Reed faces pounds 200m penalty
Wednesday 21 January 1998
The scandal, originally revealed by Reed in a trading statement in September, relates to the exaggeration by Reed Travel Group of circulation figures for its directories between 1991 and 1997. Following an investigation involving an army of accountants, lawyers and circulation auditors Reed has put a compensation package to its advertisers.
However Reed said the charge and the subsequent write-down of the intangible assets of Reed Travel Group, both of which will be taken against 1997 profits, would not affect the terms of its merger with Wolters Kluwer, the Dutch publisher.
Reed has yet to decide by how much it will write down the assets of Reed Travel Group, but the finance director, Mark Armour, said the adjustment, which does not affect cash flow, would be "substantial". On 31 December 1996, Reed Travel Group had intangible assets of pounds 472m. Analysts expect them to be written down by between pounds 200m and pounds 250m. Shares in Reed International, the UK-listed holding company for Reed Elsevier, firmed 13p to 653p.
Meanwhile, Reed also said it had decided to split up Reed Travel Group and distribute the various parts among its other businesses. The Hotel Directories and Travel Business Magazines arms would become part of Reed Business Information in the US.
- 1 Andreas Lubitz: Who is Germanwings co-pilot who 'locked out captain and crashed flight 9525'?
- 2 JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
- 3 Germanwings crash: Descent may have been 'deliberate, suicidal choice' by pilot, claims experts
- 4 Germanwings plane crash live: Andreas Guenter Lubitz intentionally crashed flight 9525 into the Alps in act of mass murder and suicide – latest
- 5 Video shows what happens when lava is poured onto ice
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Vote Ukip, says far-right group Britain First
iJobs Money & Business
£16000 - £18000 per annum: Recruitment Genius: A position has arisen within th...
£50000 - £63000 per annum + excellent benefits : Ashdown Group: IT Manager / D...
£16500 per annum: Recruitment Genius: Applicants must hold a valid SIA Door Su...
£50000 per annum: Ashdown Group: Business Analyst - Financial Services - The C...