MTM shows loss of 11.9m pounds

MTM, the once-great chemicals group that saw most of its assets sold to BTP for pounds 100m in April, incurred a pre-tax loss of pounds 11.9m in the first half. But MTM, which will now invest in science-based industries, said its balance sheet was healthier than predicted in its recent refinancing, writes Topaz Amoore.

Net assets at the half-year were pounds 20m, equivalent to 77p per share, about pounds 4m ahead of the figure predicted by the markets, David Swallow, the chairman, said.

MTM, forced to sell its assets after breaching covenants, paid off pounds 90m of its pounds 122m of debt with the proceeds. The rest of the debt was converted into a 29.9 per cent equity holding, leaving MTM with pounds 10m in cash.

Agrochemicals, MTM's only remaining activity, contributed pounds 296,000 to group operating profits of pounds 1.5m in the six months ended 30 June.

The rest came from discontinued activities and MTM earned a further pounds 3.8m in net interest. But the profits were wiped out by exceptional costs of pounds 9.6m. A pounds 15.8m profit on the disposal of assets was offset by a pounds 25.4m charge for goodwill previously written off on the acquisition of those businesses.

There was no interim dividend. The shares, which rose as high as 300p last year, closed at 48p.