STOCKHOLM, Sept 5 Swedish search and directory
firm Eniro cut its full-year profit forecast for the
second time in just two months on Friday after discovering
book-keeping inaccuracies that could lead it to hand the matter
over to the police.
The company, which replaced its former Chief Executive
Johan Lindgren only three weeks ago, said it now expected an
operating profit of 700 million Swedish crowns ($99 million) in
2014, lower than the forecast of 850 million it gave in July.
Eniro said in a statement it would rescind an agreement over
severance pay to Lindgren while it was also looking into whether
there were grounds to file a police complaint regarding the
"If such grounds exist, a police complaint will be filed for
the handling of the accounting," it said.
Eniro shares tumbled over 30 percent on July 16, after the
company cut its earnings forecast after a second quarter of weak
sales in its Swedish business, above all at its eniro.se web
The company announced less than three weeks ago that Johan
Lindgren was to be replaced by Stefan Kercza, after the board
and Lindgren had "mutually agreed" he would leave his position.
Additionally, it appointed Roland Andersen new group chief
financial officer on July 29.
Eniro said the effect of the inaccuracies amounted to 58
million crowns on sales and earnings before interest, tax,
depreciation and amortisation (EBITDA) in 2013 while and the
negative impact for the first half of 2014 was 28 million.
(1 US dollar = 7.0709 Swedish crown)
(Reporting by Helena Soderpalm; editing by Niklas Pollard)