Avis Europe plc announced that it has identified, through its internal procedures, that there has potentially been malpractice in its local subsidiary in Portugal. The Directors` present assessment is…
Avis Europe plc announced that it has identified, through its internal procedures, that there has potentially been malpractice in its local subsidiary in Portugal. The Directors` present assessment is that this, if substantiated, will have resulted in an overstatement of the Group`s net assets as at 31 December 2006 by approximately €3m.
Avis Europe is conducting a full investigation and in the meantime, as a protective measure, is suspending certain of its management in Portugal.
Also, it is anticipated that pre tax-profit for the current year could be impacted by approximately €3m, if the malpractice is substantiated, in addition to the costs of the investigation. Otherwise the outlook is unchanged from the position in the recent AGM Trading Statement.
Avis Europe is exploring various mitigating measures, which could reduce the financial impact identified above. In the event the investigation confirms the malpractice, the Directors believe that the results for the operation in Portugal in future periods will be substantially improved.
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