DX takes £1.8m hit after accounting error

DX Group announced on Friday that, during the preparation of its final results for the year ended 30 June, it became aware of an “incorrect application” of accounting policies relating to lease incentives on one of its sites.

The AIM-traded firm said, following appropriate application of the policies, there would be a non-cash impact of £1.8m to its previously-guided underlying profits for the year.

“This does not impact prior accounting periods,” the board confirmed.

“Under the correct accounting treatment, the £1.8m lease incentive will be credited back over the remaining 10 year term of the lease.”