Galileo shares suspended over failure to file accounts in time

Galileo Innovation, the new technology venture capital fund run by the serial entrepreneur Paul Davidson, had its shares suspended yesterday for failing to file its accounts in time.

Galileo issued a statement saying it had been unable to report its financial results because the directors "are reviewing the position of the company as to its ability to continue as a going concern". The statement added that the group hoped to resolve the position by 30 April.

Mr Davidson, known as "The Plumber" for building up the Oystertec pipe-fitting business, appeared unaware of the statement's contents. Contacted in Spain, he said: "I've been away for two or three weeks and didn't know about it. I knew we were late with our results but it will be a different story in a couple of days."

Mr Davidson, who took over from the former Matalan chief executive Angus Monro, dismissed the possibility that the business might be unable to continue trading. "It will be continuing," he said.

It is thought the Aim-listed company may shortly announce an update on the indicative approach for the business which was announced three weeks ago. This was said to be at 1.25p a share.

Mark Warburton, a fellow Galileo director, said the company was in discussions with its auditors in order to prepare the accounts for publication.

The shares were suspended on AIM at 1p, compared to a high of 21p just after the business floated a year ago. Galileo is a "business accelerator" which invests in "up and coming ideas". It has taken stakes in Fluid Conditioning Systems, which makes magnetic oil filters and Astec, a dental products group.

Meanwhile, two other Aim-listed companies had their shares suspended for failing to file their accounts within six months of the end of their reporting period. Lombard Medical, a surgical products maker, said it remained in "advanced talks" that could lead to a takeover of the company. Lombard had previously said this offer was a potential management buy-out. It said no formal offer had yet been received.

The statement added that the directors had been giving "urgent consideration" to the company's financial position. Its bankers would not extend the current banking facilities if the talks fall through, it said.

Arthur Shaw & Co, a shell company which used to own engineering interests, had its shares suspended pending a reverse takeover of a record company. The deal is expected to be completed in the next month.

Room Service, formerly called Cube8, a delivery service group, is set to return from suspension following a debt-for-equity swap with one of its major creditors.