TFS shares halted on audit issue

Sandalwood producer TFS Corporation entered a trading halt this morning, just before the scheduled release of its annual results, saying it was in discussions with its newly-appointed auditor.

The company has since released their results, which was reported by Business News here.

In a statement today, the Frank Wilson-led company said it was in discussions with EY regarding the accounting of its managed investment schemes (MIS), which are managed by a group company.

“The matter being discussed relates to the consolidation into the group accounts of the assets and liabilities of certain schemes,” the company said.

“Any changes are not expected to impact the cash earnings before interest, tax, depreciation and amortisation.”

EY took over as the auditor of TFS’s accounts after West Perth-based Bentleys resigned last year.

TFS’s most recent report shows that it managed 9,078 hectares of sandalwood plantations.

Its MIS schemes and high net worth investors own 3,585ha, institutions own 3,175ha, and the company itself directly owns 2,318ha.

EY audited TFS’s half-year financial report in February, when the Nedlands company posted a massive surge in profit from $3.2 million to $55 million.

TFS shares have been locked in a trading halt until Tuesday, or when the company releases an announcement.

They were last trading at $1.49 at the close yesterday.