Tadpole Technology Plc has suffered the ultimate indignity and humiliation, that of having to call an extroardinary meeting of shareholders within 56 days because growing losses mean its net asset value will fall to less than half its paid-up share capital (the aggregate sum a company has raised by selling its shares since it was founded). The 50% figure does not in itself signify anything, and is mainly a warning signal; the shareholders’ meeting is only required to consider what, if anything, need or should be done about the situation. It can break up with a decision that nothing need be done, and the company can continue as before. Tadpole now expects its losses of ú1.3m for April and May will rise in June by up to another ú500,000, on sales broadly flat with the previous quarter at some ú7m. Tadpole shares fell to a new low of 35p but later steadied at 42p, a loss of 13p. Tadpole notes that final quarter sales are usually heavily weighted towards September. On the plus side, it is shipping an order worth more than $1m for Sparcbook 3XP to a new US customer with potential for $10m more over two years, and a new OEM board contract worth up to $20m over four years.
