Corporate Finance

Pure Circle delays results amid £24m accounting issue

PureCircle producer and innovator of stevia sweeteners for the global food and beverage industry, has postponed the publication of its results for the year ended 30 June 2019, after “accounting issues” totalling £24m were discovered.

During the course of the audit of the group’s financial statements for the year ended 30 June 2019, a potential issue relating to the classification and valuation of certain inventory items were identified by the group’s auditors, PwC.

The company and its professional advisers have since commenced an investigation, which it said it expects to take a number of weeks. The company will make further announcements as the results of the investigation become known.

At this stage of the investigation, Pure Circle said it is unable to determine whether or not the potential issue is material or whether it is limited to the year ended 30 June 2019.

A statement read: “There can be no certainty as to quantum at this stage in the process, but the Company currently believes the aggregate amount of the potential issue could be up to US$30m (£24m).

“Based on the initial indications from the investigation, the company and its professional advisers have seen no indication that the potential issue has any impact on the net debt of the group or the cash generation of the business.”

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