Darlington-based Infoserve Group moved into profit in the six months to September 2010 but it reported a loss after its share of the deficit of a joint venture.
Interim revenues dipped from £2.95m to £2.9m but lower costs meant that Infoserve swung from an operating loss of £149,000 to an operating profit of £56,000. A new sales off ice was opened in Leeds near to the end of the period.
After interest charges and a £117,000 joint venture loss net of tax, there was a £100,000 pre-tax loss. There was a small cash outflow in the period. Net debt was £1.99m at the end of September 2010.
The joint venture company 2i Local is a 50/50 venture with Iliffe News and Media, the media business of Yattendon Investment Trust. This will combine online search and local newspaper advertising coverage for local businesses. The loss relates to start-up costs.
In October, Infoserve added up to 7,000 more customers through a revenue share deal with Web Business Power. Infoserve still has partnerships with Yahoo! and the Football League - 71 football clubs take its services.
Infoserve has recognised deferred tax losses of £838,000 but it has more unrecognised tax losses so it will be a long time before it starts paying significant levels of tax.
At 3p a share, Infoserve is valued at £1.77m. Directors and related interests own 88.8% of the company. The majority of the debt is owed to director DR Hood - that includes £250,000 he lent so Infoserve could pay off its NatWest overdraft.
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