The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Legal uncertainity leads to Alpha Airports pulling shares

10 May 2006

Airline caterer Alpha Airports has said legal uncertainty surrounding one of its contracts was behind the decision last month to pull its shares from the London Stock Exchange.

Although the group would not go into detail, it said there was doubt over whether a major contract, which began in October 2005, was a genuine transaction.

Trading in its shares was suspended when accountant PricewaterhouseCoopers refused to sign off its accounts for 2005 due to the irregularity.

In a statement to the City, Alpha said: "Material aspects of these new arrangements may not have been intended to have proper commercial effect."

It added that the client "might have been able to manipulate its own financial statements in circumstances in which its parent company was preparing for an initial public offering".

Two non-executive Alpha directors have been appointed to investigate the matter.

Total revenue from the deal in question was about £7.5m, which the group said it has received in full.

Alpha admits European fraud could cost £2.5m >>

Profits fall at Alpha >>

By Tom Bill

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking