KPMG issues going concern warning for EMI

KPMG issues going concern warning for EMI

Accounts reveal extent of EMI troubles

KPMG has issued a going concern warning against music giant EMI, the home of
James Blunt and Take That, in accounts which
reports
say reveal the business lost more than £1bn in the year up to March 2009.

The warning comes in the accounts of Maltby Capital, the investment vehicle
which owns the recording label for private equity house Terra Firma, run by Guy
Hands.

There have been reports in the press that EMI could breach its banking
covenants.

In its report KPMG said that the group’s ability to continue as a going
concern rested on continued banking facilities and complying with the covenants
and that, in turn, relies upon the raising of further funds from shareholders.

KPMG also highlighted that a demand for more pension fund contributions to
fill a deficit would exacerbate the funding difficulties faced by the company.

“These conditions…indicate the existence of a material uncertainty which
may cast significant doubt on the group’s ability to continue as a going
concern. The financial statements do not include the adjustments that would
result if the group were unable to continue as a going concern,” KPMG’s report
concluded.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource