The Results, and Titan's Return

2002

Monotub throws in the towel
By Mark Court



MONOTUB INDUSTRIES, the troubled manufacturer of a novel type of washing machine, yesterday announced its final spin as a public company by unveiling plans to cancel dealings in its shares and sell the business for a penny.
The company’s shares, which touched a high of 647½p in late 2000, plunged a further 62 per cent to just 1¼p, making Monotub one of the stock market’s smallest companies, with a capitalisation of just £200,000.

Martin Myerscough, Monotub’s chairman and founder, said that he would buy the entire company for 1p –– a tiny fraction of the £650 selling price of one of its Titan washing machines on their brief and ill-fated appearance on the high street.

Market wags have already renamed the machine –– which Mr Myerscough hopes to relaunch –– the Titanic.

Monotub yesterday outlined plans to put itself into Members’ Voluntary Liquidation, under which the company will cease to trade, creditors will be paid and shareholders will retain their stakes.

Under the terms of the deal, Mr Myerscough will pay £4 into the liquidated company for every Titan he sells. Under the plans, this money would be distributed among Monotub’s long-suffering shareholders.

Monotub, which is seeking shareholder approval for the plans, said that the income “could represent a significant inflow of cash to the company” of as much as £12 million.

Monotub also released its results for its half year to September 30, reporting a pre-tax loss of £3.5 million on no turnover. At the half-year, net cash stood at £324,000.

Just three years ago, Monotub’s novel washing machine seemed ready to take on the world. Its removable wash tub, which doubled up as a laundry basket, its large load capacity and its ability to be opened while in use suggested a level of innovation to equal Richard Dyson’s vacuum cleaner.

However, the product’s launch, in September 2001, was quickly followed by a scathing Which? report that said that a test machine “made horrible noises and jumped violently”.

Despite Monotub’s efforts, the report spelt the end of the company, which failed to surmount commercial and production difficulties, while also losing brand credibility and shareholders’ support.