Accountants to look into Tiphook deal

INDEPENDENT accountants commissioned by bankers to Tiphook, the troubled container leasing operation, are expected to look at the value attached in the company's accounts to an investment in shares and land.

Tiphook spent pounds 1.8m on a 10 per cent stake in a company with total net assets - according to last filed records - were valued at pounds 3.9m.

The investment was part of a complex set of financial arrangements orchestrated by Tiphook in the final days of its last financial year.

The transactions are likely to be looked at carefully by Coopers & Lybrand, the accountants commissioned by Tiphook's bankers to conduct a thorough review of the company's operations and financing needs.

Tiphook, which is in the throes of refinancing talks with its bankers, invested the pounds 1.8m in the ordinary shares of Thomas Storey, a Stockport-based company that specialises in the engineering parts for Bailey bridges, a bridge system developed by Sir Donald Bailey that is sold in 60 countries throughout the world.

Tiphook also bought pounds 2.5m of preference shares in Thomas Storey, which pay an interest rate of 4 per cent.

The investment in the two classes of shares in Thomas Storey are listed in Tiphook's accounts as additions to the company's fixed asset investments of pounds 4.3m.

Together they effectively wipe out a provision relating to the write-off of pounds 4m worth of preference shares that Tiphook owned in Adamson Modular Systems, a company that went into administrative receivership in February.

Analysts have queried the pounds 1.8m investment in the ordinary shares, suggesting that this might overvalue the investment by around pounds 1.5m unless the net assets of Thomas Storey have appreciated considerably since the last set of published accounts.

A Tiphook spokesman had no comment to make on the valuation. Thomas Storey's latest report and accounts, for the year ending December 1992, have yet to be filed at Companies House.

A Tiphook source said that the valuation of the ordinary shares takes into account a number of factors, including historical and forecast net asset values, cash flows and profits of Thomas Storey.

Analysts are also querying the reason for the pounds 2.5m investment in Thomas Storey's preference shares, given Tiphook's well-publicised financial problems.

Tiphook also bought a property from Thomas Storey for pounds 5m - the latter's factory at Tiviot, near Stockport.

The last time the land and buildings were valued in the Thomas Storey accounts, in the year ending December 1990, they were given a value in excess of book value of pounds 1.03m, nearly pounds 4m less than the Tiphook purchase price.

Tiphook says that the property was written into the company's books at pounds 2.5m, on the advice of its auditors, Touche Ross.

Tiphook maintains that the site has significant development potential.

The company has been reported as being unable to give its bankers a 'comfort' letter guaranteeing that it has sufficient funds to meet its funding obligations over the next 12 months. Tiphook's shares finished the week at 95p, near an all-time low.

(Photograph omitted)

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
Britons buy more than 30 million handsets each year, keeping them for an average of 18 months
tech
Arts and Entertainment
Alloysious Massaquoi, 'G' Hastings and Kayus Bankole of Young Fathers are the surprise winners of this year's Mercury Music Prize
musicThe surprise winners of the Mercury Prize – and a very brief acceptance speech
Arts and Entertainment
TV Presenters Ant McPartlin and Dec Donnelly. Winners of the 'Entertainment Programme' award for 'Ant and Dec's Saturday Night Takeaway'
musicAnt and Dec confirmed as hosts of next year's Brit Awards
Arts and Entertainment
Orson Welles made Citizen Kane at 25, and battled with Hollywood film studios thereafter
film
News
video
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Finance Assistant - Part time - 9 month FTC

£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...

Marketing Manager

£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...

Market Risk Manager - Investment Banking - Mandarin Speaker

£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...

Compensation and Benefits Manager - Brentwood - Circa £60,000

£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...

Day In a Page

Isis in Syria: A general reveals the lack of communication with the US - and his country's awkward relationship with their allies-by-default

A Syrian general speaks

A senior officer of Bashar al-Assad’s regime talks to Robert Fisk about his army’s brutal struggle with Isis, in a dirty war whose challenges include widespread atrocities
‘A bit of a shock...’ Cambridge economist with Glasgow roots becomes Zambia’s acting President

‘A bit of a shock...’ Economist with Glasgow roots becomes Zambia’s acting President

Guy Scott's predecessor, Michael Sata, died in a London hospital this week after a lengthy illness
Fall of the Berlin Wall: History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War

Fall of the Berlin Wall

History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War
How to turn your mobile phone into easy money

Turn your mobile phone into easy money

There are 90 million unused mobiles in the UK, which would be worth £7bn if we cashed them in, says David Crookes
Independent writers remember their Saturday jobs:

Independent writers remember their Saturday jobs

"I have never regarded anything I have done in "the media" as a proper job"
Lyricist Richard Thomas shares his 11-step recipe for creating a hit West End musical

11-step recipe for creating a West End hit

Richard Thomas, the lyricist behind the Jerry Springer and Anna Nicole Smith operas, explains how Bob Dylan, 'Breaking Bad' and even Noam Chomsky inspired his songbook for the new musical 'Made in Dagenham'
Tonke Dragt's The Letter for the King has finally been translated into English ... 50 years on

Buried treasure: The Letter for the King

The coming-of-age tale about a boy and his mission to save a mythical kingdom has sold a million copies since it was written by an eccentric Dutchwoman in 1962. Yet until last year, no one had read it in English
Can instilling a sense of entrepreneurship in pupils have a positive effect on their learning?

The school that means business

Richard Garner heads to Lancashire, where developing the 'dragons' of the future is also helping one community academy to achieve its educational goals
10 best tablets

The world in your pocket: 10 best tablets

They’re thin, they’re light, you can use them for work on the move or keeping entertained
Lutz Pfannenstiel: The goalkeeper who gave up Bayern Munich for the Crazy Gang, Bradford and a whirlwind trawl across continents

Lutz Pfannenstiel interview

The goalkeeper who gave up Bayern Munich for the Crazy Gang, Bradford and a whirlwind trawl across continents
Pete Jenson: Popular Jürgen Klopp can reignite Borussia Dortmund’s season with visit to Bayern Munich

Pete Jenson's a Different League

Popular Klopp can reignite Dortmund’s season with visit to Bayern
John Cantlie video proves that Isis expects victory in Kobani

Cantlie video proves that Isis expects victory in Kobani

The use of the British hostage demonstrates once again the militants' skill and originality in conducting a propaganda war, says Patrick Cockburn
The killer instinct: The man who helps students spot potential murderers

The killer instinct

Phil Chalmers travels the US warning students how to spot possible future murderers, but can his contentious methods really stop the bloodshed?
Clothing the gap: A new exhibition celebrates women who stood apart from the fashion herd

Clothing the gap

A new exhibition celebrates women who stood apart from the fashion herd
Fall of the Berlin Wall: Goodbye to all that - the lost world beyond the Iron Curtain

The Fall of the Berlin Wall

Goodbye to all that - the lost world beyond the Iron Curtain