Tech Data Corporation is to restate some or all of its financial results over the past three years to correct ‘improprieties’ relating to its UK subsidiary Computer 2000's vendor accounts.
The move could see £21m cut from the company’s previously reported net profit.
Announcing the decision to restate its figures Tech Data Group warned investors they ‘should no longer rely upon the Company's previously released financial statements and other financial data relating to these periods.’
It added: ‘The Company anticipates that the restatement will be made to correct improprieties primarily related to how the Company's U.K.subsidiary reflected vendor accounting.
‘The Company estimates that the restatement will reduce previously reported consolidated operating income by an aggregate amount of approximately $30 million to $40 million, and consolidated net income by an aggregate amount of approximately $25 million to $33 million, over the three fiscal year periods.’
The company added the estimate could change during the ongoing investigation into the UK subsidiary’s accounts.
Robert M. Dutkowsky, Tech Data's CEO said: ‘We are working diligently to resolve this matter as soon as possible. We do not plan to comment further during the course of the investigation unless any material developments arise.’
Computer 2000's divisions include Tech Data Mobile, Azlan, Maverick and Datech. It recently acquired SDG.