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 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Kate Moss: Previously unpublished nude photo revealed by Mert and Marcus
- 4 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 5 Bad Jews poster 'censored' on London Tube
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Becky Watts: Four appear in court charged with hiding body parts after teenager's death
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
Professor Brian Cox brands astrology-believing Tory MP David Tredinnick an 'outlier on the spectrum of reason'
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...