Hartstone in crisis after irregularities found
Saturday 05 June 1993
The company announced on Thursday that it had suspended a senior executive who diverted funds from a company foreign-exchange hedging contract to his own account. A pounds 50,000 loan to him may be irrecoverable.
The board was in a crisis meeting yesterday after a black week for the company. Eight days ago, the shares crashed 91p to 34p after the company warned that profits for the year to March would be far lower than the City had expected.
The chairman and chief executive, Stephen Barker, who had aggressively built the group by acquisition, was replaced by Shaun Dowling, a non-executive director. The finance director, David Grattan, is also being replaced.
Hartstone also disclosed on Thursday that it had arrangements to pay certain employees of a subsidiary pounds 1m over four years. This year pounds 260,000 had been paid out and profits would be reduced accordingly.
The company also announced that it was near a standstill agreement with its bankers after its profits warning made it likely to breach covenants.
It has made a deferred payment of 1bn pesetas ( pounds 5.2m) to the vendors of Azner Industrial and was in negotiations over payments totalling dollars 12.8m ( pounds 8.3m) due on two other acquisitions.
Hartstone shares dropped 5p to 36p yesterday, before recovering slightly to close at 391 2 p.
- 1 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...