Make your money go further for just 25p per day

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%…

Sign up and read the full article

Register to continue reading this article.

Get FREE access now

Already a member? Login

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

SUBSCRIBE NOW

More on Patisserie Holdings PLC

Directors come out on top in Patisserie Valerie’s rescue deal

14/02/2019 · News & Insights
New chief executive Stephen Francis could do very nicely after buying a chunk of the company…

Luke Johnson considering legal action against Patisserie Valerie auditors

05/02/2019 · News & Insights
Patisserie Valerie’s chairman Luke Johnson has confirmed that he is supportive of potential legal action against…

Patisserie Valerie directors fail to disclose store ownership

31/01/2019 · News & Insights
Patisserie Valerie’s chairman Luke Johnson and chief executive Paul May own at least one of the…

Patisserie Valerie administrators face accounting chaos

30/01/2019 · News & Insights
Administrators KPMG still have a very muddled picture of the state of the accounts at Patisserie…

Patisserie Holdings - end of the road?

22/01/2019 · News & Insights
Patisserie Holdings has collapsed into administration after failing to reach an agreement with its lenders.

More from the News & Insights

Sports Direct struggles to manage Goals

Premier Technical Services 140% premium - who missed out?

Video games developer Team17 continues to impress

18/06/2019 · Team17 Group PLC