Mapflow posts €3.9m shareholders' deficit
A Dublin "location intelligence" company whose backers include Balderton's Barry Maloney, Merrion Capital private clients and US entrepreneur Sean O'Sullivan closed its last financial year with a shareholders' deficit of almost €3.9m.
The black hole is revealed in company documents just filed by Mapflow, which sells "location-aware risk intelligence" to help insurance companies manage and monitor risks.
The filings attribute the multi-million euro net liabilities to an accounting technicality that compelled Mapflow to reclassify €4.8m of preference share capital as a long-term liability.
The new figures also show that Mapflow lost more than €1m in the year to March 2009, though the company's directors remain positive, insisting their venture is "well positioned for profitable growth" well into the future.
The directors said 2009's losses were prompted by "continued planned investment" in a unit called Avego, which specialises in real-time traffic and passenger information.
The business of Avego has since been transferred to a new company, reducing Mapflow's cost base "significantly". The directors also confirmed they secured "additional funding" of about €1.5m in 2009.