Member Info for MrMagorium

This is the problem with small companies. When a randomer who's just finished their investing for dummies book, ends up thinking they are Gordon Gekko and will now likely end up the scapegoat for yet another failed cash shell. Unlucky for them.

Hmmm, if they look to sell, they are going to be getting peanuts IMHO, as that signals despair.

That would have definitely been a wiser decision 2 years ago.

I know the wine category well, and unfortunately the cost inflation coupled with lower consumer demand signals a lose lose situation. They could go after their overheads (which they really will need to do) and you may have a more profitable, albeit smaller business model, but it won't happen overnight.

Hi Bond, in respect of your question to me.

This is a cash shell, because it is a listed holding company that has lost control of its subsidiaries. So it technically has no operations, but it does have a listing, albeit, it is suspended so getting no benefit from that at all.

No Gordon unfortunately, this is finished. It's not an ITS scenario as they had zero debt. They sold the business for a significant discount, and had surplus cash proceeds, to stay trading whilst their inept BOD pushed for an MVL.

This business is effectively bankrupt and needs to salvage whatever assets it has to repay debts. Hence why the administrators have been appointed and will now look to liquidate any assets this has to repay the debt. It looks very unlikely their will be any proceeds for shareholders... I expect cancelled shares will be the next update. AIMHO.

No idea what their plans are, but they have very recently just joined the BOD of ECR Minerals.

What was the date of the RNS you refer to?

What makes you call them muppets jemgee? Have they tried it before?

Just read the RNS, what an absolute waste of time, they should withdraw the requisition and the BOD should give a solid update on potential acquisitions being considered.

Well it's suspended and paying a listing fee, so my guess is next there will be a vote to delist. Will be interesting to see what the institutions vote on that matter. I can't imagine there will be any new directors joining the board until they have fully liquidated the subs.

Personally Jamrock, I think it's funny how the whole house of cards starts coming down, when those just as to blame for the circus start dishing the dirt because they couldn't get their own way.

I even read a report about one such individual asking senior scientists about research regarding putting a hairdryer up someone's nostrils to cure Covid.

Hope the BOD here don't get any R&D ideas off the back of that!!

Moniman, whilst that would be true if they hold the shares in treasury, they are cancelling them as per the RNS. To my knowledge that will increase the NAV per Share/ Increase EPS, for remaining holders, but it does make me wonder how they plan to fund future investments. Just thinking out loud of course.

How are they getting them at 2p is the question? A mere mortal has to pay 2.19p for a few k worth... I may be wrong here, but surely that cash would be better in a bank earning circa 5% whilst waiting for potential falls in the market, in order to take further stakes in more businesses? A buyback, to me, implies a company is out of options for deploying the capital and therefore returning this to shareholders is a last resort. Just my thought of course.

Https://news.sky.com/story/safestyle-around-680-workers-made-redundant-after-window-and-door-seller-falls-into-administration-12996605

Looks like game over.

In their interim 27th September, they posted the following:

"Consequently, as described in the Business Outlook , the Group has commenced discussions with its stakeholders to strengthen the balance sheet at this time. There has been a good level of engagement in this process and the Directors believe that they have sufficient options available in order to conclude that the Group will have adequate liquidity against forecast downside scenarios through to the end of the going concern period (31 December 2024)."

That's poor on the BOD's behalf, as it was clear they were in a mess then...

Not quite in Admin yet, there's 10 days to go to see if any deal can be agreed, but it certainly doesn't look like anything that will benefit existing shareholders.

'Consequently, the Board has filed notice of intention to appoint administrators to HPAS, Style Group Holdings Limited and Style Group UK Limited in Court today.

Unless financial circumstances change, and in accordance with statutory requirements, the board of these three companies intends to appoint administrators within 10 business days.'

Writing was on the wall here for at least a month before today, so news shouldn't be too overwhelming. If you did have a position, use the experience for when the next one comes around.

If they chose to take the company private (ie. Delist from the exchange, you would still have a shareholding but a lot less regulation surrounding news and company updates)

That would need voting through by shareholders at an EGM.

Even if it does spike, which at this level it could of course, end outcome is unfortunately the same. Pi's getting shafted!

The notorious Earl of Aim, and his E-toro pocket money have found the next biggest heap of shiet on AIM. Oh no!

A price that the shareholders arent likely to see any value of, because the debts need repaying!

Best case is the sale of the sub and remain listed as an AIM cash shell, which in the current environment as about as useful as a chocolate teapot.

AIMHO, DYOR