(Correcting the inventory errors will have an impact of significantly less than USD30 million)
(Alliance News) - PureCircle PLC said Friday its investigation into potential issues related to inventory valuations remaining underway, with no indications that any case of fraud has taken place.
In late September, the sweeteners producer reported a potential issue with the way that inventory was classified and valued with an aggregate value of up to USD30 million. Professional advisers were then hired to undertake an investigation.
Although the probe has made "good progress", it is not yet complete. Despite certainty about the end result remaining elusive, the firm expects the impact to be "significantly" less than the USD30 million originally announced.
"Investigations continue as to the root cause of the errors, but the board has seen no evidence that the issues arose as a result of any fraud or impropriety," PureCircle added in a statement. "The company has approached its banks and is in ongoing discussions with them seeking appropriate waivers under its banking arrangements."
As a result of the investigation, PureCircle will be unable to publish its results for the year ended June by the end of October as required under listing rules. Consequently, shares in PureCircle will be suspended from trading on Monday pending the publication of full year results.
A further update on the progress of the preparation of full year results will be provided "as soon as possible."
By Ahren Lester; ahrenlester@alliancenews.com
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