CART Carter&Cart

RNS Number:8992I
Carter & Carter Group PLC
30 November 2007


For immediate release                                        30 November 2007





                           Carter & Carter Group plc



                                     Update



2007 preliminary results



On 2 October 2007, Carter & Carter Group plc ("Carter & Carter" or the "Company"
or the "Group") requested that the trading of its ordinary shares be suspended
with immediate effect pending clarification of its financial position.



Since that time, the Company has been working with its auditors,
PricewaterhouseCoopers LLP, to resolve issues identified during the audit of the
results for the year ended 31 July 2007. In particular, the Company has been
assessing the recoverability of certain current assets as at 31 July 2007 and
has been reviewing the accuracy of certain other revenue streams in the
business.



The Board has become aware that the quality of some apprentice learner records
have been insufficient to support funding claims made to the Learning and Skills
Council ("LSC").



In addition, the work carried out on behalf of the Board has also revealed
deficiencies in relation to the learner records at the Group's Skills division
including the falsification of certain supporting documentation. The Board
currently understands those issues are restricted to a programme in the North
East Skills business, which is in the process of being closed down.



A full review of the Company's financial and reporting procedures is being
undertaken to confirm that the full extent of these issues is understood and to
ensure that no such errors occur in the future.



The Company has disclosed its preliminary findings to the LSC and to other
relevant regulatory authorities, and is co-operating fully with the LSC in
determining an accurate position.



The Group's other businesses, namely Employability, Outsource Services, CBE,
Quantica Training and NTP, continue to trade satisfactorily and are benefiting
from an ongoing cost reduction programme.



Until the review detailed above is completed, the Group remains unable to
complete the audit of its results for the year ended 31 July 2007 and,
therefore, will be unable to publish its preliminary results for the year ended
31 July 2007, as required by the Disclosure and Transparency Rules, within four
months of its year end. Accordingly, trading in the Company's ordinary shares
will remain suspended.





Management changes



During this period there have been a number of changes in management. Peter
Marples (Group Director of Business Development) and John Green (Finance
Director) have both resigned as Directors of the Company, and a number of
divisional managers have left the Company. Rodney Westhead took on additional
responsibility becoming acting Chief Executive whilst a permanent replacement is
identified.



In order to strengthen the management function of the Group a strong and
experienced interim management team has been appointed to assist with the
restructuring of the Group, along with a number of additional senior finance
staff.



As previously announced, the Group is continuing to search for a replacement
Chief Executive.





Looking ahead



The present uncertainty is impacting current trading. The Board is working hard
to resolve the issues highlighted above and to secure the ongoing support of the
LSC and the banks, both of which are the subject of continuing negotiations.



The Board continues to work closely with the LSC and is in the process of
implementing systems and controls to eradicate inaccurate or incomplete record
keeping from the business at the earliest opportunity. The Company also remains
committed to ensuring that the quality of training delivered remains at the
highest level.



As at the 28 November 2007, the Group's indebtedness was #131 million and is
likely to be higher than the current performance of the business is able to
support. As previously announced, the Company is in discussions with its bankers
regarding its financial position and these discussions are ongoing.



Shareholders will be kept informed of further developments in due course.



Enquiries:


Buchanan Communications                              Tel:   020 7466 5000
Suzanne Brocks
Mark Edwards






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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