Name: Michael Terrence Smith

Name: MTS GROUNDWORKS LTD

Date of Birth: 15 / 1 / 1959

Date Order Starts: 29 / 1 / 2024

Disqualification Length: 11 Years 0 Month(s)

CRO Number: 11392640

Last Known Address: 1 Westbourne Drive, Rhostyllen, , , WREXHAM, LL14 4BU

Conduct: On 17 May 2020, Michael Terrence Smith (“Mr Smith”) caused MTS Groundworks Ltd (“MTS”) to make a false application for a Bounce Back Loan ("BBL") of £30,000, when he knew, or ought to have known, that MTS was not eligible for the BBL under the terms of the scheme. Under the BBL scheme, businesses were able to apply for a BBL if they were engaged in trading or commercial activity in the UK at the date of the application; were carrying on business on 01 March 2020 and had been adversely affected by the coronavirus pandemic and would only use the loan to provide economic benefit to the business. The BBL Scheme allowed businesses to borrow between £2,000 and £50,000, up to a maximum of 25% of the business turnover in the 2019 calendar year. If the business was established after 01 January 2019 the 25% limit was applied to its estimated turnover from the date the business started. In the BBL application form completed on behalf of MTS, Mr Smith declared that MTS had a turnover of £130,000. MTS’ bank statements for the period 12 September 2018 to 17 May 2020 show that MTS had receipts totalling £70,873, with the majority being from VAT refunds, but there is no evidence that those receipts represented income from any genuine trading activities. MTS’ accounts for the periods ending 30 June 2019 and 30 June 2020, which were filed with the Registrar of Companies on 29 February 2020 and 29 July 2021 respectively, do not include details of MTS’s turnover and full accounts have not been provided. Mr Smith has stated that he did not know why he chose a turnover figure of £130,000 and did not know how much turnover MTS had. On 19 May 2020, a BBL of £30,000 was paid into MTS’ bank account, and following receipt of those funds, payments totalling at least £18,202 were made from the bank account and Mr Smith has provided no explanation, and/or, evidence to confirm that those funds were used for legitimate company expenditure, and/or, the economic benefit of MTS. The bank has submitted a claim in the liquidation for the amount of £33,542, which includes £33,458 in respect of the unpaid BBL and interest. 

This information is correct as at 9 / 1 / 2024

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