Michelle Thomson
Main Page: Michelle Thomson (Independent - Edinburgh West)(8 years, 11 months ago)
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Michelle Thomson (Edinburgh West) (SNP)
Thank you, Mr Williams, for giving me the opportunity to take part in this debate.
I must declare the reverse position of other Members, if you like. I am the Member for Edinburgh West and a representative of the Scottish National party, and hon. Members will be aware that Carcraft had no branches in Scotland. Nevertheless, speaking as a shadow Minister for Business, Innovation and Skills, and coming from a business background, it is always a matter of regret when people’s jobs are lost, particularly from small businesses, which play such an important role in our communities; indeed, they are the backbone of our communities.
I have some points to make about the company’s balance sheet. I note that the company had been running consistently at a loss even in the lead-up to the management buy-out, which is usually a cause for concern. There was a loss of £6.6 million in the 12 months to 30 September 2012, and I note that the accounts for the year ending in 2014 included a “going concern” statement:
“The company’s Directors believe the business will continue for the foreseeable future and has the full support of the ultimate parent company. As such the directors believe the going concern basis of preparation for the financial statements is appropriate”.
However, I also note that the parent company was a so-called newco or new company that was set up at the time of the management buy-out. So, what test did the auditors apply?
Grant Thornton, a highly reputable company, will obviously look in detail at Carcraft’s financial accounts, and it will go through the right and proper process to establish which secured creditors are paid off first, using the remaining assets. However, I have also noted that £4.8 million went to Pennine Property Investments LLP in 2014; I am not sure whether that money was a loan. Again, I would like the detail in the balance sheet and all the accounts to be looked at rigorously.