LONDON (Alliance News) - Natural resources investment company Leed Resources PLC on Thursday said its pretax loss narrowed slightly on increased investment income in what was a "frustrating" first half for its High Mannor Pty Ltd investment.
Leed said pretax loss narrowed to GBP36,000 in the six months ended December 31 from GBP100,000, as investment income rose to GBP49,000 from GBP4,000 and administrative expenses were down.
During the period, Leed said it increased its investment in High Mannor, the Australian miner that it invested in back in January 2015, but added the miner had a "frustrating time" during the period, as it initially experienced delays in the deliveries of the moulds for the new generation wall panels and then, following receipt, it was discovered that the dimensions of the moulds were marginally outside of acceptable tolerances.
This meant that rectification work was required, leading to further delays in the production and market deliveries of wall panels, Leed said.
Leed noted "significant operational and corporate developments" following the end of the period, with High Mannor making its first commercial deliveries of wall panels in January and Leed entering a deal in February to secure an option which includes the right to acquire 100% of High Mannor from owner Battallion International Ltd.
Leed said that, over the course of conducting due diligence on High Mannor, it was discovered a senior member of staff had been carrying out fraudulent activities, which appears to have hit the profitability of High Mannor over the past few months.
The investment company said it will ascertain the impact of these fraudulent activities and any other operational issues, on the current value of the High Mannor business and as part of this will consider the potential need to amend the terms of any transaction with Battalion.
Shares in Leed were up 18% to 0.0265 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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