Keyworld Investments

Keyworld Investments, the holiday property investment company, announced it had signed an agreement with Berkeley Wealth Management to distribute its Keyworld Bonds. It is envisioned that 20 independent financial advisors (IFAs) based at Berkeley's St Albans branch will offer the bond in their typical client review. Keyworld, via its bonds, offers investors 30 years of free holiday accommodation for a single investment of £10,000. Through its agreement with RCI, a European timeshare organisation, Keyworld offers its customers access to 3,700 resorts across 95 countries. The bond is redeemable after 30 years. IFAs who sell the The Keyworld Bond get an 8% commission. Although the concept sounds feasible, in the interim period to October the company failed to generate any income - indeed, nothing in the way of revenues has been generated since its listing in 2001. Operating costs have reduced though, from £325,000 to £216,000, but the company has borrowed twice from shareholder companies in the past year. In August, it arranged a five-year loan with Lifestyle Investments for £420,000 (there isn't any interest on this loan) and by November it secured a five-year convertible loan from Ellingham Investments with interest set at 8.5% per annum or a conversion to equity at 1p per share.

Sector: Travel & Leisure

Companies: Kingswalk Investments

Market cap: £6.72m

PE Forecast: n/a

Share price: 0.32p

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