LA doubts finances
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DOUBTS about the financial position of Devonair Transport Ltd trading as P. K. Transport Services of Brierley Hill has led to West Midland Licensing Authority Ronald Jackson reserving decision on the company's application for a new national licence for six vehicles and three trailers.
The LA said that he also wished to await the outcome of pending prosecutions due to be heard in November.
For the company, Michael Carless said that it had been granted an interim licence for five vehicles and two trailers in April. The IA had indicated then that, had he been considering an application for a full licence at that stage, he would have refused it on the grounds that the transport manager, Ken James, had lost his repute because of admitting illegal operation.
The operation without a licence had arisen in circum
stances that could be understood but not excused and it would not be repeated. Ken James Transport Ltd had gone into liquidation in April 1984. Phillip James, Ken James' son, had applied for a licence in the name of P. K. Transport in February 1984. No interim licence was applied for as it was thought that a licence would be granted at any time.
Customers were pressing for work to be done and operation commenced. P. K. Transport eventually became Devonair Transport. There had been no complaints about the way the operation had been conducted since April, and the business was financially healthy and was flourishing.
Ken James said that he had paid the penalty in the magistrates court for the illegal operation. The main customer was Brickhouse Dudley Manufacturing Com pany of Cradley It had just opened a depot at West Bromwich, and Devonair had been asked to distribute from West Bromwich as well as Cradley Heath. That would double the company's income while the outgoings would only increase by about 50 per cent.
Producing bank statements James said that they paid cash for their diesel in order to obtain discounts. He had no idea when the draft accounts for the first year's operations would be available. He could not make any estimate of the results.
Reserving decision, the LA said that the figures produced showed that the business was being run on a shoestring. He wanted to see the draft accounts, as at the moment he was far from being satisfied about the company's financial resources.