Bitter moment of truth for Adler shareholders

fThe real estate company Adler Group, which has been under severe criticism since autumn 2021, has come to the extreme. The group wants to publish its belated annual financial statements for 2021 on Saturday. But as the company, which is listed in the S-Dax small-cap index, informed its shareholders late on Friday evening, the auditing department responsible for checking the annual balance sheets KPMG issue a waiver. The auditors therefore refuse to confirm that the business figures represent the actual economic situation of the company correctly.

Shocking message

This is a shock for investors and creditors. They are presented with figures, but there is no independent confirmation as to whether they can trust the calculations. The Adler share closed on Friday down more than 3 percent. After the market closed, the share price on the Tradegate trading platform collapsed by more than a third to less than 5 euros in response to the company’s shocking capital market announcement.

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For detailed view

On Monday, the Adler share had already lost 20 percent in value on one trading day after investors had taken a closer look at the report published a week ago about a special forensic audit of Adler’s balance sheets. The company, which manages 53,900 rental apartments in cities such as Berlin and Düsseldorf and is developing other real estate projects, was relieved of the most serious allegations according to the report. Adler’s chairman of the board, Stefan Kirsten, admitted that the special audit uncovered weaknesses, but there was no fraud or deception. However, the results of the forensic experts could not dispel all doubts, as was later shown by the stock market’s reaction.

It is particularly sobering that it wasn’t the auditors responsible for Adler who first drew attention to the question marks in the balance sheets. Serious allegations by the British stock market speculator got the ball rolling Fraser Perring and his company Viceroy. He reacted to the current events on the short message service Twitter and raised the question of whether the auditors would now appear as accused or witnesses in the case.

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