24th Mar 2015 11:36
LONDON (Alliance News) - AIM-listed Avanti Capital PLC Tuesday reported a drop in net assets over 2014, and a drop in first-half pretax profit, as the investment management company said it wants to sell mobile messaging provider Mblox as soon as it can as well cutting overheads to reflect its reduced size.
The investment manager said it had GBP4.6 million in net assets at the end of 2014, compared with GBP13.3 million at the end of 2013, representing a fall in NAV per share to 57 pence from 166p. Net profit fell to GBP60,000 in the six months ended December 31, 2014, compared with GBP3.2 million in the corresponding period in the prior year.
Avanti said the figures took into account a provision for the carried interest of GBP157,000 or 1.96p per share.
According to Avanti's statement, the company has considered ways of cutting cash burn and overhead costs due to the fall in the size of its investment portfolio. In addition, it is prioritising the sale of its stake in Mblox. At the end of 2014, the carrying value of Mblox was GBP4.5 million, equivalent to 57p per share.
"These measures will include a substantial deferral of the management fees payable to the investment adviser in order to conserve cash flow. It is intended that this further change will be implemented with effect from 1 July 2015, being the beginning of the forthcoming financial year," the company said.
Avanti sold its 60% stake in Eclectic Bar Group PLC for a GBP4.8 million profit as part of the UK bars and nightclubs operator's initial public offering in November 2013. Avanti paid a dividend of 105 pence to shareholders amounting to GBP8.4 million following the sale of its investment in Eclectic Bars.
Avanti shares were untraded on Tuesday morning. The stock closed at 36.50p on Monday.
By Samuel Agini; [email protected]; @samuelagini
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