Findel has announced that irregularities in the 2009 accounts of its Hyde-based education division are £1.4m worse than was originally feared, leading to a £6.4m profits hit for the home shopping, education and healthcare group.
The company said in March that it was reviewing a number of accounting entries in the education division that appeared to be unsubstantiated.
At that time it estimated pre-tax profits for the education division in the year to April 2, 2009, would have to be reduced by £5m to £10.2m, with net assets reduced by £14m to £40.7m.
But now the Yorkshire-based group has revealed that the year's pre-tax profits will have to be reduced by £6.4m to £8.8m, with net assets cut by £20.6m to £34.1m.
That would take the group's annual profits for that year down from £33.4m to £27m on revenues of £599.8m.
The error was said to have come to light after management changes in the education division, which supplies products including stationery and furniture to schools.
The company, led by chief executive Philip Maudsley, had engaged KPMG to review the accounts of all its divisions and said no issues were uncovered in other aspects of the business.
It said the issue had no impact on its profit expectations for the year ending April 2, 2010, or on its cash position. Its net debt debt position at April 2, 2010 is £309.7m, as previously stated.
Findel's education division employs 450 staff at its purpose-built £10m head office in Ashton Road, Hyde, where it moved in May last year from its previous base next door.
Findel Education generates around 30 per cent of the parent group's turnover, and is the UK’s largest supplier of educational resource materials directly to schools and nurseries.
A company statement said further details, including the impact of the error on the years prior to 2009, would be provided when it announces its preliminary results for the 12 months to April 2, 2010.
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Never mind.
As long as the YPO in Wakefield keeps employing people from Findel who have helped bring the company to its knees, they'll always have a massively well paid, underworked, job to go to (BTW, YPO is owned by the taxpayer, and thanks to the influx of very well paid Findel staff, it's wage bill has gone up by almost £1m)
We can only pray that history doesn't repeat itself and they ruin us as well (although, this is looking likely when you see just how much money they're burning through for absolutely no return)
[quote name=Disgruntled Employee]Never mind.
As long as the YPO in Wakefield keeps employing people from Findel who have helped bring the company to its knees, they'll always have a massively well paid, underworked, job to go to (BTW, YPO is owned by the taxpayer, and thanks to the influx of very well paid Findel staff, it's wage bill has gone up by almost £1m)
We can only pray that history doesn't repeat itself and they ruin us as well (although, this is looking likely when you see just how much money they're burning through for absolutely no return)[/quote]
Very interest, 'Disgruntled Employee'.
I note that the YPO web site states an annual turnover of £400 million, yet neglects to mention a figure of profit or loss.
Are you aware of whether the accounts are available in the public domain?
[quote name=andy waytomakeacomment, Greater Manchester]Very interest, 'Disgruntled Employee'.
I note that the YPO web site states an annual turnover of £400 million, yet neglects to mention a figure of profit or loss.
Are you aware of whether the accounts are available in the public domain?[/quote]
Is this what your looking for?
http://www.ypo.co.uk/index.jsp?t=finstatements