30th Nov 2015 09:35
LONDON (Alliance News) - Craven House Capital PLC on Monday said its last financial year represented a "frustrating" time, after a writedown on the value of Pressfit Holdings hit the company's net asset value.
Pressfit, which was listed on the AIM Market and then delisted in January after failing to find a new nominated adviser within the deadline set under stock exchange rules. Companies on London's AIM require a nominated adviser to remain listed. Daniel Stewart, which had acted for Pressfit, sparked the company's hunt for a nomad after giving up its own licence to act as one.
"The message this sent to suppliers and customers was not helpful and demoralized both management and the workforce," Mark Pajak, Craven Capital's acting chairman, said of Pressfit's failure to find a new nomad.
Net asset value fell to GBP4.7 million on May 31 from GBP5.5 million one year earlier.
More broadly, Craven House said it doesn't believe the flight of capital from the emerging and frontier markets in which it operates has run its course.
"This trend will be reinforced when the US interest rates begin to climb. Carry trades will be unwound and the landscape where capital was recently abundant will now be barren. A flood of liquidity will soon turn to drought. We believed the influx of capital was excessive and the outflow will be equally if not more so," Pajak said in a statement.
Shares in Craven Capital were down 36% at 0.450 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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