Assetco expects better second half

Outsourced fire and rescue services provider AssetCo says that its contract in the UAE will start to generate revenues in the second half of its financial year. Revenue grew 4% to £17.1m in the six months to September 2010. The underlying growth was even stronger. Excluding an unrealised £791,000 loss on fair value of a financial instrument, pre-tax profit improved from £3.57m to £4.16m. The main reason for the improvement in profit was lower overheads. Net debt has risen from£75.7m to £77.1m in the six months to September 2010. AIM-quoted AssetCo is negotiating with its banks about releasing additional cash from its non-recourse asset financing. There is just over £10m in the balance sheet relating to assets held for sale. That value was written down by £4.85m. The sale of vehicles producer Treka Bus has been completed and negotiations are advanced for the sale of other non-core assets.