THE directors of a failing scrapyard have appeared in court charged with supplying goods and services without giving a security when required.

Clwyd Breakers Ltd at Gardden Industrial Estate in Ruabon was shut down in January this year by Natural Resources Wales (NRW) after its operators broke the terms of their environmental permit.

As a result, NRW revoked the permit meaning the site could no longer store or dismantle cars which have reached the end of their life.

Appearing at North East Wales Magistrates' Court, the company's three directors, Joanne Bennett, 43, Neil Bennett, 50, and Jeremy Wells, 40, all pleaded guilty to the same charge that between May 17, 2018 and August 31, 2018, they supplied goods, namely connived, consented or attributable to any neglect made taxable supplies of goods by Clwyd Breakers Ltd without giving security in the sum of £8,6004.93.

Helen Tench, prosecuting, said the directors missed repeated deadlines and agreements to make payments and showed "non compliant behaviour" in having six VAT returns outstanding.

Ms Tench said that in total 65 'actions' could be traced between HM Revenue and Customs (HMRC) and the company to try to get them to comply.

She added that HMRC were looking for a payment of £13,188 split between the directors and Clwyd Breakers Ltd.

Euros Jones, defending solicitor for both Joanne Bennett and Neil Bennett, of Smithy Lane, Pentre Bychan, said: "This is not a case where they have been squandering money on holidays to the South of France and Lamborghinis."

Mr Jones said the business had got into financial difficulty due to the landlords doubling their rent and the cost of scrap metal dropping "dramatically".

"They held on hoping the prices would rise again but they didn't," added Mr Jones, who said as directors they were each owed £80,000 from the company.

He added that Mr Bennett had suffered a mental breakdown and spent a week in hospital following the company's closure.

Defending himself, Wells told the court he had only been a director for a short time and was "trying his best in difficult circumstances."

Chair of the bench, Carol Lloyd, said: "We accept the reason for non payment was your inability to pay and not fraud".

She ordered each defendant to pay £3,297 compensation to HMRC adding that the compensation would be the punishment for the offence.