5th Jun 2015 08:13
LONDON (Alliance News) - Eco City Vehicles PLC Friday reported a wider pretax loss in 2014 as it fell into administration following the termination of its contract with Mercedes-Benz, but since returning to trading hopes to create value in its new role as an investment company.
Eco City Vehicles, which converted and sold Mercedes Vito vehicles for the London taxi market, reported a pretax loss in 2014 of GBP2.8 million, wider than the GBP725,000 loss made in 2013, as it failed to produce revenue.
The company fell into administration last October after losing its deal with Mercedes. However, the company exited administration in December and entered into a company voluntary arrangement, with management and control of the company being handed back to directors. Its shares then returned to trading in March after it began new activity as an investment company focusing on the telecommunications, media and technology sectors.
"The market conditions became very difficult for London taxi sales and unfortunately the company was unable to continue trading in these conditions. Subsequently the board has worked hard to restructure the business to enable it to become an investing company that hopefully in the long term will return value to the company's existing and new shareholders," Chairman John Swingewood said in a statement.
Shares in Eco City were untraded on Friday, last trading at 4.05 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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