IT failure accounts for black cab delay
1 min read
The London black cab manufacturer Manganese Bronze has announced an embarrassing delay in issuing its half-year results because of IT-induced accounting errors.
In August 2010 the Group introduced a new integrated IT system to help to manage its complex global supply chain. Now it says, due to a combination of system and procedural errors, a number of transactions were not properly processed through the new IT system.
The problem led to the over-statement of stock and under-statement of liabilities in the financial statements of previous years resulting in an estimated £3.9m understatement of losses that go back over several years.
In a statement to shareholders, the company said trading in the first seven months of the year has been difficult and remained challenging with the Group continuing to trade at a loss. Manganese Bronze is expecting higher sales in the second half but does not know at this stage if results for the full year will be in accordance with market expectations.
The statement concluded: "As at 30 June 2012, the Group had £2.8m of headroom on its agreed banking facilities and continues to enjoy the ongoing support of its bankers and Geely" [its Chinese manufacturing partner].
