Corvus takes losses on the chin

The company raised 3.1m in July 2000, invested 2.7m of it in technology companies, but the prevailing market conditions have forced the company to write off more than a third of its investment, some 815,000.

The provisions largely contributed to the company's pre-tax loss of 646,000, with loss per share weighing in at 4.52p. The 815,000 write-offs were against investments in Intersaver.co.uk, Timeframed, Cresta Systems and other companies.

Corvus also has holdings in Avanti (formerly Internet Incubator), asSeenOnScreen Holdings, BAS Micro-Imaging, Xworks (formerly Chrome Technology), Silentpoint, Ajabo, Innobox, Internet Music & Media.

The company made a 558,000 profit from an investment of 90,000 in Sports Resources Group, which it sold towards the end of last year, but other quoted investments have fared less well since February, including Xworks, into which Corvus ploughed 500,000. In December its stake was valued at 1.5m but is now sitting at a loss and is valued at 300,000. The company is also sitting on a 100,000 loss on its' 250,000 investment in Internet Music & Media.

Corvus director Haresh Kanabar explained: “We are sitting it out - there's no point selling at this stage. We're also looking at future investments in the technology sector, though perhaps focusing on more established businesses. The potential of above average capital growth remains our prime consideration for investments.”

Kanabar declined to reveal the company's current cash position, which stood at more than 840,000 at the end of February, though he claims there is enough to keep the company going. The Sunday Telegraph this week reported a deal was in the offing though Kanabar is tight lipped. Shares are today unchanged at 13p valuing the company at 1.85m.