Another case of when is a lock-in not a lock-in? Gunsynd & a related party nest of snakes and Chris Akers
Technically insolvent AIM POS St James House (SJH) made a song and dance yesterday of its latest bailout rescue finance package – which neither bails it out or rescues it – with Tintra Acquisitions Limited. There is a £250,000 loan convertible into a death spiral at 10p per share (take note shareholders, with the price currently 45p a pop!) but tied to that are two option deals which apparently bring in between them a fraction below £180,000. So how much of that will find its way onto St James’ balance sheet?
As you dig through the detail of the year end 31 January 2020 accounts, you discover more evidence of still generous asset valuations and the poor deal-making ability of St James House (SJH) which is why anyone buying the shares is truly insane.
As well as disastrous, red ink soaked finals, St James House (SJH) published its interims, to July 31 2020, today and revenue was up an impressive 51% on comparative interims to £641,000; however, administrative expenses of £874,000 resulted in an operating loss of £567,000. St James House (SJH) was only able to report a profit of £192,000 due to the profit of £759,000 for disposal of Market Access Ops Ltd for consideration of £1. As I highlighted in my note of February 2020, I struggle to understand why Mr John Botros would buy a loss-making company for £1 as it came with net liabilities of £759,000.
This is such a mess, such a shit-shower of deceit and wrongdoing that it is necessary to split it into three parts. What follows is, even by the lowly standards of the AIM sewer, a total shocker.
The finance Director of St James House (SJH), “Desperate Dan” Pym was appointed as the Company's Finance Director on 30 September 2020 and the company shares have been suspended since 2 November 2020 so under his reign the company has been in suspension more than it has traded. Once again I ask the question: is this is a record?
At 2.15pm yesterday afternoon – a Friday and thus a case of no-one-is-watching o’clock – AIM-listed but suspended St James House (SJH) put out an RNS entitled Trading Update. Intra-day trading updates are usually bad news, so this one caught my attention. So what do we learn?
At 11.00 am on Friday morning, St James House (SJH) fessed up that there would be yet another delay in the publication of its annual accounts for the year ended 31 January 2020.
The pretence is that this company is not insolvent. It is. It is time for various folks to wake up and smell the coffee. On 31 December 2020 in a trading update, St James House (SJH) stated in an RNS:
Oh dear oh dear oh dear. AIM-listed and already suspended pending accounts St James House (SJH) has offered up a rose-tinted trading statement this morning.....oh, and by the way the accounts to January 2020 which were due for release at the end October and were promised in November and then in December will be out in January, honest guv'. It is different this time. But there is one tiny detail the company seems not to have mentioned.......
St James House (SJH) on Friday admitted that it won’t be able to get its audited accounts for the year ended 31 January 2020 finalised in November 2020, a mere 10 months after its year end and as such its shares will remain suspended until the accounts are published. It also stated that its interim accounts for the six months ended 31 July 2020 will also be delayed until the year end accounts are finalised.
The newly installed finance director of St James House (SJH), Mr Daniel Pym, (appointed on 30 September 2020) hasn’t exactly got off to the best of starts because his announcement of delays in completion of the audit citing COVID 19 and “complexities in relation to fair value adjustments of certain assets” means that the shares will be suspended on 2 November 2020. Given these accounts are for the year ended 31 January 2020, the COVID 19 excuse isn’t credible as management has had 9 months to finalise the financial statements and major companies have published not only their 31 December 2019 accounts but also their interim accounts for the six months ended 30 June 2020. I look at three of the lower quality assets on the balance sheet where if I was the auditor exercising my professional scepticism, I would be requiring management to take major write downs:
There is that old saying that when good management (although the jury is out on that) meets a bad company it is the reputation of the latter which survives. And that brings me to AIM-listed uber-dog St James’ House (SJH) – formerly Lib Dem grandee Lord Razzall disaster Boxhill Technology (BOX). We’ve had funding not arrive, vacuous trading statements and now this morning the company tells us it cannot get its accounts out on time. So why has AIM Regulation not suspended the shares forthwith?
Another intra-day update from St James House (SJH) sees the shares leaping higher, but this just as farcical as previously?...
Two days ago St James House (SJH) published a trading and finance update and the shares rocketed up 350% to a mid-price of 67.5 pence per share. They have since slumped back to 35p, but that is still 35p too high.
A “Trading Statement & Funding Update” from St James House (SJH) including “injection of cash, when combined with the capitalisation of liabilities, the stability of the lottery business and the steady growth of the payments business means the outlook for the business is positive despite the challenges all businesses have and continue to face” – and the shares have currently responded to 67.5p, 350% higher!...
On 11 May 2020, St James House (SJH) provided an update that the subscription originally announced on 31 January 2020 remained outstanding. It explained that:
On 31 January 2020, long time AIM uber dog St James House (SJH) announced that a new investor was going to subscribe for 1,666,667 shares at 30 pence per share to raise £500,000 in exchange for a 29.9% shareholding in the Group subject to approval to issue additional shares at a General Meeting. All conditions to approve the share subscription were approved at the General Meeting on 28 February.
On 31 January 2020 St James House (SJH) announced that:
In the current climate, I would be very guarded over handing over a cheque to subscribe for shares in any company, let alone AIM-listed St James House (SJH) – the former Lord Razzall disaster that was Boxhill Technilogies (BOX).
The disposal of Market Access Ops Limited (“MAO”) whilst a great deal for uber dog St James House (SJH) which sells a loss-making company with net liabilities for a £1 after stripping out the business it wants to keep does not appear to make a lot of sense from the perspective of the buyer Mr John Botros.
AIM-listed St James House (SJH), formerly Lord Razzell’s harikiri exercise Boxhill Technologies (BOX), has announced a proposed capitalisation of liabilities, the disposal of MAO for just £1 and new articles. What is immediately striking, however, is the double reward-for-failure for good old Lord Razzall – oh, and the doubling of approved shares capital available to be issued (Placing, anyone?)
On 6 December 2019, AIM uber dog St James House (SJH) issued a trading update indicating more losses for second half of the year ending on 31 January 2020. It also stated it was actively exploring options to improve the working capital position of the group before the end of its current financial year end on 31 January 2020 as it was working capital constrained.
You can’t say you were not warned on this website, but the old adage that when a bad company meets (perhaps, or perhaps not) good management it is the reputation of the former which prevails has once again proved true for AIM-listed St James House (SJH), formerly Boxhill (BOX), the past home of Lord Razzall. This afternoon we were treated to a 1pm Trading update: Friday lunchtime – definitely no-one-is-watching o’clock! Uh-oh…………
I have already explained in great detail how the accounts of St James House (SJH) run b y Lib Dem grandee Lord Tim Razzall, breach IFRS all over the shop and need to be restated. The company’s advisors say they are considering this. While they consider here is another howling and material error for consideration
Lib Dem grandee Lord Timmy Razzall may have changed the name of Boxhill to St James House (SJH) but this company which has been mired in so much corruption and fraud remains an uninvestable uber dog even by the standards of the AIM casino. Results earlier this week were covered in bearcast yesterday but perhaps merit further scrutiny. They are shocking, breach IFRS on numerous counts and quite simply aim to decieve. Nomad Allenby should be walking.
AIM-listed St James House (SJH) is not the investment house which gave Neil Woodford the dreaded vote of confidence – this is the old Boxhill run by Lord Razzall. It may have a swanky upmarket new name but it still looks like the disaster of old...
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