Hays' Pout banned for six years

THE finance director involved in an accounting scandal at Allied Carpets has been disqualified as a director for six years. David Pout was found to have knowingly inflated sales figures, distorting profits, the Department of Trade and Industry said.

Pout is currently a director of Hays Personnel, a division of Footsie group Hays. The group said it would give Pout a senior role with the same wage.

The DTI's Companies Investigations Branch said the practice, which involved the early recognition of sales, dated from 1992 to 1998. Pout resigned from Allied in August 1998 a week before the company revealed the findings of an inquiry into the irregularities. Allied's auditors calculated that sales in the year to June 1998 were overstated by £6m, swelling profits by some £2m.

The DTI's announcement comes five months after Allied's former managing director Raymond Nethercott was disqualified for seven years. The investigation into both Nethercott and Pout began in December 2000. The DTI said Pout had originally resisted its procedure before accepting the ruling seven days ago.

The DTI said Pout, a certified accountant, now accepted he failed to prevent the accounting irregularities from December 1992 to 1998. He also agreed he had lied to Allied's auditors about his knowledge of and involvement in the early recognition of sales.

A Hays spokesman said: 'He has carried out his work at Hays to the highest professional standards and with complete integrity.'