Police probe at Accumuli subsidiary

IT security company Accumuli has renegotiated the terms of its most recent acquisition after uncovering alleged financial “anomalies”.

The matter led to the suspension and then dismissal by the Salford-based. AIM-listed company of the former financial controller at Leeds company Boxing Orange in June.

In a statement to the Stock Exchange Accumuli said: “The matter is now the subject of an ongoing police investigation.”

Accumuli had originally planned to pay up to £7.5m for Garforth based Boxing Orange. Of this figure £2.1m was a deferred consideration, which would only be paid to the vendors if certain targets were hit.

In light of what has emerged this figure has now been revised down by £800,000 to £1.3m.

The company said during the integration of Boxing Orange “anomalies were found in the balances for accruals and deferred income in the acquisition balance sheet.”

Accumuli said the impact of the anomalies relate to an alleged understatement of deferred income liability of around £500,000.

“The discovery of these anomalies has not materially adversely affected the post acquisition cash flows of Boxing Orange nor adversely affected the company’s view of that business’ current or future operating performance.”

It added: “The company can confirm that no net financial loss has been suffered following the acquisition and the problems identified have had no material impact upon the trading performance of either the company, Boxing Orange or any of the company’s other subsidiaries for the current financial year.”