Investment boutique Tower Gate Capital, has issued an update for the three months to 31st December, saying that it continued to trade at a loss, with little progress made. In order to stem its losses, he firm undertook cost-cutting exercises, and said that overheads were tightly controlled. Tower Gate also reported that the Medoco case, involving a suit filed by a client in relation to this Middle Eastern pipeline project, was scheduled for hearing in May. It hoped to recover some of its costs expended in this case.
 
More encouragingly, the firm said it had won new advisory mandates since the start of the year and further wins in this area will be useful in strengthening its working capital. Its investment in Anglo Ukraine Energy, which is working on oilfields in the Crimea, is expected to increase in value as oil production increases. Its mCentric investment, described as a twitter-type product for football fans, was boosted by the signing of Real Madrid as a user. Tower Gate expects (or hopes) that other clubs will follow suit. A secured loan note facility has been obtained from the chairman’s family, which will help sustain the company after it reported a dramatic 89% fall in turnover in the six months to 30th September on 29th January.
 
Tower Gate, now capitalised at £3.57 million, did not disclose any numbers in the update. The ongoing absence of any sign of real improvement will be a disincentive for investors. Sell.