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I think that the 1p/share is an underestimate based upon the latest evidence, with 1.75p possible if there are no surprise costs.
The Declaration of solvency issued when Made.com PLC went into MDL (23rd Jan 2023, viewable on companies house), showed estimated value after debts paid of £5,659,997. This included the estimated costs of winding up and was all cash at bank.
Payments from MDL administration were not included in these projections. The PLC is the largest unsecured creditor of MDL, with approximately £80m being owed (approximately half). If we assume 1.6% is paid to creditors, we can assume the PLC to be paid circa £1.28m from the administrators. Note 1.6% is the current estimate from PWC, viewable on their website as well as their latest update issued in November 2023.
In total, the PLC should have circa £6.94m after payment from administrators. Divide this by 395m shares in issue, we reach a payment of 1.756p/share to shareholders of the PLC.
This has omitted unexpected costs that may have accrued, but also interest payments on the cash balance. So it is reasonable to presume shareholders will receive more than the 1p initially outlined.
Dates of payments to unsecured creditors has not yet been issued, however, secured creditors have already been paid in full and preferential creditors are due to be paid on the 15th March. I would expect payment to be made to unsecured creditors towards the middle of the year. Once paid to the PLC, it should not take long for this to be distributed to shareholders.
"Shareholders / members will be the last class of creditor to receive a distribution and they will only receive a distribution after everyone else has been paid in full. "
Not holding out much hope even for 1p tbh.
Aklee,
While that is correct, shareholders do rank last, the PLC, the company you have shares in is not in administration in this case. It is a subsidiary of the PLC, MDL (Made.com Design ltd), that is. This company structure changes things significantly for shareholders and even though shareholders rank last, the PLC has no significant creditors or payments to make.
Also note that the PLC is actually the largest unsecured creditor of MDL (With over 50% of total monies owed, circa £87m), so will get a chunk of cash (if anything is left over - current estimate of 1.6% puts this figure at circa £1.4m, or 0.35p/share).
The last accounts viewable on companies house show that the PLC has £5,803,990.78 of cash in the bank as of Jan 2024. They have no significant outgoings, no creditors to pay so they only payments that will need to be paid will as part of the liquidation process. During Jan 23 - 24, this amounted to circa £125K.
According to the declaration of solvency their best estimates of cash left at the end of the process, when the PLC entered the MVL (Members voluntary liquidation), was £5,659,997. Trade creditors settled for approximately 50% of the total owed, and the cash is now in an interest bearing account hence the slightly higher figure of cash in the bank at Jan 24.
It is, therefore, highly unlikely that the cash left for shareholders will be under the original estimate of circa £5.66M as the remaining cost of the liquidation should amount to less than £150K as there is very little for the liquidators to do. Therefore, shareholders should receive at least 1.4p/share. Note, that this 1.4p excludes any payment as a creditor of MDL, so the actual figure paid to shareholders is likely to be higher than this.
The company structure has, somewhat, saved investors here and will provide them with something. Although for most, the payment of 1.4-1.75p will still result in a massive loss. But the figures the company have provided, indicate the payment will be higher, not lower, than the 1p originally stated.
Thanks for your detailed summary Pro. Does give me some hope.
If we get 1.4p a share I will be doing cartwheels :)
Hi ProInvestor,
Is there any timeline on when this will be finally settled and any payment made to shareholders? I’ve all but written off everything, but still come back to check every 3 months to see if theres been any developments.
Thanks in advance.
I have emailed PWC asking about timelines and they have forwarded my email to the relevant department dealing with this. Been 2 weeks now and heard nothing back. The waiting continues.
The stock remains visible in my ii account which gives me some sort of comfort haha
Still nothing heard back. Surely they have sold off the remnants by now....where's our money??