BusinessCompany NewsAccounting glitch hits Securitas profits

Accounting glitch hits Securitas profits

World's largest security firm hit by £154m restatement

Securitas, the world’s largest security firm, has been hit by a one-off
charge of 2.1bn kronor (£154m) because of an accounting problem in its UK
business.

Pre-tax profits plunged 69% to 883m kronor in 2006.  

The one-off items related to its cash-handling businesses in the UK and
Germany, as well as legal disputes and rent contracts, the Times
reports.

An investigation into its UK unit, Securitas Cash Management, discovered a
gap of £61m between its own figures and those of its bank customers.

Securitas was
created when HSBC and
Barclays outsourced the
handling of physical cash in the UK in 2001.

The security group replaced the banks’ manual systems with an IT statement.
After making this transition it discovered glitches in the automated system and
the banks’ accounts; and in 2005 launched an investigation into the matter.

Thomas
Berglund
, Securitas chief executive said: ‘Securitas is now under control,
but we’ll need this year to conclude the investigation.’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

1m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

9m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor