TC sets standard for finance
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• Operators with standard national licences must have immediate access to £1,000 for each vehicle under 20 tonnes and £2,000 for each vehicle over 20 tonnes.
This was made plain by North Eastern Traffic Commissioner Keith Waterworth when Batleybased Bradford Warehousing Services appeared before him because of concerns about its financial standing.
The company held a national licence for 10 vehicles and four trailers; Waterworth said he was looking for .£7,000 as three of the four vehicles in possession were over 20 tonnes. Bank statements produced varied between .C2225 overdrawn and .C11,000 in credit, with a credit balance on 13 August of £1,200.
Managing director Terence flighmore said the company did not have an overdraft facility. It was basically self-financing with a factoring agreement wider which funds were held until required in the current account. There was also a deposit account with a balance of £15,000 in his wife's name: she was the major shareholder in the company.
Conceding that the company had made a loss for the past two years, Highmore said it had purchased a haulage company and had invested heavily in replacing the fleet.
Asked about a conviction in January for using an untaxed vehicle, for which the company was ordered to pay 14,595 in fines, costs and back duty, Highmore told Waterworth that licensing the vehicle had been overlooked due to personal problems in the family.
Cutting the licence to the four vehicles and three trailers in possession, Waterworth said he was satisfied the company had sufficient working capital for that number. However, he still had some small concerns about finance and by the beginning of November he expected to see audited accounts for the year to March 1997.