Business
Publication of Circular and Notice of EGM
Publication of Circular and Notice of EGM.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n \nRNS Number : 0824U discoverIE Group plc 10 July 2018 \n\nFor Release \n7.00am, 10 July 2018\ndiscoverIE Group plc\n(\"discoverIE\" or the \"Company\")\nPublication of Circular and Notice of Extraordinary General Meeting \nAs referred to in the preliminary results announcement on 5 June 2018, the Board of discoverIE has become aware of a technical non-compliance issue that has been identified with respect to distributable reserves of the Group's holding company which resulted in certain historical dividends not being paid in accordance with the Companies Act 2006 (the \"Companies Act\").\n \nFollowing the appointment of new auditors for the year ended 31 March 2018 (\"FY 2018\"), it was identified during the audit that part of the reserves included in the Company's profit and loss reserve were not distributable as they did not meet the conditions to be treated as realised profits per the Companies Act. This is because a dividend which was received three years ago from a subsidiary company had been made by book entry rather than by the payment of cash and the resulting debt due from the dividend-paying subsidiary to the Company was reinvested in another subsidiary company. Had the dividend payment been made in cash and the reinvestment not taken place, the dividend income would have been distributable. As this was not the case, the Company has been advised that the reserves should have been classified as non-distributable. As a consequence of this reclassification, approximately £7.7m of dividends (\"the Relevant Dividends\") were paid by the Company during its financial years ended 31 March 2017 and 2018 when it did not have sufficient distributable reserves.\nThese issues only affected the Relevant Dividends and did not affect any other dividends declared and paid by the Company. Furthermore, whilst this technical matter arose in the Company, the discoverIE Group (\"the Group\") had, at all times, adequate reserves in subsidiary companies to meet the Relevant Dividends. \nThis issue is of a historical nature and there is no change to the financial outlook of the Company as a consequence of this technical matter. It also has no impact on the Company's intentions or ability to continue paying future dividends. No fines or other penalties have been incurred by the Company.\nSince 31 March 2018, dividends have b...