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BT takes £530m charge over ‘improper practices’ in Italy

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BT Group has been forced to write down the value of its Italian business by £530m following “inappropriate behaviour” over a number of years. The sum is far higher than the £145m BT initially anticipated and will affect its results for the next two years. BT began investigating accounting practices in Italy last October. It since emerged that the problems were “far greater than previously identified” and went back over “a number of years”. The charge will affect BT’s results both for this year and next. For the 2016-17 financial year, revenue will fall £200m and underlying earnings will be £175m lower. It expects to take a similar hit on group sales and earnings for the following financial year. BT said it has suspended a number of BT Italy’s senior management team who have now left the business. It has appointed a new chief executive of BT Italy who will take charge on 1 February.

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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