The Results, and Titan's Return

Monotub founder puts £1 in to clean up assets
By Carolyn Batt (Filed: 31/12/2002)


Washing machine maker Monotub ended a turbulent cycle yesterday with news it would sell its intellectual property and certain other assets to founder Martin Myerscough for just £1, and tumble into voluntary liquidation.


Martin Myerscough: attempting to revive Titan washing machine
James Hayward, finance director, who also revealed interim pre-tax losses of £3.5m against £1.8m last time, hailed the sale as "a good deal" for shareholders. He said: "It always looks somewhat suspicious when the company has sold to a connected party but frankly no one else has come in with as good a bid."

Mr Myerscough and "friends" are putting up £250,000 in working capital in an attempt to revive the company's sole product, the revolutionary Titan washing machine, which he designed.

He will indemnify Monotub against potential creditor claims, estimated at several hundred thousand pounds, and will also pay a £4 royalty on any machines sold in the next 15 years.

Mr Hayward said: "In the last two months we've been in serious discussions with seven companies, many of them international and well-known. Only three of them made a bid but Martin's was easily the best. What we've achieved, although with a degree of uncertainty, is a royalty, potentially a considerable sum, with no dilution to shareholders."

He said one of the other bids was lower than Mr Myerscough's, while the second was "in excess of £100,000" but did not include an indemnity or royalty.

The Titan has been hit by design problems and was the subject of a critical report in Which? magazine at the start of the year. Production ceased in February and the company has since been in talks with potential partners and buyers.

Mr Myerscough, who took responsibility for the troubles and stepped down as chairman in January, remained as a non-executive director until November and still controls about 29pc of the shares. The sale and voluntary liquidation are subject to shareholder approval, with an EGM to be held in late January.

The shares, which hit a high of 647.5p in mid-2000, fell 2 to a new low of 1.25p.

19 October 2002: Monotub directors out in the wash
8 October 2002: Monotub's revolution may be hung out to dry