By Joe Hoppe
PCF Group PLC said Monday that it has identified a series of errors and misstatements related to intercompany transfers and balances, and failures to properly report exposures, which it is addressing.
The London-listed specialist lender said it identified the errors in its financial controls and reporting processes, leading to it asking for trading in its shares to be halted on May 19 while it undertakes a review.
The company said it and auditor PricewaterhouseCoopers LLP have identified a number of deficiencies and failures in its financial control and reporting function between December 2018 and October 2019, including members of the finance team manually adjusting accounting entries for both financial and regulatory reporting purposes, which appear to be deliberately attempting to facilitate specific results.
The company said that although specific findings are under investigation, no money appears to have left the company directly, though there will be investigation and remediation costs.
PCF said it is taking urgent steps to fix the deficiencies, with recently appointed Chief Financial Officer Caroline Richardson taking executive responsibility. This includes restructuring of the senior leadership team under interim Chief Executive Garry Stran and Ms. Richardson, the commissioning of an independent report on the company’s financial position and a forensic review of accounts.
PCF said it continues to operate as normal, though the issues mean it will be unable to publish its fiscal 2020 results by the deadline required by the Companies Act and AIM rules.
Write to Joe Hoppe at joseph.hoppe@wsj.com
