NEWS6 April 2009

IQ holds talks with backers about additional financing

Research group seeks support as it reports a £400,000 annual loss

UK— Research group IQ Holdings has held talks with its backers about securing additional financing which it says it needs to weather the current economic conditions.

The company – which owns IQ Research, Viewpoint Field and Viewpoint Studios – said early discussions with its funders and certain shareholders indicated that support “will be available” to help it meet its financial commitments.

IQ reported a loss of £440,000 for the year ending 30 September 2008 – at which date its current liabilities exceeded its current assets by £677,000.

According to the group’s annual report: “These conditions, along with other matters… indicate the existence of a material uncertainty which may cast significant doubt about the company’s and group’s ability to continue as a going concern.”

However, given the outcome of the preliminary discussions with IQ’s backers, the board prepared its financial statements on a going concern basis.

In fact, chairman Tim Hearley said the board was “confident” the company would continue to develop and expand – “and, in particular, return to profitability”.

He said the recent acquisition of the Viewpoint businesses from Media Square would enable IQ to offer a greater range of research and other services which would have “a positive effect on the company and its future trading and profitability”.

The takeover of both businesses was completed in January, along with that of a third Media Square company, The Wire, which ceased trading less than a month later.

Author: Brian Tarran

Related links:

IQ buys Rosslyn Research after £0.85m share placing