Potential Finance Group PLC went into the red in a "challenging” year to September, with its results weighed down by a Ј1.53 million provision for doubtful debt.
In a telephone conversation with BCR Publishing Ltd, Vivien Ware, finance director of Potential Finance, said: “About Ј500,000 is a provision of general doubtful debts that have aged to the point that it is prudent to make a provision. Approximately Ј670,000 is represented by a fraud involving fictitious invoices issued over a short period of time by an established client.. The remaining provision is accounted for by the suspected misappropriation of funds by another established client.”
The company reported a pre-tax loss of Ј1.245 million, compared to profit of Ј173,000 the year earlier, on turnover that marginally increased to Ј3.362 million from Ј3.236 million.
The company also said it was disappointed in the trading result of Potential Finance Ltd.
