Legendary Investments swings to first half loss

21st Dec 2016 13:50

(ShareCast News) - Legendary Investments posted its unaudited interim results for the six months to 30 September on Wednesday, with an operating loss of £0.14m, swinging from a profit of £2.38m in the same period last year.That led to a basic and diluted loss per share of 0.0005p, compared to basic earnings per share of 0.1p and a diluted figure of 0.07p for the first half of 2015.During the six month period ended, the AIM-traded company said it made a net gain on investments of £0.02m, down from £2.5m, which was primarily due to a rise in the value of Medgold Resources, while the comparative period for 2015 had seen substantial increase in the gain on investments primarily relating to VS.Net administrative expenses were higher at £0.16m, compared to £0.12m, due primarily to preparing Legendary for its next phase of development.Increasing expenses included an increase in directors' cash remuneration, the costs of keeping a working office and one-off IT costs.There was also a foreign exchange loss due to the significant devaluation of sterling against the dollar following Brexit in June, combined with Legendary having dollar-denominated debt.Set against these increases were a decrease in travelling costs, the board said, and zero costs associated with share based payments."Legendary expended £0.16m in relation to costs associated with Manas and certain new initiatives," it said in a statement."These costs are expected to be recovered by Legendary in the case that Manas reaches its next stage of development and the new initiatives are successful."As a consequence, they are recorded in debtors due within one year, which at the period end were £0.17m - compared to £0.01m."Creditors, amounts falling due after one year, fell to £0.03m from £0.2m, due to repayment of the $0.25m loan and interest thereon.Legendary ended the period with £4.27m of investments, compared to £4.4m; £0.52m of cash from £0.16m; £4.85m in net assets compared to £4.3m; and £4.96m of total assets up from £4,56m.