2 Jun 2009 09:37
London Capital Group plc
("London Capital" or the "Company")
Historic accounting adjustment
Following the appointments of Simon Denham as Finance Director and Siobhan Moynihan as Financial Controller in April 2009, the finance team initiated a thorough internal review of the Company's accounting systems.
As a result of this review the Board has become aware of certain errors in accounting for foreign exchange hedging transactions. This arose as a result of intra-company transactions not being correctly consolidated. There is no suggestion of any impropriety.
This issue will result in a write off net of corporation tax of £1.12m, being the aggregate adjustment over the three years to 31 December 2008. This will be accounted for as a prior year adjustment relating to the financial years 2006, 2007 and 2008.
Amendments will be made to the comparatives contained within the interim financial statements to 30 June 2009. This will be adjusted against retained earnings (reserves) and therefore will not impact current year profit.
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc
Frank Chapman, Chief Executive Officer
Simon Denham, Finance Director
020 7456 7000
Cenkos Securities plc
Nicholas Wells
020 7397 8900
Smithfield Consultants
John Kiely
020 7360 4900