Brompton going tits up?

[bikeworkshop]

The mention of £19 million in venture capital may explain issues. Classic path is to regain your stake plus a hefty return by loading up with debt and lease back deals. Interest and leases then pull the fim over

Brilliant analysis -
I was totally with you until
"pull the fim over"
where i found myself in the dark...

 

[Betsy]

He’s pulled the fim over your eyes..

 

[Canuk]

He’s pulled the fim over your eyes..

His notes are in the folder...

 

[bagpuss]

With that little profit no one is holding much in the way of folding

 

[bontybonty]

Pull the firm over with the debt

 

[Canuk]

I don't understand much of the macro economics, but if I was a CEO and results came back 99% crash in profits, I'd be bricking it ..

 

[bikeworkshop]

You pay 99% less tax on 99% less profit.
If the venture capitalists get in there,
Like Costa coffee buying £1million of coffee from their business arm in Switzerland - that famous coffee-growing country with a very low tax rate on profits

 

[ThePrivateer]

They recently launched a 20" model in addition to the usual 16" to give a better ride

The 29er hype of folding bikes

 

[droppedout]

The amount of "profit" a company chooses to declare is purely up to the company accountants and is determined by the balance sheet and whether the directors choose to pay themselves in salaries or dividends. There may be a complicated relationship with holding companies and investors and investments, tax authorities and pensions and it might be more profitable in the long term to make a "loss" one year.