Business
Historical overstatement of profit
Historical overstatement of profit.
About this update from Sig Plc
[{"type":"text","content":"\n \nRNS Number : 5557D SIG PLC 01 February 2018 \n\n1 February 2018\n \nSIG plc\n (\"SIG\" or \"the Group\")\n \nHistorical overstatement of profit\n \nSIG plc (\"SIG\" or \"the Group\"), a leading European supplier of specialist building products with strong positions in its core markets of Insulation & Interiors, Roofing & Exteriors, and Air Handling, today issues the following statement.\n \nSummary\n \nThe Group has identified a historical overstatement of profit relating to the year ended 31 December 2016 and prior years and relating to the half year ended 30 June 2017. The expectations for underlying profitability for the year ended 31 December 2017 remain unchanged.\n \nBackground\n \nFollowing a whistleblowing allegation of potential accounting irregularity at SIG Distribution, the core insulation and interiors business in the UK, the Group, with support from its external auditors Deloitte and from KPMG, has conducted a forensic review of the recoverability of a number of balances recognised at 31 December 2016 in relation to rebates and other potential recoveries from suppliers. Findings from this ongoing review were presented to the Audit Committee of the Board on 31 January 2018 and confirm that a number of these balances were overstated at 31 December 2016, in some cases intentionally. This resulted in an overstatement of profit for the year ended 31 December 2016 of up to c.£3.7m, with up to a further c.£0.4m overstatement of profit relating to years before 2016.\n \nThe review has also identified an overstatement of balances at 30 June 2017 relating to recoverable balances brought forward from 2016 and some additional receivables accrued in the first half of 2017. This resulted in up to a further c.£2.5m overstatement of profit for the half year ended 30 June 2017.\n \nThe Group intends to restate previous financial statements for these overstatements, which&nbs...