Announcing the decision to postpone its AGM, Renold confirmed that it had found an overstatement of certain asset values and profit totalling £1.8m.
The overstatements took place over the years ending 31 March 2017, 2018 and 2019, by £0.5m, £0.4m, and £0.9m respectively.
“The board’s investigation indicates that the overstatement of profit has arisen from the intentional mis-statement of the financial reports at a local level,” the company said in a statement.
The mis-statements came from the Gears business unit, and according to Renold no other division of the business is involved.
Renold will revise the financial statements for the year ending 31 March 2019.
PwC is supporting an independent internal audit investigation, which is still ongoing. Deloitte is Renold’s external auditor.
“Save for the reduction as a result of the revised forecast for Gears […] there are no other changes to the Board’s expectations for the current year,” Renold said.