Member Info for Timmit

Max, I wouldn’t read too much into the auction being on the same date as the AGM. AGM is on a similar date to last year and was set about 3 weeks ago. At that point I’m sure CLP were still hoping that the main land parcel would be assigned to Cleair Leisure 2017 without auction based on the first charge they hold.

Presumably we need to hear back from the court before Wednesday with respect to the separate application to have the land assigned to Clear Leisure 2017 - if the court grant that motion that would allow the land to be withdrawn from the auction.

They were individually revalued in 2015 by an independent professional valuer to be worth a TOTAL of 5.1M euros, i.e. 510K euros each...

Rosslyn RNS said over £1M, £500K in year 1, £250K in years 2 & 3. There are additional opportunities: "providing additional technical and professional services during the contract life to help the client generate maximum business value"

I’ve already put your name down for that one!

RD, Clear Leisure Plc own the only share in Clear Leisure 2917 Ltd so they could sell that share at a proper valuation of course and that would still leave a shell with a bit short of 50M losses. I’d be very surprised if that Theme Park plan was resurrected - I think that was an Alfredo special cooked up on a Friday afternoon after he won the “most outrageous thing you could try getting planning permission for” office bet. We had already tried to invest in Naples zoo so theme park it was! It would be easier to spin the subsidiary companies out BEFORE the potential value is realised with planning permission granted and Bitcoin mining becoming profitable to leave the largest tax losses in the shell. If FG wants to use those losses for existing activities it would take many years to use them up so it might be a case of extracting value from the subsidiaries and monetising the tax loss separately. If the tax losses are worth 17M euros in tax relief to a big investment company then that has its own price tag in a sale...

Hi RachelsDad, the losses are not an asset but would be of value in one of 2 ways. Firstly, if CLP makes future profits then it could make 57M profits before having to pay tax. Secondly, if CLP was bought by a profitable investment company then the tax saved by the losses in CLP being deducted from the profits would be between 10.8M and 17.1M depending on the level of profits and the Corp tax rate applicable.

Agreed. Which is why I won’t be concerned if they throw the kitchen sink at the valuation this time round! Just thought it was worth mentioning as the profit (or loss) will be one of the first things mentioned in the RNS and some may not feel like wading through all of the explanation if it’s a loss. For that reason my preference would be that it was released late on Friday rather than early. It would allow PIs and the weekend press to properly digest it without a knee jerk reaction.

The villas should still be in at their previous valuation of 5.1M euros.

Hi RachelsDad, just one comment on the £4M profit we hope will be reported. The only drag I can think of on that might be if they revalue the Mediapolis land to the official court valuation (possibly for finance negotiation reasons!). The land was previously in at 13M euros and the court valued it at 3.86M euros so potentially a writedown of about 9M euros. If they do that I'm not concerned as the court's valuation was viewed as conservative but it might kick the stated profits further down the road. They may have had an independent valuation that underpins a higher value but we'll only find that out tomorrow! If and when any planning rights are finally granted on the land they would have to revise any valuations anyway and hopefully things will be a little clearer on this front in the next few months.

Are you using mobile or desktop version Mike007? Noticed that mobile version seemed to be dropping posts but not desktop...

Hi Tgj137, the interims to 30/06/17 showed a profit of 2.14M euros after a 2.4M euro gain on a negotiated debt settlement. After that there was another negotiated debt settlement gain of 3.79M euros. I’m expecting about 200K to 400K legal fees as expenses doing the maths from the placings. We know the wages bill isn’t big due to the way things are set up for RE and FG and a lot of the interest normally payable has been removed by the debt buybacks. Where does that leave us for the full year? Surely in profit, probably north of £4M euros for the year but Friday’s accounts will be well worth the read I’m sure.

Sure he bought 25,000.000 at 4p (£1M worth)...

3. Mediapolis - are you sure that the EUR 39M claim against Piedmont is still live? This was launched by Mediapolis srl which has been liquidated so any claim would have been dealt with by the court. Also, have you factored in the claim from the Italian Ministry of the Economy for EUR 2,798,620 (RNS 12/06/2018). Where are you getting your valuation for the Sardinian villas at EUR 1.5 each? 6. Geosim - investment was written off in the 2014 accounts but was reinstated at a value of EUR 614k in the 2015 accounts. This was then raised to EUR 634k in the 2016 accounts so a lot of the value in Geosim is already priced in. RNS of 07/12/2017 stated: "It is currently undergoing a round of funding as follows: an internal fund raising with existing shareholders is being completed at a valuation of USD 15M pre-money and a roadshow to attract new investors is at a valuation of over USD 20M pre-money." So the valuation of the 4.53% we hold would be about USD 906k which works out at about EUR 781k so an uplift of about EUR 147k. I don't know why the RNS of 07/12/2017 refers to it being written off in 2014 accounts when it was clearly reinstated in later ones - seems to imply the whole valuation will be added to the asset value in the 2017 accounts which i don't believe it will. 11. Tax losses will be reduced by the profit on debt buybacks - currently EUR 6.2M so should be down to about EUR 52M. One more positive is that there were provisions of EUR 407k specifically for Mediapolis relating to litigation costs AND LOAN REPAYMENTS. With the liquidation a big chunk of these may not have been used and could come back into the accounts as profit.

Sorry RNS was 02/05/18.

Not quite Marmie50 - it was a 9.9M euro bond but only 6.9M euro are issued. It’s clearer in the RNS on 01/05/18.

Marmie50, you’re right that these things bubbling away in the background will be resolved over months (maybe many months in court cases) but good news and announced progress milestones get priced in before the cash arrives. Same is of course true of disappointments!

FaceTime lol! Have a video conferencing wall, give him a white cat and bingo! Next Bond villain! Tenuous bond connection over...

Very interesting RKB. Another facet would be that, if this bond debt is resolved by the issue of new shares by the end of this month, the interims (likely in September) would show yet another improvement in Net Asset Value which could cause even more interest from new investors...

Some interesting days ahead. 75% should be a formality especially now. Why do I say that? When the RNS of 17 May 2018 announced in the usual bland tone of these things that all the resolutions were approved it doesn't mention that they were passed unanimously - at least I don't remember any votes against! FG made an telling observation about the interaction the company now enjoys with its shareholders and how much it has improved over the last year. Last year (28 July 2017) at the AGM various shareholders had some serious concerns about what might happen with Eufingest being such a major shareholder. The work that the BOD have done in the last year has built on the trust restored that day. We may be eagerly waiting for various RNS to drop but the BOD have held to their line that they will report when there is something worth reporting - that wasn't always the case in times past!