Subsidiary sale gives Baltimore shareholders €3m
The sale was one of the final steps undertaken by the board in selling off its asset base to generate cash. The subsidiary, Baltimore Technologies Investments Limited, had accumulated tax assets of £99m (€148m). Baltimore declined to name the buyer, which is expected to use the accumulated losses built up in the company to offset against its taxable profits in the future.
Tax assets are technical items recorded in a company’s accounts, that recognise a tax benefit associated with ongoing losses. In normal circumstances, a company that returns to profitability after sustaining substantial losses can use these losses to reduce their tax bill, subject to certain restrictions. But a company that fails to return to profitability will not be liable for tax and cannot make use of these tax credits. Yesterday’s sale will add to Baltimore’s cash pile of about £25m (€35m). The board has pledged to use this money to reinvent Baltimore as an energy business and deliver a return to shareholders. It recently announced plans to buy companies that are active in energy consultancy.
