15th Jul 2016 16:43
LONDON (Alliance News) - Rurelec PLC on Friday reported a widened pretax loss in 2015 due to huge write downs it booked on its assets, and said its shares will resume trading on AIM on Monday.
The electricity utility said its pretax loss in 2015 widened to GBP20 million from GBP2.9 million in 2014, as revenue fell to GBP179,000 from GBP303,000 and it booked a huge increase in expenses to GBP17.6 million from GBP392,000.
Rurelec said the expenses related to significant write downs on a number of its assets to values which it said it believes can be supported in current market conditions.
"Providing that the group manages to retain value from its core assets, the focus is to ensure that the company is able to settle its creditors before determining future direction to allow shareholders to benefit from the existing asset base. Following the necessary disposals currently under negotiation, a leaner company unburdened with debt will be better placed to negotiate with partners to determine the future. We remain focused on delivering this objective," Non-Executive Director Brian Rowbotham said in a statement.
Shares in Rurelec are currently suspended from trading on AIM, but will resume trading on Monday. Shares were last quoted at 0.850 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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