CEPS' shares tumble as goodwill impairment drives FY loss

Shares in CEPS fell more than 10% after investors disliked news of the company's swing to a full-year pre-tax loss on the back of a hefty goodwill impairment.

Pre-tax loss was £0.47m, from a profit of £0.26m. THe company booked a £0.61m impairment of goodwill, from nil previously.

"I feel that all businesses are moving in the right direction, appear under a lot more control than in the past and that all the changes and efforts of the past six months are beginning to produce good results," said chairman David Horner.

"It is our intention to support all our companies and to this end we have secured a £1m loan from a third party in April 2017."

Horner said the new loan was designed to provide a highly flexible facility to address the possibility of cash demands over the next year and for the purpose of acquisition funding.

"In the latest equity placing at the end of January CEPS raised £1.27m and I was happy to invest the maximum I was allowed to at 30% of the issue.

"I remain completely convinced that the Group is on the right track and that the continuing hard work by many people in the companies will become clearer and the real value of the Group will then be evidenced."

At 12:30 BST, shares in AIM-listed CEPS were down 10.45% to 30p each.