Captive Audience Display Solutions has reported second half results (to 31st October) which show a fall of 88% in pre-tax losses to €85,405. Turnover from continuing operations at the Irish media firm fell by 75% to €35,022, but as a result of an 87% fall in administrative expenses, the key villain in the first half results, the damage to the bottom line was reduced. The loss per share was 0.05 cents, a fall of 88% from 0.43 cents in the first half.

The firm continued to work its way through its cash pile during the half, which stood at €35,140 at the period end. Net current liabilities were €21,110 and net assets were €186,069, down 31% from the end of the first half. Somewhat cryptically, the company said that it had been offered future funding “should the right opportunity present itself”.

CADS’s main business is the provision of digital media networks, which provide advertising and programming at petrol forecourt screens in Ireland. On the outlook the firm said that it continued to see possibilities in the Middle East market due to the absence of a major downturn in advertising revenues in the region. CADS said that it believed that it was close to concluding negotiations, with “significant developments” expected in the coming weeks. The company added that discussions were still continuing over the operation of its Irish network; it noting statements from the Irish Central Bank that viewed the economy as entering a growth period for the first time in two years.

Since October, shares in CADS have fallen sharply and currently trade at a mid-price of 0.625p. This values the company at £1.13 million. Despite the improvement in pre-tax losses continued uncertainty remains surrounding a move into the Middle East and we see no reason to invest. Sell.