According to news reports, the GFG Alliance-owned Lochaber aluminium smelter, also subject to a £586 million Scottish Government guarantee, counted a loss of more than £4 million in FY20-21.
As part of the Government's agreement with GFG Alliance, the company has been required to meet specific conditions. This release comes just weeks after the company was revealed unable to meet those conditions.
According to the accounts show, the last British aluminium smelter made an operating loss of £4,051,284 in FY20-21; despite statements aroused, the smelter was "performing profitably". However, the losses were primarily imputed to higher raw material costs and diminished demand for the products at the aluminium smelter due to the impact of the Covid pandemic.
Even though the smelter spent more than £60,000 on auditing fees, its accounts have also been published unaudited. Sanjeev Gupta-owned GFG Alliance stated their unaudited publication was an "interim step".
As a result of the investigation conducted by the Financial Reporting Council into the 2019 audits of several GFG Alliance companies, including Alvance British Aluminium at Lochaber, this is the first time they have not been audited by King & King since 2018.
GFG Alliance's accounts show how the collapse of Greensill Capital, its primary lender, plunged the company into crisis last year and led to an increased focus on international affairs.
GFG Alliance is being investigated by the Serious Fraud Office for suspected fraud, fraudulent trading, and money laundering. Officials from the SFO have visited sites across the UK, including in Scotland, as part of their investigation.
Although the accounts state that the smelter relied on funding from "fellow subsidiaries and related companies," they also highlight the failure of Greensill, which was the "main funder" of the group.
It added, "The future availability of funding is based on several external factors beyond the management's control, like achieving improvements in alumina prices and sufficient energy supply dependent on hydropower plant. Given the company's past financial performance, arranging external funding is also expected to be difficult."
"These conditions suggest that material uncertainties cast significant doubt on the company's ability to continue as a going concern. However, the director is optimistic that the company will be able to arrange the required funding through better performance results and borrowings."
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