Mar 15 2007
Two charity publishers, set up as phoenix companies, were wound up in the public interest by the High Court in Manchester following an investigation by Companies Investigation Branch of the Insolvency Service.

Hamilton Forbes Limited and Price Chamberlain Limited, traded from Burscough Lancashire, and were set up to continue the business of charity publisher Barrington House Publishing Corporation Limited, which itself was wound up in October 2005.

Investigators found that both Hamilton Forbes and Price Chamberlain sold advertising space in wall-planners to small businesses who were contacted by way of cold-calling, by many of the same staff, from the same premises, using the same methods and for the same charities as Barrington House.

The Managing Director Mrs Jeannette Walker, a former credit controller of Barrington House was unable to answer many of the questions put to her by investigators and was reliant on consultant and self employed accountant Lisa Colford, the former company secretary of Barrington House. Ms Colford along with other consultants of Hamilton Forbes Limited and Price Chamberlain Limited, Mr Peter Lyon, a Sales Motivator and Ms Lorraine Wells were all the main benefactors of Barrington House and continued to benefit from Hamilton Forbes Limited, each earning more than Mrs Walker, the Managing Director.

As in Barrington House, those placing advertisements were misled as to the amounts going to charity. Initially the companies failed to comply with Section 60 of the Charities Act 1992 and inform advertisers of the proportion of their fees which would be given to charity. Even though they latterly sent out statements, these were inaccurate. Advertisers were told that from Hamilton Forbes Limited 15p in every £ pound would be given to The Children's Research Fund and 10p in every £ pound to the International League for Protection of Horses. However in reality less that 5p in every £pound went to these charities. Advertisers for Price Chamberlain Limited were told 25p in every £pound would go to the charity Kids in Need and Distress (KIND) but in realitry it was 8p.

Advertisers were also misled as to the planned distribution of the wallplanners with telesales staff stating figures raning from 100's to 100,000 or "all hospitals". In reality investigators found that the maximum distribution for any one wall planner was just 87 with the average closer to 67.

The accounting records of both companies were at best inaccurate and at worst misleading with many repostings, undocumented loans and consultants paid on account without any invoices to account for the payments. Both companies appeared to be insolvent owing VAT and PAYE of over £250,000.

The registered office of Hamilton Forbes Limited was at Martland Mill, Mart Lane, Burscough, Lancashire, L40 0SD. The registered office of Price Chamberlain Limited was at Suite 41, 3rd Floor Oriel Chambers, 14 Water Street, Liverpool L2 8TD. Both companies traded from Martland Mill, Mart Lane, Burscough, Lancashire L40 0SD.

Turnover for the 11 month trading period to July 2006 for Hamilton Forbes Limited was £2,227,416 of which £103,877 was paid to charity. Turnover for Price Chamberlain Limited for the same period was £774,226 of which £63,360 was paid to charity.

Jeanette Walker, the sole director received a salary of £30,000 pa. Donna Tomlinson, the company secretary received a salary of £26,000 pa. Lisa Colford, the in-house accountant, was paid £45,666 on the production of invoices for her services and she also received a car allowance, latterly of £731.93 per month. Peter Lyon, a sales motivator, was paid payments on account totalling £100,927 for which no invoices were produced. He is also recorded as having made unsecured loans totalling £351,905 to Hamilton Forbes. Lorraine Wells, a consultant, was paid payments on account totalling £68,034 for which no invoices were produced. Paul Lyon, a self-employed sales manager (and brother of Peter Lyon) was paid £51,757 for which no invoices were produced.

All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, PO Box 326, 17 - 21 Chorlton Street, Manchester, M60 3ZZ. Tele: 0161 934 4182 Email: piu.north@insolvency.gsi.gov.uk

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