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VSA Capital Group PLC on Thursday said that ‘very difficult political, economic and market conditions’ have overshadowed the half-year ended September 30.
The London-based investment banking and broking firm reported turnover of £1.1 million, up 30% year-on-year from £846,000.
However, VSA’s pretax loss widened to £1.8 million from £841,000 in 2022. The group’s Chief Executive Officer Andrew Monk attributes this to non-cash items relating to reduced value in shareholdings.
In September, Silverwood Brands PLC, VSA’s largest shareholding in which it holds a 0.9% stake, saw its stock halved from 60.0 pence per share to 30.0. As predicted by VSA in September, the failure of the share price to bounce back has resulted in a non-cash loss for the group.
In June, VSA’s Chief Executive Officer Andrew Monk expressed his hope of delivering a profit by the year ending March 2024. However, Monk on Thursday claimed that issues surrounding Silverwood’s share price make swinging to profit before the end of the financial year ‘very unlikely and very disappointing.’
The group also reported a drop in its cash position to £546,000 from from £1.2 million year-on-year.
VSA’s CEO said: ‘2023 has been a difficult year but I still feel that VSA has got many things right. We keep a low-cost base, we are in sectors that have good long-term growth prospects, and we have a very good international reach for deal flow and our investor base and so when the markets do pick up, we are well placed. ’
VSA shares went untraded at 6.50 pence each in London on Thursday morning.
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