3rd Dec 2009 14:52
3 December 2009
Cohort plc
Statement re Trading at Systems Consultants Services Ltd
The Board of Cohort plc ("Cohort"), the independent technology group, announces that, during the course of preparing the Company's interim results for the half year to 31 October 2009, it has come to light that income from certain contracts at its wholly-owned subsidiary company, Systems Consultants Services Limited ("SCS"), has been overstated.
The total overstatement is estimated to be in the region of £1,850,000 and spans the period from the year ended 30 April 2008 to the present. If appropriate, Cohort's income statement and balance sheet for the years in question will be re-stated to show these changes.
The interim results for the half year to 31 October 2009 will be released as previously notified on 9 December 2009. These will show that, after correcting for in-year contract income overstatements, SCS's trading performance in the first half is much below that reported in previous years. For the full year to 30 April 2010 we now anticipate SCS performance to be significantly below market expectations.
Cohort's other two wholly-owned subsidiary companies, MASS and SEA, have both performed well in the first half and are expected to achieve or exceed expectations for the full year. There is no issue with previously stated numbers for either company.
As a result of the SCS issue, Cohort's trading performance for the full year ending 30 April 2010 will be significantly below expectations.
An immediate and rigorous investigation to determine the cause of the overstatement is in progress. The company will update the market as appropriate.
Contacts:
Cohort plc: Andrew Thomis 01491 845630
Hogarth: Julian Walker 020 7645 3988
Investec: Keith Anderson 020 7597 5970
Investec: Daniel Adams 020 7597 5970
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