Deep-Sea Leisure has chosen the holiday period to release a very disappointing set of results for the interim period to August. Leslie Copeland reports

The aquarium operator, beset by cash flow problems and falling visitor numbers, saw turnover dip to £3.16 million (£3.45 million) and operating profits plunge from £1.34 million to £933,000. Chairman Alastair Ritchie said the performance during the period was severely restricted by 'serious cash flow' problems, namely the group's inability to meet debt repayments to Allied Irish Bank and Bank of Ireland, its former bankers. Cost overruns at the Deep-Sea's Blue Planet site prompted a degree of over-gearing and when visitor numbers did not live up to expectations, the group was unable to generate enough cash to meet its interest repayments. To keep the wolves at bay, Deep-Sea paid both banks £9.7 million (from a mixed debt package of £9.7 million advanced by Bank of Scotland) while a further £2 million of debt was written off. The affair prompted the resignation of founder and chief executive Phil Crane, who has still not been replaced.

In order to stay afloat, the company is currently in the throes of a £3.5 million fundraising. £2 million of this will be used to repay a bridging loan to Bank of Scotland. Ritchie claimed that when the placing and open offer is complete, the new funds 'will remove cash constraints and allow the resumption of normal trading'. Not many investors, however, were excited by his bullishness - the shares remained unchanged at 31.5p, close to the year low

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