Wasps report £3.8m losses and rising £43m debt

[Tiger93]

http://www.wasps.co.uk/your-club/bonds/secured-bonds

Accounts up.

Bonds have dropped 11%

Anyone who is financially switched on or with exp in this department care to share some analysis?

[Christophelp]

Guessing the following might have had an influence on PwC's decision to resign:

"During the year, the group failed to meet one of these covenants following an audit adjustment which resulted from a capital contribution from the group's shareholder being incorrectly treated as revenue based on evidence which was found to have been falsified following override of certain management controls."

Wasps, "...consider this to have been an isolated instance, have addressed the matter directly, and consider that the measures put in place provide additional controls to prevent such an occurrence."

So basically Wasps falsified information that showed they met the bond covenants given to the auditors, the auditors found that the evidence had been falsified and demanded an audit adjustment which resulting in the covenant breach. Subsequently the auditors have resigned.

There are plenty of other interesting bits - there being 3 reasons to restate the prior year accounts is one of them but too busy and it's too big of a document to read page to page and digest fully yet.

[TomWeston]

http://www.wasps.co.uk/your-club/bonds/secured-bonds

Accounts up.

Bonds have dropped 11%

Anyone who is financially switched on or with exp in this department care to share some analysis?

The crucial bit, page 7 para 2 is ‘The auditors were also presented with evidence which their testing revealed to have been falsified.’