Tiscali crisis deepens

Chris Forrester

Italian-owned broadband company Tiscali is in a deeper mess today, as its London auditors declined to sign off the companyís accounts, citing too much uncertainty about the firmís future trading prospects.

Tiscaliís auditors Ernst & Young stated "the fundamental uncertainties on business continuity" as making it impossible to sign-off the year-end 2008 figures for the group. Tiscali has some 1.8m UK customers, and double that number in Italy. Tiscali has been looking to sell the UK side of the business for the best part of a year.

Tiscali said it disagreed with the findings of Ernst & Young and is seeking new auditors. Tiscaliís statement said: "The company, in disagreement with the conclusion drawn by the audit report, believes that it has co-operated at best and that it has provided all the information necessary to enable the independent auditors to issue an audit opinion on its 2008 financial statements.Ē