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Friday, 18 January 2019

Ethos Global in Liquidation and newco Soma London England in deficit - what is going on here?



Ethos Global, which took £709k off Crowdcube investors and is now in Liquidation, has seen no filings posted at Companies House for almost 12 months. In fact the Liquidation, instructed by court order in July 2017, has never filed a single document referring to the company and its financial status.


We have written about them many times here and this includes an email for Dr Theo laying out how new fully paid up shares will be issued by the end of August 2018 and how investment is flowing into the newco. Neither event has been filed at Companies House. 

As you may know, we have been in touch with the good Doctor Theo to try to help shareholders find out what is happening. He has repeatedly promised to provide an explanation but never has - it is always manana. His newco, set up just before Ethos was forced into Liquidation by Court Order in July 2017, has now filed accounts for its first 13 months to February 2018. Soma London England is using the premises of the old Ethos Global in London. This is before the Liquidation of Ethos has been processed. 

Soma revenues were just over £500k but it filed a loss of £130k and is £70k in deficit as of that date. Despite numerous written promises that shareholders in Ethos would receive free shares in Soma  - this has never happened.

The Soma accounts are micro and make no mention of why they consider themselves able to carry on as a going concern. There is no breakdown of the current creditors totalling £148k as against the current assets of just £24k - it may well be that Dr Theo is the main creditor.  The company filings show only one issued share, owned by the good Doctor. Although this filing is now almost 12 months old, no new shares appear to have been issued.

If you wanted to create a scenario where it showed how easy it is to take the piss out of the UK accounting system and HMRC, then this would be it. It may be that no laws have been broken - but it certainly doesnt make sense. 

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