Vantis plc, the AIM-listed accountancy firm, has itself been hit hard by the case involving Allen Stanford. Vantis warned yesterday that “material uncertainties associated with receipts from the Stanford insolvency … may cast significant doubt on the company’s ability to continue as a going concern.”
According to the Times Online, Vantis’ auditor, Ernst & Young, cautioned that “the validity of the going concern basis depends on the group being able to operate within its current banking facilities and covenants which requires the successful outcome of the above”.
Vantis has reportedly been unable to collect fees for advisory work carried out on the liquidation of Stanford International Bank over the past six months, because the United States and Switzerland have frozen the assets. Vantis stated that it expects to ultimately recover the fees but “the various legal actions mean that timing is uncertain.”