Findel to restate figures following ‘discrepancies’

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

Findel, based in Burley-in-Wharfedale, said the discrepancies have come to light wthin its education division following changes within the management of that division, which is based in Tameside in the North West.

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.

In its results in the 12 months to April 3 Findel saw pre-tax losses of £51.9m against a profit before tax of £25.2m the year before.

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.