IBP Special Administration and Thames Ventures VCT 1

The ShareSoc blog provides news and informal commentary from directors, members and other contributors. Entries reflect the personal views of the authors, which do not necessarily reflect ShareSoc’s formal position. Contributors may hold shares in the companies mentioned. Nothing in this blog should be viewed as financial advice. You may submit comments on blog posts, but ShareSoc reserves the right to remove or edit inappropriate or defamatory submissions.

This article reflects the opinions of its author and not necessarily those of ShareSoc.

I have a very small holding in Thames Ventures VCT 1 (TV1). This is the remnant of holdings in other VCTs originally invested from 1997 onwards and which have generated a total return of minus 58% to date according to Sharescope, although I doubt that is accurate due to multiple consolidations and name changes. I would have sold the holding long ago if it were not for the roll-back of capital gains roll-over relief that would have been incurred. 

Now we learn that TV1 held some of its listed shareholdings with IBP Markets Ltd which has been put into Special Administration by the FCA “due to concerns whether there were appropriate systems and controls in place to ensure adequate protection for client monies and client assets at IBP”. About 20% of VCT1’s assets are held by IBP. 

More information here:https://www.investegate.co.uk/announcement/gnw/thames-ventures-vct-1–tv1/special-administration-of-the-company-s-custo-/7824992 

and here: https://www.fca.org.uk/news/news-stories/restrictions-placed-ibp-markets-limited-and-firm-enters-special-administration

Needless to say, this is all bad news. Are the assets still there, what will the administration of IBP cost and will it be charged against the assets? Those are key questions. Also, how long will it take to complete the administration and have the assets released – too long is no doubt the answer.

The whole future of TV1 is also brought into doubt by these announcements. The investment management was transferred recently to Foresight Group who have experience of taking on dead ducks but with net assets of £91.9 million according to the last annual report and the reputational damage from these events some vigorous decisions are clearly required.

Roger Lawson (Twitter  https://twitter.com/RogerWLawson  )

DISCLOSURE: The author does have a very small holding in Thames Ventures VCT 1 (TV1).  

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.