Countryside sacks staff over £7.4m accounts blunder

Grant Prior 5 years ago
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Countryside Properties has sacked staff in Manchester following the discovery of a £7.4m hole in the region’s accounts.

The home builder confirmed the move in its latest results released today for the year to September 30 2019.

Group chief financial officer Mike Scott said: “In the first half of the year, a non-cash charge of £7.4m was recognised to impair the value of inventories in our Manchester region.

“This was the result of costs accrued over a four-year period not being appropriately recognised in the consolidated statement of comprehensive income.

“Management took a number of steps to rectify this and to ensure the issue was contained in this region, including the appointment of Deloitte LLP to perform a full investigation.

“Disciplinary action was taken against the members of staff involved, none of whom remain employed by the group.”

A positive set of overall results saw completions rise 33% to 5,733 pushing revenue up 21% to £1,237.1m generating pre-tax profit of £203.6m.

Ian Sutcliffe, Group Chief Executive, said: We have continued our excellent growth trajectory during the past year and have exceeded our expectations in operating margins, return on capital employed and cash generation.

“With strong demand from first-time buyers and ongoing political support, the Board looks forward to delivering continued growth from both of our operating divisions.”

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