The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Providers of management and resources to the fire and emergency services in the Middle East

AssetCo plc

("AssetCo" or the "Company")

2017 Half-year Report

for the six months ended 31 March 2017

Introduction

We are pleased to report the results for the six-month period ended 31 March 2017.

Results

The Income Statement for the six months shows an Operating Profit of £1.7m (2016; £2.1m) on Revenue of £13.3m (2016; £11.0m) and a Profit before and after Taxation of £1.7m (2016; £1.9m).  Revenue increased principally due to the weakness of sterling versus the United Arab Emirates Dirham in which currency our Revenue is received, however profits reduced because of an increase in the costs of litigation against Grant Thornton.

Free cash (i.e. excluding cash balances held in respect of performance bonds) increased by £5.2m during the period to £20.7m (30 September 2016; £15.5m), partly due to £3.2m cash released in respect of a performance bond.  In addition to free cash, there are restricted cash balances held in respect of performance bonds amounting to £0.3m (30 September 2016; £3.3m).

UAE Contract

Our business is based on the provision of an outsourced fire service to the Abu Dhabi government, a contract we have held for the past seven years and which was expected to be extended for a year until November 2017.  We have continued to supply these services satisfactorily on the same basis and on similar terms. AssetCo has now received a contract for the first five months from 17 November 2016 to 17 April 2017, which facilitates payment for that period; it is also proposed that the contract then rolls forward on similar terms and payment on the same basis.

Claim against Grant Thornton

The Financial Reporting Council (FRC) concluded their investigations relating to the financial years ended 2009 and 2010 which are the focus of our claim for negligence against AssetCo plc's former auditors, Grant Thornton.

A press release from the FRC reported that Grant Thornton have admitted that their failings arose because of significant and widespread lack of professional competence and due care in the performance of their audits.  Grant Thornton were fined £3.5m and received a severe reprimand, and the audit partner Mr Robert Napper was fined £200,000 and excluded from membership of the Institute of Chartered Accountants for three years.  The full report by the FRC entitled Facts and Acts of Misconduct: Grant Thornton UK LLP and Mr Napper, is available on the FRC website www.frc.org.uk.

In the meantime, we are continuing our litigation against Grant Thornton where as previously reported we have issued formal Court proceedings, for a sum which with costs and interest is in the region of £40 million, although currently this case is not due to be heard until the summer of 2018.

Outlook

Trading continues to be in line with management's expectations; the Board will keep shareholders updated on any developments within our Abu Dhabi business and that of the Grant Thornton claim.

Tudor Davies, Chairman

AssetCo plc

13 June 2017

In addition to the above UAE Dirhams amounting to £264,000 (31 March 2016: £2,968,000 and 30 September 2016: £3,280,000) were held on deposit as security in respect of outstanding performance bonds - see note 8 Contingent liabilities.