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Posted by  in Current Opportunities

From a slow start, 2017 turned out to be fairly productive in the end for some of our GE Club members.

A notable highlight was a sale of Portr shares for a net £4 which gave those investors who sold a return of nearly 7 times their gross investment or 14 times taking into account the SEIS relief. Gains were tax free saving them a potential further 20%.

Not everyone decided to sell and in fact those that did, held on to over half their holdings which gives them a free carry. We wait with interest to see Portr’s next step in their evolution.

Not all companies go quite so well which demonstrates again the importance of spreading risk across multiple issues. I give just two examples both of which assume a higher rate tax payer and remember that statistics indicate that probably only 2 out of 10 will succeed.

£30,000 into one company which fails

Investment £30,000
SEIS Tax Relief £15,000
Net Investment £15,000
Proceeds £0
Loss Relief £7,200
Net Loss £7,800

£30,000 spread equally into three companies including Portr – two fail

Investment £30,000
SEIS Tax Relief £15,000
Net Investment £15,000
Proceeds £70,000
Tax Relief £15,000
Loss Relief £4,800
Net Gain £89,800

This still represents a gain of nearly 3 times the original £30,000 investment despite two companies completely failing. One off investments dramatically increase the risk of total failure.

So what is your appetite for 2018?

I would welcome the opportunity to talk to you and see whether we can help in any way. At present we have the following opportunities on our books which you may have missed as we went through 2017. There should be something here to suit everyone.

1. SEIS Offer – Design and Manufacture – £100,000 still available – closing shortly
2. SEIS Offer – Skiwear Brand – £40,000 still available – £2m EIS offer coming in 2018
3. Guaranteed 3 and 5 year Capital Bond paying up to 8.95% pa
4. Short term Nasdaq Nordic discounted equity play – up to six months hold – €140m market cap – £100,000 available
5. Round 2 EIS placing of £500,000

We are in discussion with various companies with regard to launching SEIS share offers this year and we will bring you these as they become available.

I trust that 2018 is a happy and successful year for you and please let me know if you would like more information regarding any of the opportunities above or if there is anything that you think I can help with. I enjoy talking to our members many of whom are happy to share their own ideas so do get in touch and I will be more than happy to discuss these and other ideas with you. Let’s avoid the subject of Brexit though.