LONDON (AFX) - Brainspark PLC said results for 2003 show a loss of 2.9 mln stg compared to a loss of 3.1 mln for the financial year to Dec 31 2002 and were influenced by the continuing negative market conditions affecting the technology investment market and managements' efforts in successfully renegotiating the liabilities arising under its lease contract.

As far as the market is concerned, the board said there is finally some evidence of a return of confidence from investors and financial institutions and it is cautiously optimistic for the future.

The cost-cutting measures begun in 2002, have reduced further the cash 'burn-rate' to an average of 41,000 stg per month for the year, net of recovery of rent and charges made to the cubs.

The board said it still has to consider certain issues going forward - the impact of external market conditions and internally, further rationalising the portfolio taking into consideration the opportunities that are presented by these companies.

The company's current strategy is to raise further capital from existing key shareholders, and sell some of the non strategic portfolio companies, with the objective of using the proceeds for general working capital purposes to purchase new investments and to support a potential IPO for at least one of its portfolio companies.

Chairman Francesco Gardin said he thinks that the board has taken the necessary steps to enable the financial performance of Brainspark to improve.

'If sentiment in the technology market improves, the company's prospects should also improve.'

newsdesk@afxnews.cm