Vimio relies on directors’ loans to stay afloat

VIMIO, a technology company backed by David McKenna, says it is relying on loans from its directors to stay afloat.

The company, which develops technology to allow television to be viewed over mobile phones, said it had a “considerable debtor list,” which is likely to be the subject of “substantial provisions” in the accounts for 2007 as the majority of these debts were greater than 90 days old.

“The company is, as a result, suffering from short-term liquidity problems and, in order to meet its obligations as they fall due, is relying on the support of its directors in the form of unsecured loans,” the company said.

Vimio, which is listed on London’s Alternative Investment Market, said it has been in discussions with various parties regarding its financing options.

In January, the company announced it had begun talks to raise more than €1 million from a Saudi Arabian businessman, Abdulaziz Saud Abdulaziz Al Ammar. According to Vimio, Mr Al Ammar has asked for a further extension, until the middle of April, before entering into an agreement to take a stake in the company.

Shares in Vimio plunged last week by more than 25% to value Vimio at €1.8m.

The company went public in 2005 and raised more than €8m from investors. Initially the company had seen its share price rocket but they have fallen by 90% in the past year.

The most recent financial figures for Vimio, for the half year ended June 2007, show losses of €300,000 on turnover of €1.4m.