(Alliance News) - Vela Technologies PLC on Thursday said its loss widened in its most recent financial year, thanks to a negative fair value movement on investments and the non-repeat of a profit on a disposal.
Shares in Vela were down 22% at 0.086 pence in London in late morning trade.
The technology business investor posted a GBP1.6 million pretax loss for its financial year ended March 31, wider than its GBP160,000 loss the year before.
This was partly caused by a GBP1.2 million negative fair value movement on investments, compared to a downward movement of GBP551,000 the year before.
In addition, Vela made no profit on the disposal of available-for-sale assets in its most recent year, having posted a GBP731,000 disposal profit the year before.
Chair Nigel Brent Fitzpatrick said: "During the year, and into the current financial year, Vela has considered a number of new investment proposals. However, none of these proved suitable for investment for a variety of reasons, often due to what we viewed as an over-valuation of the business.
"In addition, Vela has considered other corporate transactions which have included approaches from third parties, on an informal basis, to the board to utilise Vela as a reverse takeover vehicle, as well as more substantial investments in listed companies. We will continue to explore these opportunities. In the current market malaise and lack of interest among investors for smaller listed companies, we have become aware of a mis-match between the market capitalisation of the company and the value of its underlying assets.
"We will continue to have an open mind on these options, although we are mindful of the potential substantial uplift in the value of certain companies within the Vela portfolio and are keen to ensure existing shareholders do not suffer excessive dilution."
By Anna Farley; annafarley@alliancenews.com
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Vela Technologies (VELA)