Holmes may drop expensive lawsuit
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HOLMES PROTECTION, the US security group listed in the UK, is close to abandoning a costly legal dispute begun after a failed share placing earlier this year, writes Russell Hotten.
Richard Hickson, the chief executive who yesterday unveiled a sharp drop in interim profits, said the expense of seeking damages might preclude further action.
Signs that the recent recovery at Holmes had stalled emerged yesterday when the company saw half-year figures to 30 June tumble from dollars 1.4m (pounds 927,000) to dollars 133,000 on turnover of dollars 27m. Again there is no dividend.
Sir Ian MacGregor, the former British Coal chairman who chairs Holmes, said reorganisation had taken longer than expected, raising operational costs and delaying the purchase of new contracts. But he added: 'Actions to improve the company's operations continue, orders for the half-year remain above the level of recent years and the rate of subscriber cancellations continues to decline.'
Administrative costs have been cut following a decision to delay expansion in Continental Europe. And planned growth of the franchise operation has been scaled back.
In February Holmes completed a lengthy debt restructuring programme. But a placing failed when an unnamed Swiss investor refused to honour an agreement to pay for 1 million shares, hitting the share price.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments