Dutch tech services outfit Imtech takes €100m write-down
'Possible irregularities' at Polish sub ruin 2012
IT technical and managed services provider Imtech is warning of a financial writedown of at least €100m due to "possible irregularities" at its Polish sub.
The Netherlands-based group, which also has electrical and mechanical service units in addition to its ICT arm, said it had "ordered a forensic investigation" of the situation.
The firm said it has been "severely harmed" by "lack of financing of its largest customer in Poland and potential issues related to projects in the country.
"Imtech's board of management expects at least €100m in already incurred costs will be written-off," it stated.
The write-off is connected to three projects for Adventure World and one involving energy-generating bio power stations in the Polish capital, Warsaw.
Imtech said it had established that the advanced payments for the four projects did not comply with agreements it had made with the customers.
The exact cost of the irregularities is yet to be ascertained. The planned rollout tomorrow of the company's 2012 financials and a planned AGM have been postponed until further notice.
Another consequence is that when the 2012 numbers are drawn up, Imtech will breach its banking covenants with lenders, it confirmed.
"After an initial investigation, and partly based on the annual audit by KPMG, the board … has decided that a forensic investigation of the circumstances under which the projects concerned were accepted and executed should be carried out.
"Irregularities in these and other projects in Poland cannot be ruled out. Pending the findings of this investigation the local management in Poland has been suspended," Imtech added.
In the UK, Imtech operates through 20 brands including Imtech Technical Services, Peek Traffic and Imtech ICT, the latter of which is an IBM Premier Partner, a Cisco Premier Partner and a Juniper Elite partner.
In calendar 2011, Imtech turned over €5.1bn, up from €4.5bn in the previous year, and made a net profit of €150.4m, up from €140.4m. ®