ImJack keeps trading in face of mounting losses

The Leeds-based company, whose software provides a private platform for schools to communicate via instant messaging, video conferencing and file sharing, reported 1.8m pre-tax losses for the six months to the end of March, compared with 970,000 losses a year earlier. Revenues were just 6,000, compared 173,000 a year ago.

The company, formerly known as Amteus, suffered a blow when the new coalition Government withdrew matched funding for its software, which schools had been due to receive. imJack said it is now developing a new business model with schools.

The company has been consolidating and strengthening its balance sheet in recent months and said the results did not reflect the progress it has made.

Earlier this month it raised about 900,000 through a placing, which will be used for working capital and to pay creditors of its main trading subsidiary imjack Secure Communications.

The company is dependent on a 500,000 loan facility from founder Jeffrey Morris and warned its going concern status was in doubt. However, chairman Michael Abrahams said directors concluded the going concern status was appropriate and it would continue operating.