The last published accounts for Appello show that losses had increased to £4.3m.
Their trading position was not helped when they were forced to payout substantial sums to buy their way out of onerous contracts.
These onerous contracts are believed ones that were taken out to maintain market share at below cost price on the assumption that prices could rise at a later date and that those losses could be subsidised by overcharging residents who had had Appello forced on them.
The last published accounts show Appello to have a negative worth of £-6.08m.
That they could continue to trade was based on an assurance by parent company Knight Square Holdings that they would continue to fund the losses of Appello.
Once this assurance wss no longer applicable, Firstport (heavily in debt themselves) could no longer support the growing losses of Appello, so have taken action to take work away from Appello, hence the contract with Oneview. They are now enabled to liquidate Appello should they so wish?
