EDO (UK) Ltd have this week finally released their audited accounts for their worst year on record, 2006.
The 17 page document attached below reveals a massive drop in profit and an apparently unsustainable £10,000,000. debt.
The accounts also contain statements signed off as true by Director Paul Hills which are blatently false.
Insider sourced information and a revealing brick wall met under Freedom of Information Act paint a picture of an end in sight for the Brighton Bomb factory, that has been the focus of a sustained anti war campaign since 2004.
The question on every EDO MBM employee's mind is will new parents ITT save them, or put them out of their misery?
The 17 page document attached below reveals a massive drop in profit and an apparently unsustainable £10,000,000. debt.
The accounts also contain statements signed off as true by Director Paul Hills which are blatently false.
Insider sourced information and a revealing brick wall met under Freedom of Information Act paint a picture of an end in sight for the Brighton Bomb factory, that has been the focus of a sustained anti war campaign since 2004.
The question on every EDO MBM employee's mind is will new parents ITT save them, or put them out of their misery?
A summary of the 2006 accounts.
NOT DOING WELL
Even after including figures from EDO Artisan (EDO MBM's smaller US sister company) the official and doctored grand total shows a massive drop in profits for the company from £304,000 in 2005 to £94,000 in 2006.
A drop of £210,000 or around 70%
The 2006 accounts show a drop in 'investment income' in the company from £660,000 to £0.00 between 2005 and 2006, and no dividends paid.
The 2006 accounts show EDO UK has only £1000 cash in its bank account, and owes its parent and subsidiary companies nearly £10 million which is due back within one year, while the entire net assets for EDO (UK) Ltd are only worth £1.62 Million.
Since a restructuring move in early 2007, the New York EDO corporation has run the UK subsidiary directly from its neo-gothic Lincoln Building offices on 42nd Street. EDO Corp Treasurer, Chief Financial Officer and VP Fred Basset is listed in the accounts as CEO of EDO (UK) Ltd.
EDO Corp Secretary, General Counsel and VP Lisa Palumbo is also a director of EDO (UK) Ltd. The Americans hold regular video linked board meetings with the UK directors to tell them what to do. Paul Hills, who replaced former Managing Director David Jones in 2006 is only listed only as a Director.
Reliable sources inside the UK subsidiary have reported that EDO Corp top brass have ended all future research and development funding for the Brighton firm. A clear sign that EDO MBM is being wound down as an ongoing business. The 2006 accounts declare continued commitment to investment in R&D and medium and long term development, but this is a lie for the benefit of shareholders, insiders have reported.
CLOSURE OF EDO AEROTECH
EDO Aerotech, the only civilian aircraft components section of the company is now 'defunct'. This is another victory for the protest campaign against the company, and must be a major blow to the morale of the employees. The accounts confirm EDO MBM have established an Employee Involvement Council after internal strife amongst the employees, regarding the weekly protests outside the gates, led to over 22 employees leaving the firm in 2005 and forced the management to appear to take account of the views of the workers in order to hang on to them. In reality the closure of the entire business seem a certainty within the next year to 18 months.
ITT MERGER LOOMS
Employees of the Brighton company are anxiously awaiting a visit of executives from an even bigger arms conglomerate ITT Corporation.
ITT, the worlds 12th largest arms firm and former bomber manufacturers for the Nazi's, (as well as numerous other historical pro-fascist crimes in league with Franco, Pinochet, Nixon/Kissinger, etc) will very probably take over EDO Corp in early 2008 unless another arms giant make a better offer. As part of the deal ITT have agreed not to change any conditions or benefits for the current EDO workforce for 18 months after their takeover of EDO Corp.
This may protect the poorly performing EDO UK workforce from the Nazi blitzkrieg for a little while, but given ITT's reputation for aggressive and illegal management tactics it is unlikely that the Brighton warmongers can survive much longer than that, especially as security surrounding highly classified projects like the F35 bomb release interface and the next generation Paveway IV guided missile guidance systems is compromised by disgruntled employees.
The 15 year lease for EDO MBM’s Home Farm Road premises reaches its half way get out point around the same time so all the signs point to this as a financially prudent point of departure from Brighton for new parents ITT, although the lease does allow them to leave a little sooner if need be, especially if EDO MBM’s security leaks burst into a major breach. Its entirely possible.
The leaky security of EDO MBM makes the Brighton company a real liability for ITT Corporation, who are already under the scrutiny of the US Department of Justice after being caught this year selling classified night vision technology to 'foreign governments' (inc. China, suppliers of Iran) without a licence, as well as being exposed for other willing violations stretching back decades.
Thanks to friends in high places ITT were let off the hook with a plea bargain resulting in a $100 million penalty and no convictions for the CEO responsible, Louis Gulliano, who simply moved to a new job as senior advisor with the Carlyle Group. But another slip up such as the leaking of even more US military secrets could impact dramatically on the prospective parent conglomerate.
THE PAVEWAY VI PROBLEM
Even though it was reported in the press recently that the new UK Paveway IV missile has been delayed due to production problems, and an interim 'Paveway III +' is now in production to meet the UK Govt 'Urgent Requirement', campaigners in Brighton were already fully aware of the problems with the missile system months ago, which insiders revealed to them were blamed on General Dynamics for a failure to stick to their original plans. The damage to EDO MBM business operations cannot be overestimated, and the company were within their legal rights to seek financial compensation for their losses.
But a problem arises here because Paul Hills had to find a way to express his unhappiness with the breach of contract by General Dynamics,( 'those fuckers') while not upsetting EDO (UK) Chairman Sir Robert Walsmsley (41 Beltran Road, Fulham, SW6 3AL) who happens to be the highest ranking Brit Director in the giant US arms firm GD, ranked number 6 biggest on the planet.
Sir Robert's friends in high places make him a risky man to upset. In 2003 he was investigated by a parliamentary anti-sleaze watchdog over his appointment to the General Dynamics board shortly after retiring as Chief of Procurement at the MoD when he had awarded GD a multi-billion dollar contract for the UK military BOWMAN radio system. It 'looked like a reward' said one of the investigators. Sir Bob was let off of corruption charges on condition he delayed joining GD for twelve months to avoid a bad 'appearance'. Despite this easy ride Sir Bob was not happy with his Mandarin credentials being dragged through the mud, and lobbied Downing Street against his investigators.
Not much later Sir Bob's mate PM Tony Blair, (who also happened to have gone to his old public school, Fette's) decided to scrap the anti-sleaze watchdog committee altogether, and through all the investigators out of their Westminster offices. The lesson 'don't fuck with Sir Bob' was thus established throughout the land and Paul Hills, by no means a man of influence or clout was forced to 'tweak' minutes of EDO UK board meetings for, so as not to upset the great man.
THE ISRAELI CONNECTION
Another problem for EDO MBM is pressure from EDO Corp General Counsel Liza Palumbo not to reveal any details of the supply of Israel with components, despite protesters demands they come clean, and the continuing exposure of a cover-up.
The American firm risks prosecution under the anti-boycott provisions of US Export Administration Regulations if any of their employees in the UK so much as mention the name of ‘Israel’ when revealing their foreign government customers. The penalty for non-compliance with this law is five years in a US jail and or a fifty grand fine.
Recent FOIA requests to the UK Department of Trade and Industry (DTI) Export Control Organisation have revealed that EDO MBM have refused to authorise the DTI to reveal either a confirmation or a denial of the existence of export licences to for components to Israel.
In response to the news one SmashEDO protester said
'If EDO MBM have nothing to hide they would not do anything but good to their own interests by allowing the DTI to confirm the purported absence of licences granted to export arms components to Israel. This would silence Palestine solidarity protesters, and EDO MBM would not risk a breach of the US regulations.'
' However the fact that they have refused to allow the DTI to either confirm or deny the existence of such licences points strongly to the fact that they do supply Israel. Why would they block the release of such a confirmation of a complete absence, that would do them nothing but good, if there was really nothing there, and they had nothing to lose by proving it?'
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NOT DOING WELL
Even after including figures from EDO Artisan (EDO MBM's smaller US sister company) the official and doctored grand total shows a massive drop in profits for the company from £304,000 in 2005 to £94,000 in 2006.
A drop of £210,000 or around 70%
The 2006 accounts show a drop in 'investment income' in the company from £660,000 to £0.00 between 2005 and 2006, and no dividends paid.
The 2006 accounts show EDO UK has only £1000 cash in its bank account, and owes its parent and subsidiary companies nearly £10 million which is due back within one year, while the entire net assets for EDO (UK) Ltd are only worth £1.62 Million.
Since a restructuring move in early 2007, the New York EDO corporation has run the UK subsidiary directly from its neo-gothic Lincoln Building offices on 42nd Street. EDO Corp Treasurer, Chief Financial Officer and VP Fred Basset is listed in the accounts as CEO of EDO (UK) Ltd.
EDO Corp Secretary, General Counsel and VP Lisa Palumbo is also a director of EDO (UK) Ltd. The Americans hold regular video linked board meetings with the UK directors to tell them what to do. Paul Hills, who replaced former Managing Director David Jones in 2006 is only listed only as a Director.
Reliable sources inside the UK subsidiary have reported that EDO Corp top brass have ended all future research and development funding for the Brighton firm. A clear sign that EDO MBM is being wound down as an ongoing business. The 2006 accounts declare continued commitment to investment in R&D and medium and long term development, but this is a lie for the benefit of shareholders, insiders have reported.
CLOSURE OF EDO AEROTECH
EDO Aerotech, the only civilian aircraft components section of the company is now 'defunct'. This is another victory for the protest campaign against the company, and must be a major blow to the morale of the employees. The accounts confirm EDO MBM have established an Employee Involvement Council after internal strife amongst the employees, regarding the weekly protests outside the gates, led to over 22 employees leaving the firm in 2005 and forced the management to appear to take account of the views of the workers in order to hang on to them. In reality the closure of the entire business seem a certainty within the next year to 18 months.
ITT MERGER LOOMS
Employees of the Brighton company are anxiously awaiting a visit of executives from an even bigger arms conglomerate ITT Corporation.
ITT, the worlds 12th largest arms firm and former bomber manufacturers for the Nazi's, (as well as numerous other historical pro-fascist crimes in league with Franco, Pinochet, Nixon/Kissinger, etc) will very probably take over EDO Corp in early 2008 unless another arms giant make a better offer. As part of the deal ITT have agreed not to change any conditions or benefits for the current EDO workforce for 18 months after their takeover of EDO Corp.
This may protect the poorly performing EDO UK workforce from the Nazi blitzkrieg for a little while, but given ITT's reputation for aggressive and illegal management tactics it is unlikely that the Brighton warmongers can survive much longer than that, especially as security surrounding highly classified projects like the F35 bomb release interface and the next generation Paveway IV guided missile guidance systems is compromised by disgruntled employees.
The 15 year lease for EDO MBM’s Home Farm Road premises reaches its half way get out point around the same time so all the signs point to this as a financially prudent point of departure from Brighton for new parents ITT, although the lease does allow them to leave a little sooner if need be, especially if EDO MBM’s security leaks burst into a major breach. Its entirely possible.
The leaky security of EDO MBM makes the Brighton company a real liability for ITT Corporation, who are already under the scrutiny of the US Department of Justice after being caught this year selling classified night vision technology to 'foreign governments' (inc. China, suppliers of Iran) without a licence, as well as being exposed for other willing violations stretching back decades.
Thanks to friends in high places ITT were let off the hook with a plea bargain resulting in a $100 million penalty and no convictions for the CEO responsible, Louis Gulliano, who simply moved to a new job as senior advisor with the Carlyle Group. But another slip up such as the leaking of even more US military secrets could impact dramatically on the prospective parent conglomerate.
THE PAVEWAY VI PROBLEM
Even though it was reported in the press recently that the new UK Paveway IV missile has been delayed due to production problems, and an interim 'Paveway III +' is now in production to meet the UK Govt 'Urgent Requirement', campaigners in Brighton were already fully aware of the problems with the missile system months ago, which insiders revealed to them were blamed on General Dynamics for a failure to stick to their original plans. The damage to EDO MBM business operations cannot be overestimated, and the company were within their legal rights to seek financial compensation for their losses.
But a problem arises here because Paul Hills had to find a way to express his unhappiness with the breach of contract by General Dynamics,( 'those fuckers') while not upsetting EDO (UK) Chairman Sir Robert Walsmsley (41 Beltran Road, Fulham, SW6 3AL) who happens to be the highest ranking Brit Director in the giant US arms firm GD, ranked number 6 biggest on the planet.
Sir Robert's friends in high places make him a risky man to upset. In 2003 he was investigated by a parliamentary anti-sleaze watchdog over his appointment to the General Dynamics board shortly after retiring as Chief of Procurement at the MoD when he had awarded GD a multi-billion dollar contract for the UK military BOWMAN radio system. It 'looked like a reward' said one of the investigators. Sir Bob was let off of corruption charges on condition he delayed joining GD for twelve months to avoid a bad 'appearance'. Despite this easy ride Sir Bob was not happy with his Mandarin credentials being dragged through the mud, and lobbied Downing Street against his investigators.
Not much later Sir Bob's mate PM Tony Blair, (who also happened to have gone to his old public school, Fette's) decided to scrap the anti-sleaze watchdog committee altogether, and through all the investigators out of their Westminster offices. The lesson 'don't fuck with Sir Bob' was thus established throughout the land and Paul Hills, by no means a man of influence or clout was forced to 'tweak' minutes of EDO UK board meetings for, so as not to upset the great man.
THE ISRAELI CONNECTION
Another problem for EDO MBM is pressure from EDO Corp General Counsel Liza Palumbo not to reveal any details of the supply of Israel with components, despite protesters demands they come clean, and the continuing exposure of a cover-up.
The American firm risks prosecution under the anti-boycott provisions of US Export Administration Regulations if any of their employees in the UK so much as mention the name of ‘Israel’ when revealing their foreign government customers. The penalty for non-compliance with this law is five years in a US jail and or a fifty grand fine.
Recent FOIA requests to the UK Department of Trade and Industry (DTI) Export Control Organisation have revealed that EDO MBM have refused to authorise the DTI to reveal either a confirmation or a denial of the existence of export licences to for components to Israel.
In response to the news one SmashEDO protester said
'If EDO MBM have nothing to hide they would not do anything but good to their own interests by allowing the DTI to confirm the purported absence of licences granted to export arms components to Israel. This would silence Palestine solidarity protesters, and EDO MBM would not risk a breach of the US regulations.'
' However the fact that they have refused to allow the DTI to either confirm or deny the existence of such licences points strongly to the fact that they do supply Israel. Why would they block the release of such a confirmation of a complete absence, that would do them nothing but good, if there was really nothing there, and they had nothing to lose by proving it?'
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