Cadbury resolves Nigerian debacle
Cadbury Schweppes forced into a goodwill write-down of £15m in the wake of the accounting debacle at its Nigerian subsidiary
‘Cadbury Schweppes’ board believes it is ‘appropriate to make a £15m
impairment to the carrying value of goodwill in the group’s balance sheet in
respect of Cadbury Nigeria,’ the company said in a statement.
The subsidiary, at the centre of accounting mis-statements that saw its chief
executive and finance director sacked, had deliberately overstated revenues.
The business was ‘fundamentally mismanaged,’Cadbury group CFO Ken Hanna said
‘We’re expecting a slow turnaround’ this year, he added, adding that
investors shouldn’t expect ‘big shocks’ from the unit.