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Successor to failed firms wins 0-licence
Page 22
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Concerns over finance prompts the TC to award an 11-truck 0-licence rather than one for 19.
AN OPERATION that grew from the ashes of four failed companies has been granted an 0-licence for 11 vehicles and four trailers across two traffic areas However, concerns over financial standing and business prospects mean the grant is for fewer units than was initially applied for.
North-Western Traffic Commissioner Beverley Bell heard an application made by Scotts Hire, which is based at Sandbach, Cheshire. for a total of 19 vehicles and seven trailers.
She granted a licence for a total of II vehicles and four trailers, including eight vehicles and two trailers in the North West, and three vehicles and two trailers at its Birmingham site.
Bell also considered taking action against an associated company, Sand bach-based Scotts Group, which held licences at the same operating centres in the North West and West Midlands for a total of 19 vehicles and nine trailers Instead, she accepted the surrender of the Scotts Group's licences in both traffic areas. Martin Smithson was the director of both Scotts Hire and Scotts Group.
Scotts Hire was currently operating under interim authority.
For the two companies, Jonathan Backhouse gave accounts of three other associated firms all run by director Martin Smithson. He said that Scotts Plant Hire was set up in 1998.
In 2002, the assets of D Buxton Plant Hire were purchased and a new company, Buxton Plant Hire, was set up. The same year, another company, Scotts Plant, was set up. A holding company, Scotts Group, was set up and Buxton Plant Hire was dissolved. Scotts Plant Hire went into liquidation in 2005 due to bad debts. Scotts Plant and Scotts Group continued to trade until problems in the construction industry in 2008 forced Scotts Plant to cease trading. Scotts Group continued to trade, however, and Scotts Hire was set up in July 2008, with Scotts Group carrying out its haulage. All the shares in Scotts Hire were owned by the wife of director Martin Smithson.
Smithson said that Scotts Group had, in addition to debts, suffered a £150,000 fraud involving a Welsh contract.
Backhouse said that Scotts Group was likely to go into administration at a creditors' meeting on 23 March.
Smithson added that business for Scotts Hire was unlikely to hit previous levels. The TC replied that there was no point granting a large vehicle 0-licence authorisation in the present financial climate if it was not going to be used.