Accounting issues at Findel’s NW arm

HOME shopping and educational supplies firm Findel today said it would have to restate last year’s figures after it discovered a number of accounting entries had not been “properly substantiated”.

Findel, said the said the discrepancies have come to light wthin its Tameside-based education division following changes  within the management team there.

Initial estimates of the impact on the Findel’s results for the year ended April 3, 2009 would be to reduce that year’s pre-tax profits by £5m and benchmark profits by £5m.

Net assets would have to be reduced by £14m as at April 3, 2009. 

However, Findel said despite the revelations expecting to lead to a restatement of last year’s revenues, costs and profits, it is  not expected to have a negative impact on profits for the current financial year which ends on April 2.

The company said its full year results would be published on April 28. It said the accounting discrepancy would have no impact on its current net debt position which is in line with expectations.

Findel successfully raised £81m through an equity issue last year. It needed to raise the capital to help cut rising debts and broker cheaper banking.

Yorkshire-based Findel also owns Middleton-based sports retailer Kitbag.com.