27th Mar 2018 11:40
LONDON (Alliance News) - AIM-listed cash shell GoTech Group PLC on Monday reported a sharply narrowed loss mainly due to absence of a large exceptional charge and said that it has sold loss-making unit Sportsdata Ltd to Starnevesse Ltd for the nominal sum of GBP1.
Shares in Gotech were trading 26% lower at 0.28 pence Tuesday morning.
For the year ended September 30, 2017, the company recorded a pretax loss of GBP494,000, compared with a pretax loss of GBP3.9 million in the year ago period, on a revenue of GBP65,000 and GBP40,000, respectively. In 2016 financial year, the company recorded a GBP2.9 million impairment charge.
The company decided to sell Sportsdata as it continued to incur losses and a sale would mean Sportsdata would no longer be a cash drain. GoTech also said it has decided to settle outstanding indebtedness of GBP183,000 due to Starnevesse by way of a cash settlement of GBP100,000 and issue of 8.4 million new shares at 0.4 pence each, totalling GBP33,500.
GoTech said it plans to undertake a reverse takeover in the first half of 2018 following the sale of the two loss-making subsidiaries.
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