AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Finances to be studied

24th February 1994
Page 16
Page 16, 24th February 1994 — Finances to be studied
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

• International haulier Albert Bloe from Aylesford, Kent has been warned that he needs to look at his finances before he comes to a public inquiry which is bound to be called for renewing his licence.

Bloe, who trades as Bloe Haulage of Bluebell Hill Industrial Estate, Old Chatham Road, holds an international licence for six vehicles and six trailers.

South Eastern & Metropolitan Licensing Authority Michael Turner said that in May 1992 Blue's licence was renewed for two years only on the understanding that accounts would be produced.

This is because it had proved

,11

difficult to establish firmly Blue's financial position.

Since then, it became difficult to get any information about those accounts from Bloc. He sent his accounts by post for 1991 and 1992. According to Blue's accountant, turnover for 1992 was £68,334, for 1993, for which no accounts were yet available, it was £108,875.

Turnover for this year has been estimated at approximately £146,000. However, said Turner, the accounts for the year ended March 1992 showed a net profit of only £723, and a net liability of £38,190. The net current liability stood at £47,162. The accounts appeared to show that the cash available was £15 and that there was £810 of stock and £7,316 of sundry debts and prepaid expenses. That compared with nearly £16,700 owed to creditors and outstanding VAT of £3,500.

Brigadier Turner said he would not pre-judge the case, as Bloe might have other assets available to the business. However, his advice to Bloe was that his 1992 accounts did not reflect that he had anywhere near the available capital and reserves required to justify an international licence for six vehicles and six trailers. To be granted an international licence, operators have to show that they have capital and reserves available of about £2,400 for any vehicle of 20 tonnes gross or above, and a proportionate amount for vehicles below that size.


comments powered by Disqus