- IT services provider Adept4 reported Friday annual losses widened owing to significant asset writedowns amid a 'challenging' year for the business

For the year ended 30 September 2018, pre-tax losses widened to £3.98m from £0.84m the previous year following an impairment change of £2.6m. While revenue was flat at £10.19m from £10.30m seen last year.

The year was fraught with challenges as the company brought and won subsequently won a legal case against vendors MIT business, while the investment made in the new sales team had not yet delivered results.

During 2018, the company brought a warranty claim against the vendors of the MIT business and was successful with this claim, agreeing a settlement in the sum of £1.6m, of which £0.6m of the settlement was payable to the company in cash post-year end.

But costs of £0.5m were incurred by the company in relation to the warranty dispute.

Given the continued delay in new sales in the current financial year, the group 'continues to see monthly trading Group EBITDA and cash losses following the investment made in the sales and marketing functions, the company said.

At 8:59am: (LON:AD4) Adept4 Plc share price was -0.05p at 1p

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