Further write-offs at Interregnum

The quoted UK early-stage technology investor has reported a pre-tax loss of £18m and written down its portfolio by 80 per cent.

Interregnum, the UK early-stage technology investor, has announced a fall on the value of its portfolio in excess of 80 per cent.

In the year to June 30, Interregnum has seen the value of its portfolio of 25 technology investments fall from £14.6m to £2.5m, compounded by write-off of three of the firm’s investments.

Interregnum said performance of the firm’s portfolio, which still included several profitable businesses, had been affected by a sharp reduction in IT spend leaidng to slower growth – and continued reluctance to invest in the sector. The firm also said it was proceeding with plans to raise a  £75m fund to invest in distressed assets in the technology sector.

As part of a cost-cutting strategy implemented earlier this year, the firm has reduced headcount from 29 to 21. It has also restructured its investment team with a view to incorporating a stronger fee-earning structure through the firm’s advisory services, which recorded a 7.5 per cent increase in turnover.

Interregnum chairman Ken Olisa believes that the downturn is likely to continue for the foreseeable future. “Most IT industry pundits are predicting flat or little growth in spending, at least until 2003, and no prospect of an imminent solution to the seed/early-stage funding drought.