Greencore has sacked three senior managers after a €20 million fraud was uncovered, it was revealed today.
The money went missing after costs were deliberately concealed at its Scottish mineral water business, Campsie, over the last three years.
Greencore chief executive Patrick Coveney said a full investigation is underway
Greencore said the false accounts from 2006 up to last year amount to €21 million.
"The investigation indicates that this concealment of costs was undertaken by the former financial controller of the mineral water business who left the business prior to the concealment being uncovered," Greencore said in a statement.
The company said three managers directly responsible for the financial controller blamed for the fraud have been dismissed.
Greencore said it had not uncovered a motive for the fraud, but insisted it was an isolated incident.
"The group is taking legal advice on what, if any, elements of this financial impact can be recovered," the company said.
The affect of the fraud was also detailed.
"The financial implications of these issues will lead to a restatement reducing the group's operating profit by €4 million for 2006 and by €8 million for 2007," the company said.
"In addition, the estimated impact of this issue in 2008 will be a reduction of operating profit of €9 million."
It is also expected to hit shareholders with earnings per share down by 4 cent.
All of Greencore's businesses will be reviewed internally with the support of accounting consultants KPMG while internal controls, financial reporting and external auditing will also be looked at.
Greencore shares slumped in early trading, down 18.5 per cent by 10.45 am.