Vision Media shares suspended

SHARES in AIM-listed Vision Media have been suspended as the group is being placed into administration.

In a statement the directors of the Cheadle-based company, which operates interactive advertising screens and was formerly known as Screen FX, said its “worsening cash flow crisis and inability to raise funds” has forced them to take this action.

Chairman  Mike Cottman said: “The directors are extremely saddened by the need to take this decision.  As has been evidenced in our recent announcements, the company’s working capital cash flow position has been acutely difficult to manage in the current financial crisis and the directors have been exploring every possible avenue to seek further funding.

“A recent reduction in viable opportunities to gain additional funding has dictated that there are no longer sufficient funds to ensure that the company can continue to trade even with the support of its creditor base.”

The group said it would make a further announcement following clarification of the company’s financial position.

In the year to last December losses before tax rose from £4.9m to £6.6m on revenue of £1.4m, slightly below the £1.5m reported in 2007.