Vince’s growth guru and a trail of loses: Cable’s entrepreneur £3m over 10 years

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Vince’s growth guru and a trail of loses: Cable’s entrepreneur £3m over 10 years

March 4th, 2012

FAKE NEWS for the Zionist agenda

By
Martin Delgado

Last updated at 1:59 AM on 4th March 2012

Business secretary Vince Cable

An entrepreneur who advises Business Secretary Vince Cable on ways of promoting growth in the economy runs an investment company which has lost more than £3 million in ten years.

Julie Meyer, who helps start-up enterprises obtain funding, is a member of a panel set up by the Liberal Democrat Cabinet Minister. Last year she was also invited to join a digital technology advisory group established by Health Secretary Andrew Lansley.

But an investigation by The Mail on Sunday has found that the company she owns and controls, Ariadne Capital, has filed losses nearly every year since it was founded in 2000. Accounts also show that Ms Meyer, pictured left, breached company law by borrowing more than £70,000 from the firm – a transaction which at the time was illegal.

The American-born venture capitalist has been criticised over the collapse of a media technology company in which Ariadne had a minority stake after it raised more than £2 million of funding from independent investors.

Enrich Social Productions (ESP) went into liquidation with £10 million of debts, including nearly £500,000 owed to the taxman.

However, a similar company was formed almost instantly without any of the debts accrued by ESP but many of its assets, including its websites.

The practice – setting up a so-called ‘phoenix company’ – is not illegal, but is controversial.

Some shareholders claim they lost money when ESP’s assets were transferred to the new enterprise, Global Dawn, which is now part of the Ariadne Capital portfolio of companies backed by Ms Meyer. She denies any wrongdoing and insists Global Dawn has no connection with ESP.

Ms Meyer, 45, is pioneering new ways of backing entrepreneurship in Britain and the rest of Europe, according to promotional material published by her company.

But Ariadne Capital’s accounts reveal a disappointing financial performance. In 2009, the company lost more than £1 million, which was converted into a post-tax profit of £33,611 the following year.

Ms Meyer, who is Ariadne’s chief executive, wrote in the 2009 accounts: ‘The principal risk of the business is considered to be the maintenance of sufficient working capital.’

The breach of company law occurred in 2004, when she borrowed more than £70,000 from Ariadne.

Julie Meyer is advising Vince Cable despite her company running at a loss

A loan of nearly £48,000 was made at the same time to her then partner, business consultant Bundeep Singh Rangar, who has since left the company. A note in the financial statements reads: ‘Included within other debtors due within one year are loans to JM Meyer and BS Rangar, director and former director of the company, amounting to £71,261 and £47,781 respectively… which are not permitted by company law.

‘Subsequent to the year end JM Meyer’s loan balance has been repaid and it has been agreed that the other loan balance is to be repaid.’

The latest set of accounts show that Ms Meyer drew an interest-free £180,000 loan from the company in 2010 instead of taking a salary.

A leading City accountant said: ‘It used to be unlawful for directors to take loans from companies they controlled but it is no longer an offence following a law change in 2006.

‘By taking a loan instead of a salary, Ms Meyer avoided having to pay PAYE and National Insurance.’

A spokesman for the Department for Business, Innovation and Skills (DBIS) run by Mr Cable, pictured above, said: ‘Julie was recommended by policy officials to go on the Entrepreneurs’ Forum, based on her experience and track record in starting up businesses.’

Ms Meyer said: ‘We have a two per cent stake in Global Dawn which is a different company… from Enrich Social Productions. Ariadne is today an investment and advisory firm with £5 million under management in a venture capital fund… with significant profit as of December 2011.

‘I am in an unpaid role with the Entrepreneurs’ Forum where I have a one-hour meeting with 30 entrepreneurs at BIS (Mr Cable’s Business Department) every three or four months.’

Asked about the breach of company law in 2004, Ms Meyer said: ‘It was a technicality according to our Company Secretary, as many companies do this in their early years. Our auditors would have reviewed everything.’

It is not the first controversy Ms Meyer has been involved in. The businesswoman, who lives in a rented flat in Earl’s Court, West London, was a backer of Spinvox, a technique for converting mobile phone text messages into voicemail.

Investors pumped £100 million into the project but it was eventually sold to a US rival for £92 million.

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Why do polititions have to employ outside consultants to do their jobs?? If they are not competent then they should not be in the position- Is it any wonder we are in the state we are!!!

– England-and-St.George, Derby, 04/3/2012 10:02

St Vincent of the Rope by which he will hang himself!

– Basildon Bob, Pitsea, 04/3/2012 09:54

Given some of the crazy ideas the Lib Dems come up with I’m not surprised by this in the slightest.

– SD, Peterborough, 04/3/2012 08:53

Seems about right for a lib dem mp, in government to be accepting advice from some one who has lost that much money an dis no doubt now being paid by the tax payer for her useless information which she obviously cannot make use of herself.

– ex pat, Spain, 04/3/2012 08:52

It seems fitting that the anti-Business Secretary should have an advisor who seems to know only how to lose money.

– Son of Boudicca, Cardiff UK, 04/3/2012 08:44

Only 3m – that good eh!

– By, Example one leads, 04/3/2012 07:10

He lost more than £3 million in ten years? So he’ll fit in nicely with Cable as he has no idea what he is doing either. And if you need proof, if Cable did understand the job why would he need to bring in outside help? If I said to my boss “I’m going to bring someone in who knows what they are doing” He’d sack me and employ the other guy.

– Toto Kubwa, Cyprus, 04/3/2012 06:37

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