LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

AdBri Investigates 'Hidden' Underpayments
BY GLENN DYER - 14/11/2017 | VIEW MORE ARTICLES BY GLENN DYER

Get More Commentary, Discussion & Market Information On -

ABC - ADELAIDE BRIGHTON LIMITED


Adelaide Brighton shareholders were remarkably relaxed about the news yesterday of a bad debts problem that could end up as $14 million earnings downgrade for 2017.

Adelaide Brighton told the ASX yesterday that it was investigating some transactions which may have hidden customer underpayments for supplied products.

With the help of forensic accountants KPMG, the company says it is also looking at whether an employee could have been involved.

AdBri told the market that the underpayments may adversely affect 2017 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 yesterday’s statement to the ASX.

Adelaide Brighton has reported the matter to its auditors (PWC) 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.

AdBr shares eased 0.7% to $6.30.



View More Articles By Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.



 

SHARECAFE VIDEO


Key movements in the Australian ETF market

More video   

RECENTLY ADDED TO SHARECAFE


 › Cost Cutting Takes Seven West Profit North
 › Healthscope Eyes Co-Investor After Profit Slide
 › PNG Quake Rocks Oil Search Annual Result
 › Market At Midday On Tuesday
 › Why Do We Like Codan?
 › Overnight: Steady As She Goes
 › WOW - UBS rates the stock as Neutral
 › VEA - Deutsche Bank rates the stock as Buy
 › FMG - Citi rates the stock as Neutral
 › Profit Plunges As Ore Quality Undermines Fortescue
 › Woolies Rewards Shareholders With Special Dividend
 › Trump Tariffs Pierce Hole In Ansell Outlook
 › Upbeat Outlook Despite Red Ink At Greencross
 › Tuesday At The Open
More ShareCafe   

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +