Panceltica shares suspended as accounts fail to materialise

Trading in Panceltica shares has been suspended by the Stock Exchange “pending publication of the company's annual report and accounts.”

The aspirational construction group, which only months ago was mapping out its route to world domination, explained: “The principal reasons for the delay in the publication of the 2008 Accounts include the recent management change as announced on 24 April 2009 and the unresolved issue of the completion of the company's major construction contract in Qatar, which may involve the sale or closure of the company's Qatar trading subsidiary.”

Panceltica suffered a similar hiccup in December, with shares suspended for a fortnight while the company prepared a trading update.

When that overdue statement did come it pointed to a re-structuring…. and to an expected operating loss of between £15m and £40m for the year ending 31 December 2008.

Panceltica launched on AIM only 15 months ago.

Paul Fraser, chief executive, said at the time that it was “one of the best-performing debuts of the year”.

Panceltica describes itself as a Qatar-based provider of fast-track steel technology to the international construction industry.

Eager investors were already ploughing in £77m of new funds just two months before the launch.
 
The only hard data issued by Panceltica since floating on AIM has been the interim results covering the six months to 30 June 2008.

They showed a pre-tax loss of £20m on turnover of £160m. In the comparable period of the previous year the accounts showed a much smaller turnover – just £31m – but a splendid pre-tax profit figure of £5m.

Five weeks ago Panceltica said that a take-over was in the air though nothing had been firmed up at the time.

The interest was coming from Middle East group Barwa Real Estate which is itself listed on the Doha Securities Market.

Barwa is both a shareholder in Panceltica and one of its two major clients.

Panceltica is building flats in a desert in Qatar for Barwa. Both phase 1 and phase 2 call for 1,000 flats.

Phase one is finished…but was late in delivery. That has given rise to conflicts that are still to be resolved.

Phase 2 is yet to start.
Panceltica recently announced a new leader with David Ball stepping up to the post of interim chief executive on 23 April.

Paul Fraser, the former chief executive officer, is unwell and it is proposed that he will resign as a director. The current chief operating officer, Will Fatherley, will also step down.

An “amicable settlement of contractual claims” between the company, Paul Fraser and Will Fatherley has been agreed in principle.  This settlement does not involve any cash payment.

Additionally Ben Bright resigned on agreed terms as financial director with effect from 23 April.