4 December – accounting irregularities

The group has discovered a £2m stock shortfall at a Belgian subsidiary following a routine check and, in a worst case scenario, believes the loss could be as much as £15m.  Two employees have been suspended as a result.  The shares have dropped 140p today as a result.  Although the group is becoming increasingly accident prone there is scope for a bounce in the share price.  SPECULATIVE BUY.