TEP firm suspends trading on AIM
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TEP Exchange has temporarily suspended trading on AIM pending the publication of its accounts.
The firm suspended trading in its shares as of 12pm today.
TEP Exchange is a web-based exchange for traded endowment policies which enables instant deals between market makers and IFAs.
In June last year the company also temporarily suspended trading on the exchange as it was unable to publish its annual results on time.
TEP Exchange later posted losses of £217,606 for 2008 and in a half-yearly statement in November 2009 it posted further losses of £76,000 for the six months ending June 30, 2009.
Its statement last November also revealed that the directors of TEP Exchange had reached an agreement with Surrenda-link, which holds a 48.26 per cent shareholding in the company, that outstanding payments of £271,624 did not have to be repaid until 31 December 2010.
Last November the directors also agreed a working capital facility with Surrenda-link of up to £150,000 which will not be repaid before 31 December 2010.
The November statement revealed that TEP Exchange had unsuccessfully challenged VAT debts owed to HM Revenue & Customs and as a result it had to repay £134,960.
The November half-yearly statement said: “The directors are of the view that the Company’s electronic platform is still a cost effective method for market makers to source policies, particularly direct from the public, but the company is heavily reliant upon the market makers to stimulate the market again and in the meantime the directors are endeavouring
to reduce the Company’s monthly cash outflow.”
It added that the expansion of the company’s electronic platform for its current range of products had to be deferred due to market conditions.
Commenting on the latest suspension from Aim, finance director David Roxburgh said the firm was just finalising its accounts and that he hope these would be published within around a week, meaning the suspension in trading should be shorter than last year when the company was not able to trade on Aim for several months.
He said it would be inappropriate to comment on the company’s financial position until the accounts are published.
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