Corvus reconsiders as internet investments continue fall
- Aug 30, 2002
In the year to 28 February, the company incurred a pre-tax loss of £1.3m, compared with last year's deficit of £646,000. One of its investee companies, BAS Micro-Imaging Limited, was placed into administration in December 2001, which led to a full write-off amounting to £460,000.
Corvus also made a full provision against its £400,000 investment in Ajabo plc, which has completed the development of a software platform for a B2B directory but failed to launch the product.
Other write-downs led to an overall charge of just over £1m, though it realised £488,000 from the sale of its 7m shares in Silentpoint earlier this month and expects to recieve £289,000 payable from Highland Holdings Limited over the next six months, relating to a put option that it exercised to hedge its investment in Internet Music and Media.
Its £50,000 investment in Gaming Insight made in July 2001 has diminished in value to less than £10,000, as shares fell from 16p to 3p. Corvus said it is currently "evaluating its strategic options" due to the challenging market conditions in the technology sector.
Net current assets were stated at just £73,000, against £660,000 last year, after its cash position fell from £844,000 to just £172,000. Shares have taken a hit today, falling 30.8% to 4.5p, capitalising the group at £640,000 - an almost 50% discount to net assets.
31 August 2001:
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