The latest results for ITS’s parent company reveal widening losses despite a rise in turnover.
ITS Tubular Services (Holdings), owner of the trading company, had annual turnover of £107million in 2011, a 21% rise on the previous 12 months. While operating profits more than doubled to £9.5million, pre-tax losses stretched to £4.4million from £4.3million.
The latest documents filed with Companies House by the parent also show the two previous chief executives, Bob Kidd and Jeff Corray, were two of the firm’s three shareholders with venture capitalist Lime Rock Partners.
While Mr Kidd had a majority share, Lime Rock held a minority interest after buying a stake in ITS for £34.5million in 2009. Mr Corray had a smaller shareholding.
Court: Founder in legal action
Bob Kidd launched court proceedings to regain control of ITS Tubular Services (Holdings) after quitting the company’s board earlier this year.
The entrepreneur resigned as executive chairman and chief executive after announcing he did not see eye to eye with the company’s other bosses and owners.
Despite being the majority shareholder, it is understood contractual restrictions meant Mr Kidd could not take control of the company and went to the Court of Session in Edinburgh in an attempt to have the conditions lifted.
At the time, a spokes-man for Mr Kidd said the businessman had stepped down from the board “following significant disagreements with the remainder of the board, senior management and other shareholders as to the present and future direction of the business”.
He said Mr Kidd had injected more than £3million of his own money to help the business prosper. It is unclear what impact yesterday’s sale will have on court proceedings between Mr Kidd and the company. Mr Kidd could not be contacted for comment yesterday.