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LJ as anticipated ,shares protected according to telegraph business section,he shoild be compensating all small PI's from the money he made from cake IPO
Research Part 2
When investing I use many tools for my research and now as a result of your miss-fortune I have a new tool.
I used to be a Mortgage Broker and before I could even begin to arrange a mortgage I had to check the HMRC web-site for the Designated Persons List (people subject to financial sanctions) well there is another web-site for private investors.
You were informed in RNS 10/10/18 at 13:53 that Stonebeach Ltd had a winding up petition was filed at the High Court of Justice on 14 September 2018 and that this was advertised in the London Gazette on 5 October 2018.
Now if someone in your finance department was tasked to check the London Gazette daily not only for Stonebeach Ltd but other companies you are associated with then it is possible that your Company would have been able to have addressed the situation sooner and maybe prevented some funds disappearing (assuming they have disappeared)
I am now registered with the London Gazette and I can check on any individual or Company daily if I want to (service is free) So let us assume you were registered with the London Gazette and on the 5 October you seen that Stonebeach Ltd had been listed for not paying HMRC £1.14 million, what would you have done? Top-sliced? Contacted the Company? Ignored it?
We all know you can make a lot of money on AIM and the reverse is also true. Information is key and if you possess the information before others you may have an advantage.
Who had information last Tuesday, who had an advantage? Who managed to protect their investment?
As always, do your own research as it can preserve your investment.
RKB
https://www.thegazette.co.uk/notice/3124731
Research Part 1
I am not invested in your Company and I am disappointed that you have had to have such a large discounted placing. Many investors will be wondering how it transpired that a large cash balance becomes a large overdraft and if anything could have been done to prevent your Finance Director, Christopher David Marsh being suspended.
I can use your Company to learn lessons for myself going forward.
I have read all the recent RNSs and went back a few to see if there was any inclination as to what transpired last Wednesday.
Posters who know me are aware that I do extensive research and one valuable place is Companies House as I receive alerts when there are new documents lodged there and sometimes you get to see a document that informs you of a first notice of strike off.
When I see a first notice of strike off, I contact the Company (or the Company that holds an investment within this Company) and ask if they are aware of the situation at Companies House.
Now when I look at Companies House there was a document filed on 11th October 2018 that satisfied the Debenture that was created in 2006. I do not know much about the background of this Debenture but a LTH may know the intimate details.
So you have to ask the question why did Risk Capital Partners along with the two Scalzo brothers get their mortgage re-paid on the Tuesday? Then you guys find out on the Wednesday that your investment is suspended and later in the week you see a placing at £0.50 when you were trading at over £4.20?
My interpretation is that this mortgage / charge was repaid on the Tuesday just in case it was even worse than it turned out to be. How much was repaid? Where did the funds come from when there was an overdraft?
RKB
Half baked BoD..
He was correct. Profit to cash consistent and predictable... Flowing directly to hsbc and barclays servicing a 9,700,000.00 debt.
That one was anything but predictable eh.
SP opening soon?
Issued on 15 May 2018 and I quote from the CEOs report “Our business model converts profit to cash efficiently and delivers consistent and predictable cash flows.”
“....I am confident of a good second half to the year.”
Hmmm credibility of this senior team to keep running a PLC or any company tbh?
LJ is no knight in shining armour.........
i didn't think it was possible...hard to believe how crazy the world is becoming...unbelievable
https://www.telegraph.co.uk/business/2018/10/10/patisserie-valerie-shocks-city-entirely-unforeseen-fraud-warning/
pointy hat
surely they can just pay the accounting inaccuracy if that is the case ..seems very harsh to lose all those jobs and careers
linked in quote"Paul is currently CEO at Patisserie Holdings Plc. It was acquired in 2006 with 6 outlets and sales of £10 million. Paul and his management team have grown the business over the last ten years to an excess of 200 outlets, 5 brands and sales of over £120 million. Paul is a serial entrepreneur that has been part of the management team in various retail businesses over 20 years. He was Founder and managing Director of Cash a Cheque (now known as the Money Shop) which became the market leader in its field with over 80 outlets when it was sold. He is presently non-exec director of several other companies, including the Restaurant Group. Paul is also a Business Advisory Board Member to the Mayor of London and spends much of his spare time mentoring young people in his role as a patron with The Princes Trust."
https://www.patisserie-valerie.co.uk/special-occasion-cakes.aspx
i really cant see why ple thinks this will end badly
Missing £20m?
Unknown £9.7m overdraft?
A 90% drop in share price?
Fraud / arrest of senior staff??
Is this some sort of company in South America?
Time for a class action against Grant Thornton - they appear to be criminally negligent and incompetent.
Absolutely unbelievable
clean classy and affordable ..lovely history from a tiny patisserie in Soho which was nice and quirky full of arty poets writers actors etc to the huge company it is today..
it may be slightly toppy but you can't avoid the fact that people love to eat cake
WGR...2 weeks ago we were in our fav hotel in Calais. My chocolate tart was one of the most divine cakes the Mrs and I have ever eaten. And as for the Muscadet. As they say in France "le chien's rowlocks"!
sorry to repeat my previous post to some extent but i do agree that delisting is the most likely outcome.just my opinion of course no supporting facts or knowledge but based merely on what has happened to other companies in difficulty where the same personalities have been involved
no problem with that approach at all Urraca.i have done it myself on occasion.the extra element here which would put me off is the suggestion of fraud not yet of course established.i would be worried that the full picture mightn't come out for a very long time.that said if you do decide to give it a try good luck.i also hope the long term outlook improves for the sake of existing pi holders
"Opportunity of a lifetime" may well have been VP sales pitch to IIS.
Opportunity only comes once to most people. Luke J seems to have had cats lives.
Tread very carefully - for if this is the way forward to delist and Coy taken private then PIs ????
Hi Italian. I cannot envisage any circumstance in which this share could be the 'investment opportunity of a lifetime' lol. But when it relists there will be volatility for 'price discovery' so an opportunity to turn a buck if you can get it when it's oversold, and cash out on the rebound. I know the trying to catch a falling knife adage, and I've lost out doing this, but on average I make more than I lose. Plus, it's fun. (Apologies to holders here for that last bit, but it's true).
Per the company's website, there is an audit committee.
I would be surprised if they have internal auditors. They are not mentioned anywhere.
Lack of separation of duties is clearly a big problem. Looks as though Marsh was not only making the payments but also passing the accounting entries.
One of the risks mentioned in the annual report was the risk of reliance on key personnel!
Say no more.
Urraca far be it from me to try and influence you but personally i would not be tempted at any price .far too much uncertainty in my opinion.phrases involving the word "bargepole" spring to mind.this is just my opinion and you will of course make up your own mind as and when more facts are know.if it turns out to be the investment opportunity of a lifetime i apologise in advance
JL
Of course - no Audit Committee - AIM
Internal auditors - - may be none.
Separation of duties? May be none.
Worse than CVR - Why do funds fall for the spiel. PIs then follow
Well i admit i do not go to their shops that often but if you are outside London I reckon they are probably the best cake shops around - compare their cakes with Greggs.. For a birthday at work we have a gateaux cake. I agree they are not cheap but so pleased that their shops are not about to disappear.. at least hopefully the authorities will learn lessons for future corporate governance rules
Firstly, my condolences to anyone invested here and locked in by suspension. I hope your holding here is only a small part of a diversified portfolio.
Secondly, any bottom fishers like me out there, thinking there might be an opportunity for a quick buck when this relists? It's hard to know where it will go, but below the placing price I think. 40p? 30? If it hits 30p I would be very tempted to have a punt. Although with predictions of £12m real profit in the next year, it could conceivably drop to 10p - one years earnings while the uncertainty about what's going on continues.
"Messing up big time!"
The internal auditors reporting to the FD, The Audit committee receiving reports from the internal auditors. The BOD receiving the external auditors report. This happens after the are checks and balances are verified by 3rd party verification (i.e. Debtors balances are verified by the debtor and similarly creditor balances) .
The bank reconciliations - if more than one bank- proves the balances .
Inconceivable that this process has gone on for years without someone stumbling across an account outside the balance sheet with another entry back.
Point made earlier about debtor balances previously. Why around £12m for the last 3 years or so. No accounts note ? Why because consistent with previous years.
This is a real sticky donut.
Auditors check
Truth - more precisely an accurate understanding of reality - is the essential foundation for producing good outcomes.