Trading Update

11 May 2012

The board of directors of Concha (the "Board") is pleased to provide an update regarding recent activity. Since the successful sale of the "Hot Tuna" brand and certain assets in January 2012, the Board has undertaken a closure of the legal and operational structure of its former business in such territories as Australia and the USA (the "Hot Tuna Business"). This process has now been completed and no further activity is anticipated in respect of the Hot Tuna Business. Other than the loan agreement referred to below, Concha is now a clean cash shell ideally positioned to pursue a strategic acquisition opportunity in line with its stated investment strategy.

Loan Agreement

As the Company announced on 13 March 2012, the Company entered into a loan facility agreement with Churchill Media Limited ("Churchill"), under which the Company would provide up to £750,000 of capital to Churchill (the "Loan Agreement"). Under the terms of the Loan Agreement, Concha was required to approve on any significant items of expenditure incurred by Churchill in excess of £25,000.

As at the date of this announcement Churchill has drawn down £645, 000 on the terms of the loan agreement which incorporated an interest rate of 6% above LIBOR.

We are informed by Churchill that the funds drawn down have been utilised to invest in media, technology and telecommunication businesses. One of the companies in which Churchill has made an investment in is one where M Barney Battles is a minority shareholder and nominee board director and consequently Marcus Yeoman, acting as the independent director of Concha, reviewed the draw down request from Churchill.

The loan remains repayable on demand and no later than 9 January 2013.

Working Capital

As at the date of this announcement, the Company retains over £300,000 of cleared funds before settlement of a historic outstanding VAT matter in addition to other potential contingent liabilities totalling, in aggregate, up to approximately £175,000. The Board is confident that these will be settled shortly.

Future Activity

The Board continues to explore a number of possible acquisition opportunities and looks forward to providing shareholders with a further update in due course.



Concha plc
M Barney Battles, Non-Executive Chairman

Tel: 0778 976 6242
Seymour Pearce (Nominated Adviser and Broker)
Mark Percy / Catherine Leftley (Corporate Finance)
Katie Ratner (Corporate Broking)

Tel: 020 7107 8000


Notes to Editors

Concha PLC is an AIM listed investment vehicle created after the disposal of certain intellectual property and assets of the "Hot Tuna" fashion brand.


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