Business
Proposed Reduction of Share Premium Account
Proposed Reduction of Share Premium Account.
About this update from Tavistock Investments Plc
[{"type":"text","content":"\n \nRNS Number : 0736A Tavistock Investments PLC 22 December 2017 \n\nTavistock Investments plc\nProposed Reduction of Share Premium Account\n \nNotice of General Meeting\n22 December 2017\nTavistock Investments plc (\"Tavistock\" or \"Company\") announces that it is today posting to shareholders a notice of general meeting to consider a proposal that will facilitate the payment of dividends to shareholders.\nThe Company currently has negative distributable reserves and is therefore prohibited under the Companies Act from making distributions, including dividends, to its shareholders. This deficit arose predominantly as a consequence of the unsuccessful trading activities of the Company's former business, SocialGo.\nIn light of the progress made to date by the Company in building a financial services group, the Board believes it is an appropriate time to seek approval to utilise £23 million of the Company's share premium account to eliminate the deficit on the Company's profit and loss account and create distributable reserves (the \"Capital Reduction\").\nThe Capital Reduction is conditional upon, amongst other things, the Company obtaining Shareholder approval at a general meeting which will be held at 11:00 a.m. on Tuesday 16th January 2018 at 1 \n\nBracknell Beeches, Old Bracknell Lane, Bracknell, RG12 7BW (\"General Meeting\").\nBackground to and details of the Capital Reduction\nOne of the Company's stated objectives has been to introduce, and subsequently to manage, a dividend stream for the benefit of Shareholders. Whilst there can be no certainty that a dividend will be paid, the board of Tavistock now considers it prudent to take the necessary steps to enable the Company to pay a dividend if and when it is considered appropriate to do so.\nAt 30 September 2017, being the date of the Company's most recent unaudited interim balance sheet, the Company had a profit and loss account deficit of £22.3 million. At the same date, the balance standing to the credit of the Company's share premium account amounted to £27.88 million. The Capital Reduction, if approved and made effective, will be sufficient to eliminate the deficit entirely and create distributable reserves.\nThe Capital Reduction is proposed to be effected by reducing the Share Premium Account by £23 million which will, subject to the dischar...