PracticeConsultingCompany Reports – Y2K promises ‘premature’

Company Reports - Y2K promises 'premature'

Confident claims by UK companies that they have beaten the millennium bug ‘will come back to haunt them’, according to a report out this week.

An analysis of 350 annual reports from FTSE 250 companies by accounts monitor Company Reporting, found only 64 mentioned the millennium bug and only two had a contingency plan in place.

The year-2000 compliance statement of #225m turnover packaging manufacturer Blagden Industries was singled out for its ‘misplaced confidence’. Its annual report told shareholders that its systems would be compliant by the end of 1998, at a cost of #800,000.

Graeme Farmer, assistant editor of Company Reporting said: ‘Companies year-2000 statements say everything will be all right. But if the project goes belly-up their promises to investors will come back to haunt them.’

Ian Hugo, assistant director of independent watchdog Taskforce 2000, said financial directors should head year-2000 projects: ‘Compliance programmes are often tackled at too junior a level.’

Last year, Scottish Widows said it would not invest in companies unprepared for 2000. General insurance will not cover the problem because it is not an unforeseen risk.

Company reporting, page 16.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer