PracticeAuditVantis posts £6.5m loss after shock writedown

Vantis posts £6.5m loss after shock writedown

Revenue recognition action hits Vantis for £13.7m

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.

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