Folli says financial audits to be concluded in August

Folli Follie SA

26/06/2018 08:24

ATHENS, June 26 (Reuters) - Luxury jewellery maker Folli
Follie  HDFr.AT , whose shares have been suspended from trading
and finances are being investigated by Greek authorities, said
late on Monday a financial audit would be concluded in August.
    Folli, which has hired Ernst & Young to audit specific items
of its 2017 financial statements, said that Alvarez & Marsal
(A&M) would also conduct a forensic evaluation of the most
recent financial statements of its Asian subsidiaries.
    Both firms are expected to complete their audits in August
and Folli will then mandate Ernst & Young to undertake a full
review of its 2017 financial statements, it said. 
    Folli's shares plunged in May after equity fund
Quintessential Capital Management (QCM) issued a report saying
the company had overstated the number of retail outlets it
operates worldwide and raised concerns over its finances.
    Folli said the claims in the report were unfounded and
misleading but Greece's securities regulator suspended its
shares from trading on May 25 after the firm failed to provide
requested financial data.
    A Greek prosecutor has ordered a preliminary investigation
into the company.  urn:newsml:reuters.com:*:nL8N1TD1FJ
    Under Greek law, the securities regulator may ask a Greek
court to order an additional audit of the company's full
financial statements when there are allegations of wrongdoing.
    "The company does not consider it appropriate to make any
further statement regarding its Asian business until the
advisers finish their audits," it said.

 (Reporting by Angeliki Koutantou; Editing by Mark Potter)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))