Arc Fund Management has followed a boardroom upheaval with news of a £1.5 million interim loss.

AIM-quoted Arc, where Tory party deputy chairman Lord Ashcroft has a 21 per cent stake, increased revenue 31 per cent to £2.1 million the six months to June, but costs soared and the company converted a modest profit for the first half of 2007 into a seven-figure loss. The company, where entrepreneurial Renwick Haddow of Catalyst Group fame used to hold a major share, has been struggling against ‘economic headwinds’, says chairman Sir William Wells, who declares it has recently taken ‘significant steps to redress our areas of weakness’.

These measures included the resignation two and a half weeks ago of founder and chief executive Christopher Rowe and fellow director John Gracey. Simon Banks-Cooper, a chartered management accountant, became the new chief executive and Strand Partners replaced Beaumont Cornish as nominated adviser.

Investors who have seen the shares fall from 20.75p at the beginning of last year to 3.25p today – and Ashcroft, who bought his Arc shares at 8p and has a board representative, Andrew Wilson – will be paying close attention to how the new team sets about achieving its goals.

Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.

Arc Fund Management	AIM	0pm	p	p
Click here for interactive charting
Other company articles:
Arc under water			30/09/2008
Newcomer - ARC Fund Management			11/07/2006