7digital Group Lost $3.8M in 2012…

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7digital Group had a net loss of £2.3m ($3.8m) in 2012, up from £745k in 2011.

7digital Group is the parent company of 7digital Limited, a music technology platform and digital music store. They have been planning a reverse takeover of UBC Media and are also looking for other fundraising options.

7digital Limited had £7.3m in sales in 2012, down from £8m in 2011. They had about £2m in losses in 2012, up from £696k in 2011.

The company’s directors say:

“The company has seen a rise in its cost base and, combined with significant investment in new resources, has seen an increase in its operating loss and cash demands for the year… The directors expect this position to continue as the company strives for growth, and have prepared cash flow forecasts which, together with significant growth forecasts, demonstrate that further cash funding is required for the group as a whole.”

They also say there is “material uncertainty that may cast significant doubt upon the company’s ability to continue as a going concern”.