08004homes.com in race against closure
- Added:
- Jul 31, 2001
The group said in April that it was searching for a significant strategic partner that could help it to reach financial stability. Though it claims negotiations are still ongoing with a number of potential partners, the decision to close the business is in response to “the need to preserve shareholder value and cash until such a time as a satisfactory business model can be developed”.
Should 08004homes.com be closed, Property Internet will become a shell with approximately 2m, or 10p per share, in cash. Property Internet's share price currently stands at 6.75p, valuing the whole company at under 1m.
The company also announced that group finance director Jon Hale has given up his full time position at the company and will instead take on the role of non-executive director. Hale has been finance director of Property Internet since it floated on AIM in September 1999.
The news came as the company reported its results for the year to 31 March 2001, posting pre-tax losses of 12.15m, or 67.88p per share. Turnover stood at 126,843, up from 15,594 the previous year. The bulk of losses came from a 8.16m charge for impairment of goodwill arising from the acquisition of 08004homes.
At the end of March, Property Internet, which saw a net cash outflow from operating activities over the year of 3.39m, had 3.28m in cash.