So the accounts are out for Firstport and their former parent Knight Square.
Firstport could continue to trade provided Knight Square guaranteed funds would be made available to meet financial obligations.
Following the end of the account year (December 2017) Knight Square ended their connection with Firstport, so those guarantees no longer apply.
Firstport are on their own and are currently seeking a buyer.
Firstport have made savings on administration costs and have the benefit of having provisions for liabilities (such as the Gibson Court fire) taken off the balance sheet.
Staff numbers at Firstport increased from 542 to 559. However this could be accounted for by the purchase of Pentland Property Management. That more staff are now part time is indicated by staff pay falling from £17,171,773 in 2016 to £14,663,040 in 2017.
Development retention rates were broadly similar. Never-the-less managed developments fell from 1,739 to 1.664 in 2017.
Of course these figures can be misleading as Firstport gained developments through developer appointments and the take-over of Pentland.
During 2017 Firstport sold off assets to pay down debt.
Though sold for £31,000,000 the sale of the house manager's flats only raised £20,000,000 cash. Presumably the "lost" £10m is part of a complicated lease back agreement?
Could it be the new owners had doubts about Firstport's long term future and wanted money up front?
Under the guise of "competitive tendering" loss making parts of Cirrus Communications were sold off.
Flatlaunch,carrying debts of £-1,500,000 were sold for £1.
Shares with a value of £10,000,000 and pledged to the parent company were cancelled.
Loans with RBS were re-negotiated and extended. Interest is being charged at Libor +3.75%. The current loan stands at £28,000,000 (an increase from £26,500,000)
Payments amounting to over £600,000 were made to the former investors for consultancy works.
Knight Square which encompasses the whole Firstport operations made a loss of £5,950,096 giving them a net negative valuation of £-41,543,060.
Firstport individually made a loss of £984,906, giving them a negative net value of £-£8,900,981.
