Home shopping group Findel is to restate results for the year to April 3, 2009, following a review of accounting entries within its education division.
The restatement is likely to increase the pre-tax loss for the year by about £5m, from a £52m loss to a £57m loss.
The company said that a review conducted after management changes at the division had revealed a number of accounting entries that “appear not to be properly substantiated”. The restatement is not expected to impact its profits for the current year, ending April 2.
Its initial estimate of the impact on the company’s revenues, costs and profits for the year to April 2009 is that pre-tax profits will be reduced by £5m, with net assets reduced by £14m.
Findel said that further information, including the impact on earlier years, will be provided with its preliminary year-end statement on April 28 and that the company’s current net debt position remains in line with expectations.
KBC Peel Hunt analyst John Stevenson said: “Clearly this will not help to engender investor support for Findel.”
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