A major shareholder at Speedy Hire has called on the company's Executive Chairman to resign.

Martin Hughes, the Chief Executive of Toscafund Asset Management, has written an open letter to Jan Astrand urging him to step down due to "significant shareholder discontent" about his performance as Executive Chairman.

The shareholder has called for a General Meeting on 09 September for other shareholders to vote on whether to remove Mr Astrand from his position.

In his letter, Mr Hughes states: "We believe that it would be in shareholders' best interests if you were to resign ahead of the meeting to save both time and expense.

"The simple fact is that you have failed to deliver during your tenure as executive chairman and we do not believe you have the appropriate track record or attitude to oversee the Company's turnaround.

"This is the first time in Toscafund's 16-year history that we have felt compelled to take such action at one of the companies in which we invest and we do not do so lightly."

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Mr Hughes continued, stating since Mr Astrand's appointment in July 2015 shares in the company have fallen by 29%.

He also blamed Mr Astrand for the collapse of a potential merger with HSS Hire Group and proposed David Shearer to become the new director of Speedy Hire.

"Having consulted with our fellow shareholders, Toscafund is of the firm view that you should stand down from the board with immediate effect," he said.

"If you do not, we will continue to urge our fellow shareholders to remove you as the Company's executive chairman at the General Meeting and to appoint David Shearer as a director."

Speedy's board have today, 12 August, hit back at Toscafund and advised any motion to remove Mr Astrand should be rejected.

However, it agrees that the time is right for him to step into a non-executive role.

In a circular to shareholders, it said: "The Independent Board believes that Speedy's recovery is now established, as evidenced by the improving revenue trend, and is a direct consequence of Jan Astrand's immediate and urgent responses to the downturn in trading in June 2015.

"In view of the progress made to date, the Board has agreed that the time is right for Jan Astrand to return to a non-executive role.

"With the business now stabilised, and in anticipation of the successful turnaround of your Company, the Board, which has already been significantly strengthened by the appointment of Robert Contreras, Robert Barclay and Chris Morgan, will be giving consideration to the appropriate structure and composition of the Board to take Speedy into the next phase of its development. This will ensure transparent, structured and orderly succession planning, minimising disruption to the business.

"The Independent Board does not believe that Speedy should merge with HSS at this time as Toscafund is advocating. Your Company's recovery is progressing well and to engage in any sector consolidation would potentially put that recovery at risk."

(LM/CD)