BSL delays reporting half year results by a further three weeks

By James Wells

BRISBANE: Betta Stores Limited (BSL) has provided yet another explanation to the Newcastle Stock Exchange (NSX) regarding the delay in the reporting of its half yearly results.

The company’s Half Year Financial Report for the six months to 31 December, 2005 was due on 16 March, but since then the company has issued further explanations on 29 March and 3 May.

In its explanation submitted on 3 May, the company assured the NSX that the results would be available in four weeks.

In its most recent explanation, dated 14 June, BSL chief financial officer – Scott McLennan, told NSX general manager – Scott Evans, that the issues which have affected the company up to this point continue to delay its ability to report results and extra three weeks will be required.

“These issues have included a change in auditor; change in chief financial officer and a number of senior accounting staff; and a review of our accounting practices and systems,” McLennan said in his letter to Evans.

“BSL has performed an integrity review of its accounting systems, which has highlighted a number of issues, particularly in relation to inconsistent data. This inconsistency was also evident in previous financial years.

“It has taken considerable time and extra resources, including the assistance of IBM and
Professional Advantage to reconcile data underlying the accounts from previous years to assist in finalising the Half Year Financial Report.

“It is expected that the inconsistencies, whilst not yet quantified as they are still being reconciled, will result in adjustments to accounts within the company’s balance sheet and profit and loss statement for the six months to 31 December 2005.

“Work is continuing to remedy these issues on a priority basis, including ensuring appropriate steps are taken to ensure the same issues are not repeated for the full year results.

“BSL anticipates that its Half Year Financial Report for the six months to December 31, 2005 will be completed within the next three weeks. While the delay is beyond any expectation of the company, the work that has been undertaken will ensure BSL’s accounting systems are fully integrated and underlying data is accurate and reconcilable.”