'Fundamental errors' in ship fitter's accounts
Scottish ship fitter Semple Cochrane has been forced to withdraw its half-year results after an independent review concluded there were fundamental errors in the company's accounts.
The review, conducted by Ernst & Young, found the group’s interim results of 23 March 2000 were overstated by some £10m as a result of accounting errors, the majority of which related to prior years.
Errors occurred when the company breached normal accounting practice by treating short-term contracts on the same basis as long-term contracts. The irregularities are believed to date from four years before the group’s successful floatation on the stock market.
Semple Cocrane intends to reissue its interim statement by the end of June.