20 October 2010 – review update
The group’s internal review into operating practices at the Aberdeen based offshore division has revealed a possible stock shortfall of up to £4m. The group has instructed KPMG as forensic accountants to investigate further and also appointed solicitors to advise upon the recovery of any such losses as these may have arisen through some doubtful transactions with a supplier. The offshore division has enough stock to ensure there is no interruption to the services it provides and the shortfall is not expected to have any further impact on the group’s borrowings. Although this is not good news we still believe that the group has excellent recovery prospects. SPECULATIVE BUY.