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AssetCo operating profits rise

By BFN News | 08:16 AM | Thursday 26 March, 2015

AssetCo posts an operating profit of £2.6m for the year to the end of September - up from £1.7m last time. Revenues fell to £14.6m (2013: £17.6m) but pre-tax profits rose to £2.3m (2013: £1.3m). AssetCo said the main factors behind the fall in revenues relate to the completion of its contractual obligations to construct and supply of equipment to four new fire stations. The year on year increase in profits was primarily due to the absence of one-off costs associated with the construction of the fire stations, and lower costs associated with the claim against its former auditor, Grant Thornton. Chairman Tudor Davies said: "We have made some progress in respect of the claim against Grant Thornton for losses resulting from negligent audits for the years ended 31 March 2009 and 31 March 2010, by submitting details of our claim, amounting to £50.8m, to Grant Thornton in accordance with the Professional Negligence Pre-action Protocol. "Although we submitted our claim in May 2014 and the Protocol provides that a substantive response be served within three months, in August 2014 Grant Thornton's solicitors indicated that they would not be in a position to serve a response 'before November'. "Grant Thornton's response has since been further delayed and their solicitors have recently indicated that we may expect a full reply by the end of March 2015. "Whilst we had hoped that Grant Thornton would engage fully and openly in accordance with the Professional Negligence Pre-Action Protocol, if a full response is not forthcoming we will be left with no sensible alternative other than to issue formal court proceedings against Grant Thornton in the near future." At 8:16am: (LON:ASTO) AssetCo PLC share price was -2.5p at 290p Story provided by

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