31st Aug 2016 10:01
LONDON (Alliance News) - Tekcapital PLC on Wednesday reported a widened pretax loss for its financial first half as it established a new trading business and secured an acquisition.
The technology and intellectual property services company reported a pretax loss of USD997,174 for the half year to the end of May, widened from a pretax loss of USD659,936 the previous year, as administrative costs rose and revenue declined slightly to USD247,262 from USD287,488.
Tekcapital said its administrative expenses rose mostly as a result of costs related to its establishment of Belluscura, a new subsidiary with licenses for medical devices. Following the half-year-end, Belluscura completed a private placement raising USD1.5 million by issuing 2.5 million shares. Tekcapital said that based on this placing, it believes this investment should "lead to a significant increase in the group's net assets in 2017".
In April, Tekcapital acquired some assets and business from Vortechs Group. However, as this acquisition closed after the end of the interim period, it did not have "any significant impact" on the first half.
"We have made significant progress towards achieving the objectives that we set out last year and have established a strong foundation for future revenue growth with our numerous technology acquisitions. When combined with the establishment and launch of Belluscura Ltd, the acquisition of the Vortechs Group to expand our service offerings, the recent acquisition of the uSalt patent for reducing the surface salt content in a variety of foods, and our progress with in-shoe energy harvesting technology for empowering a new generation of footwear that can recharge mobile devices, we believe these achievements provide significant upside potential for our shareholders," said Executive Chairman Clifford Gross in a statement.
Shares in Tekcapital were down 0.2% at 32.92 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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