UK - Beleaguered asset manager Schroder Investment Management has discovered that it had overstated its profits for the year 2000 by approximately £11m, after discovering errors in the preparation of its accounts.
Schroders thought that it had recorded profits of £149m in 2000, when in fact it had only earned £138m. Following the discovery of the accounting errors, Schroders believes that its 2001 profits will be up to 10% below market expectations of approximately £70m.
The accounting errors arose from incorrect accruals of fee income, and Schroders says it has had no effect on clients.
Schroder’s stock finished yesterday down 3.95% on the previous day. After the announcement of its overstated profits, Schroders stock fell to a low of 815.5p before rallying to finish the day at 875p a share.
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