The loss - which compares with a profit of £0.1m last time - is after provision for legal costs of £1.5m.

The group said turnover increased to £5.6m in the period - up from £0.2m last time.

Chairman Henry Lafferty said: "The company's strategy of investing in the SME and professions markets, where traditional funding sources have dried up, is proving to be very sound.

"Customer demand from all of COLG's key investment platforms is strong and we are now focused on seeking third party funding to enable us to take full advantage of these opportunities."

He added: "The Therium business model is now producing good returns to investors.

"The first limited liability partnership, which closed in May 2010, has increased its NAV before distributions to 164% of opening capital.

"The second limited liability partnership, which only closed in May 2011, is already at 119% of opening capital (before distribution). Therium has now closed its third limited liability partnership, attracting £4.3m of third party investment and further funding proposals are being evaluated.

"Therium has seen early results on a number of its investments including one particular case which saw an adverse judgement.

"This case is expected to go to appeal but the board considers it prudent to provide for the company's full investment of £1.5m at this stage resulting in an overall loss for the company's investment in seed funding legal cases of £843,000 over the six month period."