- There‘s an unexplained discrepancy of almost £100k between two independent public sources for political donations made by shoe repair and key-cutting business Timpson Ltd for the eight years 2009-2016. Further, there’s incomplete disclosure of recipient in one of the sources, the company annual reports and accounts. These all show the Conservatives as recipient, failing to identify explicitly Edward Timpson MP as recipient. The MP, who was a government minister until losing his seat in the 2017 general election, is a related party of the family business. Thus the political donations are related party transactions – undisclosed related party transactions.
- The firm’s last accounts were made up to 1 October 2016, Companies House records show (registered company number: 00675216). And at that year-end Timpson Ltd had made 13 political donations, all non-cash and total value £730.4k, according to the Electoral Commission online database. The recipient was the same each time: Edward Timpson MP.
- Conservative Mr Timpson lost his seat, Crewe and Nantwich, to Labour by just 48 votes at the last general election in June 2017, having first been elected in May 2008 in a by-election. His last role in government was as Minister of State for Vulnerable Children and Families at the Department for Education July 2016-June 2017.
- Beginning in 2009, Timpson Ltd made at least one donation to the MP each of the eight years, Electoral Commission records show.
- Political donations above £2k must be disclosed by a company in the directors’ report within the annual report. For each year 2009-2016, political donations were disclosed in the annual report. And the recipient was the same each time: the “Conservative Party”. But here the total value was £633.0k – almost £100k (i.e. £97.4k) less than the Electoral Commission total, £730.4k (Table 1). (The 2009 directors’ report states that the firm made no political donations in 2008.)
|Year||Annual report||Electoral Commission|
- There’s something else about the company annual reports and accounts: they all fail to identify explicitly Edward Timpson MP as recipient of the political donations. It’s merely the Conservatives. This incomplete disclosure is disappointing because Edward, as his last name suggests, is a member of the eponymous family who own and run the ubiquitous high-street retailer. He’s a son of director Sir John Timpson, who’s company chair; and brother of director James Timpson, who succeeded his father as chief executive in 2011. Both Sir John and James are high-profile business figures.
- But the incomplete disclosure doesn’t stop there. The company annual reports and accounts all fail to disclose the donations to the MP as related party transactions. Edward is a related party of Timpson Ltd because he‘s a close family member of Sir John and James (see International Accounting Standard 24 Related Party Disclosures (IAS 24): http://www.iasplus.com/en-gb/standards/ias/ias24). Thus the political donations are related party transactions – undisclosed related party transactions.
- Prior to this year’s general election, Timpson Ltd didn’t respond to requests for comment. I wrote twice to the family business in May 2017 via its website. On each occasion I received nothing but an immediate automated acknowledgement of receipt (email). The retailer became responsive after the general election, however. On 21 July 2017, I contacted it for the third time via the website. In her response for Timpson Ltd three days later (email), Christine Hickman enclosed “a reply that should have been sent to you.” It said: “Further to your enquiry our independent external auditors have confirmed that the disclosures we have made in our statutory accounts are in compliance with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. We have made enquiries of the Electoral Commission and are awaiting a response.”
- I thanked Ms Hickman for the email by reply the same day (24 July 2017), adding I‘d await her further response. At date of publication I‘ve heard nothing.