Downer has reported that an investigation into misreporting of revenue and work in progress in one of their maintenance contracts in the Australian Utilities business has been completed.
The misreporting was found to be specific to the contract and not replicated elsewhere.
A commercial reset of the contract with the customer has been agreed and a new contract management team has been put in place.
The misreporting has resulted in earnings being overstated by $22.2 million between April 2020 and June 2022, with $3.2 million of this being restated in the 1H FY2023 results.
Further measures have also been implemented to ensure the misreporting does not occur again.
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