Cake Box shares tumble after reporting errors uncovered by blogger
Shares in AIM-listed sweet-treat maker Cake Box have tumbled almost 22% today after it admitted “inconsistencies” in its financial reporting.
In a post over the weekend, blogger Maynard Paton identified mistakes in the company’s 2021 annual report.
Cake Box today acknowledged “some transcription errors” and further accounting inconsistencies. The discrepancies are between its 2021 full year results released on 30 June 2021 and its 2021 annual report and accounts. Cake Box acknowledged inconsistencies in prior period investors reporting and comparative period disclosures related to director interests in franchise stores.
“The errors noted have no impact on the group’s reported profits, cash flows or balance sheet and the Company received a clean audit opinion for the year,” it stated.
“As previously announced and as we continue to grow the business, a key priority for the board remains underpinning growth with the appropriate level of experience and expertise for the group’s central functions, internal controls and processes. BDO has also been appointed to assist with implementing improved internal audit practices.”
Cake Box switched its auditor to MacIntyre Hudson in September last year. The blogger‘s article highlighted the exit of its previous auditor RSM UK, which in its resignation letter last September said it was “concerned about the robustness of the company’s control and governance frameworks”.
Today Cake Box said that trading has continued strongly and in line with expectations since it last updated the market in November.
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