Air Partner finance chief steps down after accounting error

13 / 04 / 2018

Air Partner’s chief financial officer has handed in his resignation following on from an accounting error totalling millions of pounds.

The UK charter broker today confirmed that Neil Morris had offered his resignation, which had been accepted by the board.

Morris’ resignation comes after the company revealed an accounting error related to the collection of receivables from customers for uncollected amounts since the 2010/11 financial year.

He will remain available to the Company to contribute to the ongoing review.

On Wednesday, the company restated the financial impact of the error, increasing it to a maximum of £4m compared with an original estimate of £3.3m.

The Air Partner Board has appointed PricewaterhouseCoopers(PwC) and Rosenblatt Solicitors  to provide independent accounting and legal support as part of a review. 

In a London Stock Exchange announcement on Wednesday, Air Partner said that PwC and Rosenblatt have “full, unencumbered access to staff, records and systems to enable them to conclude the review as swiftly as possible”.

Air Partner added: “Our review has made good progress, and is ongoing. At this stage, we believe that the total cumulative impact arising between the financial years ended 31 July 2011 and 31 January 2018 will not exceed £4m.

“The final amount will be confirmed to the market after completion of the review. In accordance with accounting practice, amounts relating to prior periods will be recorded as restatements of comparative financial information.

“Any amount attributable to any period will be treated as a non-cash item.”

Financial analyst Robin Byde, of Cantor Fitzgerald Europe, said: "This update should provide investors with some comfort that the matter appears contained." Air Partner shares rose over 10% following the stock exchange announcement. 

“The Company is reviewing candidates for the position of interim chief financial officer that are available immediately,” the company said.

“Air Partner will be engaging an external recruitment consultancy to assist in the search process for a permanent chief financial officer.”

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