DEALINGS in the shares of Mackie International, the Belfast engineering company, were suspended yesterday, prior to a warning from the company that the published results might have to be restated.
A cryptic five line statement explained that "certain matters have come to light which may or may not lead to a restatement of the accounts for the year ended December 31st 1996".
The statement was read out to the 360 employees by the new group chief executive, Mr Sul Sahota. However, he did not elaborate.
The shares were suspended at 113 1/2p sterling, a 12 months low, and well below the year high of 341p. Suspecting that something was amiss, the share dropped by 10.3per cent last week.
The company told The Irish Times that it could make no further comment but the shock revelation follows a major management shake up in the beleaguered company last month.
These changes are likely to have led to a reappraisal of the latest results, and in particular the provisions.
Less than four weeks ago, the company announced that it had plunged into a loss of £437,000 sterling for 1996 after profits of £3.3 million in 1995 with sales down 22 per cent to £17.7 million.
The loss came after an exceptional charge of £1.9 million for restructuring of the textiles operations and pension provisions. This charge may now be increased and a further announcement will be made "in due course".
The biggest problem area for Mackie continues to be its textiles manufacturing business which is undergoing a reorganisation.
However, Mr Sahota, who replaced Mr Peter Long last month as director and chief executive, believes that the bottom of this particular cycle might be near.
The newer businesses were all performing well, with the Springvale foundry scheduled to start production shortly.
The textile manufacturing business, according to Mr Sahota, is to remain a core part of the Mackie business.
However, it will account for a lower, proportion of profits and sales as the remainder of the business expands.
Non-textile subsidiaries increased their sales from £3.4 million to £6.1 million last year, accounting for 65 per cent of sales.
Other management changes included Mr Pat Dougan, who will step down as chairman at the forthcoming annual general meeting, to be replaced by Mr Roger Looker.
He will remain as a non-executive director.
Mr Long said he had resigned to "pursue other interests". Mr Dougan said it had been his intention for some time to take a "lesser role in the direction and management of Mackie".
