Statement of capital following an allotment of shares
Discussion
Just looking into a potential new customer.... why would a company issue "Statement of capital following an allotment of shares" multiple times in very short periods of time ? Always worth about the same amount of cash £150K ish and sometimes literally 5 times a week!
Baring in mind this is company that only filed micro accounts? And is seemingly not worth a great deal. According to companies house they employ 1 person, but they have 10+ people in uniform on their website?
Baring in mind this is company that only filed micro accounts? And is seemingly not worth a great deal. According to companies house they employ 1 person, but they have 10+ people in uniform on their website?
Dg504 said:
What sector is it?
Could be members putting in ‘their share’ of funds for a development project?
Sounds clunky!
Manufacturing, a fairly basic project/ product but with seeming cutting edge bits. Could be members putting in ‘their share’ of funds for a development project?
Sounds clunky!
The cutting edge bits seem a bit like a lot of sales puff and very little else.
Unless I am missing something dont see why a business that turns over well under £1m maybe can issue £10m shares in a short period of time.
nikaiyo2 said:
Unless I am missing something dont see why a business that turns over well under £1m maybe can issue £10m shares in a short period of time.
The two things are unrelated.Capital is put in by shareholders; profit relates to the trading activities of the company. If you are dealing with a company that's got a substantial share capital and isn't making losses you can usually feel reassured.
nikaiyo2 said:
Manufacturing, a fairly basic project/ product but with seeming cutting edge bits.
The cutting edge bits seem a bit like a lot of sales puff and very little else.
Unless I am missing something dont see why a business that turns over well under £1m maybe can issue £10m shares in a short period of time.
People willing to give them a load of share capital is treated differently to revenue/TO. And maybe a good thing. The cutting edge bits seem a bit like a lot of sales puff and very little else.
Unless I am missing something dont see why a business that turns over well under £1m maybe can issue £10m shares in a short period of time.
Companies house info is always hard without context - I’m now thinking this is either an elaborate (and big time) pyramid scheme or probably just some investors!
Do you know if they’ve crowd funded or anything that might be a bit disjointed recently?
Dg504 said:
What sector is it?
Could be members putting in ‘their share’ of funds for a development project?
Sounds clunky!
Possibly issuing shares to make the business appear well capitalised. I’d be looking for proof that the shares were issued fully paid in cash and don’t appear elsewhere on the balance sheet as ‘other creditors’Could be members putting in ‘their share’ of funds for a development project?
Sounds clunky!
James P said:
Possibly issuing shares to make the business appear well capitalized. I’d be looking for proof that the shares were issued fully paid in cash and don’t appear elsewhere on the balance sheet as ‘other creditors’
This, plus consider they may be attempting to gain better credit worthiness, confidence of contractors etc. Could be legitimate small scale try out operations to prove idea before splashing out on expensive equipment.
Contracting employees on a personal or run through a separate company in an attempt to protect operations isn't too uncommon either.
NFT said:
James P said:
Possibly issuing shares to make the business appear well capitalized. I’d be looking for proof that the shares were issued fully paid in cash and don’t appear elsewhere on the balance sheet as ‘other creditors’
This, plus consider they may be attempting to gain better credit worthiness, confidence of contractors etc. Dg504 said:
People willing to give them a load of share capital is treated differently to revenue/TO. And maybe a good thing.
Companies house info is always hard without context - I’m now thinking this is either an elaborate (and big time) pyramid scheme or probably just some investors!
Do you know if they’ve crowd funded or anything that might be a bit disjointed recently?
Ok, I kind of get that if they were some tech startup or had some innovation, at best they have a slight novelty, but really nothing special.Companies house info is always hard without context - I’m now thinking this is either an elaborate (and big time) pyramid scheme or probably just some investors!
Do you know if they’ve crowd funded or anything that might be a bit disjointed recently?
They convert shipping containers into garden offices/ spare rooms etc, some of what they do is quite clever but it’s not ground breaking or anything. It’s not and won’t ever be another Amazon or Arm.
I don’t think they have crowd funded, I can’t believe anyone would invest at the rate companies house is showing, I can’t see how a company that might be worth £150k based on turnover and profit can raise issue 100x that value in shares.
To be honest I told them yesterday that we would not extend credit and would be happy to supply on a proforma basis only and the guy got a bit funny!
Gassing Station | Business | Top of Page | What's New | My Stuff