We have moved. You will now be redirected to our new site ECF.BUZZ

Friday, 25 May 2018

This is what the Sugru and Crowdcube argument is about

Above are the notes on page 30 of the last Sugru (Formformform Ltd) full and audited accounts for YE Dec 2016. This pertains to the movement of the bank loan and personal CL from long term liabilities to current liabilities. The big Q is was this information hidden from Crowdcube investors in March 2017?

Sugru have claimed in a written statement that the breach that caused this movement of the loans and the cancellation of the extended facility with the Clydesdale occurred in late 2017, was immaterial and was therefore not declared to Crowdcube SHs.

They have also claimed that the breach referred to above is a different breach to the one that took place in 2016.

It seems they want it both ways. If the material breach occurred late on 2017, what is it doing in the 2016 accounts. Balance sheets do contain information about actions that have taken place after the YE date - but these are as notes and they should not change the numbers for the YE date ie December 31st 2016. If the breach referred to here is immaterial, why does it result in the moving of around £2.5 of debt facility - a move that puts the current account into deficit when they told investors in May 2017 it was £1m in credit.

It all seems pretty obvious to us. You SHs need to complain firstly to Crowdcube and then the Financial Ombudsman. Crowdcube, if found to be liable, will have to compensate you. 

No comments:

Post a comment