Vantis receives 'going concern' warning
Uncertainty over cash from Stanford liquidation
Listed accountancy firm Vantis has been forced to issue a going concern warning with its interim results amid concerns about its cash position.
Vantis has been left short of cash after spending six months working on the liquidation of the Stanford empire without receiving any fees.
Ernst & Young, which audits Vantis plc, said: "material uncertainties associated with receipts from the Stanford insolvency ... may cast significant doubt on the company’s ability to continue as a going concern".
The firm warned shareholders that it had been unable to collect any fees for the liquidation work on Stanford International Bank due to the US and Switzerland freezing the assets which it needs to realise before it can recover its fees. Vantis said: “The group is confident that outstanding time costs will be recovered in due course but the various legal actions mean that timing is uncertain.”
Net debt at the firm had risen to £40.4m at the end of October, and the firm is now in the midst of a cost-cutting programme which is likely to include redundancies.
Posted at 08:50AM Feb 06, 2010 by Kelly Board in The Economy | Comments[0]
