Scandal-hit Fuji revises up losses

The New Zealand arm of Fuji Xerox is in negative equity to the tune of $336 million after restating its accounts for 2011 to 2016 and posting a further loss.

The Japanese office products firm has been forced to rework its New Zealand accounts after booking sales ahead of time, in a move that it believes boosted incentives paid to its local management.

It revised up its loss for the year to March 2016 from $32m to $72m.

Fuji Xerox NZ is currently suspended from supplying copiers and printers to government agencies and the Serious Fraud Office (SFO) has renewed an investigation into what went on at the firm.

New auditor KPMG said Fuji Xerox discovered ‘‘significant accounting irregularities during the year ending March 31, relating to a number of matters that had been inappropriately accounted for over a number of prior years’’.

Fuji Xerox NZ managing director Peter Thomas – who joined the firm in 2015 and was promoted to head it in September – said the company’s Japanese parent was continuing to provide financial support to the business.

He said it was looking at ‘‘a range of options’’ to address its negative-equity position, which means that the subsidiary’s liabilities exceed its assets.

Although Fuji Xerox reported a further loss of $11m in the year to March 31, it was continuing to generate positive cashflows, he said in a statement.

In an apparent reference to the SFO probe, Thomas said its ‘‘inappropriate historic accounting’’ issues were being independently investigated.

The company said it would also co-operate with any inquiry by relevant regulatory authorities.

Fuji Xerox NZ’s revenues for the year to March were up 3 per cent at $188m.