Burnholme and Forder share dealings suspended
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• Share dealings in Burnholme and Forder Ltd have been suspended and the company is closing its transport depots in Newcastle and Scotland following discrepancies between the estimated profit for last year and the true position of certain trading divisions.
The figures came to light about five weeks ago during a reorganization of accounting systems after the resignation of managing director and chief executive Mr Leonard Scruton.
In a statement issued last week the company says that the estimate of profit given in October for the year ended August 31 1972 "was at variance with the true position of certain trading divisions".
It says heavy losses were sustained by the transport division both last year and in the first six months'of the current year.
Burnholme and Forder Ltd is conducting a complete rationalization of the three remaining depots at Leighton Buzzard, Warrington and Leeds. Its 186 vehicle fleet ,will be cut to 125 after the reorganization.
The present company chairman, Mr Peter Rhodes, told CM: "We are at present negotiating to sell the trading side of the Newcastle depot". But he said there were no talks on the future of the company's base in Scotland as yet. "However, there is no danger of massive redundancies," he stressed.
City Merchant Bankers Henry Ansbacher and Company Ltd is advising the company. Shares will remain suspended until full audited accounts for last year and interim audited accounts are available.