Tiuta reveals £37.8 million loss
Tiuta made a pre-tax loss of £37.8m in the 18 months to 30 September 2011 as the firm suffered heavy losses and writedowns on loan books associated with two Connaught Ucis funds.
The firm’s accounts show a deficit of nearly £36m on 30 Sept which has reduced to £13.2m through the capitalisation of shareholder loans that has seen the Savva family take an 88 per cent stake. The directors say the firm will return to profit in the next financial year. It made a pre-tax profit of £957,767 for the year ended 31 March 2010.
In January 2011 BDO conducted a review of the group’s financial position.
The accounts state loan default levels increased due to the economic climate to become “untenable as the size of the series one borrowing and related loans dwarfed any reserves of the group”.
In July, Connaught Asset Management suspended redemptions from its the Income Fund Series 3 following a spike in the level of redemption requests. Series 3 is a fund invested in the short-term agricultural lending sector.
In March, Connaught Asset Management suspended redemptions from its Income Fund Series 1 after a review flagged the possibility some of the fund’s loans may be under-secured.