Hiltons lost over Elm
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fictitious invoices totalled £68,000
• The Ralph Hilton Group accounts for the period ended July 29 1972 were published yesterday (Thursday) together with the chairman's report. The report states that the auditor's examination has revealed that fictitious invoices totalling £68,000 were raised by the company during the year 1970-71. The figures for 1972 show a loss of £1,159,000 and this is on top of a £218,000 reduction on the reported profits for the previous year and an additional £42,000 reduction in profits for the years before that.
The report is signed by Mr J. McNaughton who was appointed chief executive of the company last year, was later made md and on April 13 this year was elected chairman.
Obviously the group faces a very complex problem and, writes our industrial correspondent, is going to need time in which to sort the situation out.
Asked about the plans for the future, Mr McNaughton said that the only intention was to consolidate and get the business back into shape. There was no intention to make any more acquisitions and all surplus property had been sold.
Questioned about the fictitious invoices and the board's intentions on the matter, Mr McNaughton said: "We have taken legal advice and there is no requirement for us to prosecute as a board. We have therefore decided not to prosecute."
There are likely to be two additions to the Hilton board — one of which will be a non-executive chairman. Mr McNaughton told CM last year that it was his belief that a chairman should not be involved in the day-to-day operation of a company.