AssetCo served notice by 'major' Abu Dhabi client

AssetCo told investors on Tuesday that a major client in the United Arab Emirates had informed it of its decision to sever ties with the firm.

The AIM-listed outfit received a letter on Monday advising it that the Presidential Special Guard, one of its major Abu Dhabi-based clients for firefighting services, intended to take its business elsewhere.

Presidential told AssetCo that it will now get its firefighting services from the same firm that provides services to the whole of the Abu Dhabi Military.

AssetCo said management was in "the early stages" of discussions regarding future arrangements with Presidential and that it will update shareholders on the matter, as well as revealing new information regarding its ongoing litigation against Grant Thornton, in due course.

Last year, Thornton was hit with a £2.3m fine by the accountancy watchdog for its part in a scandal that almost brought AssetCo to its knees in 2011.

The watchdog found that Thornton, Britain's fifth largest auditor, "fell significantly short of the standards reasonably to be expected" following an investigation of its auditing.

Three senior executives at AssetCo, which also leased fire engines to the London Fire Brigade, were also banned from the accounting profession for a total of 42 years back in August.

John Shannon, former chief executive of Assetco; Raymond Flynn, its former chief financial officer; and Matthew Boyle, who was financial controller, were fined a total of £500,000 for misconduct and "facilitating fraud".

As of 1200 BST, AssetCo shares had slipped 3.90% to 370p.