ï Demand for Adeccoís services based on the latest available information is stronger than last year. Mr. John Bowmer, Executive Chairman of the Board, commented: Based on currently available management reports, demand for the Companyís services thus far this year is within the Companyís expectations and the business remains healthy.
ï The Companyís current financial position is sound. Internal analysis shows that the Companyís net debt position (including off-balance sheet debt) amounted to approximately Euro 900 million at year-end. The reduction in net debt in the fourth quarter resulted mostly from the Companyís operating activities.
ï As stated before, material weaknesses in Adecco Staffing North Americaís internal controls have been identified, and an investigation pertaining to accounting, internal controls and compliance issues at the Company is underway. The enquiries regarding all these issues are at an early stage. Based on the currently available information, however, the Board has so far found no evidence demonstrating any major misappropriations or irregularities that would be financially significant to the Company as a whole. Instances of local misappropriations and irregularities -- mainly at branch-level -- have been identified in certain countries. However, the Board does not believe these instances will turn out to be financially significant to the Company as a whole, although, as any such conduct would be, they are nonetheless of concern to the Company.
ï The Board has decided to appoint Mr. Richard Kilsby as Independent Monitor tasked to assure the independence of the investigation currently being conducted by the New York law firm of Paul, Weiss, Rifkind, Wharton and Garrison LLP. The Board has decided upon this appointment to underline its commitment to a full, complete and independent investigation.
ï The Company is initiating steps to improve significantly its control systems. Mr. Bowmer commented: We are working to reinforce and improve our systems and our finance function, and are determined to work through and learn quickly from these problems. We expect that Adecco will be an even stronger company when coming out of this period.
ï The Company has appointed Mr. Ray Roe as Chief Executive Officer of Adecco Groupís North American operations, including Adecco Staffing, Ajilon, and Lee Hecht Harrison.In this capacity Ray Roe will be reporting to Jerome Caille, Adeccoís Chief Executive Officer. In Ajilon, as Chief Executive of the division he led a successful restructuring of the business. The Board and management are very pleased with Ray Roeís appointment and believe he will bring his leadership skills and drive to resolve the issues at Adecco Staffing North America. Ray Roe has the Boardís and managementís full support in doing what is necessary to sustain Adeccoís industry leadership in North America.
ï The Board would like to caution the public to rely only on statements officially issued by the Company on the matters concerning the delay in the audit and related issues, which prior to this release, included only the Companyís media releases of January 12 and January 16. The Board is committed to communicate with the Companyís stakeholders in a timely manner.
ï The Board of Directors wishes to thank the Companyís management team and employees around the world for their commitment and hard work during this period.
ï The Board of Directors also wishes to thank wholeheartedly the Companyís clients and associates for their loyalty.
Statement by Adecco S.A board of directors
.