AIM listed accountancy group Vantis Plc (LON:VTS) is understood to be reviewing a number of options aimed a cutting down its debt pile. In a market update, the company said it was talking to potential investors and its debt providers regarding a potential restructuring of its balance sheet to reduce the level of debt outstanding to a more suitable level. Early last month the company extended until May 2011 the term of its existing facilities, which include a £19m term loan and a £34.6m revolving credit facility.

Vantis said negotiations with both investors and the company's banks were at an early stage and there was no certainty as to the impact on current shareholders or the terms of any agreement which may be reached. However, it did note that its banks had confirmed their support for its efforts to try and improve its financial position. Despite the warning, shares in the company rose by 1.5% to 16.75p – having spent the last 12 months sliding from a high of 88p last June.

It has been a tough 12 months for Vantis, which was forced in March to warn that activity levels in its Business Recovery division during the year to April 2010 would be below previous expectations. It also warned that it was facing further exceptional charges in the second half that were likely to dent its annual figures. At the half year to October, the company said the Business Recovery division was continuing to grow, with pre-exceptional revenue up 43% to £17.4m. On the downside, its Business Advisory & Tax (BATS) division declined with pre-exceptional revenue down 17% to £29.6m. The performance was enough to trigger a major cost reduction programme under the leadership of CEO, Paul Jackson together with recently appointed chairman, Mike Wheeler and interim finance director, Stephen Smith.

Vantis attracted unwanted headlines last October when two of its senior tax managers, Roy Faichney and David Perrin, were charged with “cheating Her Majesty and the public revenue” in an alleged scheme to help celebrities, sportsmen and other wealthy clients evade tax. The charges were brought against the two men personally and were unconnected to Vantis.

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