In the course of the FY25 year-end review, Austin Engineering (ASX:ANG) has identified accounting errors in its financial statements relating to its Chile-based subsidiary Austin Ingenieros Chile.
The company does not expect the accounting error to materially affect its overall financial position as it involves reallocating the recognition of the relevant transactions to the correct financial year.
It was identified that Austin Chile incorrectly recognised revenue for certain transactions associated with the production of several trays in the FY24 financial statements, which resulted in Austin’s reported FY24 revenue and profit being overstated.
Austin’s management conducted a review of its internal processes related to tray tracking, warehousing practices, operational data reconciliation and its revenue recognition process to determine the appropriate period to recognise the Transactions.
To correct the error, Austin is restating the FY24 financial statements and other receivables balances, which will be reflected in statements lodged by 26 August 2025.
The accounting error is expected to result in a decrease to the reported FY24 revenue of $4.9 million, and a decrease to FY24 EBIT of $3.3 million.
FY25 revenue is then projected to increase by $8.3 million and FY25 EBIT by $5.2 million.
This adjustment will increase Austin’s projected FY25 revenue from $370 million to $377 million and its FY25 underlying EBIT from circa $41 million to circa $46 million.
Austin CEO Sy Van Dyk says this is a matter isolated to the Chile business, however, Austin remains “committed to strengthening compliance, improving internal controls and data integrity, and continuing to improve cross-functional communication to mitigate against any future errors of this nature.”
Write to Adam Orlando at Mining.com.au
Images: Austin
