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(Alliance News) - Fire and emergency services provider AssetCo PLC on Thursday said it swung to a full-year loss, with revenue tumbling after losing a contract in Abu Dhabi.
In the financial year that ended September 30, revenue was down 77% to GBP5.3 million from GBP22.9 million, with AssetCo swinging to a pretax loss of GBP763,000 from a GBP1.4 million profit in the year prior.
"The results for the year to September 30, 2019 reflect the loss, as previously announced in the final quarter of 2018, of the Abu Dhabi contract," AssetCo explained.
Monmouthshire, Wales-based AssetCo stopped providing these services in December 2018.
During the year, the company said its headcount was chopped to just 5 from 229 previously.
AssetCo added: "The remaining staff are senior Fire Service and administration staff who have been dealing with the receivables, bonds, and tendering for new business. There are a number of opportunities we are pursuing which may take several months to realise and we shall keep shareholders informed of any material developments as and when they come to fruition."
The company added that auditing firm Grant Thornton LLP has appealed a court ruling in AssetCo's favour, with the appeal verdict expected before the summer of 2020.
AssetCo made a negligence claim against its former auditors, which resulted in a trial in June 2018. The verdict was in favour of AssetCo and Grant Thornton was made to pay GBP22.4 million in damages, plus GBP6.5 million in interest and GBP5 million in costs.
AssetCo said: "29 March 29, 2019, Grant Thornton paid GBP34.3 million into court on which interest is accruing at the rate of 8% per annum. An appeal by Grant Thornton was lodged and later heard by the Court of Appeal at the end of January 2020 and the Court of Appeal's decision is expected to be handed down before the summer of 2020."
AssetCo shares were down 3.9% at 350.00 pence each in London on Thursday, shortly after midday.
By Eric Cunha; ericcunha@alliancenews.com
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