InnerWorkings to complete profits review this month

By Jo Francis, Friday 13 July 2018

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InnerWorkings could have overstated its pre-tax profits by between $4.5m-$7m (£3.4m-£5.3m) according to the latest information from the company.

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InnerWorkings: initial estimates have been revised

In May the $1bn turnover US-headquartered print management and marketing execution specialist admitted to errors in its historical financial reporting for the years 2015 through to 2017.

It faces a class action from disgruntled investors as a result.

The group, which has a near-£30m turnover business in the UK, has now revised the lower end of the total expected discrepancy range upwards, while the potential maximum amount has reduced.

It stated that it now believed there will be no material impact on the income before taxes it reported in 2015, a year when the group posted a $20.7m loss.

For 2016 the reduction in reported income before tax is now likely to be $1m-$1.5m (previous estimate $1.5m-$2.5m); while for 2017 the expected decrease has been upped to $4.5m-$5.5m (previous estimate $2.5m-$4.5m).  

The firm’s reported income before taxes in 2016 was $15.3m, and in 2017 it was $32.1m.

InnerWorkings said it expected to finalise the restatement of its accounts this month.

The group has rescheduled its AGM for 6 September.

InnerWorkings is listed on the NASDAQ stock market, and its share price was at $8.76 at the close of business yesterday (52-week high: $12.03, low: $8.19).

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