Losses mount at Viatrade
Article Date: May 31 2006Investment outfit Viatrade, backed by the aggressively entrepreneurial Catalyst Investments-linked Emerging UK Investments, lost £126,000 in 2005.
That loss represents a more than sixfold increase on the previous year's £19,000 deficit and takes OFEX-traded Viatrade's accumulated losses to £785,500. Shareholders' funds were down at year-end from £431,000 to £345,500.
Headed by chairman Richard Henstock, Viatrade has a portfolio of small company holdings. Last year, these included 'Condomania' condom maker Sexual Health Group, health-related food products developer Ultralife, Aegis Engineering, OFEX operator PLUS Markets — subsequently disposed of — and small company investment group Daniel Stewart — subsequently halved.
Last July Viatrade struck a share-swap deal with pre-float company backer Emerging UK, where Catalyst has a 38 per cent holding. This gave AIM-quoted Emerging UK 20 per cent of Viatrade and Viatrade 5.5 per cent of Emerging UK.
As yet, neither group has much to show for this deal. Emerging UK's shares have fallen nearly 75 per cent to 5.25p in a year and Viatrade at 21p is more than 80 per cent down from its 2000 float price of 110p.
Henstock says Viatrade will now actively seek 'appropriate' investment opportunities and consider 'short-term pre-IPO fundings which offer early exit potential'. Don't all rush at once.
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