The result of legal action against NIG will have an impact on the 2003 full year results of Private & Commercial Finance Group (PCFG), it warned.
The trial is due to start on 20 April and is expected to last four weeks, said PCFG. The company remains confident of success in its case against NIG, but stressed that the outcome of litigation could never be guaranteed.
It said the court's order on payment of legal costs would be particularly crucial, said PCFG, with costs having “escalated significantly” as the trial date approaches.
In the event of the litigation not being resolved in PCFG's favour, it said the shortfall on the claim, together with additional provision, would cause disappointing results for 2003.
“Due to the number of variables, it is not possible or appropriate to be precise at this stage, but if there is a shortfall in the claim, the group may report a loss for the first time in its ten year history,” said the PCFG.
