At what stage can you claim a tax loss ? |
A sad end to an old company. The wording of the RNS today suggests that the company is in such a bad financial state that it could be going straight into liquidation rather than giving notice of intention to appoint administrators. There appears to be very little in the business left to save so it is a dreadful situation for the loyal employees. Shareholders at least are put out of their misery. |
Well, at least the sun's shining today. |
From a bit of 'googling' it looks like about half of the companies which recieve a winding up petition from their power company have ended up with the company being 'shut down'.
[...]
...and now it seems we know which half CMH falls into.
Oh well expensive lesson for me, but at least I had sold most of it (at a loss) before the final reckoning. |
On a positive note, in the foundry industry news about financial problems very often leads to a sharp rise in orders and call-offs from ongoing contracts as customers want to ensure they have enough stock to cover any possible hiccup in supply. Every cloud etc. |
Jellypbean, the 8-week adjournment is probably because CMH is quoted with until now supportive shareholders so it is not impossible that funds could be raised to bolster the balance sheet and pay off creditors. The court has to allow reasonable attempts to avoid winding-up. The issue is that after selling Petrel and the Chuckery freehold, there is nothing else left to sell that would bring funds into the company.
MRF, a pre-pack is where a business (without all the debts and liabilities) is sold immediately on the appointment of administrators to an already lined up buyer. I think that is very unlikely here. In this industry when a company fails the competitors pick up the useful bits such as the contracts and moulds for current work and leave the administrator to sort out the remaining mess. The UK with its high energy costs and strict environmental legislation is not where you'd choose to operate an iron foundry these days. |
So not dead yet, with CMH having until 2 July's adjourned Court hearing to sort matters out.
Amazing that CMH are in this position despite all the insider/director buying and from supposedly well-informed investors. Nothing is guaranteed in stock market investing.
Let's hope CMH come out the other side from this. |
Anyone willing to speculate as to what might be read into the granting of an 8 week adjournment to the hearing? |
That's a point. I agree, it doesn't have to be a prepack. There may be a competitor who has existing capacity to take on the existing wip and doesn't care to preserve a name. However, for many, they will need the key personnel and existing shopfloor. For them, a prepack could deal with every headache, from debtors to employment contracts, from pensions to leases. Perhaps you are confused, by prepack I did not imply that could be for the existing board or its shareholders. Rather a solution for the administrators to resolve some value. |
MRF if I'd responded, I'd have argued with you. Why would there be a pre-pack of the business? In the event of administration, competitors would buy the moulds, contracts and work in progress. Everything else would be left behind. Historically foundries haven't changed hands except for very nominal amounts just to be closed shortly afterwards. Sad that all that history looks as if it is coming to an end. |
As I wrote in my post 1022 and 1027, this should come as no surprise. Sadly, as evidenced by the lack of sensible responses to my informative posts, I can only conclude there will be a number of private investors who have perhaps deservedly lost some significant sums of money. To them, I say, reap what you sow !! |
My guess is orders have dried up over the last month. Relying on invoice discounting when sales are slumping is a disaster waiting to happen. |
Does not look good does it? - |
^^ Suspended "pending clarification of the Company's financial position". |
Oh dear -
Is that the end of CMH - ? |
No sunshine today! |
Umm, thats just the type of comment one hears at these tiny companies, when attending the AGM.
It’s always the same.
Often ( but not always )it's a buy signal. |
These idiots in charge could not run a bath let alone a company. Market confidence being reflected in lack of competency. |
Lease liabilities are not a worry , they just show whats due over the years prior to an end, or extension of the lease.
The invoice facility will have been reduced substantially with the cash received.
Again on a monthly basis it’s not an issue. |
This mob keep buying, i can well understand why.
The company is in a far better position than 4 months ago, with growth within sight. |
The proceeds of the Disposal are expected to both reduce the Group's liabilities by approximately £2.6 million and contribute an exceptional profit of no less than £2.0 million, in FY24. |
Arthur_Lame_Stocks21 Apr '24 - 13:33 - 1041 of 1042
jellybean
You're absolutely correct, but I can guarantee you your post is going to be buried under a tidal wave of fabricated figures and irrelevant pseudo similes
NO : Just facts in print from the report and accounts and various RNS news items. |
jellypbean.
Umm, but you have kept some , so clearly you see the stock going up at some stage, ( like myself ).
Next up debt.
As previously announced, balance sheet debt following the sale of Petrel Ltd has greatly improved and the Company remains focused on paying off the remainder of its legacy debt within the next 12-month period (excluding the remaining pension deficit and HSBC invoice finance facility).
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The pension debt is a non issue, its tiny and may even turn into a surplus over the next 4 years.
The HSBC invoice facility has been running fine for the last 6 years. |
jellybean
You're absolutely correct, but I can guarantee you your post is going to be buried under a tidal wave of fabricated figures and irrelevant pseudo similes. |
Look Sunshine, I hope it does as I still hold some shares. However because I've sold some recently I'll still be out of pocket until it reaches nearky 5p a share.
They have sold Petrel, which was making 0.5M+ p.a. profit. The debt interest is not going to fall nearly as much as you seem to have calculated (most of it is from lease liabilities and invoice financing).
So there is a fair bit of ground to make up before they make a decent profit, and very little leeway to the downside before they run out of cash again if anything goes wrong.
The Q3 update is problematic as there were no numbers provided, and numbers matter when things are so close to the wire. |
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