CAKE.L

Patisserie Holdings Plc
Patisserie Hldgs PLC - Company update
16th January 2019, 15:53
TwitterFacebookLinkedIn
To continue viewing RNS, please confirm that you are a Private Investor*

* A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:

  1. Obtains access to the information in a personal capacity;
  2. Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
  3. Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
  4. Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
  5. Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
  6. Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
RNS Number : 3018N
Patisserie Holdings PLC
16 January 2019
 

For immediate release

 

16 January 2019

 

 

Patisserie Holdings plc

 

 

Company update

 

Patisserie Holdings plc (AIM: CAKE) ("PH" or the "Company") announces today that, following the announcement on 10th October 2018 which concerned the evidence of fraud, and an emergency fund raising, the Company has appointed a new CEO, a new interim CFO, a new non-executive director, a new commercial director and a new production director, as well as other management appointments. 

The work carried out by the Company's forensic accountants since then has revealed that the misstatement of its accounts was extensive, involving very significant manipulation of the balance sheet and profit and loss accounts. Among other manipulations, this involved thousands of false entries into the Company's ledgers. It will take some time before a reliable trading outlook can be completed while the above work streams progress

The initial indications from the work carried out to date is that the cash flow and profitability of the business has been overstated in the past and is materially below that announced in the trading update on 12 October 2018, which was based on limited work carried out over a 48-hour period.

The Company has hired KPMG to assist it in carrying out a review of all options available to it in order to recover from the devastating effects of the fraud, and to preserve value for its stakeholders going forward.

The Company confirms that RSM were appointed auditors today, but due to the fraud and attendant accounting issues it will be some time to complete a restatement of the Company's accounts and prepare the audited figures to 30th September 2018. 

The Company has also been in discussion with its bankers to extend the standstill of its bank facilities beyond January 18th, and will issue an update when those discussions have concluded.

Enquiries:

Patisserie Holdings plc                        +44 (0)121 777 7000

Luke Johnson, Executive Chairman

Steve Francis, CEO

 

Nomad and Broker

Canaccord Genuity Limited                  +44 (0)20 7523 8000

Chris Connors

Henry Fitzgerald-O'Connor

 

Financial Public Relations

Maitland                                               +44 (0) 20 7379 5151

Sam Cartwright

Jonathan Cook

 

 

END

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
UPDLLFSELTIRLIA ]]>
TwitterFacebookLinkedIn