PracticePeople In PracticeWiggins faces FSA probe over profits.

Wiggins faces FSA probe over profits.

The Financial Services Authority is considering investigating whether Wiggins misled investors by overstating its profits for the last five years.

Finance director Geoffrey Lansbury and auditor HLB Kidsons are already facing possible disciplinary action from their professional bodies after the Financial Reporting Review Panel forced the company to make changes going back five years.

The leisure, construction and airport group found its £25.1m 2000 profits turned to a £9.9m loss. Profits going back to 1995 turned to losses, after a dispute with the panel over revenue recognition and development costs.

A spokesman said: ‘We are obviously concerned with the information Wiggins has put out to its shareholders. It is a matter the FSA is likely to look into.’

A statement from Wiggins said it anticipated no other body will be taking action, and its prospects were ‘stronger than ever’.

The company has suffered a sharp fall in its share price following the restatement, issued earlier this month. Shares fell again following reports of the potential FSA probe.

Speaking at the time of the reissue, Richard Sykes QC, chairman of the FRRP, said investors should be able to rely on Wiggins’ published accounts, but could not because of accounting errors. More at www.accountancyage.com/News/1118837.

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