With bitter irony, Vantis Plc (LON:VTS), the AIM listed accountancy group, saw its shares suspended from the market this morning after confirming that despite efforts to reorganise its finances it was uncertain whether it had enough cash to keep operating. The debt-laden group, which handled the administrations of many companies that suffered at the hands of the economic downturn, now faces its own uncertain future. As part of today’s news, the company announced that chief executive Mike Jackson and head of recovery Nigel Hamilton-Smith were stepping down as directors. Finance director Steve Smith is set to take over all executive responsibilities until a replacement CEO is found.

Earlier this month, Vantis said it was reviewing a number of options aimed a cutting down its debt pile and was talking to potential investors and its debt providers regarding a potential restructuring of its balance sheet. In May, 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. In today’s update, the company said that although discussions were continuing, including the possible sale of some of its assets, its financial position had become uncertain. Despite the news, shares in the company rose by 2.5% to 10.5p – 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 Paul Jackson together with recently appointed chairman, Mike Wheeler and FD, Stephen Smith.

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