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Virgin Money Australia card worries | NEWS.com.au Business
MACQUARIE Bank and Sir Richard Branson will have to stump up more cash for their Virgin Money Australia joint venture if it is to continue as a going concern.
In an audit statement contained in the consolidated accounts of Virgin Money Australia (VMA) for 2007, KPMG partner Malcolm Ashcroft noted that the group's profitability had been undermined by the global liquidity crisis.
"In the event that the company's shareholders do not continue to provide financial support beyond existing commitments in future periods, there is uncertainty the company will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report."
The uncertainty surrounding the continuation of the business comes after it reported a net loss of $3.3 million for the 12 months to the end of March.
In notes to the financial accounts, the group's directors revealed that the business had a deficiency of capital and reserves of $5.3 million.
This means the Australian entity is balance sheet-insolvent and poorly positioned to fund acquisitions in the local financial services industry unless it can secure additional funding.
Virgin Money Australia card worries | NEWS.com.au Business
MACQUARIE Bank and Sir Richard Branson will have to stump up more cash for their Virgin Money Australia joint venture if it is to continue as a going concern.
In an audit statement contained in the consolidated accounts of Virgin Money Australia (VMA) for 2007, KPMG partner Malcolm Ashcroft noted that the group's profitability had been undermined by the global liquidity crisis.
"In the event that the company's shareholders do not continue to provide financial support beyond existing commitments in future periods, there is uncertainty the company will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report."
The uncertainty surrounding the continuation of the business comes after it reported a net loss of $3.3 million for the 12 months to the end of March.
In notes to the financial accounts, the group's directors revealed that the business had a deficiency of capital and reserves of $5.3 million.
This means the Australian entity is balance sheet-insolvent and poorly positioned to fund acquisitions in the local financial services industry unless it can secure additional funding.
