An event organising company has posted a six-figure net loss – but the managing director says he is very relaxed about it.
Zibrant posted a net loss of £300,000 for the period January to November 2014.
The final 11 months of Motivcom plc ownership, before the business was acquired in a management buyout, saw turnover increase by 54% and gross profit increase by 9% to £8.4m.
Managing director Nigel Cooper said that significant changes to the Zibrant balance sheet resulted in £684,000 of exceptional administrative costs, including the cost of separation and clearing old amortisation and balance sheet debts.
Cooper said that the group property was transferred from the balance sheet back to group at a cost of £1.75m and the directors took the opportunity to wipe out the old paper amortisation debts from previous acquisitions.
He said: “They are paper losses, not real money. Zibrant didn’t pay rent for the main office, which we now do. We paid an absolutely massive management charge to the group, which obviously we no longer do.”
“We went into to the new business with a cash injection, no debt, and a clean slate. It just made it easier for everyone rather than trying to run a financial year under two separate ownerships.
“We have lots of exciting new projects to announce and will be filing our 2015 results in mid-2016. I am very happy with the progress we are making.”