Company directors continue to promote troubled franchise while disqualified
What was supposed to have been a successful and growing nationwide network of franchised hydraulic service centres seems to have descended into a network of wound-up and insolvent companies being run by disqualified directors.
By: BMI Hose
However, in what appears to be a rather glossy picture painted of BMI in the business section of the Wolverhampton Express and Star of 10th July this year, with Simon Moxham and Russell Mundell quoted as directors of the business, the actual scenario seems to be somewhat at odds with the facts, the two BMI directors having been disqualified two months previously by Companies House on 21st May 2012 (Mr Moxham until May 2016, Mr Mundell until May 2015).
According to the website http://www.bmihose.com, it would appear from the 2012 accounts filed by the head office of BMI that while most of the franchises around the UK see Mr Moxham holding an executive position, they don’t appear to actually return any profit, and many are in fact either book insolvent or struck off, with several having been wound up by HM Customs and Revenue – these include branches at Dudley, Newcastle, Reading, Bristol, Glasgow, Wakefield, Perth, Aberdeen, Ipswich, Sittingbourne, Swansea and Cardiff.
However, the corporate website at http://www.bmiuk.co.uk sees BMI very much open for business, extolling as it does, the virtues of owning one of their franchises and suggesting potential franchisees have available a “liquid capital of circa £70,000”.
There is no information available on the website regarding the location of existing franchisees, neither are there any endorsements of the business from existing franchise holders, which may appear somewhat strange, given that the franchise has been running for five years.
Despite being barred as a company director, the website http://company-
Despite the current negative state of most of the franchisees, the balance sheet of the main holding BMI Hose (UK) Ltd does appear to show a healthy current net worth of £619,203 (from minus £1.3m in 2011), cash in the bank of £89,619, current assets of almost £1.4m and current liabilities of £245k.
However, the BMI (UK) Ltd accounts, although looking healthy, seem to suggest a substantial recent sale of asset's, because the company appears to have virtually no tangible assets, with a value of only £1,316.00 in 2012 compared to £159,513.00 in 2011.
The BMI (UK) Ltd total assets appear to be comprised of a substantial amount of money owed by the various companies that Mr Moxham either is, or was, an executive officer of, questioning the actual ability of these associated companies ever having the ability to meet their obligations. This primarily refers to the apparent lack of profitability, raising serious questions as to the actual health of the BMI (UK) Ltd finances.
However, that having been said, the current inferred healthy state of the holding company does not detract from the present ill-health of the franchise network or the fact that the two directors are currently disqualified from holding directorships of any description, and as directors, they continue to encourage further franchise appointments.
While no one wants to decry an opportunity for a franchise to succeed, the BMI Hose franchise, despise the inferred health of the main holding business, has plainly failed, and its two disqualified directors should not be encouraging investment in a business that might not necessarily offer a return, especially if those interested in running their own business are to sink their savings or a redundancy payment into the venture
Any potential investors thinking of a BMI franchise should therefore ensure they take professional legal and financial advice before investing any money in a BMI Hose-associated (or for that matter, ANY franchise) business.
For further information, please see: http://www.bmihose.com and http://twitter.com/
Further contact for more information can initially be made via: firstname.lastname@example.org