Mayflower shock losses warning

BUS MAKER Mayflower Corporation is facing calls for a Financial Services Authority investigation after the group issued a shock warning that it is likely to crash into significant losses this year, against profit hopes just a few months ago of more than £22m.

It also emerged that the troubled maker of Dennis and Plaxton buses has hired an insolvency expert in a bid to prevent it from breaching a new £160m debt facility it signed at Christmas.

Alan Jamieson, a former head of business recovery at PricewaterhouseCoopers is the group's 'restructuring officer'.

Mayflower today warned its annual results, due next week, have been put back for a month after a raft of operational and accounting issues it says have emerged as a result of the end of year audit by PwC accountants.

That statement, which sent the shares crashing by 6p to 19p, revealed it expects profits before exceptional items will be £6m. The bottom line is likely to be far worse as the company warned of 'significant exceptional charges'.

A shareholder said: 'The statements from the company have been grossly misleading.'