Spring Ram director gets pounds 300,000

STUART Greenwood, the finance director of Spring Ram who was forced off the board of the beleaguered bathrooms and kitchens company, received a payoff of pounds 300,000 - 50 per cent more than was suggested by his contract, writes Robert Cole.

Spring Ram's annual report, published yesterday, states that Mr Greenwood had a two-year service contract and his annual salary was about pounds 100,000. Strict severence terms would indicate a payoff of pounds 200,000.

He is also understood to have kept his company car, share option entitlement and pension contribution.

Spring Ram also took on pounds 56m of debt to pay for the establishment of its Regency Doors subsidiary. The Regency factory is not yet operating. However, Spring Ram has matched the pounds 56m charge with cash balances of pounds 66m held in another part of the balance sheet. Stock levels also increased during the year, from pounds 41m on 31 December 1991 to pounds 52m a year later. The company attributed this rise to stock held in the new Regency Doors and Artesian Tile ventures.

The annual report also revealed that income derived from government grants jumped threefold from pounds 400,000 to pounds 1.2m. Spring Ram shares collapsed last month ahead of the release of disappointing profit figures. Overall pre-tax profit slid to pounds 26m from pounds 33m. In busy trading yesterday Spring Ram shares fell to 66p but ended the day down 1p at 74p.