GEONG International (AIM:GNG) – it looks like someone has been cooking the books!
Reality has finally dawned for the Beijing based provider of content management software and solutions. Having run a huge trade receivables balance for several years there is now news of a whopping impairment.
For the year ended 31 March 2015 the ongoing audit process has now determined that a provision of £12m should be made against the trade receivables and accrued income. The Directors have also reviewed the amounts of accrued revenue to be recognised for the current year and now believe that it is inappropriate to recognise certain amounts with respect to one particular customer. As a consequence revenue is now expected to be only approx £5.8m. To put things into context, trade receivables and accrued income at 30th September 2014 were £21.6m and revenue for the 6 months alone was £4.4m.…