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(Alliance News) - Iconic Labs PLC on Wednesday reported a narrowed loss in its first half despite a rise in administrative expenses in the period.
The stock was trading 3.0% higher at 0.017 pence each on Wednesday morning in London.
In the six-month period to the end of December, the media and technology firm posted a pretax loss of GBP762,130, narrowed from a GBP2.1 million loss in the comparative period the year prior.
Iconic recorded a "small" amount of revenue, at GBP2,500, up from none a year before. Iconic said the revenue was due to the business focusing on developing a pipeline which it said is already starting to result in contracts and partnerships.
Administrative expenses increased to GBP681,227 from GBP327,902 during the half-year. The company acquired the intellectual property of Gay Star News for GBP33,000, adding that it spent time redeveloping and redesigning the website and brand, as well as rebuilding the business operations of the newly acquired platform.
Looking ahead, the London-based company said it expects the Covid-19 outbreak to hurt branded content and campaign revenue for at least the duration the UK remains on lockdown. However, it said it said that due to the lockdown, it anticipates an increase in demand for its online publishing content and platforms such as Gay Star News.
"The directors have carefully considered the financial position of the group with particular attention to the economic and social effects of the current Covid-19 pandemic. They have concluded that as a result of the GBP5 million facility in place with the European High Growth Opportunities Securitisation Fund, together with conservative assumptions as to revenues based on core programmatic advertising sales, that the group remains a going concern," Iconic Labs said.
As at the period-end, the company had cash of GBP26,914 with total assets valued at GBP285,508.
By Ife Taiwo; ifetaiwo@alliancenews.com
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