WIREDGOV

Sunset for the Southern Enterprise Group

News Release issued by the COI News Distribution Service on 01 October 2009

Five companies are wound up in the public interest after managers use complex group structure to avoid paying debts.

Southern Enterprise Limited

Allenwest Systems Ltd

The Abbacus Partnership Ltd

Southern Enterprise Management Ltd (SEM)

Blue Dolphin Marine and Aviation Ltd (BDMA)

Five companies based in West Sussex have been wound up in the High Court following an investigation by the Government’s Companies Investigation Branch (CIB).

The investigation by the CIB, part of the Insolvency Service, found that the companies, which are all controlled by the same three current or former directors, owed substantial sums to creditors, including HMRC, and appeared to have been trading while insolvent.

The main former director, Leslie Kerrison has a history of involvement with a number of other companies which have previously gone into administration or liquidation. In April 2008 he was disqualified from acting as a company director for two-and-a-half years, after an earlier company he was involved with also failed.

While Allenwest Systems traded in electrical switch systems until late 2006 and BDMA traded only briefly in the provision of executive jet and yacht charter services, Southern Enterprise, Abbacus and SEM appeared to have little business function other than to channel income from the trading companies towards paying salaries and other benefits to the three members of the management team.

Between September 2006 to May 2007 the annualised salary costs of the management team worked out at more than £370,000 but debts were allowed to accumulate within the companies including in excess of £250,000 owed to HMRC.

Head of Investigations and Enforcement at the Insolvency Service, Robert Burns, said:

“Our investigation found that there was a complete lack of commercial probity in the management of these companies. We found no evidence that any of the companies sought to pay over their income tax or all of their VAT liabilities and there were also significant and repeated failures to prepare and file statutory accounts and returns at Companies House.

“All company directors and managers have to follow the rules, and where we find evidence that there has been wrongdoing we will apply to the courts to have such companies wound up.”

The High Court found that it was expedient in the public interest that all five companies be wound up to enable the Official Receiver to investigate the position of all the companies in more detail.

Notes to Editors

1. The registered office of Allenwest Systems Limited and Southern Enterprise Ltd is at 1 st Floor, Delmon House, 36-38 Church Road, Burgess Hill, West Sussex RH15 9AE. The registered Office of BDMA and Abbacus are both at The Meridian, 4 Copthall House, Station Square, Coventry CV1 2FL. The registered office of SEM is at 20 The Waterfront, Brighton Marina, Brighton, East Sussex BN2 5WA.

2. The petitions to wind up the companies in the public interest were presented under s.124A of the Insolvency Act 1986 on 10 th June 2009. The companies were all wound up on 16 th September 2009.

3. The Insolvency Service carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation and Skills through Companies Investigation Branch.

4. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.

5. All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, 4 th Floor, 21 Bloomsbury Street, London, WC1B 3SS. Tel No: 020 7637 1110. Email: piu.or@insolvency.gsi.gov.uk

Further information about the work of The Insolvency Service is available from www.insolvency.gov.uk

6. Media Enquiries should be directed to: Ade Daramy, Press Officer, telephone 020 7596 6187 or Lisa Miller, Press Office Manager, Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW, telephone: 020 7674 6910.

Ins/Coms/CIB/42

NDS Enquiries
Phone: For enquiries please contact the above department
ndsenquiries@coi.gsi.gov.uk

Contacts:

Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk