29th Apr 2019 17:53
LONDON (Alliance News) - Challenger Acquisitions Ltd on Monday reported a widened annual loss in a "very difficult" year for its core investment, a ferris wheel in New York.
In 2018, Challenger Acquisitions reported a pretax loss of GBP2.0 million compared to GBP1.2 million in 2017.
The company's administrative expenses decreased 67% to GBP157,000 from GBP472,000. Challenger Acquisitions' loss stemmed from a GBP2.3 million impairment from the write-off of its New York wheel project.
The company did not generate any revenue in 2018 or 2017.
"The year 2018 started promising with the investment in the Dallas wheel project, followed by success in restructuring a significant convertible note. However, the failure of the Star Sanctum event to get launched and the stalled financing for the New York Wheel project were major disappointments. The year ended with the recovery of a portion of the loan to Star Sanctum and active negotiations to sell the investment in the Dallas wheel project back to its developers, which was finalized and announced in early 2019," said Chief Executive Mark Gustafson.
The company ended 2018 with GBP29,000 cash in the bank.
Shares in Challenger Acquisitions closed down 2.9% Monday at 0.16 pence each.
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