Hadleigh suffers a £3m hit while auditors probe fraud

The discovery of a fraud at one of engineering group Hadleigh’s subsidiaries last week wiped £3m off the company’s £17.6m value. Hadleigh said that it had instructed accountant KPMG Audit to look into the fraud at its Cookson and Zinn subsidiary, which is understood to involve the theft of money and the possible falsification of […]

The discovery of a fraud at one of engineering group Hadleigh’s subsidiaries last week wiped £3m off the company’s £17.6m value.

Hadleigh said that it had instructed accountant KPMG Audit to look into the fraud at its Cookson and Zinn subsidiary, which is understood to involve the theft of money and the possible falsification of past years’ accounts.

The Ipswich-based company is to take a £300,000 hit against half-year profits. But chief executive Trevor Murch said he did not believe there would be any material impact on the group’s cash position.

Hadleigh shares dived 35p to 195p on the news.