Stormy seas for Benjamin Hornigold
Written on the 2 December 2019 by David Simmons
Brisbane-based investment firm Benjamin Hornigold has released its preliminary final report for FY19, and things are not looking bright.
The firm, named after an infamous pirate, saw its revenues decrease by 374 per cent into the negatives, from $638,518 in FY18 to a loss of $1.75 million in FY19.
Its losses also decreased substantially by 228 per cent to $9.82 million, which the company attributes to providing for income tax and the non-repayment of financial assets that are currently in default.
These concerning figures come as the investment firm is awaiting repayment of millions of dollars from JB Financial Group (JBFG).
JBFG recently fell into receivership and holds the majority of Benjamin Hornigold's assets.
A $2.6 million JBFG Convertible Loan and a $900,000 JBFG Unsecured Loan are currently in default and remain immediately repayable to Benjamin Hornigold.
Additionally, JBFG is the sole shareholder of King's Currency; a group which also owes Benjamin Hornigold $7.4 million repayable under an order made earlier this year by the Takeover Panel.
However, this King's Currency repayment is in dispute, with specialty debt solutions provider Partners for Growth insisting that it holds a fixed charge over the $7.4 million in banknotes.
Benjamin Hornigold on the other hand disputes this claim, instead believing the notes are held in trust as per an agreement with King's Currency.
It has been a tumultuous FY19 for Benjamin Hornigold.
The company has been in a trading halt since 30 July 2018 pending the announcement of a share buyback.
Since then, the group has been the subject of two failed takeovers by John Bridgeman Limited (another firm named after an infamous pirate).
Both were unsuccessful after the Takeovers Panel determined the investment manager was implementing lock-up devices and reducing competitiveness.
Business News Australia
Author: David Simmons