FSA blasts pub group for rule breaches

Link: SFI: questions to be asked

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.

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