Torex books may come under KPMG spotlight
Troubled retail software company to launch independent probe in efforts to understand below-par performance
KPMG investigators could be drafted in
to analyse Torex
Retail’s books after the company issued a shock profits warning last week.
The retail company has been left reeling after delayed contracts saw
borrowings at year-end rocket £23m higher than expected.
To compound its recent troubles, the London Stock Exchange is also
investigating the company. Torex is now believed to have approached KPMG
to carry out a probe .
‘It’s not going to be a forensic review,’ a source told the
Financial Times. ‘Rather
the board at Torex is looking to bring in an independent third party to help it
understand why the 2006 figures are different from what were forecast.’
On 18 January, the Oxfordshire-based company released news of a £2.5m
contract win with crystal company Swarovski but just eight days later on 26
January the
AIM-quoted
company told the exchange: ‘The board of Torex now believes the outturn for the
2006 financial year is likely to be significantly below market expectations.’
‘It is still in the process of finalising its accounts but, in the light of
this situation, it has requested a temporary suspension of its shares pending
further clarification.’
Torex shares have been suspended until the board can update the LSE.
Further reading:
Torex set to lose finance chief
FD leaves company after seven weeks