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