News

Ken Thomas has narrowly escaped being put out of business following its third appearance at a public inquiry (PI), because its licence will be surrendered when it merges with sister firm Seafield Logistics.

Eastern Traffic Commissioner Richard Turfitt described the Guyhirn, Cambridgeshire haulier's reappearance as "lamentable" and said its directors allowed a chaotic management structure  to exist. He added that he was unimpressed that MD Mark Strong had felt unable to attend.

However, he praised the action taken by new depot manager Ian Morton to rectify the firm's maintenance problems and vehicle prohibition history.

A VOSA investigation into Ken Thomas's maintenance found it to be unsatisfactory: there had been 10 prohibitions since the operator'slast PI in 2005 and two further S-marked prohibitions this year. In addition, the company had failed to notify the TC that its nominated transport manager and one director had left the business.

Finance director Mark Kirkman admitted the firm had taken its eye off the ball because it was in the process of a restructure that will see Worksop, Notts-based sister company Seafield Logistics take over its assets and apply for a new O-licence for 12 vehicles and 20 trailers.

TC  Turfitt said Ken Thomas's failure to make him aware that it no longer employed transport manager John Fairey meant it was currently failing to meet the mandatory licensing requirements. However, after Morton confirmed he had applied to be TM and impressed the TC with his intentions to overhaul Ken Thomas's maintenance, training and administration provision, Turfitt decided to curtail the licence from 33 vehicles and 60 trailers, to 12 vehicles and 20 trailers. He also ruled that none of the vehicles could be specified on any other licence without his permission.

Turfitt added: "You know what steps need to be taken, otherwise it will impact on this business and another. This is a very serious time for your business; you should have taken action back in 2005. Hopefully you will take back to Mr Strong some impression of the seriousness this company has found itself in."

Accounts recently filed at Companies House for the year to 30 June 2008 reveal that Ken Thomas made a pre-tax loss of more than a quarter of a million pounds during the period. The pre-tax loss of £297,119 was on turnover of £5m; operating losses stood at £357,662. Current and fixed assets stand at £1.23m, creditors represent £2.4m (although £1.4m is owed to other group companies), leaving a net shortfall of £1.2m. However, the company says that it will continue to operate within its banking and credit facilities and therefore it is a going concern.

Sister firm Ken Thomas Logistics made a pre-tax profit of £45,094 on turnover of £2.3m during the same period. Seafield Logistics saw a return to profitablity during the period to 30 June - pre-tax profit was £34,440 on turnover of £19.3m. The previous year saw a £19.4m turnover converted into losses of £121,791.