RFG admits reporting errors

RETAIL Food Group has been forced to apologise to shareholders after it found errors in its reporting of the company’s disastrous full-year financial results.

The struggling Southport franchisor unveiled a $306.7 million full-year loss on Friday, more than three times the $87.6 million loss it flagged in June. RFG said the disparity was down to $402.9 million of non-cash impairments and writedowns.

This morning RFG said its report had wrongly stated the $306.7 million loss was before income tax, when it was actually the post-tax loss.

The company also wrongly stated it had paid down its debt from $309 million to $265 million, when it had actually paid off $20 million less and owed $285 million.

It apologised and reissued the financial statements, saying the errors had “no other bearing” on the related documents also released on Friday.

RFG has announced plans to close 250 domestic stores – up from the previously announced 200 – by June next year, after shuttering 232 stores in the 12 months to June.