Watchdogs at the Financial Reporting Review Panel forced the restatement because they disagreed with the way the company had accounted for a loss on the sale of a subsidiary, Colloids.
They said the company’s disclosure of the transaction, on the face of the profit and loss account after tax rather than after operating profit, broke the rules of FRS3, the accounting standard that deals with reporting financial performance.
A statement from the panel said it did not accept the company’s argument that the way it had originally presented the sale highlighted the real profitability and underlying value of the core business.
The company, audited by BDO Stoy Hayward, now describes its original accounting as erroneous.
In its 2001 preliminary results statement, released yesterday, it said: ‘The board has fully accepted the panel’s findings and we have adjusted the presentation of figures to reflect the correct treatment.’
The change turned its reported £694,000 profit before tax for the 16-month period ended 30 April 2000 to a loss before tax of £3.1m.
Its newly-announced results for the year to 30 April 2001 showed a loss before tax of £1.73m, including a loss on sale of its retail display business Sloane Group, its biggest subsidiary.
Its remaining trading business is Hallam Plastics, which is involved in structural foam, injection moulding and vacuum formed components. The remaining members of Princedale’s board are now considering the future of the group’s structure.
Former finance director Michael Simson left Princedale to join the new owners of the Sloane Group.
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