22nd Dec 2015 09:47
LONDON (Alliance News) - AIM-listed Concha PLC on Tuesday voiced disappointment that it was unable to add to its investment portfolio in its last financial year, even though it was able to strengthen its balance sheet with a GBP4.0 million equity fundraising back in October 2014.
The investment company, which focuses on investing in media, communications and technology businesses, made a loss before and after tax of GBP628,000 in the year ended June 30. That was smaller than the GBP1.2 million loss reported for the prior year. Cash rose to GBP5.5 million from GBP1.8 million over the course of the year, thanks to Concha's equity fundraising.
Chairman Chris Akers said Concha has concluded a settlement with its former legal advisors in respect of losses suffered as a result of their failure to register a valid security interest in the assets of one of the company's former investee companies.
"The consequence of these events is that the company is well placed to make new investments in line with its investment strategy," Akers said.
Last week, the company said it decided to terminate lengthy negotiations with a "specific global opportunity" within its investment scope.
"Whilst the board appreciates the significant time that has elapsed since it first announced that it had engaged in discussions with the identified target, your directors were keen to monitor its development before formalising any commitment. Having given much consideration to the complexity of the proposed transaction and to the current status of its offering, the board felt it in the best interests of shareholders to withdraw from such discussions," Akers said.
"Whist the time and effort spent on this identified opportunity has been considerable the company has not expended significant cash resources during the process and as such its cash resources have been preserved," Akers said.
Shares in Concha were down 13% at 0.543 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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