Little Understanding.4 Aug 2020 12:04
Does anyone know the significance of the S408 Companies Act exemption re filing income statement?" The Ince Group Plc is both a company in its own right, in which people on this board own shares, and also the head of a group of companies - which it owns. The Ince Group Plc is called the parent company, and the companies it owns are called subsidiaries. Together the parent company and its subsidiaries make up the group. Parent companies have to report accounts at both a company and a group level, though most are exempt from reporting as a company because those accounts are meaningless. Because you own shares in the parent company, you also indirectly own the subsidiaries, so you're invested in the group as a whole. Those are the accounts you see. The loss here refers to the parent company in its own right, which presumably has little revenue. The parent company is just an entity that tidily holds ownership of all the subsidiaries and allows you to own shares in the whole group. Often the parent company generates no revenue, has few staff, and only incurs some of the costs. Lets say the parent company leases a building for £9m. It then allows all its subsidiaries, which actually make the money, to use the buildings and doesn't charge them. Boom, £9m loss for the parent company, but a £9m gain for the subsidiaries. Makes no difference to shareholders because the -£9m and +£9m neutralise each other because the shareholders in the listed parent own the whole lot. It's just an intra-group transaction.
I’d suggest you all re read the Results - as expected very impressive. 50/60p here we come
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