Losses cast doubt on Asda card firm

THE company behind the Asda credit card has flagged “material uncertainty” regarding its capacity to remain operational after recording expanding losses.

- SIMON HUNT

Jaja Finance, a fintech venture co-owned by billionaire Mohsin Issa and private equity house TDR Capital, revealed it had “substantially advanced” but not yet finalised a fresh debt restructuring, generating uncertainty which “cast significant doubt on the group's ability to continue as a going concern”.

Auditors S&W also highlighted Jaja's impairment evaluation of its subsidiary investments, which they stated “incorporates significant management judgement and estimation uncertainty about future cashflows.”

The company's cashflow projections, described as “highly sensitive,” rely on calculations of the proportion of future customers who may default on payments.