News
RDA unsure when it will recoup £500,000 grant from Century Litho
The South West Regional Development Agency (RDA) has said it does not know how long it will take to recoup more than £500,000 given in a grant to failed printer Century Litho.
Truro-based Century Litho went into administration with Smith & Williamson last month and the company has since ceased trading.
It has emerged that the company went down less than a year after it was awarded a £650,000 grant from the RDA, as part of a £3m package for a move to a new facility in Redruth.
Although the RDA has said that it will be seeking to get the funding back from the administrator, a spokesman for the government organisation told PrintWeek: "It may be some time before we know from the administrators what the likelihood is of the RDA’s investment being recouped."
The grant was approved in August last year from the government's Selective Finance for Investment Scheme (SFI). According to the LDA, one of the reasons it was given was to "safeguard some 52 jobs".
To date £520,000 of the grant has been used.
Stephen Bohane, head of business development for the South West RDA in Cornwall and the Isles of Scilly, said: "By their nature, SFI investments are always slightly higher risk and are designed to support projects that might not happen otherwise, but all grant applications are thoroughly appraised against a range of criteria and include a full risk assessment.
"All grant funding contracts also contain conditions to safeguard public funds, such as guarantees from parent companies or debentures, and that is the case with Century Litho. Clearly we will be discussing these matters with the administrators with a view to recouping all our investment.
"In the meantime, the RDA is working to assist the local authority and agencies such as Jobcentre Plus to ensure a coordinated response and to help those affected in the workforce to get the right advice on jobs, training and any other assistance available."
Smith & Williamson declined to comment.
Comments
martin whetton - 10 July 2009
"It may be some time before we know from the administrators what the likelihood is of the RDA's investment being recouped."
I could save them the wait...the likelyhood is somewhere between bugger-all and none. Which about the same likelyhood of anyone taking the fall for it.
£520,000 to save save 52 jobs, that is £10,000 per head.Do the RDA keep any spare cash in offshore Icelandic bank accounts.
Tin Pot PR - 10 July 2009
RDA - Really Dumb A****oles
RDA - Rather Difficult Answers
RDA - Ron Done Another
Take your pick. If only someone would knock on my door with 520 large burning a hole in their taxpayers pocket, I'd make them a cup of tea and let them know how I'd spend it for them.
Glen Perry - 10 July 2009
They really haven'y got a clue have they?
Perhaps I'm tarring all with the same brush, but it seems that most of these Govt bodies are not in the real world.. who's going to take the stick for this one.. ho yeh the taxpayer. Another load of jobs for the boys.....probably will get some promotions out of this, nice pension to!
Daftest name I can think of - 10 July 2009
I wonder how much those wallys get paid to waste money? Let me guess, about £75000 for the chief exec and £35000 for somebody to lick the stamps?
Steve Lovell - 10 July 2009
From email from SWRDA 03/07/09
"I would like to reassure you that grant applications are appraised thoroughly against the eligibility criteria, including viability, strength of management, and additionality \(need for grant), as well as a full due diligence and financial report. Views are also sought from sector specialists in the Department for Business, Innovation & Skills. The case paper is then presented at a meeting of the South West Industrial Development Board, an independent panel of experienced senior representatives from industry and commerce. After questioning the RDA officials they decide whether or not to recommend support, with a final decision taken by the RDA's chief executive.
All grant payments are made on the strength of an audit certificate from an independent firm of accountants and we are satisfied that the money was used as intended to fund the purchase of new plant and machinery and the move to new premises."
Methinks we slipped up on the viability - of course they could have had some exaggerated figures to work from
mr positive - 10 July 2009
I had a letter from one of the old companys guys today. four way print i believe they were called. data protection seems lax as he would not have my address details easily to hand. the website seemed new? are they long standing and do they print? or is it a pm company? any ideas?
Steve Lovell - 10 July 2009
Four Ways have no connection with Century other than employing an ex Century salesman - perfectly legit
Chris Lavers - 10 July 2009
dv, this is the company I was referring to in my earlier blog (the ones that were advertising for skilled operators at the time the SWRDA was throwing our tax down the swanny).
Ain't that right Breesey? I said Four Way Print were the people in the paper that we used to bung the hole in the old rustbucket. Ach, he's deaf as a post. I can't get any sense out of him.
You'll never really know for yourself until you try them, and see if you can work with this company (remember there's a lot of customer-supplier give and take in this business, as there should be in any business if you're looking long term). If you're still uncertain, I'd request an appointment and pay them a visit and see if they can meet your requirements. Should be a good day out!
Hang on, Breesey's trying to say something. I think he said "One life - live it. Make your work enjoyable.". Crikey, he's sooooo old fashioned. He's 179 next birthday, don'tcha know?
Captain Kidder R Breese (USN)
mr positive - 11 July 2009
thanks for the info.
however where did they get my details? did they purchase this as part of the goodwill.
not a regular customer and 500 miles away....
methinks someones stolen a datebase, does four way condone this and is this why MR has been given the job?
however they sound confident...
"have an enviable reputation in the industry for service and unrivalled quality." "offres an effective mix of experience, print production knowledge and a supportive team structure. many companies make this claim and often fall short of the mark." " my promise to you is to ensure delivey of a superior quality print that you can be proud of combined with a level of service you can rely on, delivered on time every time."
MR where were you hiding when century fooked my customers job? since he says he started with them on the exact day century ceased trading then maybe he was too busy help sort out the quality and timescale problems we had to cope with.
thanks but no thanks. i will give the pasties a miss. haggis is more wholesome.
Chris Lavers - 11 July 2009
That's a shame; I'd have given them a try just on principle so that something positive came out of this sorry debacle for Cornwall with Century and the SWRDA. When sales reps move companies they take some of their customers with them. That's part of their value. If this rep has your firm's name and address in his head, then the data protection act does not legislate against that. Not yet, anyway. From their literature they sound to be the complete opposite of Century. A joined up company, if you like. Can't tar all printers with the same brush. The pasty/haggis issue is subjective, so I'm not getting involved in that one! I will mention, though, that Breesey likes corn-dogs and they're disgusting.
Glen Young - 11 July 2009
d v
Fourways are indeed a legit, Saltash based print company, I think that it says much that they have employed a former Century sales person.
Century is history now, and as Chris L says...the rep ought to have consigned customer contact details to memory \(or a suitably compact storage device).
mr positive - 12 July 2009
yeah I would be surprised if our details were in his memory with a few thousand others.
maybe he should enter a talent should and recall all these details over a number of days.
it is totally reasonable to employ someone for their contact details but not for a stolen database.
i think I may ask if they purchased this or if they know an illegal copy is being used.
it would be a pity for a decent company to start to be infected by century poison.
Beancounter - 12 July 2009
[edited] comments from earlier this year on 5 February from Mr Tayler relating to the demise of Century Web appear to show little comprehension that companies fail through lack of cash, not the depreciation of asset values. That is, unless the main reason for being in business is to actively trade in equipment, rather than produce goods or services.
And when I say accountant I don't mean a bookkeeping firm whose principal ends up as Company Secretary of one of their clients, and whose main client reference on their own website is from the same company MD that the said principal represented as Company Secretary. Funny that Mr D Tayler refers to errors by "our auditors" when the accounts of Century Web, Century Litho, and Century Creative were unaudited. Web and Litho have had no audit since the auditors resigned on 20 January 2005, and Creative has apparently never traded and is defined as dormant; perhaps it is a very old reference. I mean a decent industrial Finance Director, preferably with experience of growing and declining market sectors, and cash management expertise.[edited]
Must go and count my own beans.
Beancounter - 12 July 2009
testing
Beancounter - 12 July 2009
In answer to Martin Whetton, no. But Cornwall County Council had £5m in Landsbanki, and Restormel District Council lost £4m in the same institution.
Steve Lovell - 12 July 2009
Century Litho's re-badged design studio is operating from a redecorated
\(at Century's expense) part of the old Penryn factory owned by Mr Tayler.
One name likely to be missing from the list of Century's creditors is Tayler-Wodskou Construction who were engaged on painting/decorating and minor works at both Redruth & Penryn factories.Rather than undergo the normal 90+ day wait for payment faced by other suppliers these invoices were paid almost immediately.
The RDA grant was to "fund the purchase of new plant and machinery and the move to new premises"
Having been told that @55k was spent on the move and works \(electrics/air etc) at the Redruth factory - where did the rest go?
Edna Bag - 13 July 2009
The shame of this tale is that apart from Cornwall losing another employer and people being laid off, SWRDA could tighten its belt to far, for fear of attracting any more flak and more deserving projects lose out of funds.
Lets hope SWRDA tighten up its systems to prevent repetition of another incident and loss of cash such as this. I would hope they investigate this and disclose the results to at least show try and redeem themselves.
'Not A Doctor' (NDCT) - 13 July 2009
Edna, there is little chance of any RDA or quango 'tightening its belt' unless its funding is reduced by central government or the EU. They simply have to keep spending and telling everyone how much the country needs them and how successful they are. Your role is to keep working all hours and paying your taxes to keep them going. SO get ou of here and start earning some money for Gordon Clown.
Edna Bag - 13 July 2009
I have cunning plan, instead of handing out dosh and risking all in one place they should just create a requirement for printed material and order it whether they want it or not. Perhaps they could produce a series of booklets such as the effects of government spending on clotted cream sales or climate change and the cornish pasty..
Glen Perry - 13 July 2009
I think that you're in danger of taking this far too seriously now EB. These publications could be an entertaining read though whilst on the Newquay beaches soaking up the rain and the lewd teens just outta school
Edna Bag - 13 July 2009
[quote user="Glen Perry"]
I think that you're in danger of taking this far too seriously now EB. These publications could be an entertaining read though whilst on the Newquay beaches soaking up the rain and the lewd teens just outta school
[/quote]OK at the risk of making SWRDA popular with the Newquay emmett, Booklet on the effects of drugs, alchohol and sex and how to avoid hangovers and pregnancy.'Not A Doctor' (NDCT) - 13 July 2009
Don't go to Newquay - they charge you to leave the place!
Edna Bag - 13 July 2009
[quote user="Not 'The Doctor' (NDCT)"]
Don't go to Newquay - they charge you to leave the place!
[/quote]If only I were younger I might go and join in with them and I'd go to Ibiza sounds a lot more fun than SkeggieGlen Young - 13 July 2009
edna bag, Not 'The Doctor' \(NDCT) and Glen Perry...
Fair humour but... IMO, you are close to totally derailing what ought to be an important thread.
Edna Bag - 14 July 2009
[quote user="Glen Young"]
edna bag, Not 'The Doctor' \(NDCT) and Glen Perry... Fair humour but... IMO, you are close to totally derailing what ought to be an important thread.
[/quote]Fair comment, Sorry Glen.
Perhaps you would like to comment on some of the other serious threads such as the one in off topic about associations, your input would be very welcome, we are discussing the whole industries future.
Edna Bag - 14 July 2009
[quote user="Glen Young"]
edna bag, Not 'The Doctor' \(NDCT) and Glen Perry... Fair humour but... IMO, you are close to totally derailing what ought to be an important thread.
[/quote]Fair comment, Sorry Glen.
Perhaps you would like to comment on some of the other serious threads such as the one in off topic about associations, your input would be very welcome, we are discussing the whole industries future.
THEHAND OFGOD - 14 July 2009
PINDARS CAR BOOT SALE? http://www.go-dove.com/auctions/AuctionDetail.asp?auctionID=13052 5 YEAR PLAN INDEED!
Moaner Lisa - 14 July 2009
.
Glen Young - 25 July 2009
Despite the full stop posted by ML \(er..why?) and an oddly distracting post from THEHAND OFGOD \(phew) I believe that this thread retains momentum...
Lots of people out there would like to know what, if anything, is happening.
Moaner Lisa - 25 July 2009
Me sorry bout dat Glen, sommat THG said made me post sumfink I thought I ought to withdraw PDQ. You are dead right though, RDA shouldn't just write off a half squillion jus like dat.
Alex Dennis - 26 July 2009
Maybe they could take a look here for some of our hard earned taxpayer's dosh ...
http://saloneborgia.com/
http://www.villasinsicily.eu.com/
Glen Young - 27 July 2009
Thanks for the links Alex..I doubt that 'they' will be bothered to have a looksee at anything tangible...they being all busy, jobsworth and suchlike..
Now..any well publicised hint of a possible misappropriation of public funds could light up a fuse or two, I would have thought.
Steve Lovell - 02 August 2009
Thanks for your email. As I said in my earlier email all grant applications are appraised thoroughly and a full due diligence and financial report carried out at the time. The grant application was prepared by an independent firm of Chartered Accountants, and the financial state of the company was based on historic accounts filed at Companies House together with company searches and checks on the directors, and financial forecasts prepared by external accountants. The case was then presented to the South West Industrial Development Board, an independent panel of experienced senior representatives from industry and commerce who decide whether or not to recommend support. The conclusion at that time was that although high risk, the move out of the highly competitive web-offset print market through an investment in sheet fed printing technology was the only way forward for the company which could safeguard the remaining jobs. With a shrinking print market and reduced margins the only alternatives were to invest and attempt to remain competitive or face further decline and eventual closure. We have no reason to believe, and certainly no evidence to suggest, that any of the information supplied to us was misleading.
Despite some allegations of monies being spent in unauthorised ways, as before, I can confirm that the funds advanced by South West RDA were used exclusively to pay for two new presses \(KBA Rapida 105 and KBA Rapida 75); the claims were certified by independent accountants who provided copies of the relevant paperwork. The building work included in the claims totalled only £2,835.
Of course the South West RDA is concerned at the loss of taxpayers' money in this way. However, by their nature grant funded projects are bound to involve an element of risk which we assess and weigh against the potential benefits, which in this case were the safeguarding of over 50 jobs and creation of a further 12 in the Camborne Pool Redruth regeneration area.
Once again, I would urge you to provide any specific evidence you believe you have to the Administrators who should investigate any suspicions of wrongdoing .
'Not A Doctor' (NDCT) - 02 August 2009
"the move out of the highly competitive web-offset print market through an investment in sheet fed printing technology was the only way forward "
Thanks for posting this, Steve. I wonder what made all these captains of industry think that sheet-fed was any less competitive? Maybe in future, SWRDA could post proposals up here and we'll be able to give them the heads up in thirty seconds on what everybody has known about over-capacity in most parts of the industry for years.
Did the SWRDA suggest to Mr Tayler that he sell some of his Sicilian property if he wanted further investment in his printing business? They took a charge over them, I presume?
Steve Lovell - 03 August 2009
Should have enclosed previous posting in qoutation marks - it being reply from SWRDA to questions asked - hoping Smith & Williamson find something
As far as I'm aware no security beyond Century's assets was requested
If SWRDA were not misled over the financial state of the company it does call into question the judgement of the SWIDB and their understanding of the print industry
For the investment to have succeeded the company needed to ditch all it's previous web customers and concentrate on being a sheetfed printer - not try and produce web jobs \(at web prices) on a perfector
Glen Young - 05 August 2009
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