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AssetCo posts first-half loss; may return cash to shareholders

By BFN News | 02:37 PM | Wednesday 10 June, 2020


AssetCo, a fire emergency services provider in the Middle East, posted a first-half loss after its efforts to find new revenues were hampered by the Covid-19 crisis. The company said it was considering returning some of its cash balances to shareholders. Pre-tax losses for the six months through March amounted to £0.74m, compared to a profit £0.36m on-year. AssetCo reported no revenue for the period. Chairman Tudor Davies said the company had focused on regaining and developing new business in the Middle East and realising cash in receivables and bonds from a previous contract. It was also pursuing a legal claim against former auditor Grant Thornton. 'We have made good progress collecting the outstanding receivables and bonds but the pursuit of new business and gaining new revenues has been slowed considerably by the Covid-19 lockdowns,' Davies said. 'This has resulted in a strong liquidity with cash balances of £29.6m, of which £26.1m is available and £3.5m cash held in respect of bonds.' 'Whilst reasonably good progress had been made in pursuing opportunities in the Middle East, the effects of the Covid-19 pandemic has resulted in delays to the board's expectations for new business generation and revenues.' 'The board considers that the company's strong financial position may also be suitably deployed in investing in other revenue-producing opportunities that may arise from the current economic recession.' To be sure, he said a large proportion of the company's cash balances were surplus to requirements, and although future investments may arise, it may also be appropriate to return surplus cash to shareholders. At 2:37pm: (LON:ASTO) AssetCo PLC share price was +15p at 335p Story provided by StockMarketWire.com

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