IMPSHIRE Thoroughbreds, the former bloodstock company which is now a total cash group, is exploring ways to repay its shareholders.
Pre tax profit surged from £729,800 in 1995 to £2,140,000 in 1996, according to figures released by the group yesterday. Cash rose from £1,704,000 to £6,800,000.
The company's shares are no longer listed on the Irish Stock Exchange following the closure of "the Unlisted Securities Market on December 31st. No dividends are being paid, but the chairman, Mr Bryan Benitz, told shareholders that the board was "examining the option for the future of the company, including the possibility of returning the assets of the company to its shareholders".
The company has not elaborated on the options. Paying out the cash in the form of dividends is not a realistic option because of income tax consideration.
Impshire appears to have three options. First, it could convert the ordinary shares into redeemable shares and then redeem them. This would be time consuming.
Second, the main shareholders - the Fraser family owns 75 per cent while the estate of the late Simon Fraser has 11 per cent - could buy out the minority 14 per cent. Third, the company could be liquidated and the proceeds paid to the shareholders.
The assets consist principally of cash and there is a small element of short term Irish gilts. The net assets per share have risen from 77.5p to 107p, or just over the original subscription price of 100p. With indexation, there would be no capital gains tax.