Vox is expecting sharply reduced earnings when it releases results for the year ended 31 August 2008 later this month. The lower earnings – probably 45% to 55% lower than last year – are a direct result of the collapse of Dealstream Securities last month. There is a possibility that Vox could also instigate legal action against Dealstream.
Without the impact of the Dealstream events, the company would have been reporting earnings of 20% to 30% higher than last year.
"The Dealstream events are regarded as exceptional in nature or 'once off' and have no direct impact on the operational performance of the company," the company says in a statement.
The Financial Services Board (FSB) has issued an inspection report on Dealstream. Vox supports the investigation although it hasn't yet had the opportunity to engage with the FSB. However, Vox has met directly with the curator of Dealstream and detailed the basis of the company`s claim, which is currently being formalised.
Vox has also appointed a firm of independent forensic auditors to investigate the possible misappropriation of assets by Dealstream. As a result of the investigation, it has come to the attention of Vox directors that 27 300 000 shares issued by the company for the purposes of a share incentive scheme established for the benefit of employees, and which were held by a third party, may have been misappropriated by Dealstream.
There could be grounds for a criminal action, and Vox has instructed its attorneys to report the perpetrators to the prosecuting authorities and to assist the relevant authorities in any ensuing investigation and prosecution.
Meanwhile, shareholding in the company by the directors has also been affected by the Dealstream collapse and the company hopes to implements a new share incentive scheme for directors and key staff members.