Agreeing the new organisational changes, dealing with Geoff Lynch, the investigating accountants and completing the Grove House purchase before home to pay Diana the housekeeping money
On time to the office and first to meet with June and hear how she has taken the news. A rather sleepless night for her but she is adjusting quickly and will be working out how to approach the new situation and help John. Initially, I discuss with her the arrangements for accommodating Peat Marwick Mitchel and the conference room bookings. A memo is circulated stating that we are appointing new auditors and they are undertaking their initial enquiries and we trust that this will suffice to curb rising curiosities. She can now assist on all confidential calls and correspondence. I agree with John Lamb to announce the new organisational changes on Friday, where I withdraw to the role of Group Chairman and John Lamb, Peter King and Geoff Lynch take on more responsibility as Managing Directors of Comart Computers, The Byte Shop and Xitan respectively. This concludes with the announcement of Grove House which should be well received in view of the fact that the Eaton Socon buildings will be turned over to Comart Company use completely.
I hear strong concerns from John Lamb and Derek Weatherby concerning Geoff Lynch who is taking legal advice and preparing to upset the Kode takeover process. It seems that he was planning to leave on June 30th and my latest moves have somewhat snookered this! Of course, he is not a threat but is acting with typical lack of diplomacy and sensitivity and so I phone him to warn of the consequences and explain that he would wreck the chances of a new relationship between him and the organisation that Kode and Peter Smith can bring. Later I brief Stephen Day and Peter completely and Peter will phone the key executives tomorrow and Stephen arrange to visit Geoff with Peats on Thursday morning. I meet Peats senior partner Geoff Hordle both before and during lunch to review progress with Stephen Day. The Auditors, Whitmarch Sterland, have been shown up because of the staff turnover and omission of certain part audit checks; but fortunately our own growth of systems and disciplines will provide the necessary information. Our tax affairs are in good order and prove simple and well done. Efforts will now be made to examine our present years profit forecast and we know we have made good provision against known eventualities. Phone calls from Barford and Evans (of Vintners) today and the Grove House purchase marches on but only in good time to see the legal formalities properly attended to. I stay late at the office to start the photocopying of senior directors service contracts and collate available information on trading up of minority shareholdings. Tomorrow Stephen Day will be studying Comart’s business plans and key personnel, having spent a portion of yesterday working on the leases and property summaries. Late home to pleas from Diana for housekeeping money – these business matters of raising £2 ½ M are obscuring the slight matter of paying Diana the monthly housekeeping.