Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Adelaide Brighton probes 'hidden' underpayments

Trevor Chappell  |  13 Nov 2017Text size  Decrease  Increase  |  
Email to Friend

MELBOURNE - [AAP] Cement and masonry supplier Adelaide Brighton (ASX: ABC) is investigating some transactions which may have hidden customer underpayments for supplied products.

Adelaide Brighton's investigation, with the help of forensic accountants KPMG, is also looking at whether an employee could have been involved.

The company says the underpayments may adversely affect 2016/17 earnings by up to $14 million, less any amounts recovered.

Consequently, the company expects there will be an additional provision of $14 million made for doubtful debts.

"While the investigation is still in process, based on the information currently available, it appears that there may have been deliberately hidden underpayments by customers over a sustained period," Adelaide Brighton said in a statement on Monday.

Adelaide Brighton has reported the matter to its auditors and says it will co-operate with relevant authorities as the investigation proceeds.

Excluding the one-off impact of the issue, Adelaide Brighton confirmed its guidance for an underlying profit of between $188 million and $198 million for the 2017 full calendar year.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Shares in Adelaide Brighton were 1 cent, or 0.16 per cent, lower at $6.34 at 1145 AEDT.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

is an AAP journalist.

AAP logo

© 2022 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend