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AssetCo operating losses narrow

By BFN News | 08:48 AM | Tuesday 10 April, 2012

Total operating losses at AssetCo fell to £24.5m in the 18 months to the end of September - down from £131.6m in the year to the end of March 2010. And the company posts a pre-tax profit of £82.3m compared with a loss of £131.5m last time. Chairman Tudor Davies said the period had been one of major disappointment for shareholders, as the share price collapsed from 60p to 1.75p once the serious liquidity problems became apparent, the potential approaches to acquire the business evaporated, and the company was ultimately financed through the dilutive share issue which was announced last September. But he adds: "On 29 September the successful restructuring of the business was completed; this allowed for the parent company, AssetCo Plc, to 're-finance' and 'ring-fence' the company's business in the United Arab Emirates from the liabilities of the UK operations so that its focus can be on growing the operations in the UAE." He continues: "The restructuring should provide a basis for a solution to the difficult UK vehicle leasing and maintenance businesses; but of primary importance is the successful ring-fencing and refinancing of the parent company to provide a stable financial platform to enable management to concentrate on renewing their successful outsourcing contract in the UAE, and also pursuing further opportunities with their partners in the Middle-East region." Story provided by

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