| Worthington Nicholls write off £6.5 million |
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| Monday, 15 October 2007 | |
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Air conditioning installer Worthington Nicholls has written off £6.5 million following a review of its accountancy practices. And more may follow. Following the appointment of Chris Neilson to the Board as Interim Finance Director, the Audit Committee appointed KPMG to undertake a targeted accounting review.
As independent advisers, KPMG has assisted management in undertaking a review of certain accounting matters in relation to the major subsidiaries of the Group. Based on the work to date, the directors presently estimates that write offs totalling £6.5 million to the Group net assets at 31 March 2007 are necessary. The impact of these adjustments on current and prior years is currently being reviewed. In addition, a substantial write off to the goodwill held on the balance sheet is anticipated. Alongside completing the current review on the remainder of the Group, the Board has instructed KPMG to assist with a full review of the circumstances that have led to these adjustments. On the 17 August 2007, the company announced that it anticipated turnover for the year to 30 September 2007 would be £31.5 million producing a break-even result. Prior to the effects of the write offs referred to above, the Board believes that the Group will report results that are materially in line with its August statement. |