Accounting problems worse than previously thought, says Findel

Rss |

Homepage |

E-mail this article |

Findel's educational supplies division is based in Hyde

8:24 am, June 21, 2010
Accounting problems worse than previously thought, says Findel

Findel Plc (LSE: FDL) today admitted that the accounting irregularities in its Hyde-based education division were millions of pounds worse than previously announced.

In March, the Ilkley-based group estimated that unsubstantiated accounting entries in the division would mean that pre-tax profits for the year to April 3, 2009, would have to restated and cut by £5m, while net assets would be reduced by £14m.

Today it said last year's pre-tax profits would have to come down by £6.4m, as would benchmark profits, while net assets will have to take a hit of £20.6m.

Findel said the issue came to light following management changes at the division, which moved just over a year ago into a new £10m, 55,000 sq ft head office on Ashton Road, Hyde, where it employs about 450 people.

The division supplies materials to schools and its brands include Galt educational toys, Davies Sports and Philip Harris science teaching equipment.

Findel said it had brought in KPMG to carry out an accounting review of all its main businesses which found no issues in other parts of the group.

Revised figures for the impact of the Findel Education accounting problems followed a review carried out by new divisional management in conjunction with the group's auditors, Deloitte.

Findel, led by chief executive Philip Maudsley, added: “There is no impact from the review on the profit expectations for the year ended 2 April 2010 as set out in the announcement issued on 8 June 2010 nor is there any impact on the Company's cash position as at 2 April 2010. The company's net debt position at 2 April 2010 was £309.7 million as previously reported.

“Further details including the impact on the results for years prior to the year ended 3 April 2009, will be provided on publication of the company's preliminary results for the year ending 2 April 2010.”

Comments? manchesternews@crain.com