Robert and Mandy Headspeath were directors of Advanced Signs Ltd, based in Galashiels.
The Insolvency Service report said that between 1 April 2018 and 7 February 2020 the Headspeaths both failed to ensure that the company “maintained and/or preserved adequate accounting records, or, in the alternative, failed to deliver up such records to the Liquidator”.
Advanced Signs was placed into compulsory liquidation on 14 February 2020.
The Insolvency Service stated that, in the absence of any accounting records, it had not been possible to verify whether the receipts into the Advanced Signs bank account totalling £840,479, ATM deposits totalling £72,351 and Pay In amounts totalling £63,905 were “a true representation of [the] company’s sales”.
The report also said that expenditure from the company’s bank account totalling £843,156, “amounts totalling; £43,403 paid to connected persons, £13,975 paid to an unknown account described as S/S, £7,150 paid to the Directors as “R&M Rents,” cheque payments totalling £23,080 and unexplained payments totalling £59,439” were paid for the benefit of the company.
“In the absence of company records it is not possible to explain these payments,” the Insolvency Service reported.
The Headspeaths also failed to ensure that Advanced Signs dealt with its tax affairs correctly and caused the firm to trade to the detriment of HMRC in respect of VAT.
One week prior to liquidation ASL registered for VAT from April 2015, following which VAT returns were filed up to the VAT period ended 30 June 2019 disclosing liabilities totalling £75,158.
ASL made two payments totalling £15,863. The outstanding amount of £59,295 remained unpaid at the date of resignation on 7 February 2020 and at liquidation on 14 February 2020.
Robert and Mandy Headspeath were both banned from being directors for six years, effective from 7 February 2022.
Following his resignation on 7 February 2020, Robert Headspeath was appointed director of Advanced Signs Systems Ltd on the same day, although he resigned on 15 June 2021 and was replaced as sole director by Daniel Headspeath.
Note: Advanced Signs & Designs of Romford is not connected to Advanced Signs Ltd or Advanced Signs Systems Ltd.
