Published 18 January 2006
7 of Kiwi Property Investor publisher David Hows’ companies went into liquidation on 13 January, but only after 2 of his magazines were passed on to a new company.
The companies in liquidation are Buy a Business Magazine Ltd, Her Business Magazine 2004 Ltd, Inspiring Entrepreneur’s Magazine Ltd (formerly Espy Magazine 2004 Ltd – not Espy Magazine Ltd, as the liquidators wrongly gave notice on Wednesday), Kiwi Property Investors Magazine 2004 Ltd, KPI Commercial Ltd, Momentum Magazine Holdings Ltd & Momentum Magazine Group Ltd.
Liquidators are John Whittfield & Peri Finnigan (McDonald Vague). They’ve set Friday 17 February as the closing date for creditors to file proofs of debt.
The former Espy magazine, now IE (Inspiring Entrepreneurs), is in the hands of the liquidators and for sale. KPI (now incorporating KPI Commercial) & Buy a Business magazines were transferred to Paper Ventures Ltd, incorporated on 20 December with 10,983,883 shares, all held by Oratia Resort Developments Ltd, which is owned by the sole director of both, Mr Hows.
That’s the same number of shares as in the parent of the Momentum companies, Momentum Magazine Group Ltd, but at Momentum Mr Hows was majority shareholder with a number of smaller investors.
Mr Hows sold Her Business magazine to Waikato-based fashion designer & retailer Annah Stretton, who’d already written several columns for the magazine and formed the company to run it, Stretton Publishing Co Ltd, on 12 January.
Liquidator Peri Finnigan said most of the Momentum creditors had been transferred to Paper Ventures with the sale of the 2 magazines to it. A “reasonable shortfall” to a number of trade creditors & Inland Revenue had been confined to one entity.
She said the businesses sold to Paper Ventures had been valued by Grant Thornton Auckland Ltd and McCallum Petterson had been involved in trying to source some funding. “The sale of the businesses has achieved a market valueâ€¦.. over the valuation,” she said.
Mr Hows held the bulk of his shares in Momentum Magazine Group through Oak Tree Consultants Ltd, the former Entrepreneurs Success Centre Ltd.
He quit his partnership with Phil Jones in Entrepreneurs Success Centre Ltd, Richmastery Ltd & various property investment & promotional companies in 2004 when he tried to take the publishing business public.
An IPO seeking up to $4 million was canned in 2004 when the Securities Commission intervened. Earlier, I’d written that “Momentum is forecasting revenue growth from $1 million for the first 6 months to $11.8 million in the first full year, $33.8 million in the next, and the investment statement displays a graph of forecast rocketing pretax earnings.
“There are no crunchable earnings figures, no dividend forecasts, no details of the costs of rolling out the new businesses. Gross margin is forecast to be 46% of revenue by the fourth quarter of the 2007 year, EAIDBT 28% of revenue that year.”
The offer closed undersubscribed, was withdrawn and Momentum refunded all subscriptions.
15 October 2004: Momentum takes magazines float to market Monday
27 August 2004: KPI, Espy & Her Business publishers look at float
Attribution: Liquidation records, liquidator, story written by Bob Dey for this website.