Baltimore Tech discovers errors in sell-off
Irish online security specialist Baltimore Technologies says it has discovered revenue overstatements in its Japanese subsidiary, which it sold last week.
The company revealed last week it was reducing its stake in Baltimore Technologies Japan from 62% to 19% by selling £4.7m worth of shares to CGI limited, a special purpose investment fund.
But yesterday Baltimore admitted: ‘As part of the disposal process, the company has identified minor instances of revenue overstatement in Japan.’
The overstatements occurred in the 2000 financial year and the six months to June 2001, the same period when revenue overstatement in the India, Middle East and Africa region’s accounts was exposed.
The adjustments will affect less than 2% of the overall revenues and the company has restated its accounts for the period.
A company spokeswoman said the overstatement was connected to conditional contracts which were not clearly stated as such.
She confirmed KPMG were the company and division’s auditor at the time and would remain so, but was unable to say whether the Baltimore Japan was retaining KPMG.