Two companies that provided manned guarding, door-supervision and other private security services, under contract, to construction sites, shops and bars have been wound up in the High Court following an investigation by the Companies Investigation Branch (CIB) of the Insolvency Service.
CIB's investigation found that both CTN Security Services Ltd and St Michael's Security Services Ltd had persistently breached the Private Security Industry Act 2001 by using unlicensed personnel, that they had jointly failed to account for a sum in excess of £600,000 owed to the Crown and were insolvent, that there was a lack of transparency as to their ownership and control and that they had failed to keep adequate accounting records, with the result that hundreds of thousands of pounds withdrawn in cash could not be accounted for.
Additionally, CIB's investigation, which was hampered by a severe lack of co-operation from the directors and others controlling their affairs, also established that the companies had made payments totalling more than £150,000 to another business in the private security industry and that these could not be verified or explained.
A third related company, in a similar line of business, which was also investigated by CIB, was previously wound up on 16 April 2008 on the petition of HMRC. The third company, CTN Retail Security Services Ltd, was wound up in respect of a debt of more than £130,000 owed to the Crown and was found by CIB to exhibit similar matters of concern to its two siblings.
The registered office of CTN Security Services Ltd, which was incorporated on 3 October 2003, is at 352 Longmoor Lane, Aintree, Liverpool, whilst that of St Michael's Security Services Ltd, which was incorporated on 23 January 2006, was at 122 South Road, Waterloo, Liverpool. CTN Retail Security Services Ltd was incorporated on 8 August 2005 and has its registered office at 52 Penny Lane, Mossley Hill, Liverpool.