Melbourne retailer Clive Peeters is back trading on the ASX following a major investigation into its past accounts and the theft of over $19.4 million from the Company.They have also confirmed that over 40 properties were purchased with money stolen from the Company over a two year period.
In a statement issued to the ASX today the Company confirmed that it had commenced legal proceedings against Sonya Causer the Companies former Payroll Manager who purchased up to 40 properties using money stolen from Clive Peeters.
The Company said that approximately 40 properties are in the process of being transferred into the name of Clive Peeters however it is not known how much money will be recovered or realised.
At this stage the Company who failed to detect the theft over a two year period despite 8 audits by their accountants is estimating that they will recover in excess of $16.4m, after allowing for discharges of mortgages and transaction costs.
They have also admitted that the ongoing investigation into the theft will cost the Company in excess of $1.8 million dollars.
In the ASX statement the Company said that in relation to the financial year ending on 30 June 2009 (FY09), CPR expects a loss of $11.4 million dollars.
This is after providing for a shortfall in recoveries attributable to an expected loss on sale of properties and other assets of $3.0m, and $1.8m for transaction, legal and other costs, totalling $4.8m.
Before making this provision, CPR’s operating loss for FY09 would have been approximated $6.6m (before tax).
Of this $6.6m, the amount of $2.1m is attributable to the non-recurring costs that CPR highlighted in its announcement of 1st July 2009; and the effect on the FY09 balance sheet of correcting the accounting discrepancies involving the staff member.
Clive Peeters CEO Greg Smith claims that the recovery of assets and the recovery of money from bank accounts will have a material impact on the Company’s cash flow to the tune of $4.1 dollars.
He said that CPR has been working in conjunction with its auditors in relation to these accounting discrepancies and expects to announce its FY09 results and restated FY08 results by 31st August 2009. .
More to follow.
