Avior restates past interims after ‘accounting errors’ discovered
Avior says its auditors discovered the problem while finalising full-year 2018 financial numbers, and that it was ‘the outcome of good governance in action’
Avior Holdings, the independent research and trading firm, says it has had to restate past financial results due to "accounting errors" detected by its new auditors and financial director.
This was as they were in the process of preparing the firms’ full-year results to end-April, Avior announced on Thursday. The accounting errors were considered material in nature.
Rather ironically, for both the interim results to end-October 2017 and the full-year results to end-April 2017, earnings per share (EPS) rose. In the case of the full-year results, earnings per share rose 26% after the restatement to 15.78c, while in the case of the interim results the movement was marginal, rising 6% to 7.8c post-restatement.
There were no errors or adjustments to headline earnings per share, which remain as previously stated.
For the EPS calculation, "total comprehensive income" was used as a starting point for the earnings per share calculation, instead of "profit for the year".
"We identified the error while finalising our full-year 2018 financial numbers. This is essentially the outcome of good governance in action. This was in large part due to the enhanced control measures implemented by the board last year as the company transitioned from a private company to a public company listed on the AltX."
The firm’s current auditors are BDO.
Avior expects to provide a trading statement following a board meeting on July 23, with its full-year results to end-April expected to be published by the end of July.