Brief: Awardit Writes Down Intangible Assets After Internal Audit of Subsidiary

Awardit AB publ

19/12/2023 07:37

Dec 19 (Reuters) - Awardit AB  AWRD.ST :
    * SAID ON MONDAY INTERNAL AUDIT OF SUBSIDIARY MBXP APS HAS
NOW
BEEN COMPLETED 
    * AWARDIT HAS DECIDED TO WRITE DOWN RESERVED EXPECTED
EARN-OUT OF
ABOUT SEK 125 MLN AS WELL AS GROUP'S GOODWILL ATTRIBUTABLE TO
MBXP OF ABOUT SEK 115 MLN IN ITS ENTIRETY
    * BOARD HAS ALSO DECIDED TO WRITE DOWN OTHER INTANGIBLE
FIXED
ASSETS WITH ABOUT SEK 20 MLN LINKED TO TECHNOLOGY AND CUSTOMER
RELATIONS
    * AUDIT SHOWS NUMBER OF SERIOUS ERRORS IN COMPANY'S
ACCOUNTING FOR
PERIOD 2021-2023 HAVE BEEN COMMITTED UNDER PREVIOUS MANAGEMENT
    * IN TOTAL, CORRECTIONS OF INACCURACIES IN PREVIOUS PERIODS
AND
DURING 2023 NEGATIVELY AFFECT EBITA FOR 2023 WITH ABOUT SEK 32
MLN
    * WRITE-DOWN OF EARN-OUT AND GOODWILL, IN ITS ENTIRETY AS
WELL AS
PARTS OF OTHER INTANGIBLE FIXED ASSETS REGARDING MBXP NEGATIVELY
AFFECT 2023 EARNINGS AFTER FINANCIAL ITEMS BY ABOUT SEK 11 MLN
    * SELLERS OF MBXP HAVE CALLED FOR ARBITRATION AND CLAIM
RIGHT TO
EARN-OUT
    * ISSUE OF LIABILITY AND LEGAL ACTION ON BASIS OF ERRORS
DISCOVERED IN INTERNAL AUDIT, WHICH HAVE LED TO GREAT FINANCIAL
DAMAGE FOR AWARDIT, WILL BE DECIDED UPON BY AWARDIT'S BOARD IN
CONSULTATION WITH LEGAL ADVISORS

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nMFNQv4gr
 Further company coverage:  AWRD.ST  

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