28th Feb 2014 14:31
LONDON (Alliance News) - Blue Star Capital PLC Friday said its annual pretax loss narrowed but the notes to the accounts said the company faces "material uncertainty".
Blue Star Capital shares were Friday quoted down 8.3% at 0.550 pence.
Blue Star Capital, which invests in the homeland security, media, technology and gaming sectors, made a GBP703,345 pretax loss in the year ended September 30, 2013, compared with the GBP1.4 million pretax loss it made in the previous year.
The financial statement showed a cash balance of GBP34,005 but GBP689,453 in net liabilities at September 30.
Since the end of the financial year, the company has completed a number of equity fundraisings which it used to pay off the bulk of its GBP601,832 loan, shrinking the amount due to GBP85,292 now.
But Graham Parr, writing his first annual statement since joining as non-executive chairman in November, said much work still needs to be done to repair Blue Star Capital's fortunes. He said the board is reviewing "various strategic options available".
In the notes to its accounts, Blue Star Capital said: "The company is seeking to progress the sale of certain investments or raise further funds to provide the company with additional working capital. However, this is not certain, and the amount realised may or may not provide sufficient funds to cover the repayment of the remaining loan and the on-going working capital needs of the company."
The notes continued: "Should these expected transactions not take place, the company would need to obtain alternative finance. There can be no certainty that further financing will be available."
According to the notes, those conditions constitute "a material uncertainty that may cast doubt" about Blue Star Capital's ability to continue as a going concern, stating that the financial statements "do not contain the adjustments that would result if the company were unable to continue as a going concern".
The financial statement was prepared under the assumption that Blue Star Capital will be able to meet its liabilities as they fall due, it said.
By Samuel Agini; [email protected]; @samuelagini
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