Another accounting scandal on AIM, but the warning signs were there
Having previously assured investors that it had identified the full extent of accounting errors, advertising group M&C Saatchi has now warned that matters are far worse than it previously thought. Thankfully there were warning signs for those who took a close look.
An independent review by PwC has resulted in advertising agency M&C Saatchi (LON:SAA) making adjustments of £11.6m to its 2018 and 2019 financial statements, nearly double the £6.4m it previously considered as a worst-case scenario. To put this into context, for the year ending 31 December 2018 the group generated net income of only £11m on £420m of sales.
Chris Boxall of specialist fund manager Fundamental Asset Management has often been surprised at the company's…
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