Contract catering business Bright Futures made an underlying operating loss of £75,000 in the year to 31st March 2010, down from a loss of £208,000 in the previous year. Revenues for the year were £6.46 million. The firm said that the second half of the year showed significant improvement over the first and it would have broken even had it not incurred losses associated with the adverse weather conditions in January and February.

On the balance sheet Bright Futures ended the year with net liabilities of £947,000. The financial worries don’t end there as the business is currently in negotiations with Revenue & Customs regarding the payment of significant arrears, The company stated, “We consider that if the payment plan is rejected and the full arrears are demanded when they fall due, the Group in unlikely to be able to meet its current financial obligations and therefore will not be able to continue as a going concern.”

On the trading outlook the firm said that market conditions remains “very challenging.” While the improved trading has continued into the first three months of the year the company has not yet built up critical mass and cash generating has been “disappointing. “

Bright Futures has performed terribly as a PLUS quoted company. Joining the market at 1.25p in October 2008 the shares are now at 0.2p, capitalising the business at £0.56 million. Considering the problems being faced we believe even that is too high. Sell.