D+S europe AG: Publication of an error in the financial reporting in accordance with Sect. 37 q Para. 2 Securities Trading Act (WpHG)
Hamburg (euro adhoc) -
Audit statement by Deutsche Prüfstelle für Rechnungslegung e.V. (German Financial Reporting Enforcement Panel) in connection with consolidated financial statements and annual balance sheet 2007 of D+S europe AG
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companies
Hamburg, January 29, 2009. The consolidated
financial statements (IFRS) and the annual balance sheet of (GCC) of
D+S europe AG as of December 31, 2007 were subject of a sampling
audit by Deutsche Prüfstelle für Rechnungslegung e.V. (German
Financial Reporting Enforcement Panel), Berlin ("Audit Panel").In the course of this procedure the audit panel asserted that in the consolidated financial statements (IFRS) of D+S europe AG as of December 31, 2007 an effect from the reduction of deferred taxes on the liabilities side stemming from the acquisition of the Heycom Group in the amount of EUR 4.035 million were wrongly offset against shareholders` equity direct, as the change in deferred taxes on the liabilities side did not result from the acquisition of the enterprise but from the effects of the corporate tax reform in 2008. In this respect the effect from the change in tax rate must be carried in the profit and loss account. The consolidated financial statements (IFRS) of D+S europe AG was audited by the company´s auditor and received the auditor´s unconditional confirmation.
Meanwhile D+S europe AG and the company´s Auditor agree to the opinion of the Audit Panel that this amount should be carried as tax yield in the profit and loss account of the year 2007, thus augmenting the consolidated financial net profit of 2007 by EUR 4.035 million. This fact will be accounted for in the annual consolidated financial statements of 2008 by correction of the 2007 figures. The audit statement of the Audit Panel does not affect shareholders` equity of the Group for the business year 2007.
Moreover the Audit Panel asserted that in the consolidated financial statements (IFRS) and the Group management report of D+S europe AG as of December 31, 2007 proceeds from stock option transactions in the amount of EUR 3.0 million were not commented sufficiently. According to the Audit Panel, apart from the explanations given on this issue it would have been expedient to explain that call options on shares held in the portfolio were sold to the enterprise of a former member of the Supervisory Board and that the option premium of EUR 3.0 million was collected with effect on the income statement due to the irrevocable waiver by the option buyer made shortly afterwards.
Furthermore, the Audit Panel asserted that the proceeds from the above mentioned option premiums of EUR 1.2 million accruing to D+S europe AG for the same reason are not to be carried as other operating income but as extraordinary income in the consolidated financial statements of D+S europe AG as of December 31, 2007 (GCC). Hereby the result of common business operations of D+S europe AG decreases by EUR 1.2 million to EUR 12.6 million. The annual surplus remains unchanged. With regard to the annual balance sheet of D+S europe AG the Audit Panel also asserted that the option transaction was not sufficiently commented on in the Notes.
D+S europe AG and the annual and Group Auditor agree to the statements of the Audit Panel. This fact will be accounted for in the consolidated financial statements and the annual balance sheet of December 31, 2008 as well as in the management report 2008, by correction of the 2007 figures and statements. The audit statement of the Audit Panel does not affect shareholders` equity of the Group for the business year 2007.
No further audit statements were made. As from today D+S europe AG agrees to the audit statements described above. Thus the Audit Panel´s decision is conclusive and the audit completed.
About D+S europe: D+S europe AG is Germany´s largest listed solutions provider for comprehensive e-commerce and customer contact management. Regardless of the communication channel, whether via fixed or mobile network, by Internet, TV or in writing, D+S europe manages the contacts of internationally leading enterprises with millions of private customers. D+S europe operates online shops and their Europe-wide e-commerce business for renowned brand manufacturers. For further information please refer to www.dseurope.ag.
end of announcement euro adhoc
Further inquiry note:
Bernd Humke
Director M&A / Corporate Finance
Tel.: +49 (0)40 4114-0
E-Mail: investor-relations@dseurope.ag
Branche: Advertising
ISIN: DE0005336804
WKN: 533680
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade