Annex Q
Hollis Industries plc October 1990 Management
Accounts
HOLLIS
INDUSTRIES
OCTOBER
MANAGEMENT
ACCOUNTS
Assumptions used for October accounts:
—
1. The December balance sheet is based on the
closing December 1989 Management Accounts as adjusted by: —
i) write off of
Multiphase fixed assets
ii) loan to Pergamon AGB of £5,950,000 (the
treatment of which is to be clarified).
2. Hollis Industries has no charge from Pergamon
AGB for management time.
3. All debtors are collectible.
4. Sale of Floform
A provision of £280,000 has been made for the
disputed reduction in the sale proceeds of Floform. This has been
charged against 1989 profits.
5. Milthorp debts
A provision of £118,000 has been made (charged
against 1989 profits) for liabilities owed by Milthorp for which
Hollis Industries plc had given an indemnity.
6. Deep discounted loan note
A provision has been made for the implied interest
on the deep discounted loan note. This has been distributed as
indicated below.
7. Management fee
A management fee for £200,000 paid to Geoffrey
Robinson MP in October has been charged to the period from January
to June 1990, this being the period of which it relates.
As 4, 5, 6 and 7 above are included for the first
time, the effect in restating profit is as follows: —
| 1989
| 3 months
to 31/3/90
| April | May
| June | July
| Aug | Sept
|
| As stated in September |
(23,248) | (1,085)
| (274) | (274)
| (414) | (413)
| (281) | (335)
|
| Sale of Floform | (280)
| — | —
| — | —
| — | —
| — |
| Milthorp Indemnity |
(118) | —
| — | —
| — | —
| — | —
|
| Management fee | —
| (98) | (34)
| (34) | (34)
| — | —
| — |
| Deep discounted loan note
| (350) | (101)
| (34) | (34)
| (34) | (35)
| (35) | (35)
|
| As restated | (23,996)
| (1,284) | (342)
| (342) | (482)
| (448) | (316)
| (370) |
| 
