New Media write-offs spark pay cuts

DIRECTORS at New Media Spark have taken pay cuts of up to 30% as they reported savage write-downs on their portfolio of tech investments. The portfolio has been written down from £109.7m to £38.8m. The worst single hit was a £30m write-off of its investment in eTV, an interactive broadcaster and designer.

Finance director Bruno Delacave, who is personally taking a 30% pay cut, said: 'It's very painful.' Staff numbers are being reduced from 35 to 16 and chief executive Michael Whitaker already takes no pay.

A holding in EO, a company set up to deliver initial public offerings online to small investors, was slashed in value from £7m to £1.6m.

However, the cash balance improved from £35m to £41.8m and Spark pleased shareholders by announcing plans to return cash to investors, possibly through a share buyback. Spark is also confident it will soon realise cash from its 11% holding in the interdealer broker Tullett & Tokyo Liberty, which is mulling a £200m float.

The shares, peaked at 178p at the height of the dotcom boom, rose 1/2p to 9p.