SAFELAND PLC Recovery of £0.5m of misappropriated monies Further to the announcement of its unaudited interim results for the 6 months ended 30 September 2012 which was released on 14 December 2012, Safeland plc announces that it has now recovered £0.525 million before expenses. This takes the amounts recovered to £0.725 million of the aggregate £1.7 million which were misappropriated. The Board continues to seek the recovery of additional monies. Contacts: Safeland plc T: 020 8815 1600 Larry Lipman, Managing Director Westhouse Securities Limited T: 020 7601 6100 Tom Griffiths
14 Dec '12
Nature and effect of misappropriated monies On 11 October 2012, the Company announced the discovery of a series of fraudulent transactions. Subsequently, on 12 November 2012, it announced the discovery of further fraudulent transactions. The aggregate amount of the sums lost to the Company through fraudulent transactions is currently estimated to be approximately £1.7 million. Of that sum, approximately £1.2 million relates to the financial year ended 31 March 2012. The balance relates to the current financial year. The Company has already recovered £0.2 million and arrangements have been put in place to seek to recover a further £0.5 million before expenses by the end of the current financial year. It is too early to predict how much, if any, of these funds can be recovered and no allowance for any potential recovery has been made within these interim results. The Board will continue to seek additional recoveries. The losses discovered are significant and the Board has concluded that the financial statements as originally issued for the year ended 31 March 2012 are subject to material error. Accordingly the Group's interim financial statements for the period ended 30 September 2011 and the Group's financial statements for the year ended 31 March 2012 comparative figures have been restated to reflect the loss of funds. Details of the restatements are set out in note 8 to these interim results. Funds misappropriated in the current financial period are treated as a current period expense, net of amounts recovered of £200,000. The Board will recruit a replacement finance director early in the New Year and is in the process of reviewing and implementing additional internal control procedures to protect against such events recurring in the future. The Company appointed new auditors, Grant Thornton UK LLP in November 2012. The directors have reviewed the financial position of the Group at 30 September 2012 and its forecast performance for the period to 31 December 2013. The directors are satisfied that the Group will continue to meet its obligations as they fall due and on this basis the interim financial statements have been prepared on the going concern basis. The Company continues to trade in the usual way despite the events disclosed in this announcement. We look forward to the future with cautious optimism. Raymond Lipman, Chairman
14 Dec '12
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012 Chairman's statement I am pleased to announce that for the 6 months ended 30 September 2012 the Group traded profitably and reported a profit for the period of £104,000. This is not necessarily indicative that a profit will also be reported for the year ending 31 March 2013. The economic conditions remain extremely difficult with fluctuating volatility across all sectors. We continue to be very selective in the purchases that we make, with an on-going emphasis on properties suitable for conversion into residential. These are being sold to a mixture of investors and owner occupiers. Safestay, our hostel venture, continues to gain momentum with occupancy increasing, and a good level of reservations for 2013.
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