Vela Technologies reports big drop in asset value

The AIM-traded company said its total assets, including cash, dropped by £2.74m to £2.8m, compared to a smaller decline of £0.64m in the prior quarter, which left assets at £5.54m as of 31 March.

It put the substantial decrease in asset value down to the collapse in the value of Conduit Pharmaceuticals, leading to an unrealised loss of £2.8m.

Despite the setback, Vela realised a small profit of £8,000 on other listed investments valued at £78,000 as of 31 March.

Additionally, the remaining listed investments, excluding Conduit, saw an unrealised gain of £0.14m on a portfolio valued at £1.66m at the start of the quarter.

No new acquisitions were made during this period, and the fair value of Vela's investment portfolio, excluding cash, stood at £2.75m by 30 June, down from £5.49m three months earlier.

The company's cash balance remained relatively stable, increasing slightly to £57,000 from £53,000 at the end of March.

“It is frustrating that events at Conduit Pharmaceuticals Inc. have overshadowed a steady performance from Vela's UK portfolio,” said executive director James Normand.

“Vela's principal other investments are trading well; and it is the board's view that such results will in due course be reflected in their value on the listed markets.”

At 0931 BST, shares in Vela Technologies were down 5.88% at 0.01p.

Reporting by Josh White for Sharecast.com.