KPMG to aid Helphire with £25m overstatement
Credit-repair specialists call in Big Four firm to track cause of £25m discrepancy
KPMG has been called in to investigate at ‘credit repair’ motoring specialist Helphire Group after the company reported a £25m discrepancy in its accounts.
The Big Four firm has been appointed by the board in a bid to identify the cause of the overstatement. The sum would amount to 15% of receivables as of 31 December 2010.
A statement from Helphire issued on Friday said: “Following the substantial completion of the major restructuring of the business and its systems which the new management team and board have been carrying out since 2009, the group has just become aware that there may be a material overvaluation in the carrying value of ABI debtors in the financial systems compared with underlying operating systems which, as yet, cannot be fully reconciled.”
Helphire provides replacement vehicles for motorists when their cars are damaged in accidents in which they are not at fault; the business claims the cost back from the insurers of the at-fault drivers.