- Published: 29 June 2014 29 June 2014
Nervous day of doubts about Kode’s financial policies as I review Kode’s Circular and changes to my draft of the press announcement which raise concerns about the share valuations and options
A walk to the office without my car after a boiled egg breakfast. Another morning of waiting for phone calls and fretting over details. This time I first spoke to Roger Brittain and gave him an update on events. He had received the formal section 460/3 letter and would be passing on the paper to Ashursts. I spoke to them both about my latest concerns prompted by the note in the Kode circular to the effect that an extraordinary debit of £750,000 will be needed for deferred tax. The more I looked into Kode’s past accounts the more I was concerned by their risky depreciation policy; the past under provision for timing differences; the low write off levels for plant and machinery; and the lack of charge for a job lot of equipment not put into service on time.
This contrasts so vividly with the heavy depreciation levels of Comart, that I was forced to look at the Computer Industry Ratios and also discuss the matter with Derek Weatherby who had many similar doubts for the future. I then moved on to the effect of the circular, the placing document announcing the above and the likely effect on the share price which affects my negotiations. Philip Jackson of Ashursts could not really help a great deal. No further contact from Townsends but a letter from Peter Smith amending my staff announcement to the effect of removing promises on the composition of Directors and the Profit Sharing Scheme appropriations which makes John and I wonder about his future plans. I copy the latest draft of the circular to John and Derek for reading and also take a call from Peter King in southern Brittany, updating him on the news.
I couldn’t concentrate on much else today and sat at home this evening watching Wimbledon tennis on the television. At least I remembered to get the ducks in tonight as I had left them out yesterday. I also got a replacement key today for the car. Tired and early to bed.