Totalise is bust – founder mops up biz

Whither shareholders?

Totalise, the British ISP, went into administration today, and its assets were promptly sold to Peter Gregory, CEO and the founder of the company.

So the service and trading continues as normal - no customers, staff and suppliers of the trading subsidiaries (our italics) are affected. Only the holding company, Totalise PLC, is controlled by administrators. Of course it is at the holding group level that the share capital of the AIM-listed company, and possibly most of the debt, resides.

This could get a little messy for Totalise MKII. The ISP sprang to life as a semi-mutual concern, so its customers hold shares in MK1. Seeing the value of their admittedly small stakes torched, will they want to stick around?

Totalise PLC called in the administrators, because it "failed to secure further funding", the company said this afternoon in a statement to the London Stock Exchange.

Can't imagine that Totalise MKII will be returning in a hurry to AIM, the junior London stock market. Last week MKI's listing was suspended, because of failure to meet the deadline for filing interim results. ®

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