Aascent's auditor, KPMG, has raised concerns that the premium finance provider could have its overdraft facility withdrawn, leaving it without finances to pay outstanding liabilities.

KPMG voiced unease with the company's reliance on its overdraft facility.

It said: "The [loan] facility and further funds may be withdrawn at any time...In the event that the facility is not renewed and no alternative funding is obtained, the company would no longer be able to trade as a going concern."

But Aascent managing director Kevin O'Flanagan said the privately-owned company had secured "a credit facility on a rolling period. The bank will only lend us money for 364 days".

O'Flanagan said the auditor's note was a compliance necessity. He added: "I don't particularly like this statement being in there, but I'm prepared to put up with it."

There were also concerns that Aascent's liabilities exceeded its total assets by almost £800,000.

KPMG said: "The company is dependent on its ability to secure funding from external sources to fund the expansion of its customer base, increase the amount of gross business written and to fund existing working capital requirements."

O'Flanagan strongly defended the company's finances: "Liabilities exceeding assets is not a concern".

He added: "It has only taken us three years to make a profit, compared with 10 years for certain other firms."

Aascent achieved a pre-tax profit of £239,759 for 2005, compared with a loss of £156,145 reported for the previous year.