Call for probe into consumer finance group
Accounts were 'aggressive' at consumer finance group, Homebuy
Just seven weeks after announcing record profits, the shareholders of ?100m
consumer finance group, Homebuy, are demanding an investigation into its
affairs.
It also faces a probe by AIM into allegations that its practices were
misleading.
This after announcing sterling preliminary results for the year end April 2006,
with turnover increased by 208%, earnings per share increased by 180%, and
pre-tax profits by 347%.
Since its flotation on AIM in November 2004, shares also soared from 80p to
249p.
The shareholders call for the probe was prompted by the AIM-listed group going
into administration on Thursday after its banks withdrew lending facilities.
The company, which is engaged in the sale of high-end plasma televisions to
consumers who are unable to get credit, admitted that its accounting had been
‘aggressive’.
In December, shares were cashed in by directors, including founder Philip
Harwood, who sold 40% of his stake for nearly ?6m.