AssetCo board sues former bosses over share price dive
The new board of AssetCo, the firm that used to maintain London’s fire engines, today said it was suing its past management for more than £50 million over a “very significant decline in [shareholder] value”.
The troubled Aim-listed company sold its UK business, which owned and maintained fire engines in the capital, to private-equity firm AB&A Investments for just £2 in August.
That division had made a £16.5 million loss for the audited 18-month period to October 2011, a year when its sharply falling share price led to shareholder revolt, where chief executive John Shannon was replaced by Tudor Davies.
It had four separate fundraisings adding up to £53 million between 2009 and 2011 and then had to post massive restatements to its 2009 and 2010 financial accounts.
Now the firm’s new board, which is focusing on fire-fighting contracts in the United Arab Emirates, said: “The funds raised between 2009 and 2011 had primarily been utilised in support of an apparently flawed business and financial model... without any reasonable prospect of shareholder value. Following expert advice, the new board is at the early stages of pursuing claims against those associated with the past for in excess of £50 million.”
Shares in AssetCo inched up 9p to 340p, more than 300 times lower than their price four years ago.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Bali Nine executions in Indonesia: Death row British grandmother Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...