Manchester-based broker CBG Group is to restate its first-half 2009 results in September because it incorrectly accounted for advance commission received under an outsourcing deal.
CBG outsourced its premium finance facility to Close Premium Finance in May 2009, which it said would reduce the need for funding from its bankers by more than £2m.
Its results for the first half of 2010 will contain a detailed disclosure of a restatement of the first-half 2009 figures because of an “incorrect accounting treatment of advance commission”. The firm said the restatement was necessary to enable a like-for-like comparison of trading and to report the interim results in line with the accounting of the advanced commission for the year.
No adjustment was necessary to the audited financial statements for the full year of 2009, it added.
CBG said it expects its 2010 results to be comparable with 2009’s after-tax profit of £186,000.