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Losses Leave Enlarged IQ Vulnerable
In the UK, B2B research specialist IQ Holdings has announced a net loss of £440k for the year ended 30 September 2008, with its liabilities exceeding its assets by £677k. In a statement, the firm says this casts doubt on its ability to continue as a going concern.
The firm's Directors have considered the financial projections for the period to 30 September 2010. These indicate that while the group is expected to be profitable, its ability to meet its financial commitments will be dependent on the management team securing new contracts, the continued support of creditors and financiers and/or additional support from shareholders.
Last year, the firm bought ViewpointField, Viewpoint Studios and telephone and online data collection firm The Wire from Media Square, but within weeks, decided to close The Wire because of the substantial losses it had suffered in the previous two years' trading.
However, the Board believes the other two businesses will have a positive effect on the company and its future trading and profitability.
While the figures for 2008 show a larger than anticipated loss, they do include certain items linked with the acquisition of Rosslyn Research in 2007, which will not be repeated in the current year.
Investment analyst GE&CR projects that the recent acquisitions will push sales up from £897k in 2008 to around £5m in 2010 when they make a full year contribution.
Chairman Tim Hearley comments: 'In the short term, the difficult economic conditions that we all face indicate that additional financing will be required over and above that secured as part of the recent acquisitions. Preliminary discussions with the company's funders and certain shareholders have indicated that that funding will be available. Consequently, the Board is confident that following the recent acquisitions and the changes identified above the company will continue to develop and expand and, in particular, return to profitability.'
GE&CR forecasts that the full year pre-tax loss for 2009 will be around £50k, but in the financial years ended September 30th 2010 and 2011, it says that IQ has the potential to deliver 'meaningful levels of profitability'.
Separately, Joe Seydel has retired from his role as Managing Director of Rosslyn Research, but will remain as a Non-Executive Director of the company.
Web site: www.iqresearch.co.uk .
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