The article questioning Aascent's financial strength (News, 9 February) had more bumps and gouges than last weekend's pitch at Stamford Bridge.
First, as any experienced businessperson knows, a company's first year accounts are hardly indicative of trading generally, as the first year is full of start-up costs and everything that goes into building a successful business for the future. Year one losses are commonplace.
Aascent has been profitable since 2004. The company is now in its fifth year of trading and has the full backing of Barclays Bank, which has just increased our line of credit by 25% so far this year, and we plan to increase that to 60% at the beginning of the second quarter.
That's not a sign of a business in trouble.
Had there genuinely been any problem with our financial position, our auditor, KPMG, would simply not have signed off our accounts.
Second, suggesting our turnover for 2003 was just £511,000 was totally incorrect. This was actually our net income. Turnover for 2003 was in the tens of millions of pounds and has grown by more than 250% since then.
Third, the unnamed compliance firm expert you quote who is concerned that brokers have so much money tied up in Aascent clearly does not understand how premium finance works.
Brokers don't have any money tied up in us. Any commission we have collected for the broker is paid out on a monthly basis.
Your expert makes groundless comments that brokers should think twice before putting business with us. I would question this person's expertise. I'm willing to be named and quoted, so why isn't he?
Perhaps he'd like to stand up and be named so brokers can decide whether or not to trust their own compliance issues to someone who misunderstands or misquotes our basic business structure and performance.
Better yet, ask some of our brokers who are growing their businesses with us year after year - those with direct experience of who we are and what we do.
Ed Ferrell
Director, sales and operations
Aascent
