Cello Settles VAT Dispute; comScore Sets Date

Two agencies have given updates on their (potentially rather different) accounting headaches. comScore says its internal investigation into accounting irregularities should be completed next month; while separately, Cello Group has settled a VAT dispute with an agreement to pay a total of £5.3m.

A week into March, comScore's shares plunged 35% when it disclosed in an SEC filing that its Audit Committee has not finalized an ongoing review of 'certain potential accounting matters', leading to a delay in the filing of its annual report, postponement of an investor day and the suspension of its $125m share repurchase scheme. The firm was obliged to submit a plan for resolving the issues by May 15th (or face delisting), and last week told the SEC the committee will report its findings by 27th June. In the meantime its shares continue close to the low reached in March.

Web site: www.comscore.com .


Separately, UK-based Cello Group PLC appears to have settled its dispute with tax authority HMRC over retrospective VAT and penalties relating to historical fund raising activities delivered to charity clients by a division of its Cello Signal business. The discussions were mentioned in results last September when Cello said it had made a first half provision of £1.1m for the case, but in total the company had set aside £3.2m, to which it will now add a further £2.1m non headline charge, for a total of £5.3m including penalties and interest. The total is stated pre-recovery from clients, and before tax relief.

Despite the additional amount, the Board said it was 'pleased that the matter is now effectively concluded', and stressed that it remains fully committed to developing and growing the charity business of Cello Signal, which 'has continued to trade well during the period of the dispute, growing its revenue base strongly'.

Cello points out that 'HMRC guidance concerning zero rating of supplies to charities is highly complex' - a statement with which we're certainly not going to argue.

Web site: www.cellogroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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