(Alliance News) - Wilmcote Holdings PLC on Friday said its interim pretax loss remained flat as it continued its search for an acquisition.
The stock was untraded on Friday afternoon in London, last quoted at 2.00 pence each.
For the six months to the end of December, the acquisition vehicle focused on the chemicals sector posted pretax loss of GBP1.7 million, unchanged from the comparative period the year prior. The firm did not generate any revenue, as it has no operating businesses.
During the period, Wilmcote secured funding of GBP6.5 million through an open offer with the funds used to secure a platform from which to quickly respond to investment opportunities, and to provide a vehicle to attract a new management team in advance of an acquisition.
Looking ahead, the company said that while there is a risk that future losses may occur from its pursuit of an acquisition, it will mitigate risks by reducing the target size of potential acquisitions to businesses with a value of up to GBP500 million, and seeking appropriate risk-sharing measures with professional service providers and with vendors.
Wilmcote added that the recent disruption caused by the Covid-19 outbreak provides it with more opportunities for investment.
"The company has continued to receive inbound leads with regards to potential platform acquisitions as well as introductions to sector-leading management teams looking to deploy a buy-and-build strategy utilising a listed vehicle. While there is no certainty these discussions will lead to a new executive team being appointed, or a platform acquisition being completed, we look forward to updating shareholders with our progress in due course."
As at the end of December the company had cash of GBP6.5 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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