Good morning. It looks like a fairly quiet day for news again today. I've been looking through the Quindell Portfolio (LON:QPP) Annual Report, which has been published on their website this morning, click here for the download. Hopefully after a closer look I might have a better idea of how they generate the enormous profits which seem to have sprung from nowhere (since none of the businesses they acquired generated any significant profits previously).


Results from Plethora Solutions Holdings (LON:PLE) have got to be one of the worst I've ever seen. My local Share Club have a holding in it, hence my looking at their accounts this morning. It placed a subsidiary into Administration in Feb 2013, and seems to be hanging on in the hope of partnering one of its remaining projects with a larger pharmaceutical group.

The Balance Sheet is completely insolvent, with only £231k in current assets, yet £6m of liabilities. From reading the notes, it turns out that this is yet another failed Jim Mellon venture, which he is propping up with loans. After the debacle at Speymill Deutsche, where shareholders were completely wiped out after being assured that everything was fine, I made a note never to go anywhere near anything involving Jim Mellon again.

The market cap at Plethora is £7m, which strikes me as pure fantasy, so I shall be recommending to my local Share Club that they take the money & run on this one.


Hornby (LON:HRN) announce their results for the year ended 31 Mar 2013. They have been having difficulties for a while now with their supply chain, with over-reliance on one Chinese supplier causing them major problems. So 2012/13 was a year affected by this issue, and resulted in turnover falling about 10% to £57.4m, and underlying profit falling to around breakeven.

Net debt reduced to only £2.1m, so there does not appear to be any immediate insolvency risk. The Balance Sheet looks OK, with £12m in net current assets and only £2m in long term liabilities. There is no dividend this year, but they indicate that in future the company will return to paying 50% of earnings in dividends.

At 75p per share the market cap is around £30m, but with…

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