LONDON (Alliance News) - Nova Resources PLC shares plunged on Monday morning after the company said its pretax loss in 2014 widened significantly, primarily due to a writedown in the value of its holding in Tricor PLC, a resources-focused investment company.
Nova's loss for the year widened to GBP2.9 million from GBP477,699, primarily due to a GBP2.4 million writedown it booked on the value of its investment in Tricor. Tricor shares were suspended in June last year due to delays in the company publishing its 2013 results. Once they were published, the company posted a significantly wider pretax loss due to higher costs.
Nova, which produces no revenue, also said that progress had been slower than expected at Enerstry Group Ltd, the renewable energy company in which it invested back in January 2014. Nova said it is working with Enerstry management to recover the loan Nova provided at the time of the investment and expects that to be repaid by the end of 2015.
Nova shares were down 51% to 0.135 pence on Monday morning, one of the worst performers in the London Main Market.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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