Shares in troubled Northern Ireland-based Powerscreen could stage a partial recovery in the coming weeks following publication of a report by the company’s auditor KPMG into losses at Matbro, the group’s former Gloucestershire subsidiary.
A summary of the report was sent to shareholders last week, outlining details of trading at Powerscreen’s remaining businesses and explaining some of the background to the unexpected profits warning in January.
According to the auditors, internal controls at Powerscreen were ‘weak’ and some of the subsidiaries were run almost completely independently of each other.
The report did not blame any individual directors, but it did say that senior executives became aware of Matbro’s problems as long ago as last summer.
Powerscreen is likely to announce pre-tax losses for the year of £65m, compared with expected profits of £45-£50m before January’s profit warning.