Tau Capital narrows loss, struggles to offload last asset

30th Jun 2016 11:08

(ShareCast News) - Tau Capital posted its results for the 2015 calendar year on Thursday, revealing a total operating loss of $1.04m - much narrower than the $6.56m in 2014 - as it continued its attempts to offload its last remaining asset.Operating expenses were reduced during the year to $0.6m from $0.8m, taking the total comprehensive loss for the year to $1.64m, down from $7.36m.The AIM-traded company's basic and diluted loss per share was 3 cents, compared with 12 cents a year earlier."The process of completing the sale of the company's remaining asset, Stopharm, continues," said Tau Capital chairman Philip Lambert."The sale to Capitalgate Securities has not progressed; however since I last reported we were advised of at least one other expression of interest from a third party to purchase the entire interest in Stopharm."We believe that due diligence was undertaken but, to date, no firm offer has been received," he added.Lambert said the significant decline in the tenge, together with the generally difficult economic conditions in Kazakhstan and Russia, has contributed to the difficulties in selling the asset."However, there are signs that the tenge is stabilising and we continue to believe that the holding can be sold."Following a review of the Stopharm financial statements we have decided to reduce the carry value of from $7m to $6m," Lambert explained.He said the board has asked that the search for the sale of the asset be expanded into other possible areas."The company and its subsidiaries have cash reserves amounting to $1.9m at the year end, which, with a projected operational cash flow for the current financial year amounting to $0.54m, provide the company with adequate working capital."On that basis, the board consider the company to be a going concern," the chairman stated.Lambert described it as unfortunate that he has been unable to report more progress on the sale of Stopharm, but he confirmed that the board will continue to make every effort to dispose of the investment as soon as reasonably possible.