Will the claims specialist's management restructure boost its fortunes?
Claims specialist Aquilo has been going through a tough time. The Aim-listed company’s share price has taken a battering over the last year, falling from around 400 pence to approximately 35 pence.
The company has not turned a profit in the last three years. Its latest full-year accounts show a £1.45m pre-tax loss in 2005, compared to a £1.27m loss in 2004. Interim results for 2006 show a pre-tax loss of £1.13m.
The latest management restructure at Aquilo will be seen as a further effort by the company to boost the fortunes of the business, and follows a series of measure last year.
The underperforming motor services division was sold off to provide investment for its newly developed property insurance claims handling division, AIR. Aquilo said AIR had seen “impressive growth” and had been performing “ahead of expectation”.
The company also bought an £11m supply chain business, IT Solutions.
Yet, despite the claimed profitability of parts of the business, Aquilo had to raise £2.6m last December to counter "an immediate funding shortfall and deteriorating trading relationships with suppliers and customers".
The company’s full year accounts for 2006 are due by the end of July and will make interesting reading.
