Going concern warning knocks Vantis share prices
Vantis’ share price hit a new low this week after auditors Ernst & Young issued a going concern warning in the group’s six month interim report.
The company’s share price fell to 20p this morning – the lowest in a year. Its share price has lost a third of its value since Friday, when it closed at 29p.
Higher costs, together with a slower than expected start to Q2 were cited as the main reasons for the group’s reduced profitability and weakening liquidity.
Fees not yet recovered in respect of the group’s work on the insolvency of Stanford International Bank were also a major contributing factor, said the report which warned: “The validity of the going concern basis depends on the group being able to operate within its current banking facilities and covenants and the successful outcome of the above”.
The board said it aimed to reduce costs significantly for the year ending April 2011 and would also look at other measures to improve the cash position, including reducing working capital.
A spokesman for Vantis told AccountingWEB.co.uk...