September 5, 2014 / 6:51 AM / in 3 years

Eniro cuts profit forecast again after finding "accounting inaccuracies"

STOCKHOLM, Sept 5 (Reuters) - 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 book-keeping inacurracies.

“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 search portal.

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)

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