Ralph Hilton
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tells CM: We
will streamline
Investigation of HTS accounts to follow profit shortfall
• The Ralph Hilton haulage group has called in an independent accountant to ' make a full investigation and to advise on the group's accounting system. The move follows an intimation by the company that its pre-tax profits for the last financial year were overstated by between £150,000 and £200,000.
The company has also intimated that it is unable to release reliable figures for the six months ended January 1972 but that the interim profit was likely to have slumped from £244,000 to around £20,000 after charging exceptional expenditure of £30,000.
The company chairman, Mr Ralph Hilton, said this week that until the investigation was complete he was not prepared to add to the statement already issued.
But in an exclusive interview with CM on Tuesday Mr Hilton pointed out that the group's first year as a public company had been exceptional. "During that 12 months we acquired a number of companies with garage facilities, warehousing accommodation, ancillary services and more than 500 vehicles", he said. When questioned about the wisdom of acquisitions during a period of national recession, Mr Hilton said: "This is precisely the right time to buy — when the price is right and we are anticipating an upturn in the economy. This upturn has yet to come but when it does we will be in a position to meet the increasing demand for transport and warehousing."
Mr Hilton went on to say that when companies were acquired it was necessary to take on certain liabilities and it took some little time to dispose of these liabilities. "This has been the situation during the past 12 months with HTS", he said. He added that the Orrup is to rationalize and streamline its service departments. "There is still some duplication of service departments and other facilities between subsidiary companies; we are in the process of altering this," he said.
When asked if the financial situation meant changes at board and managerial level, the chairman said that he could not prejudge the situation and that nothing would be done until the independent accountant's report was in his hands. He expects the report within three months. Mr Hilton said: "This is a financial matter which of course must give the board cause for concern but it will in no way interfere with the efficient day-to-day operation of our transport, warehousing and distribution services."