Aero Inventory suspends shares over stock accounting
Stock accounting problems hit Aero prior to its listing on the main market - 2009 accounts delayed, shares suspended and non-financial covenant breached
Accounting problems have hit AIM-listed aircraft components supplier
Aero
Inventory, leading to a suspension of its shares.
Problems with its reported inventory levels in its accounts for both 2008 and
2009 meant it could not deliver numbers to bankers in line with a lending
covenant.
The stock problem relates to an inventory bought during the year end June
2008, and was found after the company began preparing for listing on the main
market.
“In the course of these preparations, new systems have been introduced to
reconcile and value inventory. These systems have raised certain issues
regarding the valuation of a parcel of inventory acquired in the 2008 financial
year,” it said in a statement to the stock exchange.
The issues raised will not affect the company’s cash position, amount of
inventory held – and was not believed to be as a result of fraud or theft.
Further reading:
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after SFO’s £4.9m hit