BusinessCorporate Finance‘Discrepancies’ sees Petards share suspended

'Discrepancies' sees Petards share suspended

Accounting 'discrepancies' over long-term contracts in 2004 and earlier see surveillance company shares suspended only three days before its AGM

AIM-listed surveillance equipment group Petards has suspended its shares and
withdrawn its group accounts for the year ending 31 December 2004 following the
discovery of ‘discrepancies’ in the accounting for long-term contracts at one of
its subsidiaries.

This comes three days before its accounts were due to be presented to
shareholders at its annual general meeting on 8 July.

The Petards board announced on its website that it had asked for its shares
to be suspended as the problem arose after the expiration of the six-month
period following its year-end. The board also acted in order to avoid the
possibility of a ‘false market’ in its shares.

The company added that the contracts related to 2004 and earlier years.

The group said that a review was ‘currently being carried out’ and that the
subsidiary’s accounts would be re-audited ‘as soon as possible’. It said that
its AGM would be adjourned until the accounts have been re-issued.

‘The Board expects to re-issue audited 2004 accounts at the time of the
release of the interim results for the period ended 30 June 2005, at which time
the shares are expected to be re-admitted to AIM.

‘The discrepancies that have been discovered are not expected to affect
adversely the trading results for the current year. The company has adequate
working capital and is not in breach of any of its banking covenants. Its
bankers, Bank of Scotland, have been kept fully informed’, the statement added.

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