Chairman Peter Redmond commented on the 2017 results, “During the year to 31 October 2017, the Company’s net assets increased significantly to £627,548 compared to the previous year’s figure of £130,714. This was principally due to fundraising during the year and the favourable performance of the Company’s investment portfolio.
The operating loss from continuing activities for the period amounted to £142,916, again a significant reduction compared to the previous year. This improvement was principally due to the increase in value of the Company’s investment portfolio, as already mentioned. We were also able to realise some of these investment gains through certain strategic disposals. The results also included a significant provision against our VAT receivable balance, which has had the effect of inflating our operating costs. Discussions with Customs and Excise continue but the Directors consider it prudent to make this provision at this stage.
During the period under review, we raised £675,000 gross (£639,750 net of fees) in new equity from investors and these funds were largely used to make a significant investment in Eco (Atlantic) Oil and Gas Limited (“ECO”), an oil and gas exploration company listed on both AIM and the Toronto Stock Exchange. Since the year end, the Company’s net asset position has continued to grow and is, at the date of this statement approximately 30% higher than as at the year end. This is principally due to the increase in the share price of ECO, which now represents the Company’s largest investment.
The Company reviewed a number of potential reverse transaction opportunities during the year. However, none of them advanced beyond the diligence stage. The Company continues to review a range of opportunities and the Directors believe that it is in a stronger position to attract interesting transactions given the improvement in its financial position.”