Vantis posts £6.5m loss after shock writedown

Vantis has posted a £6.5m loss for the year end 30 April 2009, after a
write-off from its balance sheet.

The firm saw revenues for the period of £90m, down from a restated 2008
figure of £92.2m.

It was hit with exceptional costs of £13.7m relating to the “prudent
treatment” of investment plans, of which £2m was rationalisation costs
reogrnaising the business, compared to a restated figure of £1.5m in 2008.

Discussions with its auditors Deloitte around the revenue reocgnition of
profits and assets relating to an investment plan product within its then Vantis
Tax division had led to a delay in publishing the results.

“The group has taken a prudent view of these matters resulting in a
significant exceptional cost recognised in the current year of £6.6 million and
an adjustment to prior years of £4.4m. The remainder of the exceptional cost for
the current year arose largely from the reorganisation of the Group into two
divisions, Business Advisory & Tax (“BATS”) and Business Recovery Services
(“BRS”) to improve operating efficiency and more fully exploit the Vantis
brand,” said chairman Paul Gourmand in his statement in
the
annual report.

Additional working capital headroom has been agreed with its lenders.

“Importantly, our debt providers continue to be supportive and we are
resolving the challenging issues that face us,” said Gourmand.