College was ‘poised to become European leader’

Less than a year ago, the Pilot Training College claimed it was “poised to become a European leader in aviation training” even though auditors said its net assets were less than half the amount of its called-up share capital.

“In our opinion on that basis, there did exist at Dec 31, 2010, a financial situation which, under Section 40 of the Companies Act 1983, may require the convening of an extraordinary general meeting of the company,” the auditors say in the company’s abridged financial statements for the year ending Dec 31, 2010.

While the auditors said the company was on track to achieve significant budgeted profits for the following year, they added that “conditions indicate the existence of a material uncertainty which may cast significant doubt over the company’s ability to continue as a going concern”.

The directors’ report showed that at the end of 2010, profit before tax was €136,036, but that the company had net liabilities of over €2m.

At the point the report was published — last August — the directors said they expected the company to continue trading “at its current levels for the upcoming year”.

It said careful and prudent strategic planning would lead to the college becoming a European leader, which would in turn mean “significant results in the years to come”.

The report states that the recovery of inter-company lending was dependent on the continued success of companies within the group.

It also admitted the company was exposed to the downturn in the economy, though it said the directors were satisfied that with the “quality of service provided and the staff employed to ensure the continued high standards of this service that they will continue to attract a significant proportion of this market share”.

Students grounded

* June 24: PTC students in Florida are shocked when they are told by Florida Institute of Technology that they are being grounded or not allowed to fly again.

* June 25: They are told FIT’s contract with PTC, to which they paid €85,000 in fees, has been terminated.

* June 27: PTC confirms to the students that there were problems with the contract, but says it is working to solve the outstanding issues.

* June 28: Trainee pilots are sent an eviction notice and told they have to leave FIT accommodation by July 15.

* June 29: PCT promises the students that it will have the issue resolved very shortly.

* End of June: Irish Aviation Authority sends a representative to the US.

* Yesterday: FIT says row is over PTC’s failure to pay bills for student accommodation while PTC says FIT has breached contract agreements.