The Magazine

	Print
	Email
	Text size
	Comment

NewMedia SPARK

By on November 30 2001

The internet incubator turned venture capital investor has been forced to write down the value of its portfolio by around Ł40m, but still professes to be optimistic. Net asset value dropped from 42p to 32p between March and September, yet this was less than the fall in the techMARK index. There were a pair of 'strategic investments' in the period, of GlobalNet Financial and Sputz, a German financial services business. Refinancing (and hence upward revaluations) for its investee companies have been very thin on the ground, and look to remain that way until at least a year after the listed stock market recovers. NMS has, however, been cutting costs by sacking 35% of the staff and reining in its ambitious international expansion plans. The directors remain convinced that NMS remains in a good position to capitalise on the anticipated upswing in market conditions, but investors have not agreed as the price has slipped from 32.5p a year ago to the current 13.25p. Avoid.

Comments [0]