Tomlinson blames RBS for challenges at LNT Group

ENTREPRENEUR and Government advisor Lawrence Tomlinson has blamed one of Britain’s major banks for affecting trading at his business, the LNT Group.

Tomlinson said an investigation has been launched by Chris Sullivan, the chief executive of the UK Corporate Banking Division, into allegations around two RBS directors’ conduct. 

Tomlinson, who also holds the role of entrepreneur in residence at the Department for Business, Innovation and Skills, said: “The behaviour of RBS affected our trading. We are now awaiting an outcome of the investigation which has been launched. RBS has caused us a lot of issues.”

In its annual results for the year ended March 31 2013, the Leeds-based group, which has interests in a diverse range of industries, including motor car production, care homes, software and construction, reported an operating loss of £6m from £9.5m. Loss on ordinary activities before tax was £8.5m, reduced from £10.5m in the previous year. However, turnover more than doubled to £76.2m.

LNT Group blamed its loss on the £2.6m worth of costs incurred in connection with the completion of the £100m refinancing of the group’s banking facilities in March this year, which saw it complete a renewal and extension with Nat West, Santander UK, Clydesdale Bank (owned by the same owner of Yorkshire Bank) and Bank Leumi. The group also said it has retained a large number of its completed care homes, which resulted in £21.3m of the LNT Construction division’s sales being excluded.

After the group’s refinancing, Tomlinson hit out at the banking sector’s lending policies saying he had been “frustrated” with their approach and the time taken to reach a satisfactory conclusion.

However, he gave praise to some of the banks. “Leumi, Santander and Yorkshire were very supportive in the refinance. It seems smaller banks are better places to understand and help their corporate customers,” he said.

Tomlinson said the loss is also due to the cycle the business is in, in terms of growth.

“For us, the key thing is to focus on is growth. We have focused on growth throughout all of the businesses and have always invested in this and will continue to do so. We will continue to grow organically,” he said.

“We could have grown more quickly but we want to make more products ansd have an exciting growth business. I think we will have very exciting results from here on in. The key thing is that the shareholders are happy with where we are at.”

Tomlinson said the business is “very positive” going forward.

“Our forward pipeline of care homes is pretty much sold and we will reap the benefits we have made over the last four years. I have been in business for 25 years and intend to create great jobs and wealth in our economy for another 25 years,” he said.

During the year, the group added £36.7m to its care home property estate (2012 £59.6m) and opened seven new care home. It said it therefore also absorbed the opening costs.

The group said it has invested heavily in business development and research and development within its automotive and chemical solutions divisions during the year, as it seeks to develop and grow these businesses.

The group said it continues to develop all five of its businesses and has made “encouraging” progress towards its strategic goals during the year. The company said it remains well placed to develop its business going forward and the directors look to the next 12 months with a “high degree of confidence” following the refinancing of the group’s banking facilities.

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