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Seeking tax relief for 2009? Business Expansion Schemes (BES), such as Eneclann's and Wirelite Sensors'. |
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What is a Business Expansion Scheme? Business Expansion Schemes (BES) are schemes by which expanding businesses are able to raise capital through private investment. Individuals who invest in such schemes are entitled to up to 41% tax relief on their investment. As such, Business Expansion Schemes can be an attractive investment. How does a Business Expansion Scheme work? A taxpayer who invests in a Business Expansion Scheme before 31st December 2009 can deduct the investment from his or her taxable income for the year ended 31st December 2009. They are entitled to a tax refund if they have paid tax on that income, which effectively means the taxpayer gets 41% of the investment back when they invest. BES investments normally last for five years. The investor can expect to be refunded his or her investment at that point, although very often they will receive a return on investment too. There is no capital gains tax on the sales of shares in BES schemes. What is the Eneclann BES? Eneclann Ltd., a client of O’Sullivan Associates, is an award winning Trinity College campus company specialising in Irish archives. It is in its fourth BES round this year. An established company trading for 11 years with an impressive client list in the state, cultural, educational and media sectors, it offers investors both stability and experience. Eneclann has grown to maintain an annual turnover of over €1,000,000 for the last four years. The company estimates that the market value of the BES 'A' Ordinary shares will be €1.40 after five years representing an annual compound rate of 13.32% for 41% taxpayers. The investment will qualify for relief under the Business Expansion Scheme Programme in the current tax year 2009 at a maximum rate of 41%. What is the Wire-Lite Sensors BES? Wire-Lite Sensors Ltd. an Enterprise Ireland and Sustainable Energy Ireland supported company, is a leading innovator in the field of energy and demand management and has a number of demonstration products with commercial and industrial companies. We have developed smart building and smart grid solutions and wish to expand our Irish and UK customer bases. We have set up a BES in order to raise the additional funds we require. Wire-Lite has demonstration projects in the commercial and industrial markets with blue chip clients. The company estimates that the market value of the BES 'A' Ordinary shares will be €1.40 after five years representing an annual compound rate of 13.32% for 41% taxpayers. The investment will qualify for relief under the Business Expansion Scheme Programme in the current tax year 2009 at a maximum rate of 41%. Tell me more about Eneclann. Eneclann Ltd. is an acknowledged leader and innovator in the field of historic records and genealogy with a proven track record in this sector. Their business is grouped into three categories: historical research, publications and digitisation, archives and records management. They have over 10,000 research clients, 20,000 publications clients and 50,000 online clients. Find out more about Eneclann. Tell me more about Wire-Lite Sensors. Wire-Lite Sensors' products are grouped into three areas energy management, demand control and demand response. The products allow commercial, institutional and industrial companies use energy more intelligently, pay less for it, and generate cash-flows that benefit the bottom line. This results in average savings for customers of 25% and a product payback of 12-18 months. What is Eneclann's vision? Eneclann is an acknowledged leader and innovator in the field of historic records in Ireland with a proven track record in this sector. Their vision is to develop Eneclann as a high value digital provider of heritage and historical content online. Eneclann has the right combination of experience and skills to achieve this vision. The market in online historical data is very active. Driven by a growth of interest in genealogical research and the possibilities offered by new Web 2.0 technology, there has been a determined drive by a number of UK and US companies to acquire as assets digitised data sets. There have also been a number of high profile acquisitions in the market (e.g. Ancestry.com bought for $300m in 2007). Eneclann plans to rapidly expand its digital asset ownership through its exclusive agreements with Trinity College Library, the UK National Archives (Kew), the Mormon Church and other data owners. Investing in the creation of digital assets with a non-depreciable value and capable of generating a continuous cash flow will leave Eneclann very well placed as the lead Irish company in this market. Eneclann digital assets will have a very high potential value making Eneclann very attractive to international companies seeking to consolidate digital assets. What is Wire-Lite Sensors' vision? Wire-Lite is becoming a market leader in the Smart Building and Smart Grid areas. The products have been developed with Tyndall Research who has carried out extensive R & D projects in these areas over the past number of years. This combined with Wire-Lite’s intimate knowledge and experience in this area has resulted in significant proprietary knowledge, intellectual property (IP) and solutions. The Smart Building and Smart Grid markets are very active. Driven by rising energy costs, EU regulations, carbon taxes and concerns over future supply the market is taking off again as economic recovery starts to take hold. Many new companies with interesting technologies in this area are acquired by automation companies such as Siemens, ABB, etc. Other American companies such as Enernoc have had Initial Public Offerings (IPO) where the company in question is launched on the Stock Market ( in the case of Enernoc the market capitalisation was $630m). Wire-Lite is developing further products for industrial demand management and demand control in partnership with Irish and international research institutes. Investing in these products allows Wire-Lite create a rapidly appreciating asset base that is capable of developing a continuous cash flows for Wire-Lite and its customers and will leave Wire-Lite as the lead European company in this area. Wire-Lite’s asset and customer base will make it a very attractive acquisition target for multinational companies wishing to consolidate assets and customer bases to grow this area. How can I find out more about the Eneclann and Wirelite Sensors BES? Eneclann and Wirelite Sensors have produced a joint brochure about their BES. You can order a copy of the brochure by filling in the form below. The directors of Eneclann and Wirelite Sensors together with O’Sullivan Associates would be delighted to meet with interested individuals to discuss the BES Schemes. If you would like to discuss the Eneclann BES or the Wire-Lite BES with Eamon O'Sullivan
, you can call him on Eneclann and Wirelite Sensors BES Information Request Form |
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