In its introductory statement to its accounts, the company’s directors said KPMG had been unable ‘to reach definitive conclusion’ on its interims to July 31, 2001. KPMG confirmed it did not sign off these accounts.
They added: ‘Futher to its discussions with KPMG, and in the light of events which have occurred since 19 October, the board believe that it is appropriate to make a number of adjustments to the draft of interim results.’
The company reported its preliminary results earlier than scheduled in October, but said the results were ‘currently being reviewed by KPMG Audit’ and thus subject to change.
In September, Bioglan’s talks to acquire the skincare division of US pharmaceuticals company Myers Squibb collapse, prompting KPMG’s review and the subsequent request to adjust its accounts.
Since October the company has suffered a series of setbacks, including the termination of a development and licensing agreement with CeNeS pharmaceuticals and the sudden resignation of its acting finance director Ann Simon in November, the second in six months.
At the end of the revised interim results, KPMG said the directors were responsible for the financial information in the interim results, adding ‘we do not express an audito opinion of the financial information.’
The Big Five firm expressed its concerns over the group’s financing, which depends upon the renegotiation of Bioglan’s debt and its ability to continue operating as a going concern.
It said: ‘In view of the significance of this uncertainty, we consider that it should be drawn to your attention, but our conclusion is not qualified in this respect.’
They concluded: ‘As a result […] we are not able to draw any conculsions about the financial information as presented for the six months.’
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