Arc Fund Management has followed a boardroom upheaval with news of a £1.5 million interim loss.

AIM-quoted Arc, where Tory party deputy chairman Lord Ashcroft has a 21 per cent stake, increased revenue 31 per cent to £2.1 million the six months to June, but costs soared and the company converted a modest profit for the first half of 2007 into a seven-figure loss. The company, where entrepreneurial Renwick Haddow of Catalyst Group fame used to hold a major share, has been struggling against ‘economic headwinds’, says chairman Sir William Wells, who declares it has recently taken ‘significant steps to redress our areas of weakness’.

These measures included the resignation two and a half weeks ago of founder and chief executive Christopher Rowe and fellow director John Gracey. Simon Banks-Cooper, a chartered management accountant, became the new chief executive and Strand Partners replaced Beaumont Cornish as nominated adviser.

Investors who have seen the shares fall from 20.75p at the beginning of last year to 3.25p today – and Ashcroft, who bought his Arc shares at 8p and has a board representative, Andrew Wilson – will be paying close attention to how the new team sets about achieving its goals.

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Arc Fund Management	AIM	£3.46m	2.00p	0.00p
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