Adelaide Brighton investigates AUD$14m underpayments to customers

Adelaide Brighton investigates AUD$14m underpayments to customers
14 November 2017

Adelaide Brighton announced on Monday that "it has identified certain financial discrepancies which relate to transactions under which a small number of customers may have underpaid for product supplied to them." The company is investigating the matter fully, including the possible involvement of an employee of the company, with the assistance of forensic accountants KPMG.

Adelaide Brighton believes there may have been deliberately hidden underpayments by customers over a sustained period, which may have a negative impact on FY17 EBIT currently estimated to be up to AUD14m (US$10.6m), less the impact of any recoveries which may be made.

Pending completion of the investigation and subject to any recovery action, it is likely that an additional provision for doubtful debts of AUD14m will be made. No material cash flow impact is expected.

The company has reported this matter to its auditors and will co-operate with relevant authorities as appropriate as the investigation proceeds.

Adelaide Brighton confirms guidance for full year 2017 underlying profit after tax (excluding property) of between AUD188m and AUD198m.

Published under Cement News