PwC called in to assess Money Channel
The Money Channel has called in accountants from PricewaterhouseCoopers to assess whether the financial TV service is still a viable business venture.
Yesterday the company suspended trading of its stock, pending the outcome of the PwC assessment.
The company told FTMarketWatch: ‘Until the report comes out it’s difficult to say what the situation is.
Earlier in a statement to the London Stock Exchange, the Money Channel saidits revenues were currently insufficient for the projected working requirements of the company.
Various reports put the amount of money the company has in the bank at between £250,000 and £1m in the bank. It is believed the company was burning money at a rate of Pounds 750,000 a month.
Two months ago, the company claimed to have Pounds 2.5m in the bank, but admitted its future would be dependent on the success or failure of its interactive advertising services launched on Sky TV in February.
However, the service, which allows Sky TV viewers to click on advertisements using their remote control, has performed well below expectation resulting in the company’s precarious financial position.
Money Channel listed in 1999 on Alternative Investment Market, the small-cap exchange, at a price of 22p per share. Six months later the share rose to 500p. However the share price began to crash at the beginning of 2000, and continued to fall over the next 12 months When trading suspended at 4pm yesterday afternoon, the share was quoted at 13p.
The company, which employs 130 staff was the brainchild of former teen icon Adam Faith. He is no longer involved in the company, although he still owns 9% of the company shares.
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