Fears relate to the company’s ability to cover the significant start-up losses of government contracts, after the company introduced a new method for booking the cost of bidding for contracts, according to a report in the Daily Mail.
The new treatment resulted in Amey recording a 2001 loss of £18m, instead of an expected profit of £52m.
Concerns also relate to an announcement by the company last month that it would miss profit forecasts unless it was awarded the Tube contracts. In addition the company booked £14m on its recent accounts for money owed for developing the Croydon light rail system.
Debts at the company stand at more than £106m according to reports.
But the company said it was satisfied with the report of the independent auditors, Grant Thornton and was confident it would meet its commitments.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements