FRRP ticks off Pendragon for accounting error
Pendragon corrects its 2011 accounts after overstating its cash flows from operations and investment activities
CAR DEALER Pendragon has been forced to correct its 2011 accounts after it overstated its cash flows from operations and investment activities.
The move follows a review by the FRC’s Financial Reporting Review Panel into the company’s presentation of cash flows from its contract hire vehicle operations.
As a result of the correction, made in the company’s 2012 interim results, cash inflow from operating activities was overstated by £31.3m and should, therefore, have been reported as £52.6m. Net cash outflow from investing activities was overstated by £31.3m and should have been reported as £23.8m.
The FRRP said it was satisfied with the corrections and the matter has been closed.
Shares in the London-listed company fell 6% following the announcement.