The Scottish venture capital business owned by the fifth Viscount Gough has incurred another year of losses amid difficult conditions for firms that back early stage companies.
Glasgow-based Barwell plc lost £1.3 million before tax in the latest financial year, during which the Viscount played a key role in helping it tackle the challenges posed by the economic downturn and problems in the banking sector.
In accounts for the year to September filed at Companies House, directors said the latest loss reflected the fact it remained difficult to sell stakes in firms the company invested in.
Directors also felt it prudent to make provisions against a potential fall in the value of some investments.
However, the company remained active in the market helped by the 71-year-old Viscount, three of whose forebears won Victoria Crosses for valour during the colonial era.
"The continuing support of Barwell plc's principal shareholder throughout the period of ownership of its stakes in early stage and start up companies, and his willingness to support the development of the group has been critical in allowing Barwell to invest further at a time when realisations cannot be achieved and investment opportunities are plentiful," wrote directors.
They added: "This support has also been particularly important when invested companies have been unable to obtain further lending from banks."
Barwell remains keen to support firms it believes have good growth opportunities and effective leadership.
In January, Barwell provided additional finance for Glasgow-based Lamellar Biomedical as part of a £3.3m funding round. The company is developing a product for possible use in treating conditions such as Cystic Fibrosis.
Born in 1941, Shane Hugh Maryon Gough served as an officer in the Irish Guards before enjoying a 30-year career in stockbroking. He has a home in Strathpeffer, Ross-shire.
Brothers Hugh and Charles Gough were awarded Victoria Crosses for the courage they showed during the so-called Indian Mutiny during the 1850s.
Johnnie Gough won a VC during conflict in the former British protectorate of Somaliland in 1903.
Barwell made a pre-tax loss of £775,000 in the year to September 2011.
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