Update reveals Vantis losses widen

Feb 3 2010 by jez Davison, Evening Gazette

BUSINESS advisory and taxation firm Vantis has reported widening losses in its latest trading update.

In the six months to October 31 2009, the AIM-listed firm - which employs 60 staff across offices in Middlesbrough, Darlington and Hartlepool - made a pre-tax loss (after exceptional costs and interest) of £10.7m following a £6.5m loss in the year to April 30 2009.

The latest figures were skewed by exceptional costs of £11.7m, which included a £9.4m impairment charge and £1.7m arising from operational and financial restructuring.

Group turnover before exceptional items reduced by 2% to £47m, while operating profit on continuing activities before amortisation, exceptional items, interest and tax was £3.6m - half the figure in 2008.

The firm said its business advisory and tax (BATS) operation had suffered in the recession, with revenues down 17% to £29.6m.

However its business recovery services (BRS) division saw turnover rise 43% to £17.4m.

The group said it had kick-started a cost reduction programme to improve future performance.

Chairman Mike Wheeler said: “We expect further growth in BRS but the performance of BATS will be constrained until the UK economy improves.”

The company employs more than 1,000 people throughout the UK and offers a range of advisory services spanning accountancy, corporate finance, business recovery and asset finance.

It posted a profit of £8.4m in the year to April 30 2008 before the effects of the recession began to bite.