| ITFC shares 15:50 - Nov 24 with 2594 views | azuremerlangus |
I have been emailed my shareholder AGM do dah/thingy by the club last week. Reading through the initial paragraph the following statement surprised me:
Following discussions with the Company’s auditors, and after careful consideration, the Board has concluded that the £500,000 valuation of our shareholding in ITFC can no longer be sustained, given the Club’s relegation to League 1 and the extent of loans outstanding to Marcus Evans Group companies. Accordingly the valuation has been written down by £500,000 to nil.
Can anybody any of you financial types explain the consequence (if any) of this?
Many thanks.
[Post edited 24 Nov 2019 15:51]
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| ITFC shares on 16:06 - Nov 24 with 2537 views | J2BLUE |
I'm not a financial worker but surely it just means the club is worth less money in league one and the debt owed to Evans vastly outstrips the value of your collective shares so they've been revalued to zero? |  |
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| ITFC shares on 16:17 - Nov 24 with 2510 views | Radlett_blue |
| ITFC shares on 16:06 - Nov 24 by J2BLUE |
I'm not a financial worker but surely it just means the club is worth less money in league one and the debt owed to Evans vastly outstrips the value of your collective shares so they've been revalued to zero? |
Yes, if ITFC was a "normal" business it would be put into liquidation, but it will continue while Evans (or someone else) is willing to underwrite the annual operating loss. Whether the PLC's small holding in Town (which Evans did not buy out when he took control of Town) is valued £0.5m or zilch makes little practical interest. I and probably most other Town shareholders didn't expect to see a return on my "investment" and still don't , although when Evans eventually sells out the new buyer could possibly buy out the PLC's holding (although, as with Evans, no obvious reason for him to do so). |  |
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| ITFC shares on 16:20 - Nov 24 with 2507 views | azuremerlangus |
| ITFC shares on 16:06 - Nov 24 by J2BLUE |
I'm not a financial worker but surely it just means the club is worth less money in league one and the debt owed to Evans vastly outstrips the value of your collective shares so they've been revalued to zero? |
I understood the paragraph if was just taken at face value (no pun intended) - but is there more to it than that? | |
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| ITFC shares on 19:27 - Nov 24 with 2343 views | PhilTWTD |
| ITFC shares on 16:06 - Nov 24 by J2BLUE |
I'm not a financial worker but surely it just means the club is worth less money in league one and the debt owed to Evans vastly outstrips the value of your collective shares so they've been revalued to zero? |
That's essentially it, although the shares themselves will continue to be worth what anyone is prepared to pay for them. The value of the PLC being reduced to nil shouldn't be extrapolated to suggest the value of the club overall is at nil. Here's some quotes from Derek Bowden from when the PLC was revalued before and such an extrapolation was reported as the club's value.
 Bowden Denies Club Value Down to £4m 12th Feb 2009 15:01Town chief executive Derek Bowden has denied a claim that the club's value has dropped to only £4 million over the course of the last year.  0
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| ITFC shares on 19:32 - Nov 24 with 2332 views | PJH |
| ITFC shares on 19:27 - Nov 24 by PhilTWTD |
That's essentially it, although the shares themselves will continue to be worth what anyone is prepared to pay for them. The value of the PLC being reduced to nil shouldn't be extrapolated to suggest the value of the club overall is at nil. Here's some quotes from Derek Bowden from when the PLC was revalued before and such an extrapolation was reported as the club's value.
Bowden Denies Club Value Down to £4m 12th Feb 2009 15:01Town chief executive Derek Bowden has denied a claim that the club's value has dropped to only £4 million over the course of the last year. 0
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extrapolated-that is a good word,I just googled it to see what it meant. |  | | |
| ITFC shares on 20:02 - Nov 24 with 2234 views | WeWereZombies |
| ITFC shares on 19:27 - Nov 24 by PhilTWTD |
That's essentially it, although the shares themselves will continue to be worth what anyone is prepared to pay for them. The value of the PLC being reduced to nil shouldn't be extrapolated to suggest the value of the club overall is at nil. Here's some quotes from Derek Bowden from when the PLC was revalued before and such an extrapolation was reported as the club's value.
Bowden Denies Club Value Down to £4m 12th Feb 2009 15:01Town chief executive Derek Bowden has denied a claim that the club's value has dropped to only £4 million over the course of the last year. 0
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Thanks for that link, as you have confirmed when I saw the £500,000 write down in one of your news stories I also took it be that my shares have no realistic value now. The only minor concern I have is the 'cliff edge' way that this has been done, both back in the Bowden statement and this latest write down. That does not really reflect the pace of the impairment and I feel like voting against the re-appointment of Ensors as a result - although the larger fault was due to KPMG but too late for that now. |  |
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| ITFC shares on 21:31 - Nov 24 with 2107 views | ActionMan |
To put it simply, when a club is worth F'all in real terms, your shares are worth less than F'all sadly. Relegation has done this and if we were a business we'd have gone into liquidation by now. |  | | |
| ITFC shares on 21:37 - Nov 24 with 2083 views | jeera |
Why are so many normal posts being reported as abuse atm?
Is there someone just going about randomly pressing report or just someone with a dodgy screen on their phone who is accidentally doing this? |  |
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| ITFC shares on 22:12 - Nov 24 with 2048 views | Pinewoodblue |
| ITFC shares on 20:02 - Nov 24 by WeWereZombies |
Thanks for that link, as you have confirmed when I saw the £500,000 write down in one of your news stories I also took it be that my shares have no realistic value now. The only minor concern I have is the 'cliff edge' way that this has been done, both back in the Bowden statement and this latest write down. That does not really reflect the pace of the impairment and I feel like voting against the re-appointment of Ensors as a result - although the larger fault was due to KPMG but too late for that now. |
When we thought we were helping to bail the club out by buying shares the club also sold bonds. this was pre Evans. When Evans purchased the club the liability for the bonds remained with the runt company. A company with no assets other than the shares no cash to pay auditors, meet the cost of AGM or pay the interest on the bonds. Each year Evans provides a loan to cover these costs.
If truth be known the shares have been worthless for several years the relegation hasn't made any difference to our shares.
No one purchased shares as an investment it was a gift to the club. |  |
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| ITFC shares on 22:44 - Nov 24 with 2003 views | PhilTWTD |
| ITFC shares on 21:37 - Nov 24 by jeera |
Why are so many normal posts being reported as abuse atm?
Is there someone just going about randomly pressing report or just someone with a dodgy screen on their phone who is accidentally doing this? |
Gav's looking into it, seems some quirk of the system. | | | |
| ITFC shares on 07:46 - Nov 25 with 1849 views | Superblue95 |
| ITFC shares on 21:37 - Nov 24 by jeera |
Why are so many normal posts being reported as abuse atm?
Is there someone just going about randomly pressing report or just someone with a dodgy screen on their phone who is accidentally doing this? |
*Reports Abuse* |  |
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| ITFC shares on 08:03 - Nov 25 with 1816 views | BloomBlue |
| ITFC shares on 21:37 - Nov 24 by jeera |
Why are so many normal posts being reported as abuse atm?
Is there someone just going about randomly pressing report or just someone with a dodgy screen on their phone who is accidentally doing this? |
I always thought the abuse button was too near the page numbers on the bottom right and the fact the screen can jump around on some phones it's an accident waiting to happen |  | | |
| ITFC shares on 09:27 - Nov 25 with 1756 views | WeWereZombies |
| ITFC shares on 08:03 - Nov 25 by BloomBlue |
I always thought the abuse button was too near the page numbers on the bottom right and the fact the screen can jump around on some phones it's an accident waiting to happen |
Not just phones, that happens on Chromebooks too - depending on what adverts are loading... | |
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| ITFC shares on 09:43 - Nov 25 with 1746 views | chicoazul |
The value of your investment can go down as well as down. |  |
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| ITFC shares on 09:52 - Nov 25 with 1727 views | PhilTWTD |
| ITFC shares on 21:31 - Nov 24 by ActionMan |
To put it simply, when a club is worth F'all in real terms, your shares are worth less than F'all sadly. Relegation has done this and if we were a business we'd have gone into liquidation by now. |
The value of the shares themselves hasn't really changed, they've never had much worth. And actually, if I remember rightly, they are only very rarely sold in any case. | | | |
| ITFC shares on 09:58 - Nov 25 with 1716 views | ElephantintheRoom |
They have always been worth absolutely nothing - but Sheepy was very grateful for your financial support when you put in a bit to keep the club afloat whilst he piloted it on to the rocks whilst looking to get his high interest loan repaid.
The club is technically insolvent - so the shares are technically as well as actually worthless.
However, writing your holding down to nothing means they are worth nothing - if for example the club is sold or goes bust. So say the club is sold for £10million - all goes to ME to pay off mythical debt. In a nutshell its why he created the debt.
On the plus side - it may actually mean he is seriously selling up when Town are rebranded as upwardly mobile with lots of sellable young players....? |  |
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