Sterling Green becomes cash shell

STERLING Green has sold off its remaining business units to a business run by its chief executive, Tariq Ali.

The Manchester-based company, which announced the sale of the majority of its debt management book to Sale-based DRSP for just over £1m last month, has subsequently sold  Sterling Green (Mortgages) and its tax consultancy arm Taxdebts to the company’s chief executiive, Tariq Ali, for £205.

Mr Ali has also bought the remainder of the debt management operations not purchased by DRSP for £10,000, and is taking on the remaining 12 members of staff. Operations director Jason McLean will become a consultant to the businesses, and both have resigned from the Sterling Green board.

Sterling  Green has said the sales have allowed it to repay its bank debts.

The company has also revealed interim results for the six months to September 30 during which it declared a pre-tax loss of £190,000 (2010: £38,000 profit).

The firm has now effectively become a shell company,  and chairman Michael Edelson has said it “is currently reviewing a number of possible opportunities”.

”Any acquisition will be put to shareholders for their approval at the appropriate time.”

Companies House filings show that the purchaser of the core business, DRSP, is run by sole director Elizabeth Robinson, who was previously company secretary of Timplerley-based Cleardebt.

Mrs Robinson is also a director of two other companies in which Cleardebt Group chief executive officer David Mond has a stake, and according to Sterling Green’s website, its former customers are now receiving customer care from Cleardebt  Group’s debt management arm, Abacus Financial Consultants Ltd.

However, Mr Mond has told TheBusinesDesk.com that he does not own a stake in DRSP and has no involvement with the firm other than providing accountancy services to it through his own practice, Hodgsons.