Purple Capital ("PPE") released its interim results yesterday showing a loss per share of 1,11c.  The prior year's loss of 13,77c was mostly driven by a fair value write-down of over R20 million relating to "...negative fair value adjustments to investments, the write-down in Integer and high interest and amortisation costs."

The current fair value line item in these interim results shows a small profit of R1,5 million, but I would love more disclosure on exactly what this "fair value" line item is.

The Group managed to boost its cash holding to R32 million, but interestingly enough states how Global Trader ("GT") clients margins are included in this balance (albeit with a current liability of equivalent value being created in the balance sheet).

Current liabilities total R47 million as a single line item and, once again, there simply isn't enough information disclosed in the SENS to make any conclusion regarding how much relates to GT clients margin moneys.

If the entire R47 million relates to clients' margins, then with a "cash balance" of R32 million, the Group is actually in a net overdraft position of R15 million with its own money.

Hence, I think this is pretty important to disclose this.

Moving away fromt this, Purple is seperated into two segments with GT as one and Purple Capital itself as another.  The latter brought in a loss of R13 million for period while the former managed to produce a healthy little R4 million profit.

The latter, Purple Capital, is trying to build a corporate finance business, but with revenues of only R2,4 million for the period one wonders if its really worth the effort of competing with the likes of other more established players?

Time will tell, but over a slightly better set of results than the previous period.

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