Proshare Logo
   Market Date: 17-04-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs STOCKPICKS Taxation Telcos Travel & Tours Unlisted Stocks World of Business

Cadbury Nig Plc Sacks MD/CEO for Financial Irregularities

Category: Corporate Earnings


  Read (1561)
Cadbury Nig Plc Sacks MD/CEO for Financial Irregularities

The Independent accountant, PriceWaterhouseCoopers, appointed to investigate the financial irregularities of the company has now completed the exercise and can confirm that the company’s books were overstated for the period 2003 – 2006.

 

The overstatements resulted from accounting irregularities, inappropriate recognition of revenue and inappropriate application of accounting principles. In the circumstances, the Board has resolved to act swiftly and properly, in accordance with best practice, and good corporate governance, in the overall interest of all the stakeholders of the Company.

 

Immediate steps have, therefore, been taken to properly adjust for this in the company’s books. Accordingly, Cadbury Nigeria will report an underlying operating loss for 2006 of between N1 billion to N2 billion. After exceptional and financing costs, the net loss after interest is forecast to be approximately N5 billion.

 

In addition, following adjustments of N12 billion to N15 billion to correct the accounting errors, the Company\'s net assets has considerably diminished to around N1.2 billion, as at 30 September 2006. The Company is undertaking a revaluation of its land and buildings which overall should improve the net asset position. The Company is also considering the possibility of utilizing the share premium balance to absorb the restated negative\' revenue reserves.

 

The Managing Director and Chief Executive and Finance Director of the Company - Messrs Bunmi Oni and Ayo Akadiri - being the primary officers with ultimate executive responsibility for these matters, have been relieved of their appointments.

 

In view of the scale of the overstatement of the company\'s financial position, the Board has ordered a complete strategic review of our business model, which is expected to be completed within three months.

 

The company reiterates that this situation has arisen out of an internal review and believes that it will continue to take the necessary steps to ensure that the interests of all stakeholders are protected, in keeping with the highest corporate governance standards.

 

In the interim the Board has appointed Mr. Wallace Garland, an experienced hand, and he has accepted to become Acting Managing Director for Cadbury Nigeria PIc. He will lead the business through this period, and hopefully bring it back to good reckoning and profitability soon.

 

In view of this development, the Nigerian Stock Exchange today lifted the technical suspension on the stock.

 
 December 12, 2006

 



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Corporate Earnings

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint