Berkeley Technology Share Discussion Threads

[hugepants] 19/11/2009 20:33

I think LPAL was costing around 75 grand per quarter to run (see the 10Q for the 6 month period). So possible annual savings of 300 grand? It would be good if there was some reduction in the corporate costs as well. These look astonishingly high. But its high time this mutt was closed down.

[stewjames] 18/11/2009 23:26

Given costs are still high, any chance just maintaining the insurance permit is a noticeable cost? (And so about to disappear)

[hugepants] 18/11/2009 22:04

Theres more info in the 10Q


"...Following the payout of its remaining policies and death claims during the first nine months of 2009 ($111,000 in aggregate), London Pacific Assurance Limited ("LPAL") had no policyholder liabilities as of September 30, 2009. During the second quarter of 2009, as
approved by the Jersey Financial Services Commission ("JFSC"), LPAL distributed
a total of $9.0 million in cash to the Company. Also during the second quarter
of 2009, the directors of LPAL submitted a Cessation of Business Plan ("COBP")
to the JFSC and, subject to the satisfactory completion of the COBP, the JFSC
will cancel LPAL's insurance permit. All steps in the COBP have now been
completed, except for submitting audited closing financial statements of LPAL as
of September 30, 2009 to the JFSC. The Company plans to submit these to the JFSC
prior to the end of 2009. Once these audited closing financial statements are
submitted to and accepted by the JFSC, LPAL will no longer be regulated as an
insurance company by the JFSC and the Company will move toward the dissolution
of LPAL as soon as practicable. LPAL's $2.6 million of cash and $1.2 million of
private equity investments will be then transferred to BTL..."

[stewjames] 16/11/2009 10:29

HP, it's trivially easy for me to get 1-1.5% on a short term (3-6 months) small value investment. You usually get better interest rates the more you can put in.

[hugepants] 16/11/2009 09:04

SJ, I thought interest on dollar accounts just now wasnt much more than zero.

[stewjames] 13/11/2009 18:40

though this was offset by a $0.2 million decline in interest income due to the lower interest rate environment

Hmmm. Decline from 271K to 72K. I have a hard time believing significantly less than 1% is the best available.

Expenses running below 2.5M now (though whether that's something to be pleased with is another matter)

Zero intention to derail the gravy train, it seems.

[hugepants] 13/11/2009 10:04

Q3 results:

[hugepants] 11/11/2009 12:57

Q3 results are due this week

[adieadie] 08/11/2009 07:43

I cant find the companies website, anyone point me to it?

[hugepants] 02/11/2009 19:14

profitable in the last financial year

[stewjames] 02/11/2009 15:29

I bet the company you work for actually does things, as well.

[hugepants] 02/11/2009 13:00

The company I work for has 7 employees and 2 directors. The running costs (salaries plus office rental etc) is in the order of $650,00. BEK costs more than 4 times that amount to run! OK they have expenses associated with being listed but that wont come to more than a couple of hundred.

[hugepants] 01/11/2009 22:54

Yeah I think the salaries must be very high. As well as Treuger there are 3 non-execs. And then 6 employees. And it costs $2.8M basic to run a business that size? Its pretty incredible when you think about it.

[stewjames] 01/11/2009 21:01

I don't really understand how "consulting in venture capital" can result in such a substantial loss - they're losing $1 for every $1 in revenue and this has been going on for some time. It is surely by any sensible measure a failed business and should be shut down. What's worse is that this consulting seems to often be paid via, or lead to investments in, the companies for which they are supposedly working and which seems to frequently result in further paper losses.

This may help explain the high expenses:

"Consulting fees remained flat
in the second quarter of 2009, compared to the second quarter of 2008. The lower
operating expenses for the current quarter reflect the departure of one employee
during the fourth quarter of 2008, partially offset by higher office rent
beginning in November 2008.
"

Given the operating expense decline was $46K, that suggests a pretty hefty salary.

There seems to be no plan whatsoever going forward. The company appears to have either no clue how or lacks the will to handle costs which should be minimal by now - can you give me any good reason why a company that does nothing of note shouldn't be able to run on less than 500K/year? (Prime example - 100K blown on a cancelled web based project. Are you freaking kidding me?)

It's just a gravy train and unless/until the management show any signs of changing that, I think the current sharp discount is entirely justified.

[hugepants] 01/11/2009 18:28

SJ
There is a good deal more info in the 10Q (thanks brwo349).


For the last quarter:

Income (loss) before income taxes:
Consulting in venture capital... (156)
Life insurance and annuities. (76)

Interest income $3
Corporate expenses $(520)

Consolidated loss before income tax expense. $(749)


Corporate expenses will be reduced to $320,000 per quarter from the current quarter onwards.
And the $76,000 loss in the life insurance subsidiary should soon be history.

[stewjames] 30/10/2009 15:11

It would be trivially easy to get a rerating - announce voluntary liquidation.

BTW, is there a costs breakdown in the accounts anywhere? They still seem ludicrously high for a company that's not doing anything.

[hugepants] 30/10/2009 12:40

Will the long awaited release of the cash from LPAL prompt a rerating of this mutt?

[hugepants] 28/10/2009 22:06

cheers TD.

[hugepants] 28/10/2009 22:06

Even that wouldn't guarantee a delisting. You need 75% of all votes cast.
Anyway I doubt the "Trust" votes would stand up if challenged in court.

[adam] 28/10/2009 20:48

Trueger effectively controls the "Trust" so he has de facto control of over 50% of the shares.

[hugepants] 28/10/2009 19:27

It doesnt look like Treuger has the horses to take this private without help from other shareholders (assuming he wants to!). SC Fundamental and Mr Gyllenhammer could block it.

[hugepants] 27/10/2009 19:30

LPAL's operating costs were $80,000 in the last quarter. So with it closing imminently that should save another $300,000 per annum. Hopefully the base operating costs will be below $2.5M per annum now that Mr Whitehead has been paid off. That should last 5 years even if there is no income at all.

[hugepants] 27/10/2009 19:27

Thanks Diviner. Out of interest where did you get that?