PracticeConsultingRover blasts German accounting rules as accountant takes the reins

Rover blasts German accounting rules as accountant takes the reins

Rover would show 'significantly' fewer losses under UK accounting rules, it said after it emerged its car division was being sold to venture capitalist Alchemy, headed by chartered accountant Jon Moulton.

The comments emerged from the shellshocked Rover plant as BMW confirmed that despite rescue efforts, it was selling Rover Cars to London based Venture capital company Alchemy Partners.

Last year, Accountancy Age revealed that between 1994 and 97 Rover made a profit of £147m according to under UK accounting rules, while German accounting rules showed the company making a loss of £363m.

Commenting on the UK accounts today, a Rover spokesman said: ‘They would show signiificantly less losses.’

The UK-style accounts over the years in question were quietly filed at companies house, while the loss-showing German figures were announced in a blaze of publicity by BMW.

The purchase of Rover Cars by venture capital group Alchemy Partners brings them under the control of Jon Moulton, managing partner at the firm, who is a fellow of the English ICA and worked at Coopers & Lybrand for most of the eighties.

Moulton is credited with running one of the most succesful venture capital companies in the country and is also a non-executive director at pub owners Ushers of Trowbridge and Haden MacLellan Holdings, the engineering outfit.

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