The accounting irregularities were first identified last November, just weeks after the arrival of new management for the international arm, which is based in Dubai. Following the discovery, the international division's finance director was suspended and other senior divisional management were under investigation, while Speedy Hire brought in legal and forensic accounting experts to review what had happened.

Speedy Hire said in a statement that the accounting irregularities related to carrying values in the international balance sheet and were the result of the ‘deliberate actions’ of a small number of employees, who have now left the business.

The review put the total financial impact at £4.8m plus fees, which is broadly in line with the company's own estimates at the time the problems were unearthed. Speedy Hire said the P&L adjustment to the current financial year to 31 March 2014 will be £2.7m, with the balance arising in prior periods.

Speedy Hire says it has now appointed an experienced new management team and strengthened internal cost controls and implemented a new reporting structure which it says will provide much greater transparency on activities within the international division.

Ishbel Macpherson, Speedy Hire chairman, said: ‘Over the last four years, Speedy has established a platform in the Middle East, built local relationships and won major contracts. The discovery of the activities of a small number of individuals that resulted in these accounting irregularities has been more than disappointing. The Board has acted quickly and decisively to confirm the impact, embedded a new management team and improved financial controls.’