AssetCo Plc, the owner of London's fire engines, said it had restated its accounts for 2010 after the company discovered significant overstatement of profits and assets.

It is regretful that due principally to a serious failure of management and internal financial controls ... there were significant overstatement of profits and assets in the financial accounts for the year, the company said in a statement.

Following the restatement, the company's reported revenue for 2010 was reduced by 18.6 million pounds ($29.5 million) to 26.2 million pounds, while what was reported as an operating profit was restated to show an operating loss of 11.4 million pounds.

The company, which has operations in the UK and the United Arab Emirates, has struggled with debt and in September last year raised 14 million pounds in capital together with agreeing a write down of debt with banks.

This allowed AssetCo to ring-fence its more stable UAE business from the liabilities of its UK operations.

Trading in the company's London-listed shares has been suspended since September as it changed its year-end from March 31 to September 30.

($1 = 0.6305 British pounds)

(Reporting by Abhishek Takle in Bangalore; Editing by Maju Samuel)