On 7 August 2012, the Financial Reporting Review Panel (FRRP) announced that its review of the annual report and accounts of Pendragon PLC (Pendragon) for the year ended 31 December 2011 (which the FRRP initiated in March 2012) has been concluded. The decision follows “corrective action” taken by the directors of Pendragon in relation to the presentation of cash flows from Pendragon’s contract hire vehicle operations which were reported in its annual report and accounts for the year ended 31 December 2011.
According to the FRRP, Pendragon’s 2012 Interim Results, which were announced on 7 August 2012, corrected an error reported in the 2011 consolidated cash flow statement through a restatement of the comparative figures. The correction represented a reclassification of net cash outflows of £31.3 million, related to the company’s contract hire operations, which were reported in the 2011 consolidated cash flow statement within investing activities, to operating activities. The FRRP notes that there is no impact on the net cash flow, the opening and closing cash position, the income statement or the statement of financial position as previously reported.
(Review of the annual report and accounts of Pendragon PLC for the year ended 31 December 2011, 07.08.12)