Avocet Natural Capital PLC, the flagship parent company of the group which promises to revolutionise 'green' fuel production and crop growing is now more than six months late in posting accounts at Companies House for its activities in 2018.
This serious breach of company law is attracting automatic civil penalties for both the company and its board of directors.
But Avocet chairman Martin Frost, who has come under severe pressure from shareholders in recent weeks, and who has promised to resign 'as soon as possible', has issued a new statement to investors promising the 2018 and 2019 accounts will be lodged 'shortly'.
Those 2018 accounts should have been signed off by the board by last December, an omission which has fostered disquiet among groups of shareholders.
According to a letter issued by Companies House, which has been seen by Not Just Sheep & Rugby: "With regards to the absence of accounts, I can advise that the company has already been reminded accordingly to deliver outstanding accounts in accordance with the Companies Act 2006. Our records show that the accounts for the period ending 27 December 2018 should have been delivered to Companies House no later than the 24 December 2019.
"I can also confirm that we have recently issued letters to the individual directors to chase up the delivery on accounts. All limited companies that file outside the statutory time, as directed by the Companies Act 2006 will attract an automatic civil late filing penalty, which increases with the period of delay. It is very much in the company’s own interest to file overdue accounts as soon as practical to minimise the costs of the fines."
Avocet Natural Capital (ANC)'s ability to file accounts may have been affected by the resignation of the company's auditors, Tyneside-based Ryecroft Glenton over 'long overdue professional fees'.
Mr Frost has also provided shareholders with a copy of a letter he sent to Ryecroft Glenton recently offering to "purchase the outstanding debts due to your firm by Omega Infinite Plc [now in liquidation] and Omega’s direct and indirect subsidiaries as at December 1st, 2018."
He added: "For the avoidance of doubt, this debt includes all subsequent 2018 Ryecroft work upon these companies. The purchase offer is conditional in that Ryecroft Glenton undertakes to complete the 2018 and 2019 accounts and tax returns (VAT & PAYE etc.) for all the above companies (except for ANC Plc)."
The conditions attached to the proposed deal are also laid out in the letter. They state: "Payment for the outstanding along with new work will be made as follows: A purchase payment of £50,000 to be applied first to the purchase of the Omega Infinite Plc outstanding to your firm, then to that of the debt due to your firm by Orrdone Farms Limited [now in administration].
"An on-account pre-payment of £30,000 to enable you to commence new work. Once new work commences, and you have consumed £20,000 of the prepayment £30,000, ANC Plc shall repetitively top up the prepayment sum and pay off at each rest a further £10,000 of the outstanding."
In today's communication to shareholders - it is headed Business as Usual - Mr Frost declares: " Avocet has a profitable future. Traditionally, a major new fuel such as ‘avocet methanol’ costs half a billion pounds to commercialise – at Avocet we have reached commercialisation at a tenth of the traditional expense.
"This time, last year, Avocet was bleeding cash at some £400,000 per month – today, Avocet is monthly cash positive. A year ago, Avocet had succession and governance problems – now, Avocet is empowered for the future."
Investors are also told that ANC Plc’s subsidiary Avocet IP Limited continues to develop and enlarge its intellectual property base, and that ANC Plc’s 2018 audited accounts will shortly be lodged at Companies House with 2019 to follow.
And there is much more positive news from Mr Frost...
"Avocet NC Limited – ANC Plc’s operating associate (headed by Preston-based accountant Paul Newsham) has made significant strides: Such will witness: New capital, funding, and governance structures for both Avocet NC Limited and ANC Plc to be set out. New ‘Master Franchise’ developments especially in North America to be announced.
"The August launch of ‘digital avocet: the home of natural capital’. Behind the scenes Avocet is working with colleagues from Amazon and Google to initiate a next generation natural capital platform. Succinctly, Avocet has secured an offshore super-fast web server based on a ‘Trunk’ highway enabling Avocet to daily interact with a million or more visitors."
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