LoopUp Group PLC (AIM:LOOP, OTC:LUPGF) shares fell over 8% on Friday morning as the cloud platform for premium hybrid communications revealed an increase in its operating losses for 2022 after an adjustment during the audit finalisation process.
In a statement, the company noted that, subsequent to the announcement of its unaudited preliminary 2022 results on 7 June 2023, an adjustment to the unaudited preliminary results has been made during the audit finalisation process to raise an exceptional impairment charge in relation to certain intangible assets arising on the 2018 acquisition of MeetingZone.
The adjustment constitutes a reduction of £13,560,000 against a previously announced figure for goodwill and other intangibles, as of 31 December 2022, of £35,425,000, which, together with some other minor adjustments, has led to an increase against the previously announced group operating loss for 2022 of £11,589,000, with a resulting group operating loss of £25,102,000.
Additionally, the company said that, since the results announcement, it has extended its debt facilities with Bank of Ireland by 12 months, such that the facilities will now mature on 30 September 2024. The financial covenants to this facility have also been extended through to the updated maturity date, on the same basis as prior to the extension.
Around 8.55am, LoopUp shares were down 8.5% at 1.88p.