• Revised FY25 financial results with $3.2m additional goodwill impairment
• Auditor issued a disclaimer of opinion due to inventory and internal control issues
• Company implementing new ERP system and control enhancements to address issues

DGL Group Ltd (ASX: DGL) provided an update regarding its FY25 results and the auditor's disclaimer of opinion. During the audit process, an additional $3.2 million impairment to goodwill was identified, increasing the reported statutory Net Loss After Tax to $27.9 million. The company reported FY25 underlying EBITDA of $52.1 million and $44.7 million positive cash flow from operations. The auditor, PKF Melbourne Audit & Assurance Pty Ltd, has issued a Disclaimer of Opinion on the FY25 financial statements. This relates to issues in confirming stocktake variances at two sites, which was impacted by the implementation of a new Group-wide ERP system, as well as concerns over potential management override of controls due to weaknesses in internal controls and corporate governance processes. The company recognizes the seriousness of this matter and is committed to ensuring the control environment keeps pace with the scale and complexity of the business. It has implemented and is continuing to implement comprehensive control enhancements, including the implementation of the Group-wide ERP system, strengthened system access controls, enhanced fraud detection systems, and improved Board oversight and governance protocols. The company has also received a waiver from its bank syndicate confirming that the Disclaimer of Opinion and the current ASX suspension do not constitute an Event of Default under the Facility Agreement.