Torex Retail calls in help to patch accounts
KPMG parachutes in
Torex Retail has hired specialist accountants to get to the bottom of a hole in its accounts. The London Stock Exchange is investigating Torex Retail after the PoS and performance management supplier issued a shock profit warning last week.
Torex has hired accountants from KPMG to discover what went wrong and provide the board with expert advice.
On 18 January, the Oxfordshire-based company told the LSE's regulatory news service that it was celebrating a £2.5m contract win with crystal company Swarovski and that: "We are experiencing considerable market interest in Retail-J from outside of the UK marketplace, where its success to date has been enjoyed."
But just eight days later, on 26 January, the company told the exchange: "The Board of Torex Retail plc now believes the outturn for the 2006 financial year is likely to be significantly below market expectations. It is still in the process of finalising its accounts but, in the light of this situation, it has requested a temporary suspension of its shares pending further clarification."
Torex said delayed contracts meant borrowings at year end were some £23m higher than expected.
Torex shares have been suspended until the board can update the LSE. The company joined the Alternative Investment Market in 2004. ®