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.