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Interim turnaround at Venteco

Article Date:  Sep 17 2007

‘Negative acquisition goodwill’ of £484,000 helped non-toxic pest control specialist Venteco make a £508,000 pre-tax profit in the first half-year.

Acquisitive Venteco, on whose board entrepreneurial Haresh Kanabar sits, increased turnover from £195,000 to £3.1 million in the six months to June, thanks to the takeovers of insect glue trap-maker Silvandersson and food industry certification and services concern Valiguard. The AIM-quoted company, steered by chief executive officer Stefan Hansson, turned an operating deficit of £58,000 into an interim operating profit of £68,000.

The £508,000 first-half pre-tax profit compares with a £68,000 loss a year earlier and includes £34,000 investment income and a £484,000 credit, which reflects the claimed excess in value of the assets acquired in the Silvandersson takeover over the maximum amount payable by Venteco under the terms of the deal.

AIM-quoted Venteco ended June with cash down from £3 million to £1.3 million. At 21p, down from 80p in April last year, the shares value the company at £3.9 million.

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