The board of Dutch IT services vendor Getronics NV did not know about the losses at its Italian unit before January 2006, according to the company’s CEO Klaas Wagenaar.
The claim of innocence comes after it was revealed that Dutch financial services regulator AFM is investigating the company. Reports claim that it is looking at timing of the disclosure of losses at its Italian unit, which it subsequently sold last year.
Its share price fell sharply for the second day running, as Getronics revealed its full annual accounts, following on from the profit warning it issued on Wednesday. Its shares have decreased in value by 13% over the two days.
Getronics said its UK operations had been disappointing as the business recovery has taken longer than expected. It said this was due to the high use of subcontractors and price erosion. Its US operations also performed poorly, with revenue down 15% in 2006 due to the loss of two major contracts, price pressure on renewals, and low-margin contracts in the retail sector.