Auditors face probe over Patisserie Holdings (CAKE) crisis following discovery of £28.8m black hole in firm’s accounts. Work by Grant Thornton has been called into question after bosses at Patisserie discovered a £28.8million black hole in the accounts, an unpaid tax bill and two ‘secret’ overdrafts totalling nearly £10million. The auditor has worked for the company since 2006 and most recently signed off the books for the year to September 30, which said the balance sheet was strong and contained no borrowing.
Investigators at the Serious Fraud Office are mulling a fresh probe into the £1billion fraud at stricken Halifax Bank of Scotland, it has been claimed. The agency is said to be reviewing allegations contained in an internal report on the scandal, produced for parent Lloyds Banking Group (LLOY). The report – known as Project Lord Turnbull – claimed directors, including then-chief executive Andy Hornby, knew criminal staff at the lender’s Reading branch were wrecking companies for a profit.
Wall Street wizard David Einhorn buys a stake in BT Group (BT.A) claiming bosses may spin off cables arm Openreach. David Einhorn’s Green Light Capital said it had acquired ‘a medium-sized position’ in the British telecoms giant in a letter to investors. At an average of 219p each, the fund said the shares were ‘cheap’ and suggested BT’s bosses were mulling whether to spin off cables arm Openreach.
MIDAS SHARE TIPS: Sabre Insurance Group (SBRE) pursues policies others shun such as expensive cars and young drivers. Sabre is expected to flourish even if the economic environment deteriorates. Motor insurance is compulsory and non-standard motorists will always need to drive. Sabre also has less than 2 per cent of the UK market so there is plenty of room for growth and Carter hopes to expand to other vehicles, such as vans and taxis.
