This is the bizarre accounting required by International Accounting Standards whereby unrealised revaluation gains and losses go through comprehensive income. Underlying earnings are much more meaningful and are analysed in Note 6.
They only allocated £1 million, or less than 1%of the issue, to private shareholders, resulting in me getting a 25% allocation. This shows how much they value private investors. I will be selling my shares.
Very interesting analysis. Thank you. Of course even fully contracted companies are able to take advantage of higher energy prices as they enter into new contracts. This is why I believe the disparity in premiums between say FSFL and UKW is overdone
RE: Asset backing of at least 17pps17 Mar 2021 11:03
The CBIL is a coronavirus loan of £1 million from Barclays. This is disclosed in the last annual accounts. I assume this is the term loan shown in the proforma.I don't know why there is also a CBIL asset in the proforma, unless these are funds on lent to the sold businesses and to be repaid by them
RE: Asset backing of at least 17pps17 Mar 2021 06:58
There seems to be about 6p per share they could distribute unless they have more ideas on spending the cash. They could then do a share consolidation.Hard to be sure since the proforma balance sheet shows an asset of £444000 for a CBIL loan advance yet they seem to be planning to repay the whole loan.
RE: Acacia qualifications to make investment decisions10 Mar 2021 14:41
If the SID did defer the meeting with a major shareholder several times I can understand them escalating it. There are valid concerns raised in the letter which need answers. However given the discount on net asset value I still rate this a buy.