Poor company reporting

[cr6196]

I was recently researching a company and I discovered some interesting stuff that effectively suggested that they have been less than honest in their reporting. In this case, they have failed to properly disclose that they may be liquidated by April. Obviously this is pretty serious but is complicated by the fact they have been trying to raise more money from shareholders recently. I also think the CEO has been making mischief with the private jet but thats probablly another story.

Does anyone know who the appropriate authority in the UK is? I've been looking about but I have been totally unable to find who is responsible for this sort of thing. I suspect it may be the Financial Reporting Council but would appreciate some confirmation on this?

 

[safvan]

IS it a penny stock? Whats the name of the company?

 

[cr6196]

its Assetco, its AIM-listed, AIM:ASTO. Its a pretty major company, they supply about 130 fire engines to London Fire Brigade and it was formed out of an MBO from British Gas. The only reason I found out about their potential liquidation was because its obviously a big deal if 130 fire engines have to be sold off. i'm not a shareholder either btw.

 

[greigmcl]

AIM's a fairly unregulated market and I don't think the companies on it are held to a particularly high standard. I did a quick internet search and it seems that each company has a nominated advisor (nomad) who's responsible for ensuring that the company follows the rules properly. Perhaps they might be a useful first port of call? Especially as it can't do their repuatation any good if one of the companies they're supposed to be regulating goes down amid rumours of fraud.

 

[cr6196]

thanks, that was the one thing that struck me however, the NOMAD is the underwriter on the recent equity deal. conflict of interest much...?

 

[barjon]

According to Sunday Times this "troubled" company has just rejected a fresh takeover bid from a mystery Middle East investor willing to pay 20p per share. They have apparently rejected this latest bid in favour of raising £8m from shareholders. They had broken off bid talks with another suitor just days earlier. The company has run into difficulties after delays in a bank refinancing.

 

[cr6196]

right you can see why i'm suspicious about this company, its market cap is some £14m, its trying to raise £16m its currently got debts of at least £15m coming due within the year with a few mil in cash but an unspecifed amount of unpaid taxes but it rejects an above market bid. the last bid offer was probablly bull**** as well in my opinion. particularly strange as the directors would then be able to avoid the equity issue at the end of this month that would completely liquidate them...so the main problem with the bid was that it was fictional.