T Clarke has revealed millions of pounds have been "misappropriated" by an employee at one of its subsidiaries, DG Robson Mechanical Services Limited (DGR).

The company is underway with an investigation into the accounting function of DGR and revealed funds in excess of £2.8 million have allegedly been taking by an employee over a number of years.

In a statement, T Clarke said it has taken "appropriate action, including the appointment of expert professional advisers" to assist with its investigations and to recover the stolen funds.

-- Advertisement --

The building services group said: "Investigations indicate that the incident is limited to DGR and does not impact the wider TClarke Group. Our findings to date suggest that if anything the Group's historic trading results and balance sheet net worth may be understated to the extent that any of the misappropriated funds are recoverable.

"The Board believes that any necessary accounting adjustments in the current period are unlikely to have a material adverse effect on the Group's results taken as a whole and, overall, the Group remains on track to meet market expectations for the year."

As part of a planned reorganisation, DGR's business operations are in the process of being transferred to T Clarke's London M&E business.

T Clarke added: "This process will now be accelerated and DGR's operations will be fully integrated into the London M&E business by the end of the year."

A further update on the investigation will be provided in the company's next planned trading statement on Thursday, 17 November.

(LM)