Troubled financial services firm Superwoman Group has blamed poor management by its former executive team for the company's net loss of more than $5 million.
In a statement to the Australian Securities Exchange, the company reported a net loss of $5,865,589 for the financial year end 30 June 2010.
"The substantial loss is attributable to the poor management of the senior management during the year until 17 May 2010," the statement said.
"The executive director responsible for the business resigned on 17 May 2010 and the chief executive officer departed the company on 31 May 2010.
"The board, who were appointed on 17 May 2010, immediately instigated actions to streamline the events management business and prevent further losses of the company."
The losses meant the company had a deficiency in assets of $698,078 as at 30 June 2010, the statement said.
"The company's going concern depends on the bridging loan facilities provided by Intrasia Capital Limited on 2 July 2010 and FirstMac Limited on 13 August 2010, and the placement to JB Global on 18 August 2010," it said.
Superwoman management continues to reorganise the balance sheet and is in discussions with creditors regarding their claims against the company, the statement said.
Earlier this month, Superwoman released its quarterly report, which showed available company cash stood at $396,000 as at 30 June 2010.
Superwoman has three significant commitments that are constraining its working capital position. These are two office leases and the commitment to maintain capital for the Australian financial services licence of its subsidiary, Superwoman Funds Management Limited.
Meanwhile, the Superwoman board has called in ASIC to investigate a related party loan that involves the alleged transfer of more than $500,000 out of the firm by a former company director.
