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By Nigel Somerville, the Deputy Sheriff of AIM | Friday 9 February 2018
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 is comedy central. AIM-listed Proxama (PROX) put out an RNS after-hours last night (at 5.29pm) entitled Statement re Speculation and then ‘fessed up to a few problems at Companies House. I haven’t tracked down the speculation – perhaps some kind reader can point us all in the right direction. But well-run companies don’t suffer from this type of problem. The RNS read:
The Board of Proxama PLC (the "Company") notes recent speculation and wishes to confirm that John Kennedy resigned as a director of the Company and all of its subsidiaries with effect from 30 October 2017.
Well, so far, so good: but we knew that.
The Company has become aware that John Kennedy's resignation as a director of the Company and all of its subsidiaries had not been registered correctly with Companies House.
Er.. that is some three and a bit months later! Changes of directors are supposed to be registered at Companies House within ten days. Well, OK it was Christmas and holiday time and someone forgot to do the paperwork - but already we have been given the impression that it is chaos at head office.
And then we get this:
The Board also wishes to confirm that the company name Locations Sciences Group Limited was registered at Companies House on 23 November 2017 in order to secure the proposed new name for the Company ahead of the previously announced proposal to change the Company's name to Locations Sciences Group PLC at the forthcoming annual general meeting. An administrative error meant that John Kennedy was referenced as having been appointed as a director of Locations Sciences Group Limited. The Company has also been advised that this should be rectified shortly.
To forget to tell Companies House that Mr Kennedy has stepped down is one thing, but to plan for a company change of name almost a month later and actually put him down as a director? That looks like carelessness: did they not know he had resigned?
I wonder what else the company has been careless about?
There is, of course, the small matter that the shares have slipped from about 0.5p to the current 0.0225p over the last year. That in itself might leave you wondering how well-run the operation is.
My skin isn’t yellow….
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