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SIX Exchange Regulation AG (SER) has submitted a request for a sanction to the Sanctions Commission of SIX Group against Rapid Nutrition PLC concerning alleged violations of the applicable accounting standards IFRS in the 2017/2018 annual and 2018/2019 interim financial statements.
After completion of its investigation, SER has concluded that the 2017/2018 annual and 2018/2019 interim IFRS financial statements of Rapid Nutrition PLC contain multiple material misstatements.
The alleged deficiencies in the 2017/2018 annual financial statements refer to the incorrect recognition of revenues from direct sales and licensing fees, the erroneous determination of fair values for financial assets as well as missing disclosures about the risks and the fair value measurement of these financial assets. As a consequence, revenue and net profit as well as financial assets have been materially overstated. The risks relating to financial assets have therefore been disclosed insufficiently. In addition, Rapid Nutrition PLC failed to perform a going concern assessment as of the financial year-end and did not disclose the material uncertainties about its ability to continue as a going concern. Furthermore, SER identified a lack of governance over the financial reporting process leading to other alleged errors in the presentation and disclosures related to the 2017/2018 annual financial statements.
In the 2018/2019 interim financial statements, the alleged deficiency refers to the missing fair value re-measurement of Rapid Nutrition PLC’s most significant financial assets resulting in a potentially material misstatement to the income statement and balance sheet. Furthermore, Rapid Nutrition
PLC failed to present the correct comparative periods for the income statement, the statement of changes in equity and the statement of cash flows.
No information will be provided while the sanction proceedings are ongoing. SER will inform the public about the outcome of the sanction proceedings.
