The Channel logo

News

By | Paul Kunert 29th September 2011 16:13

Cops probe £500k hole in reseller's books

Accumuli discovered irregularity after Boxing Orange buy

Police are investigating financial irregularities that Accumuli management discovered in the books of Boxing Orange, a managed security services provider it acquired for £5.48m last spring.

LSE-listed Accumuli confirmed today that while integrating the business into its fold, a review of the internal financial control system and the acquisition balance sheet had highlighted a £500,000 hole.

"Anomalies were found in the balances for accruals and deferred income in the acquisition balance sheet," said Ian Winn, finance director at Accumuli.

This led "to the suspension, and ultimately the dismissal, of the financial controller of Boxing Orange in June", he added. "The matter is now the subject of an ongoing police investigation."

The irregularities found relate to the years prior to the acquisition, pertaining to services that were invoiced but not delivered or accrued.

"The impact of these anomalies is that liabilities were understated in the acquisition balance sheet by £500,000. This impact will be reflected in the carrying value of goodwill in the group accounts," said Winn.

As a result, Accumuli has re-negotiated the deferred consideration payable to Boxing Orange's management from £2.1m to £1.3m.

Accumuli said that no net financial loss was suffered following the acquisition and the balance sheet hole did not impact the trading of either organisation.

Basingstoke-based Accumuli has already acquired Tuscany Networks and Fujin Technology as part of its 'buy and build' strategy. ®

alert Send corrections

Opinion

Microsoft CEO Satya Nadella
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Chris Mellor

BTIG analysts ponder Pure's position and fall in (qualified) love

Features

STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock
Honest mistake with your licensing? Audit police look at it on a 'case by case basis'