FSA blasts pub group for rule breaches
The Financial Services Authority has lambasted SFI group for breaches of the stock exchange listing rules.
SFI Group, which runs the Slug & Lettuce pub chain, has been left with a £23m accounting black hole, after providing information that exaggerated its financial performance.
It is the first time the FSA has taken action over a breach of the listing rules since it began monitoring listed companies two years ago.
The FSA found that profits of £19.5m for the year ending May 31 2002 were overstated by £6.1m. Net assets of £85.5m were overstated by £23.1m.
The regulator said there was no evidence to suggest the breaches were deliberate, blaming flawed accounting systems and controls.