Hammonds is facing fresh financial upheaval after auditors uncovered an £8.1m shortfall in revenues, just days after the embattled national stalwart revealed average partner profits had plunged by 25% to £204,000.
The figure, which relates to the firm’s 2003-04 financial year, covers changes in accounting policy, including the revaluation of profits from work in progress (WIP) under the FRS5 accounting standard. The cash shortfall will now be recovered from Hammonds’ partner profits over several years, although no formal repayment plan has yet been drawn up by senior management.
