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Post by Badly Drawn Stickman on Mar 31, 2022 21:15:43 GMT
The plc sold one of the businesses for £1 "to improve its balance sheet". Hopefully they can now use the quid to pay lenders. The plc "says it is seeking to focus its activities on the design and fabrication of bespoke products and to withdraw from providing solutions to the construction sector". I thought the construction sector was doing ok. Fairly sure I am putting lipstick on a pig here but.... Offloading a loss making part of the business (and presumably associated debts) whilst diminishing theoretical assets would improve future profitability of what remains. Assuming what remains is sufficient to cover our loan it may be a step in the right direction. I am sure the imminent update telling us of this master stroke will give more details.
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TitoPuente
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Post by TitoPuente on Apr 1, 2022 9:46:41 GMT
If we want to try to look on the bright side, they have recently announced that they closed the acquisition they reported last year that has an [unaudited] positive EBITDA of £266k (2021). This last disposal for £1 had net debt of £825k, so it is true that they are improving the holding balance sheet and that there will be some positive cash flow coming their way. They seem to be determined in trying to make the business work. Hopefully they succeed.
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ilmoro
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Post by ilmoro on Apr 11, 2022 11:47:20 GMT
Twelve month can kick incoming. Of course if you don't like it you can always sell out ... oh wait, you can't. Thanks FCA, protecting us from risk.
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Post by Badly Drawn Stickman on Apr 11, 2022 12:09:20 GMT
Twelve month can kick incoming. Of course if you don't like it you can always sell out ... oh wait, you can't. Thanks FCA, protecting us from risk. Being a couple of months behind with payments would have made the secondary market nought but a wish anyway. No mention of catching up on the payments I note. I think most of us had already worked out this would not be repaying on schedule so pretty much a waste of emails really. Certainly not worth 2 identical ones on 124.
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travolta
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Post by travolta on Jun 23, 2022 19:44:31 GMT
Time for a bit more please , Engineer.
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Post by Badly Drawn Stickman on Jul 4, 2022 10:22:54 GMT
Time for a bit more please , Engineer. Yes. Clearly time for some movement on this one (and quite a few others). Perhaps an update to start the proceedings ablrate
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dh1
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Post by dh1 on Jul 4, 2022 15:48:35 GMT
... and not the usual "(somebody else) is/is not doing something" and "there's nothing to report because of that". There is ALWAYS something to report where debts are not being paid. At least, there is where the organisation that should be very enthusiastically chasing the debt is actually doing that.
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TitoPuente
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Post by TitoPuente on Jul 19, 2022 10:09:37 GMT
RNS
18 July 2022
V** I** plc
Disposal of O*** D*** Limited
V** I** plc (AQSE: ****) is pleased to announce that it has disposed of the entire share capital of O** D*** Limited
Disposal rationale
O*** specialises in the design, manufacture, and installation of custom-built fire doors in the health, education and public infrastructure sectors. The sector suffered significantly, with complete shut down during the initial COVID lock down. Further lockdowns compounded the delays in rebuilding the order pipeline. Following a review of the budget for the year ending 31 March 2023 the board have concluded that additional investment to increase capacity is required to enable the business to move into profitability. The demand outlook, whilst improving, remains uncertain, with the risk that the additional volumes required to justify the investment might not materialise for some time. Accordingly, the board have decided to dispose of the business to avoid continued cash outflows.
In the interim accounts to 30 September 2021 O*** had net liabilities of £751,000. Consideration from the disposal is £1 and its disposal will improve the Group balance sheet of V*** I*** plc.
I*** T***ff, Executive Chairman, "Together with many smaller suppliers to the construction industry, O*** struggled to sufficiently rebuild its order book following the period of restrictions during the pandemic. Whilst we have reviewed a series of options to support its endeavors, the additional capital and working capital investment required to reach profitability cannot justified given the continued uncertainty in the market."
Sold for £1
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travolta
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Post by travolta on Jul 19, 2022 17:05:47 GMT
......because this improves the look of the balance sheet  £750,000 to £1.00? Havn't had a payment for a while either ... |
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benaj
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Post by benaj on Jul 19, 2022 17:20:13 GMT
Father of darkknight is expert of #TradeJunky
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ilmoro
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Post by ilmoro on Jul 19, 2022 17:56:26 GMT
......because this improves the look of the balance sheet £750,000 to £1.00? Havn't had a payment for a while either ... Yes, £750k of liabilities ie debt so net assets improve by £750,000. The defacto sale price is £751,000.
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dh1
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Post by dh1 on Jul 19, 2022 18:07:46 GMT
Err - isn't that £750,001 ilmoro? Rather than £751,000... Soory for pointing it out but it's warm... |
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 19, 2022 18:38:36 GMT
Err - isn't that £750,001 ilmoro ? Rather than £751,000... Soory for pointing it out but it's warm... It is ... hence my inability to do basic maths 
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Post by ablrate on Jul 20, 2022 12:28:27 GMT
The clean up is a good thing for lenders. The balance sheet being cleaned up will be better when the look to refi us out. All of the companies have a chattels mortgage on equipment in favour of our lenders so when a sub is sold lenders will get the cash because they can't sell those assets without our permission and our chattels being removed. So the £1 is to make a contract valid, any sales of assets are required to be paid to lenders.
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TitoPuente
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Post by TitoPuente on Jul 20, 2022 13:54:46 GMT
The clean up is a good thing for lenders. The balance sheet being cleaned up will be better when the look to refi us out. All of the companies have a chattels mortgage on equipment in favour of our lenders so when a sub is sold lenders will get the cash because they can't sell those assets without our permission and our chattels being removed. So the £1 is to make a contract valid, any sales of assets are required to be paid to lenders. Not following. You say that all of the companies have a chattels mortgages on equipment in favour of lenders. That included O*** D*** Ltd, but it was sold for a peppercorn so the chattels on all of their assets had to be released and no funds were returned to lenders. Did ABL give permission to sell under these terms?
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