PricewaterhouseCoopers scrutinised over Adria audit
The Slovenian branch of the multinational PricewaterhouseCoopers (PwC) is being scrutinised by the Slovenian Agency for Public Oversight over its auditing of Adria Airways' 2018 financial results, which are yet to be made public. The financial report was referred to the Agency by the country's air regulator, which also monitors the financial sustainability of airlines registered in Slovenia, under the suspicion that Adria's financial statements do not accurately reflect its financial state. "We've been informed about the audit and we do not see any problems. We're convinced our auditors have conducted a fair and professional audit of our financial statements", the Slovenian carrier said.
According to Slovenian media, one of the main points of concern is Adria Airways' absorption of the STBE company through a merger and acquisition last year. The move increased the airline's share capital and changed its ownership structure. STBE, which is closely linked to Adria's owner 4K Invest, purchased the Slovenian carrier's brand name back in 2016 for just over eight million euros. Overall, it is speculated the carrier will post a loss of between fourteen and fifteen million euros for 2018. The airline, which has been dealing with a range of issues over the past month, said it was intensively seeking a strategic partner and has held talks with concerned employees.
Earlier this year, Adria's CEO, Holger Kowarch, noted that following a four million euro capital injection in late 2018, the airline has financially stabilised. "While there were still some liquidity problems last winter, the prospects for the summer season are good. The plan for this year is to get out of the red. Last year's loss is a result of several factors, among them damages Adria incurred for cancelled flights and delays, increased fuel prices, lack of staff and the delay in introducing Saab 2000 aircraft", the CEO said at the time. The airline's 2018 result will mark the company's second consecutive year in the red, following a loss of 5.4 million euros in 2017.
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