The full extent of Duncan Web Offset's financial problems has been revealed after its parent, Duncan Holdings, filed accounts for the year to 31 December 2000.

Duncan Holdings' operating profit of 1.4m was completely wiped out due to a 3.6m loss arising from the receivership of Duncan Web, which was included in the accounts despite occurring after the year end.

The Kent magazine printer went into receivership on 31 May 2001 and two days later production had stopped with the loss of 200 jobs (PrintWeek, 8 June).

Duncan Holdings' turnover for last year was 29.4m, but after Duncan Web's demise ongoing sales will be only around 7.2m, which comes from its packaging business.

The highest paid director, most probably chairman Bill Duncan, received emoluments of 120,376 for the year, down from 158,300 in 1999.

But Duncan was also paid 213,235 in dividends, receiving 55 for each of his 3,877 "A" ordinary shares, compared to 26.50 a share in 1999.

The group's directors considered that he was its "ultimate controlling party".

Duncan Holdings' bank loans and overdrafts totalled 11.5m and were secured by a chattels mortgage and fixed charges over specific items of plant and machinery.

A special note added to the accounts said that the holding company's guarantees to the receivership of Duncan Web were not, in the opinion of its directors, more than 2.3m.

One financial source said Duncan Holdings was "a fundamentally profitable business" that had suffered the receivership of a large subsidiary. But it had taken on a large amount of debt, he said, probably under cross guarantees, and was highly geared with bank debt.

The source said Duncan Holdings would need to generate more profits to repay its debts, especially as 3m was due for repayment within a year and its overdraft was already 4m.

Story by Gordon Carson