Quarterly results show slight revenue decline at Avesco

AIM-listed corporate services provider Avesco Group has unveiled a 10 per cent reduction in revenue in its preliminary results for the three months ended December 31st compared to the corresponding period one year earlier.

AIM-listed corporate services provider Avesco Group has unveiled a 10 per cent reduction in revenue in its preliminary results for the three months ended December 31st compared to the corresponding period one year earlier.

The group, which provides services to the professional presentation, entertainment and broadcast markets, reported that revenue was £30.1m at the end of the quarter, compared to £33.6m recorded in the three months ended December 31st 2011.

The group reported that the quarter benefited from the inclusion of the Paris Motor show, adding that the prior year included two major events in the Middle East - the Arab Games and the United Arab Emirates' 40th Anniversary celebrations.

Excluding these events from the comparison between the two periods and adjusting for the disposal of Avesco's full service business in Monaco showed a 4% decrease in the underlying revenue, the group said.

The operating loss contracted by £0.2m compared to a loss of £0.3m in the corresponding quarter one year earlier.

A trading loss of £0.1m was reported compared to a profit of £0.1m in the corresponding period in 2011 and trading earnings before interest, tax, depreciation and amortisation (EBITDA) slid to £4.3m compared to £4.7m a year earlier.

Basic losses per share were 2.2p, representing an improvement from the loss per share of 2.6p in the three months ended December 2011.

The group also reported that Disney litigation funds were now at the collection stage.

Richard Murray, Chairman of Avesco, said: "Although the financial year 2012/13 has started slowly, with lower capital expenditure requirements this year and promising signs for much improved trading in the Far East, we remain positive regarding the outlook for the year as a whole.

"Our focus remains to generate cash, reduce debt and grow dividends, whilst maintaining a sound balance sheet. The group is well positioned, with the financial and operational capabilities in place, to continue its progress through 2013 and beyond."

He added: "The judgement in the Disney litigation, in which the group maintains an interest, is now collectible although it is expected that there may be a delay of a few months before receipt of funds by the group. The group's net interest in the award is estimated at approximately $60m."

Avesco's share price was down 1.16% to 213.50p at 10:20 on Thursday.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021