BusinessCompany NewsPodia says accounts were ‘misleading’

Podia says accounts were 'misleading'

Struggling sports management group Podia has admitted that management accounts presented to the board in October were 'misleading' and says it will place its subsidiary TMG into liquidation next week.

Link: Podia sacks FD for gross misconduct

Following the suspension of its shares on AIM, and the dismissal of former finance director Hatim Dungarwalla, Podia said today an internal investigation had revealed that accounts for both the group and TMG filed to 30 September 2002 were misleading.

The inquiry uncovered that TMG’s overdraft was in excess of £1m at the date they were issued, not ‘fractionally outside its available facilities at approximately £0.5m’ as stated in the accounts, resulting in a ‘severe liquidity problem’.

It also uncovered that Podia plc had an overdraft of £0.15m when the accounts had shown a positive cash balance.

As a result of these and other ‘inaccurate journal entries’ and the impact of having its shares suspended, Podia’s board has decided that its should ‘explore offers’ for either the plc as a whole or for any of its trading subsidiaries.

As part of its statement filed to the London Stock Exchange, Podia said it had already sold subsidiary Event Vision Companies to Senta Limited for £360,000, after consulting with advisers Deloite & Touche Corporate Finance, and said several offers had been received for another subsidiary Jardine.

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