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April 6, 2009updated 12 Apr 2017 4:39pm

General Capital facing an ‘uncertain’ future

General Capital (GC) made a pre-tax loss of £22.5 million (24.3 million) in the six months ending 31 December 2008, leading to a level of uncertainty regarding its future.

By Jason T

In the results, prepared on a going concern basis, GC also said that revenue had fallen to £4.2 million over the period, compared with £6.6 million in the same period in 2007.

The lessor’s asset finance segment also saw revenue fall, by around 10 percent year-on-year, to £1.4 million in the second half of 2008.

“The company is only continuing to trade due to the support of its bankers and although the company’s discussions have been and remain constructive there can be no certainty that this will always be the case,” General Capital said.

The lessor’s shares have also been suspended from trading on AIM, due to its advisor and broker, Collins Stewart Europe, resigning.

In its interim report, GC had said that it intended to cut operating costs “drastically”, hinting at it delisting from AIM.

“An unfortunate consequence of the aggressive cost-cutting referred to in the interim announcement has been to eliminate fees and costs payable to certain of the company’s advisors, including those in connection with its AIM listing,” said David Hickey, GC’s chairman.

“The company’s present deficit to its banks is of such a scale that it is currently difficult to see any future value for ordinary shareholders of the company,” the company added.

Meanwhile, General Capital also announced it had sold its finance broker subsidiary Norton Folgate to its management.

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