Shares in 1st Dental Laboratories have been suspended because it has run into financial difficulties.
The dental labs operator is the latest company to come under pressure from HMRC and 1st Dental has decided to appoint an administrator. There is little likelihood of trading conditions improving in the short-term and it canít raise more cash quickly enough. Other creditors are also seeking payment.
There has been a decline in private dental work. July and August are always weak months but there was no upturn in September. Revenues have fallen 3% over the first nine months of the financial year. The loss in this nine month period was £123,000 and there was a further cash outflow. Net debt was £1.35m at the end of May 2010.
Earlier this month, Victory VCT, which is managed by Amati Global Investors, sold 250,000 shares in 1st Dental. It still owns 3.53% of the company.
At the suspension price of 4.25p a share, 1st Dental is valued at £1.79m.
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