Bookies’ empty shell plan

Jul 4 2008 by Karen Dent, The Journal

BELEAGUERED bookmaker Neville Porter says it hopes to reveal details of a proposed deal to repay some of its debts and return some value to its shareholders “within the next couple of weeks”.

The Birtley business is moving ahead with plans to convene an Extraordinary General Meeting of shareholders to discuss a proposed company voluntary agreement (CVA), which would map out its immediate future.

The business said it intended to contact shareholders, as it revealed it had sold its two remaining racecourse pitches – Leopardstown and Galway in Ireland – to Irish bookie Michael Keegan for £170,000. The two pitches had a turnover of more than £1m and generated a trading profit of almost £65,000 in the current financial year.

The sale, the proceeds of which were used to pay back £130,000 in loans to director Brian Morton secured against the pitches and to act as working capital, means the business has no trading assets.

In a statement to the Stock Exchange, the business added that a court application by one of the company’s creditors to appoint an administrator has been withdrawn.

In May, the firm appointed insolvency expert Antony Batty & Company LLP to strike a deal with its creditors. It proposed the CVA – an agreement between an insolvent company and its creditors which allows the company to repay some or all of its debts from future profits or the sale of assets.

The business floated on the AIM in February last year and followed its flotation with the launch of telephone and online betting wings, which were closed in April this year following mounting losses.

In the six months to the end of December, the bookie made pre-tax losses of £268,756.