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.
Diving in at the deep end is no excuse for shirking the style stakes
- 1 World Cup 2014: 20 things we learned in Brazil
- 2 Why I'm on the brink of burning my Israeli passport
- 3 War is war: Why I stand with Israel
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 World Cup 2014: Robin van Persie gives his bronze medal to eccentric Netherlands fan moments after being handed it by Sepp Blatter
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Pamplona bull run: Man who contributed to a survival guide for the festival falls foul of the raging beasts
Israel-Gaza conflict: William Hague calls for ceasefire but says Israel 'has the right to defend itself'
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...