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Milestone Group Plc – is Para & Co (UK) Ltd good for the money?

By Tom Winnifrith, The Sheriff of AIM | Monday 10 July 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


This morning AIM uber dog Milestone (MSG) announced that a new investor, Para & Co (UK) Ltd, was providing a cash advance of up to £400,000 of cash via a convertible loan note as part of a total capital raise of up to £1.5 million for a maximum interest of 29.9% at a price of 0.29 pence per share. Nigel covered this earlier here but let's dig further into the affairs of this new investor. 

Theoretically this deal is valuing Milestone at circa £5 million, a massive increase over its value pre-announcement.  Milestone shares are up but far below the subscription price of 0.29 pence per share which may suggest concerns that punters might think that the proposed refinancing is too good to be true – after all Milestone has form in announcements of raising cash which then doesn’t arrive. 

So how big is Para & Co (UK) Ltd?  According to the latest set of accounts filed at Companies House, Para which are permitted to file total exemption small company accounts, had net liabilities of £1,956 and was only incorporated on 24 February 2014.  So, unless the business has undergone a dramatic increase in scale, the proposed refinancing is unlikely to proceed. 

What about other business of which Dr. Ramesh Para or Venkat Ramesh Para as he is listed at Companies House coming to the rescue.  According to Companies House there are 8 other companies where is he a director one of which is duplicate).  So how successful are these other seven companies.  In a nut shell not very as shown below:

  • Ken Management Limited is a newly incorporated company with £1,000 of issued share capital
  • Singleton (UK) Limited is a dormant company
  • Learn8 Limited has net liabilities of £5,938 per last published accounts
  • Sysveda UK Limited has net liabilities of £76,956 per last published accounts
  • Fuelmart is a dormant company
  • Limra College (Aldgate East) Limited never published any accounts in its short history and is now dissolved.
  • Limra College Limited was dissolved with the last published accounts showing net liabilities of £113,580.

So how much due diligence has Deborah White undertaken on the proposed rescuer?

 


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