Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

PUBLISHING TECHNOLOGY (AIM:PTO) - Nice money if you can get it

Publishing Technology, whose activities are hard to fathom (have a look at the web site if you don’t believe me!) has announced that it has accepted unsecured loans in aggregate of £500,000 from its Directors and from certain senior managers

This was apparently similar to last year to assist the Company meet its potential peak funding requirement during the last quarter of 2011.

The Directors’ loans are expected to be repaid on 31 January 2012 or sooner if cash flow allows and carry a coupon of very attarctive 12% per annum.

What a great arrangement for all concerned, as long as one has absolute confidence in the business and its cash flow, which I assume the Directors do indeed have.

It’s cheaper than any available alternative funding, which is fairly ironic when base rates are virtually zero, and the Directors’ spare cash earns interest at levels not seen for many a year.


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