Fuji Xerox New Zealand (FXNZ) posted a pre-tax loss of $14.9 million in the year to March 2017, compared to a restated loss of $79 million the previous year – more than double the previously stated loss of $32 million.
In a restatement of its accounts following its ‘inflated revenue’ scandal, the company said its losses in the five years to 2016 totalled $373 million.
“The results include a restatement of prior period financial accounts from March 2011 to March 2016 as a result of the identification of significant historical accounting irregularities relating to a number of matters,” said a FXNZ media statement titled Turnaround Takes Shape.
The March 2017 results show improvement over the restated March 2016 financial accounts, including an underlying loss before tax of $14.9 million versus $79.0 million in March 2016. In addition, Fuji Xerox New Zealand continues to generate positive cash flow.
“A broader transformation programme is underway to return the company to profitability and deliver returns to our shareholders whilst continuing to deliver value to our customers,” said FXNZ’s new managing director Peter Thomas in a video statement.
“In addition to the commitment of continuous financial support our parent companies have already provided, we are currently looking at a range of options with our shareholder regarding our negative equity position.
“The inappropriate historic accounting that came to light recently has been independently investigated and we have implemented a wide range of measures to ensure this never happens again. Our primary focus now is on rebuilding trust with all stakeholders.
“Over the past two years, we have implemented a range of new governance and management actions to strengthen the way the company operates and we remain committed to continuing to improve governance and internal controls across the business," Thomas said. "Most recently, we have announced the appointment of Mr Haruhiko Imai in the newly created role of FXNZ chairman of the board. Mr Imai officially begins in the role this week. This now completes the previously noted changes to local governance and management structures - developed by Fuji Xerox Group.
“I’m incredibly optimistic about the future and I believe that with the continued unwavering support from our shareholder, loyal clients, world class products and services combined with an outstanding team of passionate and talented staff, our long-term future looks bright.”
Last week, Neil Whittaker, the former high-profile MD of FXNZ and Fuji Xerox Australia was named in court documents as one of the defendants in a High Court civil case launched by FXNZ following a $450 million accounting scandal at its Australasian subsidiaries. The second defendant applied for an interim order for name suppression. A third defendant has also now reportedly obtained an interim suppression order, according to a report in the Auckland-based National Business Review.
Fuji Xerox chairman Tadahito Yamamoto, deputy president Haruhiko Yoshida and two directors, Katsuhiko Yanagawa and Jun Takagi, all resigned in the wake of the scandal.