Taking AIM: Sales down at Premium Bars; WH Ireland resigns as Crucial Plan’s adviser; eXpansys losses up but debts cut
LIVING Room owner Premium Bars & Restaurants is still trying to raise money to meet its cash requirements.
The Hale-based AIM-listed group, whose shares are still suspended, described trading as challenging and said it had seen a 8.5% fall in like-for-like sales for the six months to December 28.
But in a statement issued ahead of the group’s annual meeting today non-executive director Anthony Kelly took a positive line.
He said: “Sales during the key Christmas trading period were strong. At the same time, the company has avoided heavy discounting and has achieved reductions in both unit and central overheads.
“The board anticipate that trading conditions will remain tough during 2009, but are confident that the cost savings initiatives that have been put in place by the new management team will help to mitigate this risk.”
He said the group would not be able to issue its audited accounts until it had renewed its banking facilities.
According to reports several rivals are interested in various parts of the Premium Bars business including Tim Bacon who sold the Living Room chain to the group for £28m two years ago.
Premium Bars operates the Living Room, Prohibition and Bel and the Dragon chains.
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WH Ireland has resigned as Crucial Plan’s nominated adviser.
The announcement came a few hours after Crucial Plan, an investment company, said its auditors had not yet concluded their review of the annual accounts to April 30 or the interim figures to October 31.
The firm’s shares have now been suspended for three months because of the accounts delay. Crucial has a month to find a new adviser or it will be de-listed.
Last year the business changed its focus from running a hotel in the Lake District to exploring the potential of minerals and precious metals.
It sold its only asset, the Borrowdale Gates Hotel in Grange-in-Borrowdale, Cumbria, for £1.7m in cash.
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ONLINE mobile phone and PDA retailer eXpansys reported mixed fortunes today in its half year results.
While it has repaid its bank overdraft and cut costs to meet reduced demand, sales have fallen and losses increased.
The Manchester company operates 50 websites in 12 different languages, said the biggest disappointment in the period was the failure of its Singapore-based venture, MWg, which had cost it £1.1m.
Chief executive Roger Butterworth said a lack of financial support for the venture from Far East-based manufacturing partners and the cancellation of a major sales order had been the drivers behind the move.
Revenue in the six months to October 31 last year slipped from £32.3m to £25.3m, while losses rose from £869,000 to £1.08m.
Mr Butterworth said: “We have significantly reduced our cost base, eliminated bank debt and now have cash in hand. So, although the pace of recovery in our trading performance will, inevitably, be slowed by current global market conditions, the business is now better shape to stabilise revenues and deliver improved results in the short to medium term.”
