Marchpole Holdings>>>New licence on the way

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barryrog - Sat, 01 Jan 05 :

hi wbj,
my calculations for this full year are also showing 3.75p eps.
whilst i hope that the Boateng 'spat' will be amicably resolved in the near future, the recent court ruling that MPH are entitled to withold compensation payments because of a breach of contact has opened up a very interesting situation.
if it drags on,MPH might decide to cancel the contract and although they could probably sue Boateng for loss of future earnings, given that it is a very small part of their business at the moment,i doubt whether they would bother.
on the other hand, if Boateng wanted out of the contract,he would have to pay MPH a significant amount to buy the licence back and could well have to pay further compensation if MPH decided to make an issue over the potential loss of future earnings and the costs involved in setting up the licence in the first place.
as i said, an amicable resolution is preferred but either way i don't see a downside risk to MPH.


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