Landround is running short of cash and thinking of selling all or some of its businesses.
A dispute with a customer means that the promotions company will not be collecting the cash for a buy and fly! rewards programme billing for August. That has hit cash flow and means that Landround won’t move back into profit in the second half of this financial year. Landround had cash of £1.1m in the bank at the end of the last financial year but this is running out and it is talking to its bank, HSBC.
Landround had already said that this year’s interim loss would be more than £250,000 loss reported at the same stage last year. It turns out that the interim loss is likely to be around £550,000. The second half loss should be lower.
The shares don’t have much further to fall. They dipped 0.25p to 2.75p each following this news. That values the company at £390,000.
Landround had talked about producing interims in October but they have been put back to November. They should include further information about any potential disposals.
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