Next Fifteen Communications Group plc ('Next 15' or the 'Company')
Next 15 trading statement
31 October 2012
Group traded in line with market expectations for FY12 and continues
to trade well in FY13.
Results delayed following discovery of fraud in operating subsidiary.
Investigation expected to be completed within four weeks.
Impact of fraud will not affect company's ability to trade and invest
Next 15 Communications Group plc was due to report its financial results
for the previous financial year on Tuesday November 6th 2012.
However, in the final stages of the audit, Next 15 has learned that it
has been the victim of a complex fraud involving a senior member of the
finance team in its Bite North America subsidiary, and as a result the
Company has chosen to delay its results pending a full investigation,
which it expects to be completed in the next four weeks. It should be
stated that The Board believes this to be an isolated incident and a
case of personal embezzlement as opposed to accounting irregularities.
The Company has informed the FBI, is working with its external auditors
BDO, and has hired Kroll to carry out a full forensic investigation of
all the activities within this part of the business. Thanks to the
strong overall performance of the Company, the business retains a strong
balance sheet and does not see this fraud impacting the ability of the
Company to carry on its activities or make the investments it had
planned for the coming year.
This issue has had no impact on the underlying trading of the group in
the financial year to July 2012, nor in the current period, with the
business continuing to trade well. Management expects to report revenue,
adjusted profits and earnings, for the preliminary results to July 2012,
which are in line with market expectations.
The Company will keep shareholders updated on the investigation as and
when information becomes available.
Next Fifteen Communications Group plc
Tim Dyson, Chief
Executive Officer +1 415 350 2801
David Dewhurst, Finance Director
+44 (0) 7974 161183
Canaccord Genuity Limited
Henry Fitzgerald O'Connor +44
(0)20 7523 8000
Copyright Business Wire 2012