Cape sinks following discovery of accounting irregularities
Energy support services firm Cape is down 30% in early morning trade, following the revelation that it has discovered accounting irregularities at its Australian business and as a result has initiated "a detailed analysis of all balance sheet items group-wide".
Energy support services firm Cape is down 30% in early morning trade, following the revelation that it has discovered accounting irregularities at its Australian business and as a result has initiated "a detailed analysis of all balance sheet items group-wide".
In a statement the company has explained that: "The trading performance of the group's businesses in the UK, CIS/Mediterranean & North Africa and Gulf/Middle East regions and Asia was in line with expectations. However, the Group's operating margin was impacted by a substantial deterioration in the performance of the group's onshore Australian business driven by both a further downturn in current trading and the recognition of a number of legacy issues."
It added: "As part of the previously reported review of the Group's Australian operations, a detailed review of the onshore Australian business' balance sheet was initiated, which has led to the identification and correction of a number of issues relating to the valuation of certain balance sheet items. This review is expected to be complete before year-end; until then there remains some uncertainty over the full year performance for this business."
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company goes on to say that: "In light of the legacy issues identified in the onshore Australian business, the board has prudently extended the review to a detailed analysis of all balance sheet items group-wide. It is expected that this review will be complete for year-end reporting."
CM
