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Financial Payment Systems Ltd

  • BY: Andrew Hore |
  • POSTED: 19/05/2008 |

Daniel Stewart has resigned as nominated adviser to Financial Payment Systems.

The resignation took place immediately and the shares of the China-based electronic payments systems developer were suspended at 0.4p, valuing the company at £370,000.

An attempt by shareholders to remove two directors sparked the resignation of Daniel Stewart, which was also the company’s broker.

The company received a letter on the 16 May which “appears to be from certain shareholders who in aggregate represent more than half of the issued share capital”. It demanded that non-executive director Richard Last and non-executive chairman Malcolm Williams be removed as directors. That would leave Lee Keen Whye, himself a non-executive, as the only director. The letter is being validated.

Ong Lay Ann’s job as chief executive and his board seat were terminated. The remaining directors decided to end the company’s joint venture agreements and liquidate its Jiangsu Electronic Payment Systems joint venture.

Looking at the major shareholders list, WestStar Ventures Inc owns 44.04% of FPS and Ong Lay Ann is its chief executive and 33.3% shareholder. A relationship agreement in the flotation prospectus stated that the board should be capable of operating independently of WestStar and Ong Lay Ann.

FPS joined Aim on 16 June 2006 via a placing at 12p a share which raised £5m before expenses. At that time the company was valued at £11m.

FPS has not reported any revenues since it floated. At the end of June 2007, there was £1.61m of cash in the bank and a further £804,000 in the Jiangsu Electronic Payment Systems joint venture. The shares would have been suspended at the end of June 2008 if FPS did not release full year figures by then.

FPS has one month to find a nominated adviser or lose its Aim quotation. Given the current uncertainty that might be a tough task.

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