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Novia’s £2.8m losses prompt auditor doubts over its future

Auditors have questioned Novia Financial’s ability to continue as a going concern after the firm incurred a net loss of £2.8m last year.

In Novia’s financial statements for the period ended December 31, 2008, the Bristol branch of PricewaterhouseCoopers states: “The company incurred a net loss of £2.8m during the period and the company’s ability to continue as a going concern depends on the company achieving acceptable growth in assets under management and resulting revenue.

“These conditions, along with other matters, indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”

But the directors say the results are “typical” for a start up business in the current climate, adding that the firm has received “irrevocable commitment” from existing investors to inject a further £2m of capital into the business.

The financial statement adds that Novia has also received commitment from existing shareholders that they intend to provide additional capital if the firm does not meet its current growth forecast.

The report states: “Whilst the company is achieving an acceptable rate of growth in assets under management and resulting revenues in very challenging market conditions, the achievement of future growth targets and therefore continued shareholder investment and support represents a material uncertainty but one that the directors regard as being typical for a start up business in the current economic environment.”

Novia commenced operations in late 2008.

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