Schroders admits to accounting error
Listed fund manager Schroders says there were errors in the preparation of the accounts of it asset management business in 2000.
The company is believed to have overstated its total asset management profits, recorded at £149m, by £11m.
Schroders said total asset management profits before tax for 2001 would be as much as 10% lower that market estimates of £70m.
This does not include possible adjustments the board may make arising from the 2000 accounting error or any other provisions which may take place as a result of restructuring or developments at the fund manager.
Schroder’s auditor PricewaterhouseCoopers was paid a £1.1m fee for its work for the year ending December 2000. The firm was also paid £4.1m for non-audit work at Schroders. A spokesman for PwC declined to comment.
Schroders’ shares slumped this morning from an opening price of 915p to 855p at lunchtime today.