In its annual accounts, filed to Companies House last week, it revealed a 40 per cent drop in turnover to £12.9m from £20.6m in 2007. It made a loss of £8.2m in 2007 and says reducing the loss last year was always going to be “a huge challenge” despite dramatic cost-cutting measures.
Park Row is still in discussions with the FSA as part of a review into its desk-based monitoring procedures, which it says “could result in financial consequences for Park Row Group, including a need for the provision of further financial support from Royal Liver”.
In the accounts, independent auditor Pricewaterhouse-Coopers warns that if the group were to cease being a subsidiary of Royal Liver, it is possible that “the financial support would be withdrawn, which would create material uncertainty which could cast significant doubt on the group’s ability to continue as a going concern”.
In May, Royal Liver confirmed that it had received a number of enquiries for the Park Row business and was considering strategic options, including offloading the firm.