Cambrian Mining forced to restate accounts
Action by Financial Reporting Review Panel sees Cambrian restate £40m operating profit as a £4.6m loss
Cambrian Mining has been forced to make an embarrassing reissue of its
accounts after the Financial Reporting Review Panel told the company to restate
a £40m operating profit as a £4.6m loss.
The restatement, for the Cambrian’s accounts for the year ended June 2006,
was made because the original accounts did not comply with the Companies Act,
made a number of errors and failed to comply with IFRS, the FRRP said.
The problems related to the accounting for acquisitions, interests in
associates, investments in convertible notes and foreign exchange gains.
Shares in the company have been suspended on AIM since mid-December when the
business said it would be unable to report on the 12-months to June 2007.
The company has now replaced former auditors Chapman Davis with Deloitte, and
new finance director Vivian Silverman has been appointed to keep the company on
track to report financials for 2006/2007 soon and announce the outcome of a
strategic review.
Cambrian’s former finance director, Jo Malins, resigned in January 2006. He
was fined £25,000 by the FSA a month earlier for buying up Cambrian shares ahead
of company announcements:
Further reading:
Read the
FRRP’s report on Cambrian Mining
FSA fines Cambrian FD over shares