Source - SMW
Cellcast has contacted Swiss regulators after funds due from the Lexinta Fund were not received.

In its interim results on 25 Sep the company stated it had elected to redeem its investment in the Lexinta Fund and bring the cash back into the business.  

It said this followed the decision of the fund manager of the Lexinta Fund to liquidate the fund's entire portfolio.   Cellcast said the investment in the Lexinta Fund (which is based in Zurich and regulated by the Swiss financial regulator) formed part of the company's treasury management scheme and investment strategy. 

It said the total amount of cash invested by the company directly or through associates into the Lexinta Fund was £495,000. 

In the company's interim accounts for the six-month period ended 30 Jun, the carrying value of the assets related to the investment in the Lexinta Fund amounted to £754,358.   The company said it was previously informed in writing by the Lexinta Fund that it would be receiving these funds last week, however, payment has not been received.  

The company, together with a number of other investors in the Lexinta Fund (which includes a private equity fund), has written to the Swiss financial regulator to notify it that the payments have not been made by the Lexinta Fund in accordance with the previously agreed timetable.   The company said it had no reason to believe that the amounts due to it from the Lexinta Fund would not be received, however, the company continues to have £718,000 of cash reserves as at 31 Oct held outside the Lexinta Fund, which the directors considered to be sufficient for the continued running and expansion of the business. 

It said further updates on the receipt of amounts due from the Lexinta Fund would be provided in due course.

Cellcast also said the board was pleased with the trading performance in the second half of the year to date and optimistic about the prospects for the next financial year.

 Cellcast said that following the introduction of the new supplier agreement earlier this year, details of which were announced on 27 Jul, the company had been trading profitably at the operating profit level, based on unaudited management accounts. 

In addition, the online segment of the business had been performing well.


At 9:31am: (LON:CLTV) Cellcast PLC share price was -0.45p at 4.53p



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