Scantronic director resigns
THE FINANCE director of Scantronic resigned yesterday as the supplier of security alarms said that it expected pre-tax profit this year to be not less than pounds 2.75m but that it would be unable to pay a final dividend due to cash-flow difficulties, writes Diane Coyle.
Net indebtedness had risen from pounds 7.6m at the end of March to pounds 11.2m at the end of June as a result of a dollars 2.5m ( pounds 1.7m) investment in March in Arius, a US distributor, and expansion at Alarmexpress, a UK distribution subsidiary acquired last October, it said. A month ago Scantronic reported that trading conditions had been difficult in April and May, leading to higher- than-expected stock levels.
The company said: 'Owing to weaknesses in our finance functions, the full cash-flow implications of these matters were not properly appreciated for some time. In the light of the above, Ray Dias is resigning as finance director.'
Scantronic reported a significant improvement in trading conditions in June and July and has appointed John Singer, a consultant to the group, as acting finance director.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies