10th Jan 2025 11:45
(Alliance News) - S-Ventures PLC on Friday reported a widened pretax loss in the 15 months to December 31, amid the suspension of its shares from trading on Aquis.
The London-based investor in food technology and wellness said its loss before taxation totalled GBP4.0 million in the 15 months, compared to a GBP2.2 million loss in the 12 months to September 30, 2022.
The disparity in reporting periods is due to S-Ventures's acquisition of Juvela Ltd, a gluten-free product supplier based in Liverpool, England. S-Ventures extended its financial year-end after buying Juvela in December 2022.
Revenue in the 15 months to December 31 was GBP19.7 million, up from GBP7.6 million in financial 2022. Cost of sales was GBP10.3 million in the last 15 months, versus GBP5.0 million in 2022.
The loss before interest, taxation, depreciation and amortisation was GBP592,000 during the 15 months, compared to a GBP1.3 million loss the previous year.
S-Ventures shares were suspended from trading in July after the company failed to publish its half-year results before the deadline. This was due to "a difficult trading period and a change in auditors", S-Ventures said, adding that the delayed results would be released "shortly".
The company described a "tough" trading environment, citing challenges such as wage and ingredients inflation. Results continue to feel the impact of S-Ventures liquidating its subsidiary, Lizza GMBH, in April 2023. Additionally, S-Ventures dissolved the portfolio brand Ohso Chocolate Ltd in September 2023.
Sales recovery at health food brand Pulsin Ltd was slower than expected, though S-Ventures expects the brand to return to profitability in 2024. The company's largest subsidiary Juvela reported good progress, with first-year results in line with expectations.
S-Ventures noted it was in the final preparation phase for a GBP2 million debt fund-raising scheme, involving "a potential purchase of assets and novation of liabilities by Riverfort Global Opportunities PLC". Updates on this deal are expected shortly after Friday's report.
"The transaction that is proposed is intended to raise enough capital to settle all of the parent company's loans, leaving only the subsidiary loan at Juvela in place and approximately halving the financial debt carried by our group of businesses," S-Ventures reported.
The company said outstanding payments on the loan used to buy Juvela had "reduced significantly through operating cashflow". S-Ventures owed GBP4 million on the loan as of December.
After the publication of results for the half-year to June 2024, S-Ventures will request to lift the suspension of its shares, which were last quoted at 1.75 pence each in London.
By Holly Munks, Alliance News reporter
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