Spectel sees losses of 2002 following failed flotation

Teleconferencing company Spectel lost $1.6m (€1.4m) in 2002, according to the company’s accounts.

Last year Spectel planned to float on the Dublin and London stock when its valuation would have been $ 222m (€195m).

However, due to market conditions it was decided at the last minute not to go ahead with the flotation. Though it failed to raise funds by floating, it secured an additional $15m (€13m) investment in September 2002 in a round of financing led by the venture capital arm of Investcorp SA, a global investment group.

The losses for 2002, compared with a profit in 2001, were largely due to an increase in costs.

Besides having to pay for costs relating to the planned flotation, it had to make redundancy payments of around $642,000 (€564,000) when 47 staff were laid off in August.

However, the company revenues increased by 7.8% during the year, up to $38.5m (€33.8m) and it managed to cut the cost of sales by 6.4%.