BusinessBusiness RecoveryPwC takes close look at Amulet

PwC takes close look at Amulet

The administrators of the Amulet Group and its subsidiary, the Accident Group, have said they will be carefully examining the accounts as they handle the insolvency of the collapsed insurance provider.

Link: Accident Group faces claims probe

Among the company’s financial matters, the PricewaterhouseCoopers partners Michael Horrocks and Craig Livesey will be looking at balance sheets that show Amulet paid dividends of £11.4m to shareholders for 2001 and 2002.

The 2002 accounts, signed off by auditors from KPMG last December, reveal that Amulet paid £7.6m in dividends when it had profits of £9.8m, leaving it with a retained profit of £2.2m. In the previous year, the company paid out £3.8m of dividends on a loss of £793,000, resulting in a bottom-line loss of £4.6m.

The dividends paid out refer to a ‘note 10’ in the account, which stated that the dividend was paid in instalments in September and October 2001.

It also said that the total dividend payment was made with the help of £3.4m of reserves from the Accident Group.

However, the accounts for 2002 state Amulet had a retained profit of £2.2m. PwC administrators said: ‘In the course of our duties, we will be reviewing all the financial details of the company and we would take whatever steps we deem necessary.’

PKF’s head of business recovery Phillip Long said: ‘It seems very strange that such an apparently profitable company has been forced into administration so soon after the accounts to August 2002 have been made available.’

PwC administrators were called in to deal with Amulet on 30 May.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor