(Alliance News) - AssetCo PLC on Thursday said its first half revenue fell sharply after conclusion of fire services contract with the Abu Dhabi government.
AssetCo, which provides resources and management to fire and emergency services in the Middle East, posted GBP362,000 pretax profit for the six months ended March 31, 22% below its GBP464,000 profit the year before. Revenue halved to GBP5.2 million from GBP11.2 million.
"The reduced revenue results from the cessation of our fire services to the Abu Dhabi government," said AssetCo Chair Tudor Davies.
AssetCo stopped providing these services in December 2018. Davies said a number of its remaining 229 staff members, cut from 242 when the fire services contract ended, are currently tendering for new business in the United Arab Emirates.
"We are encouraged by the opportunities that have arisen and have been involved in work proposals across several sectors; however, at this stage it is too early to assess the timing and potential from these sources," said Davies.
AssetCo made a claim for negligence against its former auditors, Grant Thornton, and received a favourable judgement. Initially, permission to appeal was denied but Grant Thornton successfully applied to the Court of Appeal and the appeal will be heard near the end of January 2020. AssetCo was awarded GBP22.4 million of damages plus interest.
"We shall keep shareholders informed of any developments regarding Grant Thornton's appeal and on the further development and opportunities we have with our business in UAE," the chair said.
Shares in AssetCo were untraded at 275.00 pence on late Thursday morning.
Assetco (ASTO)