LONDON (Alliance News) - 7digital Group PLC on Friday said HM Revenue & Customs has published a notice in the London Gazette of a hearing of a winding up petition served on unit 7digital Trading Ltd.
Shares in the company were trading 42% lower at 1.10 pence each, one of the worst performers on AIM Index.
The petition relates to sums due to HM Revenue & Customs of GBP417,000, with the hearing scheduled for January 16. The company remains confident of paying the full amount to the tax department in advance of the hearing.
7digital also said that it has restructured its operations in the final quarter of 2018 and is currently considering options in relation to the Juke music service.
The digital music firm confirmed that it completed the planned platform consolidation and restructuring of its operations, reducing the cost base by an annualised GBP6.2 million.
The company said it closed several offices and reduced the numbers of staff in all locations. Meanwhile, 7digital highlighted that its operations have remained stable during the restructuring.
In the final quarter of 2018, the company said it saw several contract wins with US-based technology platforms, major record labels and broadcasters, the details of which are subject to commercial confidentiality.
In addition, 7digital said it is in discussions with Juke GmbH, a subsidiary of European retailer MediaMarktSaturn, about the future of the Juke music service. 7digital has agreements with Juke, which are expected to generate GBP4 million of revenue in 2019.
MediaMarktSaturn has indicated that it may wish to change the current arrangements, which could involve 7digital taking more responsibility for certain aspects of the service or the service being closed with a resulting termination payment becoming due and payable to the company.
