LONDON (Alliance News) - Clear Leisure PLC on Friday said its pretax loss narrowed in the first half of its financial year, though said its net asset value declined due to further expenses relating to ongoing litigation.
Clear Leisure, which invests in leisure and real estate companies, reported a pretax loss of EUR620,000 for the six months ended June 30, narrowed from USD15.6 million a year earlier. However, the results a year earlier did include a EUR15.0 million writedown on the book value of its investment in Mediapolis.
The company's operating loss reduced from EUR275,000 from EUR459,000 after administrative expenses dipped during the year. Clear Leisure did not generate revenue either year.
Clear Leisure said it continued efforts to monetise all its remaining assets through realisations, court-led recoveries and substantial debt-recovery processes. As such, finance expenses rose for the year, and the company's net asset value declined to EUR720,000 from EUR1.3 million a year earlier.
A number of law firms have been engaged to work on legal actions for Clear Leisure to recover funds in the UK and Italy, it said. It said it is currently pursuing legal claims amounting to around EUR55 million.
However, Clear Leisure said it has begun the process of reducing its debt position at a discount to offset these costs and is confident its net asset value at the year-end will be "much stronger".
Shares in Clear Leisure were down 7.7% at 0.900 pence on Friday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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