Phoenix IT loses £63m due to accounting errors

Phoenix IT recorded a £63m loss after accounting irregularities were discovered by the company. 

The computer services company published its interim results on the London Stock Exchange news feed on Friday, reporting a pre tax loss of £63.3m.

Phoenix recorded a one-off impairment charge of £68.1m against goodwill and intangible assets at its acquired subsidiary Servo, where the irregularities were found. 

After the discovery of an accounting “black hole” last month, the firm enlisted PwC to take over from Deloitte as auditor and CEO David Courtley left the company after just 15 months in the job.

Phoenix also hired law firm Nabarro alongside PwC to look into the accounting and control processes. Servo's finance activities, meanwhile, will be relocated to to a shared services centre at the company’s Northampton headquarters.

 

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.