Blue Star Capital PLC on Tuesday said it swung to an annual loss due to a swing in fair valuation movements and an increase in administrative expenses.
The Sussex-based investment company focused on e-sports, payments and technology posted no revenue in the financial year that ended September 30, unchanged from a year prior.
In financial 2022, pretax loss was £1.3 million, swinging from £2.1 million a year earlier, as its fair valuations movements in financial instruments also swung to a £445,223 loss from a £2.5 million gain.
Administrative expenses increased by 53% to £517,003 from £337,304, while it lost £338,836 in investment disposals, compared to nil a year earlier.
Post-year end, it said it increased its cash balance to £179,000 following the disposal of its remaining interest in NFT Investments and some of its interest in Guild Esports PLC.
During financial 2022, cash and cash equivalents fell 71% to £86,575 on September 30 from £296,106 a year earlier.
‘The last year was one of consolidation with our main two portfolio companies making strong progress. The strategic review, undertaken in September 2022, led to the decision to focus attention on the company’s two principal investments and to manage the business, if possible, without issuing further equity,’ said Chief Executive Officer Tony Fabrizi.
‘Overall, we are pleased with recent progress and the board views the future with confidence [...] The company has set out a clear strategy for maximising shareholder value over the next two years and is focused on achieving the key objectives it has set.
‘While Blue Star is a long-term shareholder, we must consider the most appropriate time to exit our investments and this will be a key consideration in the next twelve months. Overall, we believe the portfolio has significant upside and look forward to working with our portfolio companies to realise this value.’
Shares in Blue Star were down 16% to 0.18 pence each in London on Tuesday afternoon.
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