26th Mar 2014 12:18
LONDON (Alliance News) - Avanti Capital PLC Wednesday reported an upsurge in first-half net profit as a result of selling its stake in Eclectic Bars Ltd for a GBP4.8 million profit.
The private equity firm had a 60% stake in Eclectic Bars, which was sold amidst the company's initial public offering in November.
Avanti said there should be no corporation tax on the GBP4.8 million capital gain because of the availability of corporate losses.
The AIM-quoted investment management company said its net profit increased to GBP3.2 million in the six months ended December 2013, from GBP480,000 for the corresponding period in 2012. But Avanti swung to a pretax loss from continuing operations of GBP1.5 million, which excludes the gain from Electic Bars. In 2012, Avanti made a GBP480,000 pretax profit from continuing operations, driven by bars and nightclubs revenue.
At the end of 2013, Avanti had GBP13.3 million in net assets, or 166 pence a share.
Avanti said its investee company, mBlox, has made good progress, giving it a carrying value of GBP4.2 million.
Avanti shares were Wednesday quoted at 48.00 pence, up 9.1%.
By Samuel Agini; [email protected]; @samuelagini
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