Page 7 - How Not To Cook The Books Article

GFS also highlight that in contrast, external audits detected a greater
percentage of cases involving owners and executives (diagram 2). This
underscores the importance of independent assessments and external

accountability as well as the need for auditors to be especially vigilant in
reviewing transactions involving owners and executives.

Added to these assessments Wrekin and Unwin were increasingly being
subjected to a growing body of online criticism.

The Case Story

FRAIN FAMILY: Wrekin Construction Owners 1960 - 2007

The Shropshire-based Wrekin Construction Company Ltd., a civil
engineering company, was founded in 1960. By 2007 it had an annual
turnover of in excess of £100m. However, by 2007 it was struggling for
survival after an expansion plan went wrong. It had by 2007 incurred
trading losses of £7.6m (Appendices 2,3) and in March of that year it was

acquired by the Tamar Group Ltd.

Wrekin was recognised by the industry for its pioneering change,
combining changing methods and technology with traditional values,
business integrity and skills development for over fifty years.

Tom Frain believed quality was the key to success and consequently

maintained a direct labour workforce and as such was responsible for its
taxation, National Insurance, health & safety and training etc., which all
added to costs. This meant Wrekin Construction was always at a
disadvantage when quoting for contracts compared to other companies
which used sub-contractors.

During the decade 2000 to 2010 Wrekin Construction had been through
peaks and troughs as the construction industry began to slow down.

Family Shareholding in Wrekin Construction Pre-Unwin

Tom Frain: 10%
Frain children (3, 20% each) 60%
Non family directors 10%