Renold investigation finds 'intentional' mis-statement of accounts
Industrial chains supplier Renold said on Tuesday that it had completed the investigation into historical accounting issues at its gears business, which found that there had been an "intentional misstatement of results at a local level".
The company said the issues were confined to its gears business and the overstatement was broadly in line with the guidance given back in July. Renold, which did not say who was responsible for the misstatement, said it comprised "many adjustments across a number of balance sheet categories".
The cumulative effect resulted in net assets at 31 March 2019 being overstated by £2.5m, while adjusted operating profit was overstated by £1m.
Chief executive Robert Purcell said: "These events are frustrating and deeply disappointing but the board, in conjunction with the Audit Committee, have acted swiftly to fully investigate all matters.
"We are working closely with Deloitte, the group's auditor, to ensure that recommended improvements to the internal control environment are quickly and effectively implemented.
"With the investigation and audit of the revised accounts completed, we can refocus our efforts on operational improvement and generating value for shareholders."
Renold was forced to postpone its annual general meeting in July after identifying the accounting mistakes that led to an overstatement of profits.
At 0930 BST, Renold shares were up 6.4% at 24.10p.