On 31 October 2002, ITM Communications was placed into administration. The directors of ITM Communications are currently actively seeking potential buyers for the company, including the sale of individual assets. Axiomlab holds 2.2% of the equity in ITM Communications. 

As a result of our prudent approach to valuation of our investee companies (which has involved Axiomlab building a sizeable general provision in our annual accounts), the carrying value of ITM Communications was substantially provided against in our books.

Obviously it is extremely disappointing when a portfolio company fails. However, we fully expect a varying level of return on our investments but continue to expect the gains on winners in our investment portfolio to exceed significantly any cumulative write downs over time.

Details of our general provision and our approach to valuation of investee companies are included in our Financial Statements for the year ended 30 April 2002, copies of which can be downloaded from the ‘Investor Relations’ section of our website.

For further information please do not hesitate to contact Fred Mendelsohn fred@axiomlab.com