(Alliance News) - Papillon Holdings PLC on Wednesday amended its annual loss figure for 2018 following the republishing of its accounts to reflect two transactions with a director.
Papillon said that its original 2018 financial accounts published in April did not comply with the requirements of the 2006 Act, by failing to reflect certain transactions with Director James Longley.
In April 2018, Longley assigned to the company all of his rights and interest in a GBP100,000 loan he had made to an individual known as James Thorpe to fund two new ventures.
Papillon said that Longley's interest in bringing claims against Thorpe were aligned with that of the company, who also made a loan to Thorpe and the new ventures in anticipation of a potential reverse takeover.
In exchange for assigning his rights, Longley is set to receive GBP90,000 from Papillon, which has been booked as an impairment against claims receivable.
This has led to Papillon publishing revised financial results for 2018, giving a pretax loss of GBP397,000, widened from GBP161,000 the year before.
This new figure is higher than the initial GBP307,000 reported for 2018 at the end of April.
Shares in Papillon closed 1.9% lower at 1.30 pence on Wednesday.