Mporium Share Discussion Threads

[stocktrend2] 21/10/2019 13:53

Yajnas so you see no possible solutions?

[yajnas01] 21/10/2019 13:51

also ... it raises wider questions for me on the rest of their affairs and VATable business which may have been incorrectly assessed too...

just unbelievable

[stocktrend2] 21/10/2019 13:46

They say they are trying to find a solution? What are the potential solutions?

[yajnas01] 21/10/2019 13:46

if anyone does get a hold of management please ask them:

- did you hire an accountant/ advisors
- did you ensure they had professional indemnity
- will you sue them?
- and is there in their view a reason to pay tax, and if not, why? (based on precedents, references to regulations).
- what is their plan now and what will happen to this turn around plan?

I'm guessing they'll be unable to answer these questions

[flashheart] 21/10/2019 13:34

Exactly. It's the sort of thing that as an investor you would naturally take for granted.

[yajnas01] 21/10/2019 13:32

unbelievable - to a degree you assume stuff like this is handled by management.
surely they get legal advice? surely they use accountants etc?

at this stage this is not even something can really account for when investing.

investors aren't usually looks into whether a company is complying with basic things like this such as does the company pay its staff wages on time, or does it get its accounts audited. this is basic stuff.

can't believe this level of mess. but I also can't say anyone can have reasonably anticipated this. it's just a load of incompetence if you ask me.

it's simple. get an accountant. and if they get one make sure they have professional indemnity. and then in this case surely there has to be a legal case following for poor advice?

unless they didn't hire an accountant.

the more I think of this the more it makes no sense. want to understand how this could have happened on such a basic and fundamental process. not saying VAT is simple, but more managing this risk is relatively easy tbh

[sdavis] 21/10/2019 13:23

Just 5 minutes research on Google and it is clear that VAT should have been charged. This raises some serious questions about whether it was just incompetency or something else going on.

[sdavis] 21/10/2019 13:05

Could be that the question was raised as part of due diligence. That would be why no formal notice has been raised by HMRC.

[flashheart] 21/10/2019 12:59

Whether or not this tax liability is valid or not is largely irrelevant now because it's just as big a kick in the gooners as the deal falls through.

[flashheart] 21/10/2019 12:51

The timing of all this is fishy to me. The day before a general meeting to approve a company changing acquisition? Whoever or whatever raised the awareness of this tax liability today doesn't want this acquisition to take place it would seem. Or am I just being ultra cynical?

[stocktrend2] 21/10/2019 12:47

S davis but surely the company knows this so why does it say 3.5m

[stocktrend2] 21/10/2019 12:43

S davis good point makes sense

[sdavis] 21/10/2019 12:40

The other way of thinking about this is that Allay have been very clever in protecting themselves from a potential VAT liability by using such a pass through agreement. May be worth investigating.

[sdavis] 21/10/2019 12:37

The RNS confuses me.The nature of the transactions with Allay was a pass through. MPM made a cut of around 10%. Surely if VAT should have been applied to the invoices issued to Allay then VAT would also be required on the invoices MPM paid to their suppliers. Net VAT due should therefore be £180k.

[bullrun1] 21/10/2019 12:35

Totally agree, it stinks imo.

[yajnas01] 21/10/2019 12:30

this all seems so odd - how can they actually get to a point where they didn't even realise there is a VAT liability... surely as part of DD this is key to check?

personally it all looks bad and I don't really think this would have gotten to suspension unless this was essentially going to be a likely issue. we'll need a miracle now. also this could take a long time to sort out... and all the progress could have made and turn around won't happen now

[stocktrend2] 21/10/2019 11:51

And if they do will the placees still want to invest is the question as allay deal bas ceased

[astralvision] 21/10/2019 11:38

Not sure what anyone can do, they just need to try to bottom out a decision on the vat ASAP. That could prove tricky.

[astralvision] 21/10/2019 11:20

Yes, everyone will lose everything if they go bust.I'm guessing they will go into administration and Tom and or others will buy the Assets/IP and start again.Will be zilcho for shareholders in this case.

[tonytony4] 21/10/2019 11:15

Well worth a try regardless. Tom needs to get message this unexceptable..

[stocktrend2] 21/10/2019 11:09

They never reply

[tonytony4] 21/10/2019 11:08

I have sent off an email to mpm regarding today's RNS I suggest other genuine holders do the same..

[stocktrend2] 21/10/2019 11:04

Lse showing 3 rns’s was 2 has there been abother rns just now?

[stocktrend2] 21/10/2019 10:52

If it goes bust will the asian institution who bought £600k lose this money too?