Alexander David operating losses narrow

Alexander David Investments posts an operating loss of £778,000 for the year to the end of December - down from £3.1m last time.

This is the first year of trading for Alexander David Investments plc as an investing company which focuses on special opportunities with a particular focus on the basic resources and oil and gas sectors.

But the company points out it is not a full year since the demerger of the ReGen Therapeutics business which took place on 18 February 2011.

Chairman Percy Lomax said: "We have tried to make it clear which items refer to ADI and, which to the former ReGen business and the costs associated with the demerger, so that investors may get an accurate picture of the costs of running the ongoing business of ADI.

"Portfolio loss of £82,000 - as I set out in our statement of 6 March 2012 we started the ADI business at a difficult time for a company with our stated objectives.

"One of the key indicators for the measurement of our performance is the FTSE AIM All Share Super Sector Oil and Gas Index, which fell by 36% from the date of the demerger to 30 December 2011.

"Even so the board was disappointed at the loss on the gross portfolio as it had been innovative in its attempt to mitigate the problems in the underlying market.

"The loss was principally, but not entirely, due to the fall in value of one key investment, which met all our original criteria.

"Unfortunately, the management's presentation was better than its performance, but with a change of management in the investee company we expect a better performance during the coming year."

At 9:05am: (LON:ADI) share price was -0.02p at 0.09p

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