Edited Notes of Meeting with Des Lyons – Air Action Group
Edited Notes of Meeting with Des Lyons – Air Action Group
18 September 2001
1. There are three main parts of the business.
Air Freight (Air Action International 1999, t/o £4.2m)
Couriers (Air Action Couriers, 1999 t/o £1.6m)
Mail ( International Mail Direct, 1999 t/o £.9m)
2. Many of the customers use all three services. Amongst the customers are BP and Williams Lea who are mailroom service providers and in effect get a comprehensive despatch service for all that leaves the mailroom or despatch bay.
3. Mail is mainly international and passed to RMI. There are small sortation and fulfilment facilities. Forwarding is also inbound and some small scale pick and pack operation.
4. In August 2000 Air Action took over a freight company called J A G freight. It ran up big losses and in August 2001 was put into liquidation. There was a massive deficit and none of the unsecured creditors were paid. There was a shortfall of £90k to pay off the bank which had its loan secured on debtors.
5. The bookkeeper from JAG freight was hired by Air Action. She and the Air Action finance director formed a liaison, she was promoted to be deputy Finance Director and the two of them set about defrauding the company. The fraud was discovered by IT staff who came across incriminating e-mails in February 2001. The Finance Director is pleading guilty and likely to be sent to prison. The extent of the fraud was £80,000 and restitution is being sought and is likely to be obtained.
6. When many of these events were taking place Des was suffering from a bad back. This affected his ability to recognise the problems above and the problems and his illness have distracted from the running of the business. The accounts are still being re-constructed and are likely to show increased turnover but lower profits.
