'High-flyer Hilton was afraid of losing his reputation court told
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HAULAGE BOSS Ralph Hilton was afraid of losing his reputation in the City as a high-flyer, so he conspired dishonestly to inflate his firm's profit figures, one of his fellow-directors told a jury at the Old Bailey last Friday.
Hilton, a forceful personality, particularly wanted the profits to be near the forecast of £550,000 because it was their first year as a public company, said Mr John Skinner, 50, his former company secretary.
"He was very unhappy about it," added Mr Skinner. He was looked upon as a highflyer in the City, and it was very disappointing to him. But there were good reasons for failing to reach the forecast of E550,000, said Mr Skinner. He did not agree with Hilton's decision to use false invoices, though he "went along" with it.
"It wasn't really necessary," he said. "There were very good reasons for not reaching the forecast. There were unf ores e en circumstances which would qualify why we were short."
A strike by postal workers and another at Fords, one of their largest customers, had a had effect.
Hilton, 51, of Cricket Ground Road, Chislehurst, pleads not guilty to two charges of conspiring with Mr Skinner and another director, Mr Robert Withers, to falsify his company's accounts, concurring with the publication of false accounts and forging a cheque. The prosecution is brought by the Department of Trade and Industry.
Admission
Mr Skinner, called as a prosecution witness, told the jury that he had received a suspended nine-month prison sentence earlier this week when he admitted conspiring to falsify accounts.
He now works as partproprietor of a firm of motor dealers and repairers. Mr Withers gave evidence as a prosecution witness earlier in the trial, admitting his involvement.
Mr Skinner said the company, Ralph Hilton Transport Services, went public in 1971, and he forecast the profit figure after consulting Hilton and two other directors. But trade from January to March was affected tremendously by the postal strike.
In July — the end of their financial year and normally one of the best months for trading — it became apparent that the profit figures would not be met. Mr Skinner said they were depressed and worried. He had been present many times when people in the City told Hilton he must achieve his first-year profit forecast.
The company was the first to be made public by the Industrial and Commercial Finance Corporation for over two years.
Mr Skinner said : "They looked upon him as a highflyer. If they had any people not doing well they would consult him."
When it became clear that the forecast would not be reached, Hilton insisted that the figures should be inflated by £80,000 with false invoices, and invoices for £68,000 were produced.
Mr Michael Sherrard, QC, defending, referred to remarks made by the judge who sentenced Mr Skinner that potential shareholders and others might have been misled abou the company, and there wa a danger that someone, suc as a City editor, would plc the company out as a bette investment than others.
Mr Sherrard said : "Somt body might think the compan was a better bet than i actually was."
Mr Skinner replied: "Nc because we fell short of ou forecast anyway."
Mr Skinner, of Plymout Drive, Sevenoaks, Kent, tel the jury that Hilton was " very shrewd man." Hilto could certainly nose out whe things were going wrong.
Mr Skinner said he joine Hilton as an accountant i 1962, earning £1,250 a year. 13: the time the company wa made public in 1971, he wa company secretary and finar cial director, earning £7,000 year. He was responsible ft liaising with the company' auditors, looking after th statutory books and workin on the many takeovers the: were involved in. As the firr grew, more than 40 other tram port firms were taken over.
The trial continues nex week.