Russian Navy


Russian Navy's British Furniture Supplier Denies His Bankruptcy


Russian Navy's British Furniture Supplier Denies His Bankruptcy 19.06.2012
Text: RusNavy.com
Photo: Office of Strongbox. Strongboxmarine.com
British businessman Stephen Edmunds whose company was supposed to supply Russian Navy's ships with cabin metal furniture repudiates his bankruptcy. It is said in the email received by Central Navy Portal editors fr om Stephen Edmunds, director general of Strongbox Accommodation Furniture Ltd.

"I would like to confirm to you that Strongbox Accommodation Furniture is certainly not insolvent and is financially robust and has a substantial order book completing work for the UK Aircraft Carriers and the Royal Fleet Auxiliary", was said in the email.

However, as was earlier reported by Central Navy Portal, quite another company of Stephen Edmunds is currently undergoing administration - Strongbox Marine Furniture Ltd (SMF); by the way, not a word was said about SMF in the email message. Speaking of Strongbox Accommodation Furniture (SAF), in Feb 2012 this company purchased business and assets of busted SMF for GBP 250,000. Proving documents are available to the editorial staff. Unfortunately, so far Mr. Edmunds has not provided any new documents refuting the previous ones. Earlier on, reporters of Central Navy Portal many times tried to contact the SMF director via email and phone, but every time heard the company secretary Julie Lever saying that Mr. Edmunds either not arrived or left the office earlier. In the email to Central Navy Portal, Edmunds says he was on a long business trip.

According to the British businessman, transfer of assets from one company to another as well as placing of SMF under administration because of deteriorated cash position is nothing more than "reorganization" and "modernization" due to the "growing needs of the shipbuilding industry". For clarity, Edmunds lists projects he is going to work on in 2012-2013. It is accommodation furniture for aircraft carriers HMS Queen Elizabeth and HMS Prince of Whales, six Canadian frigates, etc. Co-working with Russian Navy was not mentioned in that list.

It is also noteworthy that companies directed by Stephen Edmunds were "reorganized" by means of bankruptcy not for the first time. For instance, Strongbox Systems Ltd went bust in Sept 2004, and Strongbox Broadcast Products Ltd became insolvent in Apr 2006. Central Navy Portal's sources in London business community say that both of mentioned companies were related to Edmunds. So, Strongbox Marine Furniture is just the third firm in this line. As long as "his companies are lim ited he is not personally responsible for the debts", emphasized British interviewee. He also expressed doubts that Stephen Edmunds is able to execute naval contracts listed in his email because his debt to creditors amounts up to GBP 500,000. Take note, assets of Strongbox Marine Furniture chosen by the defense minister as a supplier were valued in Feb 2012 at only GBP 1. "Is that real price for contracts undertaken by SMF?" wonders the British interviewee of Central Navy Portal.

Recall that the defense ministry's Resolution No. 235/1/1/5899 providing planting of imported furniture and sanitary equipment made by Strongbox Marine Furniture Ltd in all new Russian warships was endorsed by defense minister Serdiukov in Nov 2011. Among ships planned to be furnished with British-made products are frigates (Project 22350, Project 11356) and corvettes (Project 20380/20385, Project 21631, and Project 21630). Text of the resolution was earlier approved by the then Navy Commander-in-Chief ADM Vladimir Vysotsky, although it was rumored behind the scenes that the naval chief opposed that initiative. At the time, it was known nothing about financial standing of the company chosen by Serdiukov.

First report about Strongbox Marine Furniture Ltd undergoing administration since Feb 14, 2012 appeared several months ago in the British newspaper The London Gazette. Central Navy Portal found out that business and affairs of SMF passed into receivership of RSM Tenon. According to administrators, "throughout 2011 the Company's cash position deteriorated and in early January 2012 the Company were unable to pay its workforce and trade creditors". Nevertheless, backlog of SMF had a contract on metal furniture for the Royal Navy ships. Although Strongbox Marine Furniture Ltd had no formally signed contracts with Russian Navy at the time it entered administration, an undisclosed source of Central Navy Portal in London's business community says such agreement may be probably tied in the future.

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Related Information:

Russian Navy News

simplythetruth, 01/29/2014 03:56:42
Disqualified Director Details 17/01/2014 14:30


Case details for STEPHEN HENRY EDMUNDS

Name: STEPHEN HENRY EDMUNDS

Name: Strongbox Marine Furniture Ltd

Date of Birth: 15/09/1952

Date Order Starts: 07/01/2014

Disqualification Length: 4 Years 0 Month(s)

CRO Number: 06453357

Last Known Address: 166, Butely Road, , , Luton, LU4 9EY

Conduct: During the period 1 December 2009 to 14 February 2012, the date of the company
entered into administration, Stephen Edmunds (“Mr Edmunds”) caused or allowed Strongbox
Marine Furniture Limited (“Strongbox”) to trade to the detriment of HM Revenue and Customs
(“HMRC”) in respect of Value Added Tax (“VAT”). In particular: (a) Strongbox failed to submit
VAT returns for the quarters 10/09 to administration and as a result HMRC raised assessments.
According to HMRC’s records, the total amount for these periods, including surcharges and
interest was ?330,738.18. (b) Included in the total assessments raised by HMRC is an Officer’s
Assessment raised on 1 June 2011 for ?169,824.79, including interest, in respect of under
declared tax for the quarters 04/08, 10/08, 10/09, 01/10, 04/10, 07/10, and 10/10. © Strongbox
made payments between 1 December 2009 and 14 February 2012 totalling ?62,592.33 to
HMRC in respect of outstanding VAT. (d) In the same period, ?3,732,799.77 was paid into
Strongbox’s bank account, of which ?1,503,731.59 was paid out in trade and expense;
?833,993.46 was paid out in wages; ?1,283.789.63 of unknown payments; ?9102,841.68 was
paid to HMRC in respect of PAYE; and ?62,592.33 was paid to HMRC in respect of VAT. (e)
Strongbox’s Statement of Affairs shows total unsecured creditors of ?651,325.00 in the
administration, of which HMRC is scheduled as a creditor for ?458,000.00. HMRC has notified
the Insolvency Service of its claim of ?438,241.10 in the administration, of which ?257,730.79 is
in respect of unpaid VAT. During the period 5 April 2010 to 14 February 2012, the date the
company was placed into administration, he caused or allowed Strongbox to trade to the
detriment of HMRC in respect of PAYE/NIC. In particular: (f) Strongbox’s accountant completed
a P35 for the 2009/10 tax year, which showed ?147,087.81 due to HMRC in respect of

http://www.insolvencydirect.bis.gov.uk/IESdatabase/viewdisqualdetail.asp?courtnumber=06453357 Page 1 of 2


Disqualified Director Details 17/01/2014 14:30

PAYE/NIC liability and made payments totalling ?14,890.04 to HMRC in respect of the 2009/10
liability. Strongbox failed to submit a P35 for the 2009/10 tax year and HMRC estimated
?50,587.92 outstanding for the 2009/10 tax year. (g) Strongbox’s accountant completed a P35
for the 2010/11 tax year, which showed ?162,536.35 due to HMRC in respect of PAYE/NIC
liability and made payments totalling ?66,958.34 to HMRC in respect of the 2009/10 liability.
Strongbox failed to submit a P35 for the 2010/11 tax year and HMRC estimated ?13,391.66
outstanding for the 2010/2011 tax year. (h) Strongbox failed to submit a P35 return for the
2011/12 tax year and made payments totalling ?17,083.34 to HMRC in respect of the
PAYE/NIC liability. HMRC estimated ?39,477.92 outstanding in respect of the PAYE/NIC for the
2011/12 tax year. (i) Strongbox made payments between 5 April 2010 to 14 February 2012
totalling ?92,041.68 in respect of outstanding PAYE. (j) In the same period, ?3,219,975.75 was
paid into Strongbox’s bank account, of which ?1,321,054.52 was paid out in trade and expense;
?709,600.72 was paid out in wages; ?1,106,770.55 of unknown payments; ?92,041.68 was paid
to HMRC in respect of PAYE/NIC; and ?55,688.73 was paid to HMRC in respect of VAT. (k)
Strongbox’s Statement of Affairs shows total unsecured creditors of ?651,325.00 in the
administration, of which HMRC is scheduled as a creditor for ?458,000.00. HMRC has notified
the Insolvency Service of its claim of ?438,241.10 in the administration, of which ?174,197.55 is
in respect of unpaid PAYE. According to P35s prepared but not submitted for the periods
2009/2010 and 2010/2011 along with the assessment raised for 2011/2012 less payments
made, the PAYE liability was ?267,253.70.

This information is correct as at 07/01/2014

If you believe this page contains an error please email
defendant.liaison.team@insolvency.gsi.gov.uk with the error you have found.

http://www.insolvencydirect.bis.gov.uk/IESdatabase/viewdisqualdetail.asp?courtnumber=06453357 Page 2 of 2
Anthony Sotniychuk, 02/10/2014 00:44:07
Thank you, this news has been prepared based on the information after some audit (rus): http://flotprom.ru/news/?ELEMENT_ID=160664
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