LONDON (Alliance News) - AssetCo PLC Monday said that its first-half pretax profit grew to GBP1.0 million, from GBP38,000, as gross margin improved and more than offset a drop in revenue, while administrative expenses also fell back.
The Middle-East focused fire and emergency services provider said its revenue fell to GBP7.0 million in the six months ended March 31, compared with GBP8.6 million in the corresponding period a year earlier. But higher gross margins and lower administrative expenses, which fell to GBP788,000, from GBP1.2 million, meant that the company's operating profit increased to GBP1.1 million, from GBP314,000.
Chairman Tudor Davies said that revenue was lower due to a combination of a loss-making equipment supply contract included in the corresponding period last year, and lower costs in connection with the company's claim against its former auditors. He said that the company has made progress with the claim and has submitted it under the professional negligence pre-action protocol, which gives the other side an opportunity to respond.
AssetCo is making a claim for GBP50.8 million over "negligent audits of the AssetCo Group" for the years ended March 31, 2010, and March 31, 2011.
Davies also said that the company has now completed and signed the contract for the supply of Fire Services in Abu Dhabi detailed in March, and expects the Abu Dhabi government to complete the contract shortly.
He said that AssetCo has continued to trade in line with management expectations.
AssetCo shares were Monday quoted at 265.00 pence, untraded.