Publisher's £3m error
Deloitte & Touche is conducting an investigation into an accounting irregularity at the French subsidiary of Future Network, the consumer magazine publishing group.
Initial findings of Deloittes’ investigation show news stand sales for Future France have been overstated by around £3.2m (FF35m) for the financial years ended December 1998 and 1999 and 2000 to date.
The overstatement will affect the group’s operating profits from the last three years, but the company said Future France’s cash balances are unaffected.
Chief executive, Greg Ingham said: ‘We’re focusing on gathering information and understanding what happened.’ He said it was too early to say whether the firm would replace its auditor, PricewaterhouseCoopers, as a result of the problems.
The French subsidiary’s percentage contribution to operating profits was 18%, nine per cent and five per cent for the financial years December 1998 to date.
Ian Linkins, Future’s financial director joined the company in 1991.
Elisabeth Murdoch, former head of production at BSkyB, is a non-executive director.