Air Partner shares fall after reporting accounting error
03 / 04 / 2018
Shares in Air Partner fell 22.6% on the London Stock Exchange today (Tuesday) after the UK charter broker identified an estimated £3.3m accounting error related to the collection of receivables from customers for uncollected amounts since the 2010/11 financial year.
Its shares had fallen 32.5 pence by midday today on the March 29 closing price of 143.50p
In a stock market announcement, Air Partner said that, during the course of its year-end review process, it had identified an issue predominantly relating to its accounting for receivables and deferred income.
The statement continued: "Following preliminary investigations, the issue principally relates to the collection of receivables from customers and accounting for uncollected amounts since financial year 2010/11.
"Certain uncollected receivables were inappropriately offset against deferred income rather than being expensed to the income statement in the appropriate financial year. This is a non-cash item and has no bearing on the Company’s cash balances."
It added: "Whilst the investigation continues, the Board presently understands that the cumulative amount between financial year ended 31 July 2011 and the financial year ended 31 January 2018 is approximately £3.3m and a significant proportion of this relates back to 2011.
"At no point was a customer, operator or supplier impacted or disadvantaged. Further, the Group continues to maintain a strong net cash position.
"The board of Air Partner will update the market as appropriate."
Financial analysts Cantor Fitzgerald changed Air Partner shares to hold from buy, saying: "We understand that there is no change to the strong underlying trading position of the group. Pending further updates and greater clarity on this issue we downgrade our recommendation to HOLD from BUY; our TP is placed Under Review from 170p."