Sailport Plc Shares
Mayflower Marina is probably unique in that it is owned by a number of shareholders of whom the vast majority are berth holders. The benefits of being a shareholder are outlined below.
In addition to reducing the cost of marina berthing shareholding represents an opportunity to have a say in how your marina is run.
FACTS ABOUT SHARES
There is no open market for shares in Sailport Plc, hence the current market value is one determined by negotiation between a willing buyer and a willing seller. On written request we will inform you of the maximum consideration as advised to us that has been paid for one share during the preceding twelve months. That consideration however provides little guidance to the value of a share in Sailport Plc and you must seek independent legal and financial advice before making an offer to buy or sell a share in the Company.
Since the Company was formed in 1980 the shareholders who berth at the Marina have enjoyed an allowance, offset against berthing fees payable, which has been set annually by the Directors after taking account of the Company’s overall financial and trading position. The Tax and VAT implication of such an allowance is as follows:
HMRC having made a detailed review of the situation, take the approach that if there is a net ‘cost’ to the company of providing reduced berthing rates to shareholders then there may be a tax liability under the current tax legislation. We have therefore agreed a formula with them such that a tax liability can be avoided when calculating the share allowance. That calculation is, however, dependent upon many variables, some of which inevitably have to be a prediction (since the shareholder allowance has to be set in advance and on best available information rather than established fact) but to date no tax liability has arisen.
As long as there is no change in the VAT legislation or the approach adopted by HMRC shareholders who berth at the Marina will also benefit from reduced VAT, resulting from the deduction of the share allowance from the normal berthing fees payable. As long as there is a net charge for berthing, the Directors are advised that the VAT is payable on the net sum chargeable. The VAT saving thus also increases the return from the investment.
Subject to the Memorandum and Articles of Association of Sailport Plc, Shareholders may be afforded the following special privileges:
1. An entitlement to enter into a berthing agreement annually by the Company. The Company must receive written notification of a shareholder’s berthing requirements by 20th December each year.
2. An entitlement to a reduction of their berthing fees (limited to the berthing fees payable), as determined by the Directors from time to time. For the season commencing 1st April 2020, the annual allowance per share is £525 ex VAT.
3. An entitlement to beneficial rates for the use of the boat hoist owned by the Company, as determined by the Directors from time to time.
Share Allowance – example based on a 10m boat in the current berthing year
Mayflower Marina is unique in that it is owned by a number of shareholders of whom the vast majority are berth holders.
Shareholders who berth at the Marina have enjoy an allowance, offset against berthing fees payable, which has been fixed annually by the Directors after taking account of the Company’s overall financial and trading position.
The table below is an example of the how the berthing allowance.
|Non Shareholder||(Full Rate)||1 Share||4 Shares|
From the above it will be noted that the charge per metre with one share is £396 and with four shares it is £207 compared with £459 for a non-shareholder. Accordingly, a return of £630 (allowance on one share + VAT) is the equivalent of £787.50 a 20% taxpayer or £1050 to a 40% taxpayer and a return of £2520 (allowance on four shares + VAT) is the equivalent of £3150 to a 20% taxpayer or £4200 to a 40% taxpayer. This also applies to the following benefit:
Currently a 12.5% reduction is available on hoisting charges for each share held (up to a maximum of 50% reduction for lift-out and relaunch). Applying this to our example of a 10m boat in the current berthing year this means:
|All prices inc VAT||Non Shareholder (Full Rate)||1 Share||4 Shares|
|Lift out to yard or relaunch||£165.00||£144.38||£82.50|
If you would like to know more about buying shares and selling shares call us on 01752 556633.
Registrars of Sailport PLC are:
Bishop Fleming Chartered Accountants,
Salt Quay House,
4 North East Quay,
Tel: (01752) 262611