Timber merchant's warning hits shares
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BThe share price of the timber and plywood merchant JO Walker slumped 80p to 423p after a trading statement warning that profits for the year to the end of December will be significantly below expectations.
At the same time the company announced that its deputy chairman, Robert Leonard, would no longer be a director.
The company blamed the revised profit expectations on stock accounting difficulties.
It is understood that its stock of timber was overvalued, which meant profits were over-reported in the management accounts.
The company had been acquired by Swithland Estates at the end of last year when the Walker family sold its 25.26 per cent holding.
Adam Page, managing director, said the company thought it was necessary to put out a warning because the previous management had given the impression that JO Walker had seen a profits turnaround after several years of poor trading.
In a statement to the Stock Exchange, the company said the problems were "due to a number of internal accounting and cost estimation errors".
Mr Leonard had been brought in by the previous management to act as a consultant and turn the company around.
Mr Page said: "He had been brought in as a company doctor and we felt we could get along without him."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments