MELBOURNE - [AAP] Cement and masonry supplier Adelaide Brighton (ASX: ABC) is investigating some transactions which may have hidden customer underpayments for supplied products.

Adelaide Brighton's investigation, with the help of forensic accountants KPMG, is also looking at whether an employee could have been involved.

The company says the underpayments may adversely affect 2016/17 earnings by up to $14 million, less any amounts recovered.

Consequently, the company expects there will be an additional provision of $14 million made for doubtful debts.

"While the investigation is still in process, based on the information currently available, it appears that there may have been deliberately hidden underpayments by customers over a sustained period," Adelaide Brighton said in a statement on Monday.

Adelaide Brighton has reported the matter to its auditors and says it will co-operate with relevant authorities as the investigation proceeds.

Excluding the one-off impact of the issue, Adelaide Brighton confirmed its guidance for an underlying profit of between $188 million and $198 million for the 2017 full calendar year.

Shares in Adelaide Brighton were 1 cent, or 0.16 per cent, lower at $6.34 at 1145 AEDT.

 

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