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Ohh, ok, sorry then, I've read it differently.
Yeah, fire-sale will go at material/huge discount, lots of this stuff is illiquid (and considering current economic climate .. well), there's plenty of intangible assets too and goodwill {close to 5 billion} - value of this category is mostly virtual and may end up with close to nil (except probably for a brand name), property/plant/equipment - is very specialized and isn't in high demand..
Others mention employees - IMO, for many of them nothing will change, it will just be managed by a different owner (new shareholders) / legal entity (except for some branches they decide to shut down)
cambridge130, claiming something like this - is a simple lack of financial competence.
If equity is negative (which it is for CINE) then there's not enough resources to pay all the creditors, that's a technical definition of balance sheet insolvency.
There's no value left, equity was negative for quite a time already (and consequently breach of covenants).
It was just a question of time and whenever recovery prospects could flip the tide back (which didn't happen).
As for RNS - IMO: interests of shareholders are not considered anymore, only creditors are taking the precedence and with them it's mostly negotiation behind closed doors for now. Although formally they should release official announcement anyways (IMV again - just a question of time).
Will be very interesting to see more shorts reported over next couple of days.
Different shares possibly can come up some day under similar name (although it's a poor practice to pick up a name with spoiled reputation), but not these since company is bankrupt, previously issued shares are absolutely worthless, value is nil.
As per last administrator report (Interpath - Aug/2022) - pages 3 to 5: on average (weighted) unsecured creditors are getting back roughly only 5p in £1.
I wouldn't trust outlook supplied by BoD much, so far the facts are:
- they're suffering losses (although there are some improvements in trend but no much of a chances to break even soon),
- have consistently negative and red-flagging equity and ...
- printing shares like there's no tomorrow,
prospects of covid or monkeypox disappearing over the next year - are close to nil.
Re: ...Someone is really trying to drive this down...
There's nothing to drive down, it goes naturally, they've been hardly profitable to begin with and recent scaling down and falling back into loss zone (6m interim results) just helps market to understand it's real value.
In order to get higher sp they would need consistently relevant level of net profits (£25m+ pa)
So far over the last 5+ years (on total basis) it was just slowly burning capital (aggregated/non-discounted loss is roughly -£27m over 5+ years). Potential salvage value of their assets (high weight of intangibles/goodwill, prop/equipm, some inventories as per paretto liquidity rule) is bringing their on-paper equity value (90m+) down practically to nil.
IMV - AO. are very high-risk and relatively low probability of success..
Does it matter? Together they practically have voting majority anyways,
most nominated accounts are voting "FOR" automatically by brokers.
BoD "recommends" it, therefore it's already done and deal if they secure financing package.
Skeletor
While HMRC does have DTA with Nigeria - from taxpayer's perspective DTAs are normally about paying differential to HMRC if foreign tax is lower than UK'.
If foreign tax is higher than band you pay in UK (nil for ISA) - then you simply not paying difference in UK (nothing to pay).
Nigerian Tax authorities do not give a toss about your non-resident situation abroad
(if you're supposed to pay nil rate in UK)
therefore any excess you've paid in Nigeria (even if you're not their tax resident) - should be handled by your tax advisor it's between you and tax office of Nigeria as per their legislation,
which is 10% WHT for tax non-residents anyways (except for some income repatriation cases).
Therefore as far as I know - nothing can be done about it, WHT you've paid is subject to Nigerian tax rate for non-residents, nothing to do with your UK tax rate (ISA - nil).
oldgold22 - agree, fair point, let's hope this is one-time-thing on aggregate basis and next report shows a proper recovery.
I totally agree about positivity and trends in it, but key point is about breaking-even. They are not there yet unfortunately. With mtro I'm just looking at facts without much of attempt to interpret it (whichever way).
Wake me up when they stop burning capital and actually become profitable (at least a bit)
otherwise this mandate to print shares in latest AGM voting looks worrying.
(I do appreciate BoE' move to relax capital ratio criteria to ease the pain though, and thankfully mtro are not in top list where they are tightening supervision to ensure stability)
NAV shows material drop in latest results (still higher than sp but reasonable discount was expected anyways),
let's hope their capital adequately recovers after all this market valuation volatility settles.
This looks way too undervalued vs today's results, but historically is ok-ish.
Obviously it's rather about exploiting energy crisis, therefor might be just a temporary anomaly.
Might be worth keeping an eye on it though.
Guys, chill-out, I'm just reading morning RNS with results, throwing some thoughts for myself as log to revisit later if it's worth to keep an eye on a company as potential capital deployment (it's easy to browse history later on), sometimes exchanging opinion with others.
Some people are too sensitive and tend to explode on every trigger (not on this thread thankfully).
These new H1 are good for a company but not necessarily for investors (unless they continue recovery/growth of course).
Generally profit only have reached the point to justify m-cap valuation (which was inflated before).
If it's just an anomaly in profits then sp is likely to go down.
Looks like situation is worsening, another two or three such results with significant losses and this goes belly up.