Company says it is now in profit and future secure
Struggling premium finance provider Aascent assured brokers this week that its future was secure,despite reporting losses of £1.2m in its end of year accounts for 2003.
Serious concerns had been raised after the company was late in providing its accounts to Companies House for two consecutive years since its inception in 2002.
Turnover in 2003 was reported as £510,545,while losses totalled almost £1.2m.
The company 's 2004 accounts are still outstanding.
Ed Ferrell,director of sales and operations at Aascent, said:"The delay in reporting was down to an administrative error.We expect to submit the 2004 accounts in the next 30-45 days which will reassure brokers of our position.Losses for 2003 were in line with expectations and we have been making a profit since early 2004."
According to Ferrell, Aascent recently confirmed a 25%increase in a loan facility with Barclays and was given qualified approval in its audit with KPMG.
But,one compliance firm told Insurance Times :"Many of my brokers have a lot of money tied up with Aascent and I find the situation worrying.The 2003 accounts depict a business with minimal turnover."
Biba head of technical services Peter Staddon said: "Brokers should not be too hasty.New firms rarely see real returns for the first year or so."