31st Mar 2015 07:33
LONDON (Alliance News) - Concha PLC Tuesday said it is discussions over a specific investment opportunity that it believes will lead to a "transformation" of its business, although it cautioned that there can be no guarantee this investment will be successfully completed.
The company is an investment vehicle focused on the mobile, internet, sports, social media, digital and technology space.
Concha posted a pretax loss of GBP278,000 in the half year to end-December, narrowed from a pretax loss of GBP323,000 a year before, due to lower administrative costs. The company posted revenue of GBP8,000, down from GBP6,000.
In the previous period, the company had booked a GBP126,000 writedown of liabilities. The company had a 40% stake in Moshen Ltd, which went into administration in September 2013, and Concha instigated proceedings against its former legal advisers for losses it suffered as a failure to register a valid security interest in the assets of the Moshen business in regards to loan monies advanced.
A settlement has now been agreed, but under the terms of the agreement Concha cannot disclosed the terms of the value of the settlement.
"However, having taken into consideration both the cost and resource necessary to progress this matter more formally, I am pleased that we have managed to recover value from the situation and cleanse the distraction going forward," the company said in a statement.
The company raised GBP4 million in a placing last October, and this combined with the exercise of warrants to raise a further GBP500,000 helped Concha to bolster its cash reserves to GBP5.7 million at the end of the half year, it said.
Shares in Concha are trading up 2.2% at 5.70 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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