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(Alliance News) - CEPS PLC on Friday reported a widened loss for 2019 but expressed confidence for its future following the disposal of some of its subsidiaries.
Shares in the investor were untraded on Friday afternoon in London, last quoted at 27.00 pence each.
For 2019, CEPS posted revenue of GBP21.8 million, up from GBP21.6 million reported for 2018. Pretax loss was GBP2.3 million, widened significantly from a loss of just GBP308,000 the year prior.
The performance was attributed to losses from CEM and Sampling International which included a GBP1.2 million one-off charge resulting from the write-down of assets. Administrative expenses increased to GBP6.2 million from GBP5.3 million.
In January, CEPS confirmed that an administrator was appointed for fabric manufacturer CEM Press and bespoke sample book maker Travelfast, which trades as Sampling International. CEPS owned 80% of wallpaper and fabric manufacturer CemTeal Ltd, which in turn owns 98% of CEM and has sole ownership of Sampling.
The announcement came after CEPS in December said it would divest its investments in CEM Press and Travelfast as it was unable to to achieve cost savings "despite management's efforts and cash injections from since March 2019".
"The financial year being reported on epitomises the recent challenge with CEPS: most of the companies doing well or very well with one subsidiary doing very badly and, consequently, tainting the whole picture. This year we decided that we were unable to continue supporting the merged CEM and Sampling International as the losses and cash requirement grew to unacceptable levels. This grouping was placed into administration," said Chair David Horner.
Looking ahead, CEPS said it expects that in 2020, it will record an exceptional gain on the ultimate disposal. It added that while the Covid-19 pandemic makes for an uncertain outlook, its subsidiaries are working to ensure they will come out from the lockdown period ready to recover and make progress.
As at the end of 2019, CEPS had cash of 2.0 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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