Over the five years when he was illegally managing it, SMA Cleaning saw a cashflow of around £2.5m. Yet his declared income in 2019 was £12,000 and the following year just £6,400, the court heard. 

He also took advantage of the Government’s covid pandemic furlough scheme, claiming four grants of more than £1,000 during 2020.

The court was also given evidence of the defendant’s costly “gambling addiction,” with confirmation that since June of 2019 he had laid out stakes of almost £24,000 and won just over £2,500.

Betting company staff reported that in August 2020, on two consecutive days, he had staked around £7,000 each day.

Askins, of Huntley Avenue, Penrith, admitted an offence under the 1986 Company Directors’ Disqualification Act.

Kim Whittlestone, prosecuting, said the offence came to light after the defendant was involved in a traffic accident, and he was found to have £8,643. “He claimed £4,000 of that was from his business,” said the barrister.

Explaining the background, she said that in August of 2015, Askins declared himself bankrupt, with a debt of £50,423.

That meant he was disqualified from acting as a company director until August, 2020. Miss Whittlestone continued: “SMA Cleaning Systems advertised itself as a contractor to install and clean manufacturing equipment and units.

“They advertise that they have worked for names such as Walkers, Coca Cola, Kellogs, Unilever and many other businesses.” The accounts showed he used the business account as his personal bank account, the court heard.

Miss Whittlestone added: “There is no suggestion the work carried out was not done professionally by the defendant. All companies who worked with him who have spoken to the Insolvency Service describe a professionally run business.”

Tony Cornberg, defending, said the defendant had committed the offence because he thought he could “technically” get round the restrictions imposed by his bankruptcy.

“There was no loss and no harm,” said the barrister.

Mr Cornberg said the business run by Askins had been successful and professionally run, the defendant having taken it over following the death of his father in 2014.

“His father’s death hit him hard,” said the barrister.

“He sought mental health support and found himself one of the many people waiting on the list.” A trained electrician, Askins had began to make money from running the firm and, despite the turnover, he had not used the money he made to fund a “lavish lifestyle.”

The income was spent on things that included expenses, including paying for breakfasts for up to 16 workers.

“There is mention of a gambling addiction,” continued the barrister. “He describes once going in with £300 and coming out with £2,500. He was gambling with his own wages.”

The Probation Service had assessed the defendant as a “low risk” of reoffending and the court was given several character references for Askins, who was currently signed off work following bike accident.

Recorder Peter Horgan noted that the defendant had spent a “significant amount” on gambling and achieved an income of approximately £80,000. “Nobody is saying that you ran it badly,” said the judge.

Other than being an undischarged bankrupt, he had conducted the business in a fit and proper manner but, said the Recorder, he could not ignore the personal benefit Askins had derived from his actions.

“You blatantly flouted a court order,” continued the judge, though he accepted that sending him to jail would not be in the public interest.

Askins was given a 19-week jail term, suspended for two years. He must also complete 200 hours of unpaid work in the community and pay a £3,000 contribution towards the prosecution costs.

Recorder Horgan disqualified Askins from being a company director, or playing any part in the management, promotion, or formation of any company, for the next eight years. Askins, who committed his offence between August of 2015 and August last year, must also observe an eight week 8pm to 7am curfew.

* The prosecution formally dropped its case against the defendant’s mother, Judith Theresa Askins, 75, of Penny Hill Park, Penrith,  75, who always denied aiding and abetting a prohibited person to act as a company director.