31st Dec 2013 09:45
LONDON (Alliance News) - Concha PLC Tuesday said its losses widened for the financial year ended June 30, hit by exceptional costs relating to insolvent Moshen Ltd and a defaulted loan by Churchill Media Ltd.
The investment company focused on investing in media, communications and technology companies, reported a pretax loss of GBP1.9 million, compared with a loss of GBP0.8 million a year earlier, after booking GBP1.5 million in exceptional costs during the year. The exceptional items were associated with the loss on investment in Moshen, and the full impairment on the loan advance to Churchill Media.
Concha's investment in Moshen was its first since it became an investment company, having bought a 40% stake in the application developer back in April, which went terribly wrong when insolvent Moshen's administrators had deemed the loan Concha made to Moshen to be unsecured.
"The failure of the Moshen business and the CML investment has had a significant impact on the company's ability to continue with its current strategy. In the near term Concha will seek to conclude matters in relation to both the loan advanced to CML and the action against its advisers in respect of the failure to register a valid security interest in the loan advances made to Moshen," said Finance Director Russell Backhouse in a statement.
Concha reported no revenues for the year ended June 30, compared with revenues of GBP479,000 the prior year from the sale of goods.
The Board did not recommend the payment of a final dividend to shareholders.
Shares in Concha were down 1.6% Tuesday morning at 0.192 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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