Tavistock Investments has proposed a plan to reduce its current £22.3m deficit so it can pay dividends to shareholders.
In a stock exchange announcement this morning, the consolidator says it can’t currently pay dividends because of a profit and loss account deficit of £22.3m as at the end of September.
The negative reserves are a result of the “unsuccessful trading activities” of the company’s former business called SocialGo.
The company suggested it will use £23m from the firm’s premium share account to repay the debt. Tavistock says if the capital reduction is “sufficient” to eliminate the debt it would allow them to pay dividends in the future.
However, it says the capital reduction does not guarantee the payment of a dividend to shareholders.
If approved, the proposed plan will come into effect in the first quarter of 2018.