Skip to content 
Search

Latest Stories

Lord Bilimoria to use dividend to pay off Cobra creditors

Lord Bilimoria has said that he will continue paying off his creditors after collecting a dividend of £4.2 million from his shareholding in the Cobra lager brand.

Lord Bilimoria, who founded Cobra in 1989, teamed up with the US brewer Molson Coors to rescue it from collapse in 2009 via a pre-pack administration but promised to repay all Cobra creditors from his share of the dividends.


He emerged as chairman with a 49.9 per cent stake, while 340 creditors were owed more than £70 million. Creditors with insurance policies have been excluded, even though such policies typically pay out only a percentage of claims, leaving many out of pocket.

Charles Wells, the Bedford brewer that produced Cobra under contract, was owed £1.5 million but received only 90 per cent via its insurance policy.

A spokesman for the peer said: “Since 2009 the vast majority of dividends received by Karan Bilimoria after the formation of Cobra Beer Partnership has been used to settle creditors. This was also the case in 2019. The joint venture with Molson Coors was initially for a period of ten years. In May 2019 it was extended. Over the remaining years, Lord Bilimoria plans to continue to settle remaining creditors from his share of the dividends.”

In its 2019 accounts filed this week, Cobra Beer suffered a 2.2 per cent fall in turnover to £53.4 million on the back of a small decrease in volumes. The volume decline and increased marketing spend sent pre-tax profits 12.6 per cent lower to £93 million. Dividends of £8.5 million were declared, down from £8.7 million in 2018.

Cobra reported a decline in trade on the back of Covid restrictions, but concluded it was a temporary hit and did not require an impairment to be taken against its accounts.

The board said that the company is likely to require short-term material additional cash funding during early 2021, and added that it had secured access to sufficient funds for at least 12 months.

More For You

Labour’s non-dom tax changes may cost £4bn, experts warn

Starmer and Reeves during a visit to Horiba Mira in Nuneaton in Nuneaton. (Photo: Getty Images)

Labour’s non-dom tax changes may cost £4bn, experts warn

PLANS by Labour to overhaul the tax rules for non-domiciled residents in the UK could cost the public purse up to £4 billion and result in the loss of thousands of private sector jobs, according to a new analysis.

A report by the Centre for Economics and Business Research (CEBR), shared with The Times, suggested that scrapping the current non-dom regime could lead to a sharp drop in tax revenues if even a fraction of those affected decide to leave the country.

Keep ReadingShow less
Tesla set to open first showroom in India

Elon Musk and Narendra Modi (right)

Tesla set to open first showroom in India

US CARMAKER Tesla is finally making its official debut in India with the opening of its first showroom in Mumbai.

The firm, led by Elon Musk, will unveil the new “Tesla Experience Centre” on Tuesday (15) at Maker Maxity Mall in the Bandra Kurla Complex, one of the city's top commercial hubs.

Keep ReadingShow less
Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy shrinks again in May, hitting Labour’s growth plans

THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.

Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.

Keep ReadingShow less