m eeting m inutes. — Considering rem uneration incentive schem es and perform ance targets for m anagem ent and Directors including the EPS target for m anagem ent rem uneration. — Using analytical procedures to identify any unusual or unexpected relationships. We com m unicated identified fraud risks throughout the audit team and rem ained alert to any indications of fraud throughout the audit. 154 ![]() 7. We have nothing to report on the other information in the Annual Report (continued) Corporate govern ance disclosures We are required to perform procedures to identify whether there is a m aterial inconsistency between the Directors’ corporate governance disclosures and the financial statem ents and our audit knowledge. Based on those procedures, we have concluded that each of the following is m aterially consistent with the financial statem ents and our audit knowledge: — the Directors’ statem ent that they consider that the annual report and financial statem ents taken as a whole is fair, balanced and understandable, and provides the inform ation necessary for shareholders to assess the Group’s position and perform ance, business m odel and strategy; — the section of the annual report describing the work of the Audit & Risk Comm ittee, including the significant issues that the Audit & Risk Comm ittee considered in relation to the financial statem ents, and how these issues were addressed; and — the section of the annual report that describes the review of the effectiveness of the Group’s risk m anagem ent and internal control system s. We are required to review the part of the Corporate Governance Statem ent relating to the Group’s com pliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect. 8. We have nothing to report on the other matters on which we are required to report by exception Under the Com panies Act 2006, we are required to report to you if, in our opinion: — adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or — the parent Company financial statem ents and the part of the Directors’ Rem uneration Report to be audited are not in agreem ent with the accounting records and returns; or — certain disclosures of Directors’ rem uneration specified by law are not m ade; or — we have not received all the inform ation and explanations we require for our audit. We have nothing to report in these respects. 9. Respective responsibilities Directors’ responsibilities As explained more fully in their statem ent set out on page 105, the Directors are responsible for: the preparation of the financial statem ents including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material m isstatement, whether due to fraud or error; assessing the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Auditor’s respon sibilities Our objectives are to obtain reasonable assurance about whether the financial statem ents as a whole are free from m aterial misstatem ent, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a m aterial m isstatem ent when it exists. Misstatements can arise from fraud or error and are considered m aterial if, individually or in aggregate, they could reasonably be expected to influence the econom ic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities . The Company is required to include these financial statem ents in an annual financial report prepared using the single electronic reporting form at specified in the EU ESEF Regulation. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with that format. 10. The purpose of our audit work and to whom we owe our responsibilities This report is m ade solely to the Com pany’s m em bers, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we m ight state to the Com pany’s m em bers those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent perm itted by law, we do not accept or assum e responsibility to anyone other than the Company and the Company’s m em bers, as a body, for our audit work, for this report, or for the opinions we have form ed. Nick Plumb (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s Square Manchester M2 3 AE 27 May 2022 156 ![]() ## FinancialStatements Financial Statements Consolidated Income Statement 158 Consolidated Statement of Comprehensive Income 159 Consolidated Balance Sheet 160 Consolidated Statement of Changes in Equity 161 Consolidated Cash Flow Statement 162 Notes to the Financial Statements 164 Company Balance Sheet 200 Company Statement of Changes in Equity 201 Company Cash Flow Statement 202 Notes to the Company Financial Statements 203 Five-year summary 208 Corporate Information Shareholder Information 210     7. We have nothing to report on the other information in the Annual Report (continued) Corporate govern ance disclosures We are required to perform procedures to identify whether there is a m aterial inconsistency between the Directors’ corporate governance disclosures and the financial statem ents and our audit knowledge. Based on those procedures, we have concluded that each of the following is m aterially consistent with the financial statem ents and our audit knowledge: — the Directors’ statem ent that they consider that the annual report and financial statem ents taken as a whole is fair, balanced and understandable, and provides the inform ation necessary for shareholders to assess the Group’s position and perform ance, business m odel and strategy; — the section of the annual report describing the work of the Audit & Risk Comm ittee, including the significant issues that the Audit & Risk Comm ittee considered in relation to the financial statem ents, and how these issues were addressed; and — the section of the annual report that describes the review of the effectiveness of the Group’s risk m anagem ent and internal control system s. We are required to review the part of the Corporate Governance Statem ent relating to the Group’s com pliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect. 8. We have nothing to report on the other matters on which we are required to report by exception Under the Com panies Act 2006, we are required to report to you if, in our opinion: — adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or — the parent Company financial statem ents and the part of the Directors’ Rem uneration Report to be audited are not in agreem ent with the accounting records and returns; or — certain disclosures of Directors’ rem uneration specified by law are not m ade; or — we have not received all the inform ation and explanations we require for our audit. We have nothing to report in these respects. 9. Respective responsibilities Directors’ responsibilities As explained more fully in their statem ent set out on page 105, the Directors are responsible for: the preparation of the financial statem ents including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material m isstatement, whether due to fraud or error; assessing the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Auditor’s respon sibilities Our objectives are to obtain reasonable assurance about whether the financial statem ents as a whole are free from m aterial misstatem ent, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a m aterial m isstatem ent when it exists. Misstatements can arise from fraud or error and are considered m aterial if, individually or in aggregate, they could reasonably be expected to influence the econom ic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities . The Company is required to include these financial statem ents in an annual financial report prepared using the single electronic reporting form at specified in the EU ESEF Regulation. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with that format. 10. The purpose of our audit work and to whom we owe our responsibilities This report is m ade solely to the Com pany’s m em bers, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we m ight state to the Com pany’s m em bers those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent perm itted by law, we do not accept or assum e responsibility to anyone other than the Company and the Company’s m em bers, as a body, for our audit work, for this report, or for the opinions we have form ed. Nick Plumb (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s Square Manchester M2 3 AE 27 May 2022 156 Governance Strategic Report Corporate Information Financial Statements Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 157 ![]() Consolidated Income Statement for the year ended 31 March 2022 Note Year ended 31 March 2022 (£m) Year ended 31 March 2021 Restated\* (£m) Revenue 2 386.8 332.3 Cost of sales (165.7) (147.4)  221.1 184.9 Distribution and administrative costs (185.7) (170.4) Impairment losses on trade receivables 18 (3.8) (2.0)   32.6 21.7 Amortisation 13 (1.0) (0.8) Exceptional items 4 - (8.4)  5 31.6 12.5  14 3.2 1.2  34.8 13.7 Financial expense 8 (5.7) (5.4)  29.1 8.3 Taxation 9 (7.7) (2.2)  21.4 6.1  0.2 3.4  21.6 9.5 Earnings per share - Basic (pence) 10 4.13 1.82 - Diluted (pence) 10 4.07 1.79 Non-GAAP performance measures EBITDA before exceptional items 12 99.3 85.3  12 30.1 17.5  10 4.24 2.68   #### Financial Statements 158 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() Consolidated Statement of Comprehensive Income for the year ended 31 March 2022 Year ended 31 March 2022 (£m) Year ended 31 March 2021 (£m)  21.6 9.5   0.8 0.2  (0.8) (1.4) Tax on items (0.2) -  (0.2) (1.2)  21.4 8.3  Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 159 Corporate Information Financial Statements Strategic Report Governance ![]() Note 31 March 2022 (£m) 31 March 2021 Restated\* (£m) ASSETS Non-current assets Intangible assets 13 25.9 24.7  14 7.8 6.2  - Hire equipment 15 226.9 207.2 - Non-hire equipment 15 30.8 25.9 Right of use assets 16 73.3 59.1 Deferred tax asset 24 1.7 2.1 366.4 325.2 Current assets Inventories 17 8.1 8.2 Trade and other receivables 18 108.7 93.3 Cash 21 2.5 11.7 Current tax asset - 1.1 119.3 114.3 Total assets 485.7 439.5 LIABILITIES Current liabilities Borrowings 21 (1.7) (0.5) Lease liabilities 22 (20.6) (16.7) Current tax creditor (1.0) - Trade and other payables 19 (96.6) (95.8) Provisions 23 (2.8) (3.1) (122.7) (116.1) Non-current liabilities Borrowings 21 (68.3) (44.4) Lease liabilities 22 (56.1) (46.5) Provisions 23 (1.2) (2.9) Deferred tax liability 24 (11.0) (8.8) (136.6) (102.6) Total liabilities (259.3) (218.7) Net assets 226.4 220.8 Consolidated Balance Sheet at 31 March 2022 #### Financial Statements continued 160 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() Share capital (£m) Share premium (£m) Capital redemption reserve (£m) Merger reserve (£m) Hedging reserve (£m) Translation reserve (£m) Retained Earnings Restated\* (£m) Total Equity Restated\* (£m) At 1 April 2020 Reported 26.4 0.8 - 1.0 (0.9) 0.4 182.2 209.9 Restatement\* - - - - - - 1.6 1.6 At 1 April 2020 Restated\* 26.4 0.8 - 1.0 (0.9) 0.4 183.8 211.5 Total comprehensive income - - - - 0.2 (1.4) 9.5 8.3 Equity-settled share-based payments - - - - - - 0.5 0.5 Issue of shares under the Sharesave Scheme - 0.5 - - - - - 0.5 At 31 March 2021 Restated\* 26.4 1.3 - 1.0 (0.7) (1.0) 193.8 220.8 Total comprehensive income - - - - 0.8 (0.8) 21.4 21.4 Dividends - - - - - - (11.3) (11.3) Equity-settled share-based payments - - - - - - 1.2 1.2 Purchase and cancellation of shares (0.6) - 0.6 - - - (6.2) (6.2) Tax on items taken directly to equity - - - - - - (0.1) (0.1) Issue of shares under the Sharesave Scheme 0.1 0.5 - - - - - 0.6 At 31 March 2022 25.9 1.8 0.6 1.0 0.1 (1.8) 198.8 226.4 Note 31 March 2022 (£m) 31 March 2021 Restated\* (£m) EQUITY Share capital 25 25.9 26.4 Share premium 1.8 1.3 Capital redemption reserve 0.6 - Merger reserve 1.0 1.0 Hedging reserve 0.1 (0.7) Translation reserve (1.8) (1.0) Retained earnings 198.8 193.8 Total equity 226.4 220.8     Company registered number: 00927680 Consolidated Balance Sheet (continued) at 31 March 2022 Consolidated Statement of Changes in Equity for the year ended 31 March 2022   Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 161 ![]() Note Year ended 31 March 2022 (£m) Year ended 31 March 2021 Restated\*(£m) Cash generated from operating activities  29.3 12.3 Financial expense 5.7 5.9 Amortisation 13 1.0 0.8 Depreciation 66.7 68.1  14 (3.2) (1.2) Termination of lease contracts (0.2) (4.1)  5 (0.5) 1.0 Loss on disposal of non-hire equipment 5 0.1 0.5 Decrease in inventories 0.1 0.5 (Increase)/decrease in trade and other receivables 18 (15.5) 9.3 Increase in trade and other payables 3.8 3.6 Decrease in provisions 23 (2.0) (1.1) Translation reserve recycled on disposal of Middle East assets - 1.0 Equity-settled share-based payments 1.2 0.5  86.5 97.1 Purchase of hire equipment (71.5) (36.4) Proceeds from sale of hire equipment 13.6 12.2 Cash generated from operations 28.6 72.9 Interest paid (6.0) (6.0) Tax paid (3.0) (0.8)  19.6 66.1   (16.0) (11.2)  - 0.8 Proceeds from disposal of Middle East assets - 13.0  1.9 1.0  (14.1) 3.6  5.5 69.7 Consolidated Cash Flow Statement for the year ended 31 March 2022 162 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Financial Statements continued  ![]() Note Year ended 31 March 2022 (£m) Year ended 31 March 2021 Restated\* (£m)  Payments for the principal element of leases (24.6) (23.6) Drawdown of loans\* 482.6 340.8 Repayment of loans\* (457.2) (399.0) Proceeds from the issue of Sharesave Scheme shares 0.6 0.5 Purchase of own shares for cancellation (6.0) - Dividends paid 11 (11.3) -  (15.9) (81.3) Decrease in cash and cash equivalents (10.4) (11.6)  21 11.2 22.8  21 0.8 11.2 Analysis of cash and cash equivalents Cash 21 2.5 11.7 Bank overdraft 21 (1.7) (0.5) 0.8 11.2 Consolidated Cash Flow Statement (continued) for the year ended 31 March 2022  The Consolidated Financial Statements on pages 158 to 199 were approved by the Board of Directors on 27 May 2022 and were signed on its behalf by: James Bunn Director Company registered number: 00927680 Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 163 ![]() #### 1 Accounting policies Speedy Hire Plc is a company incorporated and domiciled in the United Kingdom. The consolidated Financial Statements of the Company for the year ended 31 March 2022 comprise the Company and its subsidiaries (together referred to as the ‘Group’). The Group and Parent Company Financial Statements were approved by the Board of Directors on 27 May 2022.   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 in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 (“Adopted IFRS”). Basis of preparation The Directors consider the going concern basis of preparation for the Group and Company to be appropriate for the following reasons.  facility‘) which matures in July 2024 and has no prior scheduled repayment requirements. The total cash and undrawn availability on the facility as at 31 March 2022 was £110.8m (2021: £142.3m) based on the Group’s eligible hire equipment and trade receivables. The Group meets its day-to-day working capital requirements  by borrowings. The Directors have prepared a going concern  capable of continuing to operate within its existing loan facility and can meet the covenant requirements set out within the  include an assessment of the impact of future market conditions  investment required to support those expected level of revenues. The Board has considered various possible downside scenarios   base. Mitigations applied in these downturn scenarios include a    covenant requirements.   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  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. 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.   eliminated in preparing the consolidated Financial Statements. (b) Joint ventures    its liabilities.  method. They are initially recognised at cost. Subsequent to     New accounting standards and accounting standards not   interpretations issued by the International Accounting Standards  #### Notes to the Financial Statements 164 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9  IAS 39 and IFRS 17 Interest Rate Benchmark Reform Amendments to IFRS 3 Reference to the Conceptual Framework There is no impact from these standards. The following UK-adopted IFRSs have been issued at 31 March  of these Financial Statements but have not been applied by the   International Accounting Standards (IAS) / IFRS  date (periods beginning on or after) IFRS 17 Insurance Contracts 1 January 2023 Amendments to IAS 1\*  Liabilities as Current or Non-current 1 January 2024 Amendments to IAS 1\* Disclosure of accounting policies 1 January 2023 Amendments to IAS 8\* Changes in accounting estimates 1 January 2023 Amendments to IAS 12\* Deferred Tax related to Assets and Liabilities 1 January 2023  Accounting for leasing activities under IFRS 16 The Group holds leases for a number of properties and vehicles.  of one to ten years but may have break options or extension options as set out below. Such leases can contain a wide range  Group reassessed its other contracts to identify whether they contained a lease. 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  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   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   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  considered immaterial. Extension and termination options are included in a number of leases across the Group. These terms are used to maximise   consideration is given to all facts and circumstances that create  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   control of the Group. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 165 ![]() #### 1 Accounting policies (continued) Accounting for leasing activities under IFRS 16 (continued) COVID-19 related rent concessions The Group applied COVID-19-Related Rent Concessions – Amendment to IFRS 16 for the year ended 31 March 2021. The Group applied the practical expedient allowing it not to assess whether eligible rent concessions that are a direct consequence     any rent waivers granted have been treated as variable lease   Revenue   volume rebates. Customer invoicing is typically performed multiple times a month on standard payment terms. The Group reports three revenue categories: i. Hire and related activities   evenly over the period of hire. Revenue is recognised for transport services provided at the point at which delivery or collection is completed. Revenue for repairs is recognised when  ii. Services revenue The Group recognises revenue for rehire services on a principal  for rebates. The Group recognises revenue for training services over time as the service is provided to the customer. Revenue  is provided. The Group recognises revenue on the sale of consumables on a point-in-time basis when control is transferred  revenue is recognised on either an agent or principal basis at the point control is transferred to the customer. iii. Disposals revenue The Group recognises revenue on planned asset disposals on a point-in-time basis when control is transferred to the customer. Discontinued operations A discontinued operation is a component of the Group’s business   or is a subsidiary acquired exclusively with a view to resale.     if the operation has been discontinued from the start of the comparative period. Property, plant and equipment  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.   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   #### Notes to the Financial Statements continued 166 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() The principal rates and methods of depreciation used are as follows: Hire equipment Tools and general equipment between one and ten years straight-line Access equipment  straight-line Surveying equipment between one and nine years straight-line Power equipment between one and ten years straight-line Non-hire assets Freehold buildings and long leasehold improvements over the shorter of the lease period and 50 years straight-line Short leasehold property improvements over the period of the lease  equipment (excluding IT) 25% per annum straight-line IT equipment and software   the software licence (if shorter) Motor vehicles 25% per annum straight-line    shown in Note 5. Financing income and costs Financing costs comprise interest payable on borrowings and  are recognised in the income statement. Interest income is recognised in the income statement as it  Interest payable on borrowings includes a charge in respect of  are recognised in the income statement over the period of the  IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Government grants are recognised in line with the accrual  furlough under Job Retention Schemes. Furlough income of £nil (31 March 2021: £8.9m) in relation to no employees (31 March  adopted IAS 20 in accounting for this Government assistance. The grant was recognised as income and matched with associated  conditions at either the current or previous year end. Income tax Income tax is recognised in the income statement except to  in which case it is recognised in equity. Income tax comprises current and deferred tax. Current tax is the expected tax payable   payable in respect of previous years. Deferred tax is recognised using the balance sheet liability   purposes and the amounts used for taxation purposes. The     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  enacted at the balance sheet date. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 167 ![]() #### 1 Accounting policies (continued) Income tax (continued)   deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the  foreseeable future. A deferred tax asset is recognised only to the extent that it is  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  Segment reporting The Group determines and presents operating segments based  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   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  Segment capital expenditure is the total cost incurred during the  assets other than goodwill. Intangible assets • Goodwill All business combinations are accounted for by applying the purchase method. The Group measures goodwill at the acquisition date as: - the fair value of the consideration transferred; plus - the recognised amount of any non-controlling interests in the acquiree; plus - the fair value of the existing equity interest in the acquiree; less - the net recognised amount (generally fair value) of the   recognised immediately in the income statement.   Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration   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. 168 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() • Amortisation Amortisation is charged to the income statement on a straight-  intangible assets. Intangible assets excluding goodwill are amortised from the date that they are available for use. For a number of its  of customer lists and brands. The values of these intangibles are  liabilities acquired. The useful lives are estimated as follows: Customer lists over the period of the expected  Brands over the period of use in the  IT development over the period of use in the   Interpretations Committee (‘IFRIC’) published an agenda decision  and customisation costs incurred in implementing Software-as-a- Service (SaaS). The Group’s accounting policy is aligned with the IFRIC guidance as follows:  customisation that are not distinct from access to the cloud software are expensed over the SaaS contract term   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  period in which the dividends are declared. Trade and other payables Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised  Impairments   determine whether there is any impairment. The Group have  no indicators of impairment. The relatively new age of the current  and new capital spend is weighted towards eco assets.    such that the carrying amount is reduced accordingly. Impairment losses recognised in respect of cash-generating units  allocated to the units and then to reduce the carrying amount of the other assets in the unit (or group of units) on a pro-rata basis. The Group recognises loss allowances for expected credit losses  Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime expected credit losses.      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  period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls   expects to receive).  are treated as being those of the Company and are therefore   charged directly to equity. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 169 ![]() #### 1 Accounting policies (continued) Inventories Inventories are measured at the lower of cost and net realisable  lower of cost less accumulated depreciation and impairment    an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling  of completion and selling expenses.      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  value of the derivative hedging instrument designated as a cash   changes in fair value are recognised in the income statement.   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-  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     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.   Cash and cash equivalents Cash and cash equivalents comprise cash balances and overnight deposits. Interest-bearing borrowings Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs. Subsequent to initial   being recognised in the income statement over the period of the  Start-up expenses Legal and start-up expenses incurred in respect of new depots  170 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() Share capital  attributable to the issue of new shares are shown in equity as a deduction from the proceeds. Where the Group purchases its  from equity attributable to the Group’s shareholders. Where  of the shares repurchased is deducted from share capital and transferred to a capital redemption reserve. Where the Group  consideration paid for the shares is shown as own shares held within equity. Provisions and contingent liabilities A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past       Contingent liabilities are disclosed for possible obligations whose  settlement values cannot be measured reliably.  • Pension schemes  contribution pension plan and makes contributions to personal pension schemes for these UK employees and certain other non-  contribution pension plans are recognised as an expense in the income statement as incurred. • Share-based payment transactions The Group operates a number of schemes that allow certain  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 terms and conditions upon which the options were granted.   related to market based performance conditions. For share-based    expected and actual outcomes. Translation of foreign currencies Transactions in foreign currencies are initially recorded at the rate of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange ruling at the balance sheet date. Exchange gains and losses arising on settlement or retranslation of monetary assets and liabilities are included in the income statement. Assets and liabilities of overseas subsidiaries are translated at the rate of exchange ruling at the balance sheet date. The results of overseas subsidiary undertakings are translated into sterling at the average rates of exchange during the period. Exchange  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   currency translation reserve. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 171 ![]() #### 1 Accounting policies (continued)  The preparation of Financial Statements requires management    associated assumptions are based on historical experience and other factors that are believed to be reasonable under the   are not readily apparent from other sources. Actual results may   ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision   The following accounting policies are limited to those items that    that management has made in the process of applying the   Hire equipment  economic lives and residual values of assets have been established using historical experience and an assessment of the nature of    hire equipment depreciation charge for the year ended 31 March  8.5%) of the average original cost of hire equipment. Both useful economic lives and residual values are reviewed on a regular basis. Given the varied portfolio and range of assumptions relating to both the useful economic lives and residual values of the Group’s  The Group has considered the impact of climate change on  values and useful economic lives. The relatively new age of  obsolescence and new capital spend is weighted towards eco  result of climate change. Valuation of trade receivables The expected credit loss provision is calculated using the  based upon historical default experience over the lifetime of the   operating environment.  COVID-19 on the general economy. At the balance sheet date    the Government support occur and that the rate of insolvencies    expected loss rate. In so doing the provision has been increased from that which would have been required based solely on loss experience over recent years.  (2021: £3.5m) against a total debtor book of £104.9m (2021:  the training and international businesses which are no longer  ageing analysis of debt. The Group's estimated expected credit losses are 2.9% (2021: 3.8%) of gross trade receivables. An increase of 1% in this assumption would result in an increase to the provision of £0.8m (2021: £1.0m). #### 2 Segmental analysis The segmental disclosure presented in the Financial Statements  decision-maker’. UK and Ireland business delivers asset  to relationship management. Corporate items comprise certain central activities and costs that are not directly related to the    net assets comprise principally working capital balances held by the support services function that are not directly attributable to  borrowings and taxation. The Middle East assets were disposed of on 1 March 2021 and are now shown as discontinued operations. 172 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() UK and Ireland (£m) Corporate items (£m) Total (£m) Revenue 386.8 - 386.8 Segment result: EBITDA before exceptional items 103.3 (4.0) 99.3 Depreciation (66.4) (0.3) (66.7)  36.9 (4.3) 32.6 Amortisation (1.0) - (1.0)  35.9 (4.3) 31.6  - 3.2 3.2  35.9 (1.1) 34.8 Financial expense (5.7)  29.1 Taxation (7.7)  21.4  0.2  21.6 Intangible assets 19.5 6.4 25.9  - 7.8 7.8 Hire equipment 226.9 - 226.9 Non-hire equipment 30.8 - 30.8 Right of use assets 73.3 - 73.3 Taxation assets - 1.7 1.7 Current assets 112.7 4.1 116.8 Cash - 2.5 2.5 Total assets 463.2 22.5 485.7 Lease liabilities (76.7) - (76.7) Other liabilities (92.1) (8.5) (100.6) Borrowings - (70.0) (70.0) Taxation liabilities - (12.0) (12.0) Total liabilities (168.8) (90.5) (259.3) #### 2 Segmental analysis (continued) for the year ended 31 March 2022 Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 173 ![]() #### 2 Segmental analysis (continued) for the year ended 31 March 2021 UK and Ireland (£m) Corporate items (£m) Total- continuing operations (£m) Discontinued operations (£m) Total (£m) Revenue 332.3 - 332.3 31.3 363.6 Segment result: EBITDA before exceptional items 89.5 (4.2) 85.3 5.2 90.5 Depreciation (63.2) (0.4) (63.6) (1.5) (65.1)  26.3 (4.6) 21.7 3.7 25.4 Amortisation (0.8) - (0.8) - (0.8) Exceptional items (8.4) - (8.4) 0.8 (7.6)  17.1 (4.6) 12.5 4.5 17.0  - 1.2 1.2 - 1.2  17.1 (3.4) 13.7 4.5 18.2 Financial expense (5.4) (0.5) (5.9)  8.3 4.0 12.3 Taxation (2.2) (0.6) (2.8)  6.1 3.4 9.5 Intangible assets 20.1 4.6 24.7 - 24.7  - 6.2 6.2 - 6.2 Hire equipment 206.4 0.8 207.2 - 207.2 Non-hire equipment 25.9 - 25.9 - 25.9 Right of use assets 59.1 - 59.1 - 59.1 Taxation assets\* - 3.2 3.2 - 3.2 Current assets 96.5 2.2 98.7 2.8 101.5 Cash - 11.7 11.7 - 11.7 Total assets 408.0 28.7 436.7 2.8 439.5 Lease liabilities\* (63.2) - (63.2) - (63.2) Other liabilities\* (84.5) (8.8) (93.3) (8.5) (101.8) Borrowings - (44.9) (44.9) - (44.9) Taxation liabilities - (8.8) (8.8) - (8.8) Total liabilities (147.7) (62.5) (210.2) (8.5) (218.7)  174 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 2 Segmental analysis (continued) Geographical information  geographical location of the assets. Year ended 31 March 2022 Year ended 31 March 2021 Revenue (£m) Total assets (£m) Revenue (£m) Total assets (£m) UK 376.5 472.6 323.6 423.7 Ireland 10.3 13.1 8.7 13.4 386.8 485.7 332.3 437.1 Revenue and assets relating to discontinued operations were based in the Middle East. Revenue by type Revenue is attributed to the following activities: 2022 (£m) 2021 (£m) Hire and related activities 243.3 206.4 Services 138.4 121.7 Disposals 5.1 4.2 386.8 332.3 Major customers  #### 3 Discontinued operations       Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 175 ![]() #### 4 Exceptional items There are no exceptional items for the year ended 31 March 2022.           2022 (£m) 2021 (£m) Amortisation of intangible assets 1.0 0.8  43.2 43.4 Depreciation of right of use assets 23.5 24.7  (0.5) 1.0 Loss on disposal of non-hire equipment 0.1 0.5 Impairment of intangible assets - 1.1 Auditor’s remuneration Audit of these Financial Statements 0.3 0.3  0.2 0.2 Total audit fees 0.5 0.5   0.1 - Total fees 0.6 0.5 176 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 6 Employees The average number of people employed by the Group (including Directors) during the year was as follows: Number of employees 2022 2021 UK and Ireland 3,113  International 104 581 Central 284 254 3,501   decrease in international employee numbers compared to the year ended 31 March 2021. The aggregate payroll costs of these employees (including bonuses) were as follows: 2022 (£m) 2021 (£m) Wages and salaries 109.2 96.3 Social security costs 9.9 10.0 Pension costs 3.0 2.7 Share-based payments 1.2 0.5 123.3 109.5  costs above. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 177 ![]() #### 7 Directors’ remuneration 2022 (£’000s) 2021 (£’000s) Directors’ emoluments  1,113  Value of long-term incentives - 213 Performance related bonuses 484 252 Gain on exercise of share options - 587 Company pension contributions 70 76 1,667  Emolument of the highest paid Director  412 76 Performance related bonuses 265 - Termination payments - 156 Gain on exercise of share options - 584 Company pension contributions 59 13 736 829 Further analysis of Directors’ remuneration can be found in the Remuneration Report. All the Directors’ remuneration is paid by Speedy  #### 8 Financial expense 2022 (£m) 2021 (£m) Interest on bank loans and overdrafts 2.6 2.6 Amortisation of issue costs 0.6 0.4 Total interest on borrowings 3.2 3.0 Interest on lease liabilities 2.5 2.4 Financial expense 5.7 5.4 178 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 9 Taxation 2022 (£m) 2021 (£m) Tax charged in the Income Statement from continuing operations Current tax  4.9 1.2  0.5 (0.7) Deferred tax (Note 24) UK deferred tax at 25% (2021: 19%) 0.9 1.0  (0.6) 0.7  2.0 - Total deferred tax 2.3 1.7 Total tax charge from continuing operations 7.7 2.2 Tax charged in other comprehensive income  0.2 - Tax charged in equity Deferred tax 0.1 -  Income Statement for the year of 26.5% (2021: 26.5%) is higher than the standard rate of corporation tax in the UK and is explained as follows: 2022 (£m) 2021 (£m)  29.1 8.3  (2021: 19%) 5.5 1.6 Expenses not deductible for tax purposes 0.7 0.8 Share-based payments 0.2 -  (0.6) (0.2) Change in tax rates 2.0 -  (0.1) - Tax charge for the year reported in the Income Statement 7.7 2.2     Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 179 ![]() #### 10 Earnings per share   2022 2021 Weighted average number of shares in issue (m) Number of shares at the beginning of the year 523.8 521.3 Exercise of share options 0.4 0.3  0.1 0.8 Shares repurchased and subsequently cancelled (1.0) - Weighted average for the year – basic number of shares 523.3 522.4 Share options 5.7 6.5 Employee share scheme 0.8 0.6 Weighted average for the year – diluted number of shares 529.8 529.5   21.6 9.5 Intangible amortisation charge (after tax) 0.8 0.6 Exceptional items (after tax) - 7.3  (0.2) (3.4)  22.2 14.0 Earnings per share (pence) Basic earnings per share\* 4.13 1.82 Dilutive shares and options (0.06) (0.03) Diluted earnings per share\* 4.07 1.79  4.24 2.68 Dilutive shares and options (0.06) (0.03)  4.18 2.65   \*Basic and diluted EPS includes amounts relating to discontinued operations of 0.04p (FY21: 0.65p) and 0.04p (FY21: 0.64p) respectively. 180 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 11 Dividends The aggregate amount of dividend paid in the year comprises: 2022 (£m) 2021 (£m)  7.3 - 2022 interim dividend (0.75 pence on 524.2m ordinary shares) 4.0 - 11.3 -      #### 12 Non-GAAP performance measures The Group believes that the measures below provide valuable additional information for users of the Financial Statements in   the operating performance of the individual divisions within the Group. The measures on a continuing basis are as follows: 2022 (£m) 2021 (£m)  31.6 12.5 Add back: amortisation 1.0 0.8 Add back: exceptional items - 8.4  32.6 21.7 Add back: depreciation 66.7 63.6 EBITDA before exceptional items 99.3 85.3  29.1 8.3 Add back: amortisation 1.0 0.8 Add back: exceptional items - 8.4  30.1 17.5 Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 181 ![]()   Goodwill (£m) Customer lists (£m) Brands (£m) IT development (£m) Total (£m) Cost At 1 April 2020 126.3 45.1 7.0 1.2 179.6 Additions - - - 3.5 3.5 At 31 March 2021 126.3 45.1 7.0 4.7 183.1 Additions - - - 2.2 2.2 At 31 March 2022 126.3 45.1 7.0 6.9 185.3 Amortisation At 1 April 2020 108.8 41.8 5.9 - 156.5 Charged in year - 0.4 0.4 - 0.8 Impairment - 1.1 - - 1.1 At 31 March 2021 108.8 43.3 6.3 - 158.4 Charged in year - 0.3 0.2 0.5 1.0 At 31 March 2022 108.8 43.6 6.5 0.5 159.4 Net book value At 31 March 2022 17.5 1.5 0.5 6.4 25.9 At 31 March 2021 17.5 1.8 0.7 4.7 24.7 At 31 March 2020 17.5 3.3 1.1 1.2 23.1   Goodwill is not tax-deductible.   within the Group at which the associated goodwill is monitored for management purposes. The Group’s reportable CGUs comprise of a single UK and Ireland CGU. All intangible assets are held in the UK. Goodwill arising on business combinations after 1 April   182 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]()   The recoverable amounts of the assets allocated to the CGU are determined by a value-in-use calculation. The value-in-use         distancing had on the delivery of courses. The recoverable amount of the CGU was considered £nil and the goodwill and intangible   The pre-tax discount rates and terminal growth rates applied are as follows: 31 March 2022 31 March 2021 Pre-tax discount rate Terminal value growth rate Pre-tax discount rate Terminal value growth rate UK and Ireland 11.4% 2.5% 12.3% 2.5%  the headroom between value in use and carrying value of related assets for the UK and Ireland was £52.8m (2021: £27.6m). The increase in headroom is principally due to the decrease in discount rate at 31 March 2022 compared with previous years. There are no reasonable variations in these assumptions that would result in an impairment. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 183 ![]() #### 14 Investment in joint venture Equity investment (£m) Loan advances (£m) Total (£m) Cost At 1 April 2020 3.8 2.0 5.8  (0.6) (0.1) (0.7) At 31 March 2021 3.2 1.9 5.1  0.1 - 0.1 At 31 March 2022 3.3 1.9 5.2 Share of post-acquisition results At 1 April 2020 2.5 (1.0) 1.5 Share of results for the year after tax 1.2 - 1.2 Share of other comprehensive income (0.5) - (0.5) Dividend received (0.7) - (0.7) Loan repayment - (0.4) (0.4) At 31 March 2021 2.5 (1.4) 1.1 Share of results for the year after tax 3.2 - 3.2 Share of other comprehensive income 0.2 - 0.2 Dividend received (1.9) - (1.9) At 31 March 2022 4.0 (1.4) 2.6 Net book value At 31 March 2022 7.3 0.5 7.8 At 31 March 2021 5.7 0.5 6.2 At 31 March 2020 6.3 1.0 7.3  the operations of Speedy Zholdas LLP. Speedy Zholdas LLP provides asset management and equipment rental services to the oil and     184 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 15 Property, plant and equipment Land and buildings (£m) Hire equipment (£m) Other (£m) Total (£m) Cost At 1 April 2020 54.8 408.1 83.1 546.0 Foreign exchange (0.5) (1.1) 0.6 (1.0) Additions 1.7 36.0 6.0 43.7 Disposals (5.4) (46.0) (1.2) (52.6) Transfers to inventory - (10.4) - (10.4) At 31 March 2021 50.6 386.6 88.5 525.7 Foreign exchange - (1.0) (0.3) (1.3) Additions 6.1 68.4 7.6 82.1 Disposals (3.5) (15.8) (4.1) (23.4) Transfers to inventory - (15.5) - (15.5) At 31 March 2022 53.2 422.7 91.7 567.6 Depreciation At 1 April 2020 36.5 181.0 70.9 288.4 Foreign exchange (0.3) (0.6) - (0.9) Additions 3.6 33.7 6.1 43.4 Disposals (3.2) (27.4) (0.4) (31.0) Transfers to inventory - (7.3) - (7.3) At 31 March 2021 36.6 179.4 76.6 292.6 Foreign exchange - (0.1) (0.2) (0.3) Additions 3.9 35.2 4.1 43.2 Disposals (2.9) (7.2) (4.0) (14.1) Transfers to inventory - (11.5) - (11.5) At 31 March 2022 37.6 195.8 76.5 309.9 Net book value At 31 March 2022 15.6 226.9 15.2 257.7 At 31 March 2021 14.0 207.2 11.9 233.1 At 31 March 2020 18.3 227.1 12.2 257.6 The net book value of land and buildings comprises improvements to short leasehold properties. Included within depreciation charged in the year is £nil (2021: £1.0m) relating to exceptional impairments (see Note 4). An impairment review has been completed during the year on the basis set out in Note 13. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 185 ![]() #### 16 Right of use assets Land and buildings (£m) Other (£m) Total (£m) Cost At 1 April 2020 127.8 51.9 179.7 Foreign exchange (0.6) - (0.6) Additions 13.7 8.9 22.6 Disposals (9.6) (12.6) (22.2) At 31 March 2021 131.3 48.2 179.5 Foreign exchange 6.6 15.9 22.5 Additions 12.8 5.7 18.5 Disposals (7.2) (14.2) (21.4) At 31 March 2022 143.5 55.6 199.1 Depreciation At 1 April 2020 80.6 34.4 115.0 Foreign exchange (0.4) - (0.4) Charged in year 13.3 11.4 24.7 Disposals (6.9) (12.0) (18.9) At 31 March 2021 86.6 33.8 120.4 Charged in year 12.2 11.3 23.5 Disposals (6.5) (11.6) (18.1) At 31 March 2022 92.3 33.5 125.8 Net book value At 31 March 2022 51.2 22.1 73.3 At 31 March 2021 44.7 14.4 59.1 At 31 March 2020 47.2 17.5 64.7 For the year ended 31 March 2021 included within depreciation charged is £2.0m relating to exceptional impairments (see Note 4). 186 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 17 Inventories 2022 (£m) 2021 (£m) Work in progress 1.3 1.0 Finished goods and goods for resale 6.8 7.2 8.1 8.2 The amount of inventory expensed in the year amounted to £25.3m (2021: £31.1m) and is included within cost of sales. A provision of £1.2m (2021: £0.3m) is recorded in respect of inventory held at the year-end. #### 18 Trade and other receivables 2022 (£m) 2021 (£m) Trade receivables 100.1 88.5 Other receivables 2.2 4.7 Prepayments and accrued income 6.4 0.1 108.7 93.3 The Group’s credit risk is primarily attributable to trade receivables. The amounts presented in the consolidated statement of  balance sheet date that are in excess of the provision amount. There is no indication as at 31 March 2022 that customers will not meet their payment obligations in respect of trade receivables recognised in the balance sheet that are past due and unprovided. The ageing of trade receivables (net of impairment provision) at the year end was as follows: 2022 (£m) 2021 (£m) Not past due 65.8 62.3 Past due 0-30 days 18.7 17.4 Past due 31-120 days 9.8 6.3 More than 120 days past due 5.8 2.5 100.1 88.5 Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 187 ![]() #### 18 Trade and other receivables (continued)  Policies. The movement in this balance during the year was as follows: 2022 (£m) 2021 (£m) At 1 April 3.5 3.9 Impairment provision charged to the Income Statement 3.8 2.0 Utilised in the year (4.3) (2.4) At 31 March 3.0 3.5 #### 19 Trade and other payables 2022 (£m) 2021 Restated\* (£m) Trade payables 45.3 49.8 Other payables 10.7 9.5 Accruals 40.6 36.5 96.6 95.8  188 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 20 Financial instruments  operations and to manage its interest rate and liquidity risks. The    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  exists in order to minimise the interest costs on outstanding debt.  relating to fuel prices in order to mitigate any fuel price increases.   be equal to the carrying values shown in the balance sheet. Basis for determining fair values The following summarises the principal methods and assumptions  (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  (c) Trade and other receivables and payables – For receivables and   and payables are discounted to determine the fair value. (d) Lease liabilities – Fair value is calculated based on expected  incremental borrowing rate for the lease. Fair value hierarchy  term in nature and therefore their fair value is not materially   accordance with IFRS 13:  assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1  (i.e. as prices) or indirectly (i.e. derived from prices).   observable market data. Credit risk   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.  of credit risk. The maximum exposure to credit risk is represented   accounts for more than 10% of the Group’s sales transactions and the Group’s exposure to outstanding indebtedness follows   held against the value of hire equipment provided. The extent of deposit taken is assessed on a case-by-case basis and is not  receivable from customers.  undertaken with counterparties within the syndicate of banks that   fail to meet its obligations. The Group establishes an allowance for impairment that is based on historical experience of dealing with customers with  expected credit losses. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 189 ![]() #### 20 Financial instruments (continued) Liquidity risk      a period of 12 weeks. Longer-term forecasts are performed on a regular basis to assess compliance with bank covenants on existing   undrawn availability on this facility as at 31 March 2022 was £110.8m (2021: £142.3m) based on the Group’s eligible hire equipment and trade receivables.   contact with its syndicate of banks.  that will accrue.  2023 (£m) 2024 (£m) 2025 (£m) 2026 and later (£m) Total (£m)  - - 68.3 - 68.3 Overdraft 1.7 - - - 1.7 Lease liability (principal and interest) 25.0 18.1 12.8 30.6 86.5 Bank interest payments 3.5 3.3 1.2 - 8.0 Trade and other payables 56.0 - - - 56.0 86.2 21.4 82.3 30.6 220.5  2023 (£m) 2024 (£m) 2025 (£m) 2026 and later (£m) Total (£m)  - 44.4 - - 44.4 Overdraft 0.5 - - - 0.5 Lease liability (principal and interest) 21.3 15.8 10.8 23.5 71.4 Bank interest payments 2.7 1.7 - - 4.4 Trade and other payables 57.7 - - - 57.7 82.2 61.9 10.8 23.5 178.4 190 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 20 Financial instruments (continued) Market risk    Foreign exchange risk       Interest rate risk     by hedging instruments.   31 March 2022 31 March 2021  Fair value (£m) Notional amount (£m) Fair value (£m) Notional amount (£m) Fixed interest rate swaps 0.4 85.0 (0.4) 60.0     average period of 9 months (2021: 10 months). The maximum contractual period is 36 months (2021: 36 months). Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 191 ![]() #### 20 Financial instruments (continued) Sensitivity analysis    approximately £0.1m (2021: £0.4m). Interest rate swaps have been included in this calculation. Capital management The Group requires capital for purchasing hire equipment to replace the existing asset base when it has reached the end of its useful    position relevant for the prevailing economic environment.  future development of the business. The Board of Directors monitors the demographic spread of shareholders in order to ensure that the most attractive mix of capital growth and income return is made available to investors.   There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its  #### 21 Borrowings 2022 (£m) 2021 Restated\*(£m) Current borrowings Bank overdraft 1.7 0.5 Lease liabilities\* 20.6 16.7 22.3 17.2 Non-current borrowings   68.3 44.4 - Lease liabilities 56.1 46.5 Total non-current borrowings 124.4 90.9 Total borrowings 146.7 108.1 Less: cash (2.5) (11.7) Exclude lease liabilities\* (76.7) (63.2) Net debt 67.5 33.2  192 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 21 Borrowings (continued)    Company and certain subsidiary companies up to a maximum of £5m.    equipment and trade receivables.  scheduled repayment requirements. Uncommitted options exist for a further two one-year extensions until July 2026. An additional uncommitted accordion of £220m is in place.    Analysis of consolidated net debt 31 March 2021 (£m) Non-cash movement (£m)  (£m) 31 March 2022 (£m) Cash at bank and in hand 11.7 - (9.2) 2.5 Bank overdraft (0.5) - (1.2) (1.7) Bank borrowings (44.4) 0.6 (24.5) (68.3) (33.2) 0.6 (34.9) (67.5)  Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 193 ![]() #### 22 Lease liabilities Land and buildings (£m) Other (£m) Total (£m) At 1 April 2020 Restated\* 52.7 17.6 70.3 Foreign exchange (0.1) - (0.1) Additions 13.7 8.9 22.6 Repayments (14.2) (12.0) (26.2) Unwinding of discount rate 2.0 0.6 2.6 Terminations (5.3) (0.7) (6.0) At 31 March 2021 Restated\* 48.8 14.4 63.2 Additions 6.6 15.9 22.5 Remeasurements 12.8 5.7 18.5 Repayments (15.0) (12.1) (27.1) Unwinding of discount rate 1.9 0.6 2.5 Terminations (1.9) (1.0) (2.9) At 31 March 2022 53.2 23.5 76.7 Included within terminations in the year ended 31 March 2021 is £3.7m relating to exceptional terminations of property leases (see Note 4). Amounts payable for lease liabilities (discounted at the incremental borrowing rate of each lease) fall due as follows: 2022 (£m) 2021 Restated\* (£m) Payable within one year\* 20.6 16.7 Payable in more than one year 56.1 46.5 At 31 March 76.7 63.2  194 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 23 Provisions Dilapidations (£m) Training provision (£m) Total (£m) At 1 April 2020 4.1 3.0 7.1 Created in the year 3.2 0.9 4.1 Provision utilised in the year (2.5) (2.7) (5.2) At 31 March 2021 4.8 1.2 6.0 Provision utilised in the year (1.5) (0.5) (2.0) At 31 March 2022 3.3 0.7 4.0  due after one year. The dilapidations provision is calculated based on estimated dilapidations at current market rates. The total liability is discounted to current values. The movement in the year is a part settlement of these costs from properties exited.   October 2020 within the provision held. An additional provision was recognised in 2021 for £0.9m in relation to legal and other costs. The movement in the year is a part settlement of those costs. #### 24 Deferred tax Property, plant and equipment (£m) Intangible assets (£m) Share-based payments (£m) Other items (£m) Total (£m) At 1 April 2020 Restated\* 7.4 - (0.4) (2.0) 5.0 Recognised in income 1.4 (0.3) - 0.6 1.7 At 31 March 2021 8.8 (0.3) (0.4) (1.4) 6.7 Recognised in the year 2.2 0.2 0.3 (0.1) 2.6 At 31 March 2022 11.0 (0.1) (0.1) (1.5) 9.3  The Group has gross trading losses carried forward at 31 March 2022 amounting to approximately £6.1m (2021: £7.7m). No deferred tax asset has been recognised in respect of these losses. The Group also has gross capital losses carried forward at 31 March 2022 amounting to approximately £1.4m (2021: £1.4m). No deferred tax asset has been recognised in respect of these losses. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 195 ![]() #### 25 Share capital 2022 2021 Number (m) Amount (£m) Number (m) Amount (£m) Allotted, called-up and fully paid At 1 April (ordinary shares of 5 pence each) 528.2 26.4 526.8 26.4 Exercise of Sharesave Scheme options 1.1 0.1 1.4 - Purchase and cancellation of own shares (11.1) (0.6) - - Total 518.2 25.9 528.2 26.4    acquired immediately prior to the year ended 31 March 2022 and cancelled in April 2022.    (2021: 1.4m).    #### 26 Share incentives     Hire Sharesave Schemes. These options are exercisable by employees of the Group at prices between 48 and 56 pence (2021: 46   between April 2022 and November 2031 (2021: April 2021 and November 2030). The weighted average fair value of the awards granted in the year was 55 pence (2021: 27 pence). 196 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 26 Share incentives (continued) The number and weighted average exercise price (‘WAEP’) of share options and awards under all the share incentive schemes are as follows: 2022 2021 WAEP pence Number WAEP pence Number Outstanding at 1 April 22 15,533,503 21  Granted 28 5,216,389 26  Exercised 29 (1,163,070) 15  Lapsed 46 (382,893) 40  Outstanding at 31 March 22 19,203,929 22  Exercisable at 31 March 8 5,135,960 5  Options and awards outstanding at 31 March 2022 have weighted average remaining contractual lives as follows: 2022 (years) 2021 (years) Exercisable at nil pence 1.4 0.8 Exercisable at 46 pence - 0.8 Exercisable at 48 pence 0.8 1.8 Exercisable at 55 pence 1.8 2.8 Exercisable at 56 pence 2.8 - Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 197 ![]() #### 26 Share incentives (continued) The fair value of services received in return for share options granted and shares awarded is measured by reference to the fair value of those instruments. The pricing models and inputs used for the outstanding options (on a weighted average basis where appropriate) are as follows: Speedy Hire Sharesave Schemes December 2021 December 2020 December 2019 December 2018 Pricing model used Stochastic Stochastic Stochastic Stochastic Exercise price 56p 55p 48p 46p Share price volatility 31.7% 31.2% 28.8% 36.4% Option life 3.25 years 3.25 years 3.25 years 3.25 years Expected dividend yield 3.6% 1.1% 2.9% 3.2% Risk-free interest rate 0.5% (0.1%) 0.5% 0.7% Performance Share Plan June 2021 November 2020 May 2019 June 2018 Pricing model used Stochastic Stochastic Stochastic Stochastic Exercise price Nil Nil Nil Nil Share price volatility 32.6% 31.8% 27.1% 30.8% Option life 3 years 3 years 3 years 3 years Expected dividend yield Nil Nil Nil Nil Risk-free interest rate 0.1% (0.0%) 0.7% 0.8% #### 27 Contingent liabilities There are no contingent liabilities as at the 31 March 2022. #### 28 Commitments  provision has been made. #### 29 Post-balance sheet events There are no post balance sheet events not already disclosed. 198 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 30 Related party disclosures Key management remuneration  Remuneration Report.  schemes on their behalf. Executive Directors also participate in the Group’s share option schemes. Non-Executive Directors receive a fee for their services to Speedy Hire Plc. Full details of key management personnel compensation and interests in the share capital of the Company as at 31 March 2022 are given in the Directors’ Remuneration Report. #### 31 Prior year adjustment On transition to IFRS 16 in FY2020 the lease liabilities were overstated and accruals understated. This has been corrected by    Reported (£m) Adjustment (£m) Restated (£m) Assets: Deferred tax asset 2.5 (0.4) 2.1 Liabilities: Lease liability (65.8) 2.6 (63.2) Accruals (35.9) (0.6) (36.5) (101.7) 2.0 (99.7) Net assets 219.2 1.6 220.8 Equity: Retained earnings as at 1 April 2020 182.2 1.6 183.8 Retained earnings as at 31 March 2021 192.2 1.6 193.8  included in distribution and administration expenses. These are now shown separately on the face of the Income Statement and the comparative amounts restated. Loan drawdowns and repayments previously shown net in the Cash Flow Statement are now shown separately. The comparative net repayment of £58.2m has been restated to show loan drawdowns of £340.8m and repayments of £399.0m. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 199 ![]() EQUITY Share capital 39 25.9 26.4 Share premium 1.8 1.3 Capital redemption reserve 0.6 - Merger reserve 2.3 2.3 Hedging reserve 0.1 (0.7) Retained earnings 193.5 206.7 Total equity 224.2 236.0 Company Balance Sheet At 31 March 2022 Note 31 March 2022 (£m) 31 March 2021 (£m) ASSETS Non-current assets Investments 33 93.5 93.5 Deferred tax asset 38 - 0.1 93.5 93.6 Current assets Trade and other receivables 34 399.4 308.6 Current tax receivable 4.1 16.1 Cash 37 11.8 1.0 415.3 325.7 Total assets 508.8 419.3 LIABILITIES Current liabilities Trade and other payables 35 (201.4) (126.5)  - (0.4) (201.4) (126.9) Non-current liabilities Borrowings 37 (83.1) (56.4) Deferred tax liability 38 (0.1) - Total liabilities (284.6) (183.3) Net assets 224.2 236.0  approved by the Board of Directors on 27 May 2022 and were signed on its behalf by: James Bunn, Director Company registered number: 00927680 #### Company Financial Statements 200 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() Company Statement of Changes in Equity For the year ended 31 March 2022  Share capital (£m) Share premium (£m) Capital redemption reserve (£m) Merger reserve (£m) Hedging reserve (£m) Retained earnings (£m) Total equity (£m) At 1 April 2020 26.4 0.8 - 2.3 (0.9) 206.5 235.1  - - - - - (0.3) (0.3)   - - - - 0.2 - 0.2 Equity-settled share-based payments - - - - - 0.5 0.5 Issue of shares under the Sharesave Scheme - 0.5 - - - - 0.5 At 31 March 2021 26.4 1.3 - 2.3 (0.7) 206.7 236.0  - - - - - 3.2 3.2 Dividends - - - - - (11.3) (11.3)   - - - - 0.8 - 0.8 Equity-settled share-based payments - - - - - 1. 2 1.2 Tax on items taken directly to equity - - - - - (0.1) (0.1) Purchase and cancellation of shares (0.6) - 0.6 - - (6.2) (6.2) Issue of shares under the Sharesave Scheme 0.1 0.5 - - - - 0.6 At 31 March 2022 25.9 1.8 0.6 2.3 0.1 193.5 224.2 Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 201 ![]() Company Cash Flow Statement For the year ended 31 March 2022    Year ended 31 March 2022 (£m) Year ended 31 March 2021 Restated\* (£m) Cash generated from operating activities  3.2 0.3 Financial income (4.8) (5.6) Exceptional impairment charge - 5.3 (Increase)/decrease in trade and other receivables (75.0) 6.9 Increase in trade and other payables 75.2 23.8 Equity-settled share-based payments 1.2 0.6 Cash generated from operations (0.2) 31.3 Interest received 4.7 6.1 Tax paid (3.0) (0.8)  1.5 36.6  Drawdown of loans\* 482.6 340.8 Repayment of loans\* (456.5) (398.3) Proceeds from the issue of Sharesave Scheme shares 0.5 0.5 Purchase of own shares for cancellation (6.0) - Dividends paid (11.3) -  9.3 (57.0) Increase/(decrease) in cash and cash equivalents 10.8 (20.4)  1.0 21.4  11.8 1.0 #### Company Financial Statements continued 202 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### 32 Accounting policies  as below. The Company is taking advantage of the exemption in Section 408 of the Companies Act 2006 not to present its individual income statement or statement of comprehensive income and related notes that form part of the approved Financial  Company Statement of Changes in Equity. Investments in subsidiary undertakings are stated at cost less any provisions for permanent diminution in value. Dividends received   on the basis of expected portfolio losses. The Company does not have any employees. Directors are paid by other Group companies. #### 33 Investments Investments in related undertakings (£m) Cost  113.3 Provisions  (19.8) Net book value  93.5 Corporate Information Financial Statements Strategic Report Governance #### Notes to the Financial Statements Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 203 ![]() #### 33 Investments (continued)  related undertakings has been reviewed and no impairment has been made (2021: £nil). The Company’s related undertakings are as follows: Incorporation and operation Principal activity Ordinary share capital held Allen Contracts Limited UK Dormant 100% Allen Investments Limited UK Dormant 100% Bucks Access Rentals Limited  UK Dormant 100% Chestview (North East) Limited UK Dormant 100% Crewe Plant Hire Limited  UK Dormant 100% Drain Technology (1985) Limited UK Dormant 100% Drain Technology Limited UK Dormant 100% Geason Holdings Limited  UK Holding company 100% Geason Apprenticeships Limited  UK Training services 100% Hire-A-Tool Limited UK Dormant 100% Ian Kilpatrick Limited  UK Dormant 100%   UK Holding company 100%   UK Dormant 100%   UK Dormant 100% OHP Limited  UK Holding company 100% Platform Sales & Hire Limited  UK Dormant 100% Prolift Access Limited  UK Dormant 100% Rail Hire (UK) Limited  UK Dormant 100% SHH 501 Limited  UK Dormant 100% Speedy Asset Leasing Limited UK Dormant 100% Speedy Asset Services Limited UK Hire services 100% Speedy Engineering Services Limited UK Dormant 100% Speedy Hire (Ireland) Limited UK Hire services 100% Speedy Hire (Ireland) Limited  Ireland Hire services 100% Speedy Hire (UK) Limited UK Dormant 100% Speedy Hire Centres (Midlands) Limited UK Dormant 100% Speedy Hire Centres Limited UK Dormant 100% Speedy Hire Direct Limited  UK Dormant 100% Speedy Industrial Services Limited UK Dormant 100% Speedy International Asset Services (Holdings) Limited UK Holding company 100% Speedy International Asset Services Equipment Rental LLC  UAE Hire services 49% Speedy International Asset Services LLC (Egypt)  Egypt Dormant 100% Speedy International Leasing Limited  UK Dormant 100% #### Notes to the Financial Statements continued 204 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() #### 33 Investments (continued) 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. Incorporation and operation Principal activity Ordinary share capital held  UK Dormant 100%  UK Dormant 100% Speedy Lifting Limited 1 UK Dormant 100%  UK Dormant 100% Speedy Power Limited 1 UK Dormant 100%  UK Dormant 100%  UK Dormant 100% Speedy Safemaker Limited  UK Dormant 100% Speedy Services Limited 1 UK Dormant 100%  UK Dormant 100% Speedy Support Services Limited 1 UK Provision of group services 100% Speedy Survey Limited 1 UK Dormant 100% Speedy Transport Limited 1 UK Provision of group services 100% Speedy Zholdas LLP 10  Hire services 100% Speedyloo Limited 1 UK Dormant 100% Stockton Investments (North East) Limited 1 UK Dormant 100% Tidy Group Limited 1 UK Dormant 100% Turner & Hickman Limited  UK Holding company 50% Waterford Hire Services Limited  Ireland Dormant 100% Corporate Information Financial Statements Strategic Report Governance  2 Indirect holding via a 100% subsidiary undertaking.     consolidates the company.  Dhabi, UAE.      Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 205 ![]() #### 34 Trade and other receivables 2022 (£m) 2021 (£m) Amounts owed by Group undertakings 397.0 306.6 Other receivables 2.4 2.0 399.4 308.6 Amounts owed by other group undertakings are repayable on demand. Interest is not payable on balances outstanding as a result of routine inter-company trading. Long term inter-company loans bear interest on the same basis as external bank borrowings. #### 35 Trade and other payables 2022 (£m) 2021 (£m) Amounts owed to Group undertakings 200.6 125.7 Accruals 0.8 0.8 201.4 126.5 Amounts due from other group undertakings are repayable on demand. Interest is not payable on balances outstanding as a result of routine inter-company trading. Long term inter-company loans bear interest on the same basis as external bank borrowings. #### 36 Financial instruments   206 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 #### Notes to the Financial Statements continued ![]() #### 37 Borrowings 2022 (£m) 2021 (£m) Non-current borrowings   83.1 56.4 Total borrowings 83.1 56.4 Less: cash (11.8) (1.0) Net debt 71.3 55.4 The Company borrowings are stated in accordance with Note 21.  rated pari passu. Analysis of net debt 31 March 2021 (£m) Non-cash movement (£m)  (£m) 31 March 2022 (£m) Cash 1.0 - 10.8 11.8 Borrowings (56.4) (0.6) (26.1) (83.1) (55.4) (0.6) (15.3) (71.3) #### 38 Deferred tax Total (£m) Company asset Opening at 1 April 2020 and 1 April 2021 0.1 Recognised in income (0.2) Closing balance at 31 March 2022 (0.1) #### 39 Share capital and share incentives The Company share capital is stated in accordance with Note 25. #### 40 Contingent liabilities and commitments The Company contingent liabilities and commitments are stated in accordance with Notes 27 and 28. #### 41 Post-balance sheet events The Company post-balance sheet events are stated in accordance with Note 29. #### 42 Related party disclosures The Company related party disclosures are stated in accordance with Note 30. Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 207 ![]() #### Five-year Summary 2022 (£m) 2021 Restated\* (£m) 2020 Restated\* (£m) 2019 (£m) 2018 (£m) Income Statement Revenue 386.8 332.3 406.7 394.7 373.0  221.1 184.9 224.2 214.4 204.7   32.6 21.7 39.1 36.7 29.2 Amortisation (1.0) (0.8) (1.3) (0.7) (0.2) Exceptional items - (8.4) (23.8) (1.2) (7.2)  31.6 12.5 14.0 34.8 21.8  3.2 1.2 2.8 1.9 0.8  (5.7) (5.4) (7.0) (7.2) (4.1) Financial income/(expense) - exceptional - - 10.9 (0.8) (0.5)  (5.7) (5.4) 3.9 (8.0) (4.6)  29.1 8.3 20.7 28.7 18.0 Non-GAAP performance measures EBITDA before exceptional items 99.3 85.3 107.4 104.8 73.0  30.1 17.5 34.9 31.4 25.9 Balance sheet Hire equipment – original cost 422.7 386.6 408.1 385.8 364.0 Hire equipment – net book value 226.9 207.2 227.1 216.9 203.7 Total equity 226.4 220.8 211.5 202.0 197.8  Cash generated from operations 28.6 72.9 64.5 61.2 37.2  5.5 69.7 45.2 13.6 17.4 Purchase of hire equipment (71.5) (36.4) (53.6) (54.3) 44.8  0.5 (1.0) 0.8 1.2 0.7 In pence  2.20 1.40 0.70 2.00 1.65  4.24 2.68 5.54 4.96 4.04 Net assets per share 43.7 41.8 40.1 38.5 37.7 208 Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 ![]() 2022 (£m) 2021 Restated\* (£m) 2020 Restated\* (£m) 2019 (£m) 2018 (£m) In percentages Gearing 29.8 15.0 37.8 44.1 35.1 Return on capital employed 13.1 8.4 14.4 11.7 11.5 EBITDA margin 25.7 25.7 26.4 26.6 19.3 In ratios Net debt/EBITDA (excluding impact of IFRS 16) 0.9 0.5 1.0 1.1 1.0  0.20 0.11 0.31 0.35 0.29 In numbers Average employee numbers 3,501     Depot numbers 207 180 216 222 217  2 2018 amounts are presented excluding the impact of IFRS 16 3 2022 and 2021 Income Statement amounts are presented for continuing operations only  Corporate Information Financial Statements Strategic Report Governance Financial Statements Speedy Hire Plc Annual Report and Accounts 2022 209 ![]() #### Shareholder Information Annual General Meeting The Annual General Meeting (‘AGM’) will be held at the offices   Details of the business of the AGM and the resolutions to be proposed will be sent to those shareholders who have opted  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.    pre-emptive basis and to buy back the Company’s own shares. Share price information/performance The latest share price is available at speedyservices.com/ investors. By selecting share price information under the investor  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    to Friday (excluding public holidays in England and Wales).   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  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    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.  you can send your enquiry via secure email from this webpage. You will be asked to complete a structured form and   would like to receive your response. 210 Corporate Information Speedy Hire Plc Annual Report and Accounts 2022 ![]() Boiler room fraud Share scams are often run from ‘boiler rooms’ where  overpriced or even non-existent shares. While such scams  their money.    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.  Forward-looking statements This Annual Report and Accounts includes statements that are forward-looking in nature. Forward-looking statements  uncertainties and other factors which may cause the actual   achievements expressed or implied by such forward-looking  Disclosure Guidance and Transparency Rules and applicable  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   of the Annual Report and Accounts. Please contact  Speedy Hire Plc Chase House, 16 The Parks Newton-le-Willows Merseyside WA12 0JQ Telephone 01942 720 000 Email investor.relations@speedyservices.com Website speedyservices.com/investors Corporate Information Speedy Hire Plc Annual Report and Accounts 2022 211 Corporate InformationStrategic Report Governance Financial Statements ![]() 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  25 Ropemaker Street London EC2Y 9LY Panmure Gordon (UK) Limited 1 New Change London EC4M 9AF Legal Advisers Pinsent Masons LLP 1 Park Row Leeds LS1 5AB Addleshaw Goddard LLP One St Peter's Square Manchester M2 3DE Auditors KPMG LLP One St Peter’s Square Manchester M2 3AE Proposed for appointment at the 2022 AGM PricewaterhouseCoopers LLP No 1 Spinningfields 1 Hardman Square Manchester M3 3EB Bankers  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 Bankers continued RBS Invoice Finance Limited 250 Bishopsgate London EC2M 4AA Wells Fargo Capital Finance (UK) Limited Bow Bells House 1 Bread Street London EC4M 9BE Public relations MHP Communications 60 Great Portland Street London W1W 7RT Registrars and transfer office Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA Insurance brokers Marsh Ltd Belvedere 12 Booth Street Manchester M2 4AW  212 Corporate Information Speedy Hire Plc Annual Report and Accounts 2022 Visit our website to find out more speedyservices.com/investors Sign up for our RNS alerts speedyservices.com/investors/ alert-subscribe ![]() All paper from sustainable and controlled sources. This Annual Report is available at: speedyservices.com/investors Designed by Engine Studio | mhpc.com Printed by 4-Print Limited | 4-print.co.uk ![]() Speedy Hire Plc Chase House 16 The Parks Newton-le-Willows Merseyside WA12 0JQ speedyservices.com/investors