|
|
Post by hugoarchover on Nov 14, 2017 15:30:38 GMT
Hi hoy, Apologies for this - this information relates to the original funding request for their original facility back in March- this should have been coveyed more clearly. This additional funding will specifically focus on supporting EDI's growth, specifically in the "outsourcing work for other financial institutions" and the "work with the Big Four accounting firms" as listed in the funding request. Kind regards, Hugo |
|
shimself
Member of DD Central
Posts: 2,560 
Likes: 1,169
|
Post by shimself on Nov 14, 2017 17:14:25 GMT
Was that the borrower's slip or Archover's please
|
|
shimself
Member of DD Central
Posts: 2,560
Likes: 1,169
|
Post by shimself on Nov 14, 2017 17:20:41 GMT
Can you let us know about payables movement 2015 2016 and current year please, also long term debt.
Can I comment that I think you should always show payables. If they were sharply up or showed slow payment it would indicate another and worse reason for borrowing.
|
|
|
|
Post by dharm999 on Nov 14, 2017 19:47:42 GMT
Hugo
can you also confirm the situation regarding the group loans? There are group companies that are overseas, what control will be in place to avoid money flowing overseas?
thanks
|
|
|
|
Post by hugoarchover on Nov 20, 2017 12:06:31 GMT
Apologies for the delayed response - i was out of the office towards the end of the week. shimself 1. “Can you let us know about payables movement 2015 2016 and current year please, also long term debt. Can I comment that I think you should always show payables. If they were sharply up or showed slow payment it would indicate another and worsen reason for borrowing.” Payables have increased from 2015 to 2016 and also YTD, which was discussed with the business on a recent site visit. The business confirmed that cash generation remains strong and increased payables is due to higher turnover and prudent cash management. Long-term debt is £500k, rising to £800k with the addition of the new ArchOver loan. dharm999 2. “Can you also confirm the situation regarding the group loans? There are group companies that are overseas, what control will be in place to avoid money flowing overseas?” In the last four years, the Group set up two new companies in Morocco and in India to perform data research, data input and translation work (Morocco only) for EDI Ltd. These are essential to the continued growth of the business, and for the maintenance of EDI’s gross profit margins. These payments are accounted for as an intercompany asset on the balance sheet, but are also put through the P&L – essentially treating them as a third-party supplier - to ensure that the P&L accurately reflects EDI’s actual trading. Post year end, the interco loan accounts will be cleared, with the remaining ‘interco loan balances’ reflecting startup and cap ex costs. Netting these off leaves the group loan account at £670k at September 2017, which are broadly loans to IPP (the holding company); we hold a cross-guarantee on the holding company for our loans to EDI. Hugo |
|
shimself
Member of DD Central
Posts: 2,560
Likes: 1,169
|
Post by shimself on Nov 20, 2017 12:14:02 GMT
So has the change in payables been proportional to the CoGS (or sales)?
|
|
