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Reminder to Chancellor Hammond - AIM is not without risk, as Patisserie Holdings illustrates

10/10/2018 · Patisserie Holdings PLC (CAKE) 

Reminder to Chancellor Hammond - AIM is not without risk, as Patisserie Holdings illustrates
News that Patisserie Holdings, owner of the Patisserie Valerie brand and one of AIM’s seemingly more reliable businesses, has been subjected to fraud is a wake-up call to those who assumed investors in AIM companies were benefitting from overly generous tax benefits. AIM has its risk even in the case of cakes and coffee…

Patisserie Holdings (AIM: CAKE) has announced that, during the course of 9 October 2018, the board of directors of the Company has been notified of significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the Company’s accounts.

This has significantly impacted the Company’s cash position and may lead to a material change in its overall financial position. As a result, the Company has requested that its shares be suspended from trading on AIM while it conducts a full investigation with its legal and professional advisers into its true financial position.

There are rumours the cash hole could be as much as £20m, equivalent to last year’s pre-tax profits.

Chris Marsh, the Chief Financial Officer, has been suspended from his role.

Patisserie Holdings is chaired by Luke Johnson, previously best-known for his involvement in the highly successful Pizza Express chain. Chief Executive Paul May also comes with an excellent track record.

Mr Johnson holds 37%…

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