SERIAL ASSET STRIPPING COMPANIES CLOSED BY THE DTI

22 Apr 2004 02:45 PM

A sophisticated asset-stripping organisation set up to prey on established manufacturing and building companies has been shut down following a DTI investigation.

John Guilding (UK) Ltd and associated companies used deception to gain control of a number of businesses before plundering their cash reserves, selling their assets and, in some cases, leaving employees without jobs.

Among the companies taken over were Contrad Construction Limited, a building contracting company that had traded successfully since 1975, from offices in Sunbury on Thames, employing over 50 staff prior to take-over.

The representative of John Guilding, disqualified director Roger Stephen Miller, lied about the financial resources of John Guilding and conned the directors of Contrad into signing over control of the business. The cash reserves of Contrad were then plundered and the company went into liquidation.

Also taken over were West Midlands-based companies Wirax Wirewares Limited, a company incorporated in 1913 which produced wires for Hotpoint cookers, and Form Tubes Limited, incorporated in 1964 and manufacturing metal frames for chairs and other furniture. Both companies had their assets stripped and subsequently ceased trading.

The High Court in London heard that Roger Stephen Miller, based at offices at 25 - 27 East Dulwich Road, London, SE22 9BD, was in charge of the asset stripping enterprise. The appointed director of John Guilding was Raymond Flynn, who operated from the same business address.

An accountancy services company associated with John Guilding was also wound up after the court heard that it was used provide false auditors certificates.

LS Corporate Services Ltd was run by Hugh Heskett Lucie-Smith, a struck-off accountant, based at 144 Portland Road, Hove, East Sussex, BN3 5QL.

Notes to editors

1. The petitions to wind up the companies were presented to the High Court on 24 February 2004. The petitions were presented following enquiries conducted under Section 447 of the Companies Act 1985. The Official Receiver was appointed as provisional liquidator of the company on presentations of the petitions on 24 February 2004.

2. The petitions were presented under Section 124 of the Insolvency Act 1986.

3. The Official Receiver has been appointed the liquidator of the companies and will be responsible for investigating the circumstances of their failure and the conduct of their officers.

4. The companies wound up include those acquired by the holding companies, all of whom had ceased to trade after their assets had been plundered. The full list of the companies concerned are as follows: John Guilding (UK) Limited ("John Guilding"), Springwood Air Limited, Contrad Construction Limited ("Contrad"), Wirax Wirewares Limited, Wirax Wirewares (Sales) Limited, Wirax Wirewares (Manufacturing) Limited, Form Tubes Limited, Optimum Coatings (1978) Limited, Primelaser Limited, Ivyprime Limited, LS Corporate Services Ltd and PMP Holdings Ltd.

5. The registered offices of the companies are as follows. Where a trading office is different to the registered office, those have been set out below:

John Guilding (UK) Limited - 27 East Dulwich Road, London, SE22 9BD;

Springwood Air Limited, Stanton Square, Stanton Way, Sydenham, London, SE26 5AB;

Contrad Construction Limited, 8 Baker Street, London, W1U 3LL. Company traded from offices at 14 Brookland Close, Windmill Road, Sunbury on Thames, Middlesex, TW16 7DX;

Wirax Wirewares Limited, Gable House, 239 Regents Park Road, Finchley, London, N3 3LF. Company traded from factory premises at

Warstock Road, Kings Heath, Birmingham, B14 4RW;
Wirax Wirewares (Sales) Limited, Warstock Road, Kings Heath, Birmingham, B14 4RW;

Wirax Wirewares (Manufacturing) Limited, Warstock Road, Kings Heath, Birmingham, B14 4RW;

Form Tubes Limited, Gable House, 239 Regents Park Road, Finchley, London, N3 3LF. Company traded from Lane Street, Bilston, Wolverhampton, WV14 8UT;

Optimum Coatings (1978) Limited, 25 - 27 East Dulwich Road, London, SE22 9BD;

Ivyprime Limited, 127 Clifton Road, Worthing, West Sussex, BN11 4DP; LS Corporate Services Ltd, 144 Portland Road, Hove, East Sussex, BH3 5QL;

Primelaser Limited, c/o Lucie Smith & Co, 127 Clifton Road, Worthing, West Sussex, BN11 4DP;

PMP Holdings Ltd, Gable House, 239 Regents Park Road, Finchley, London, N3 3LF;

5. All public enquiries concerning the affairs of the companies should be made to the Official Receiver at:

The Insolvency Service
Public Interest Unit
PO Box 203
21 Bloomsbury Street
London
WC1B 3SS

Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET

Public Enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment) www.dti.gov.uk