Online auction house QXL Ricardo’s latest results have underlined the importance of buying back its Polish subsidiary, a deal that the group did even though it had accused the vendors of stealing the business.

QXL posted a second-quarter pre-tax loss before acquisitions of £98,000 compared with a profit of £23,000 a year earlier.

On continuing operations, however, pre-tax profits for the quarter ended September 30 were £1.388m, up from £23,000 a year ago.

The former dotcom star swallowed its pride in June and agreed to buy back its Polish subsidiary from the parties it had been pursuing through the Polish courts for about £56m in QXL stock, representing a quarter of the company.
The recipients included a former employee, Arjan Bakker, who gained control of QXL Poland three and a half years ago in a disputed share issue that transferred the business to new owners.

Reporting its latest results on Wednesday, QXL highlighted the importance of including figures from its Eastern European region.

Bruce McInroy, the interim chairman, said: “With Poland as a strong and profitable base we will continue to develop and explore opportunities for expansion in Eastern Europe.”

The shares shed 450p, or 4.6%, to £94.00 by lunchtime.

Posted: 10|25|06 at 3:52 pm. Filed under: UK News.