TWO businessmen have been convicted of “cooking the books” of an Oxfordshire business to the tune of £1.6m.

Christopher Ford, 47, and Edwin Dayan, 57, put non-existent revenue through the accounts of Witney firm Torex Retail between March and July 2006.

Jurors at Oxford Crown Court today unanimously convicted them of conspiracy to fraud.

The trial heard £756,000 and £900,000 of income was put through the accounts of XN Checkout, a wholly-owned subsidiary of Torex Retail which provided point-of-sale equipment to the hospitality trade.

Dayan, of Christchurch, Dorset, was XNC's managing director and the chief technology officer and a director of Torex Retail, and Ford, of Olney, Bucks, was the financial director of XNC.

XNC had a £2.1m-a-year contract with pub chain Mitchells & Butlers, but that ended in 2000 when IBM took over the contract.

However, XNC was kept on as sub-contractors by IBM, but the computer giant began reducing its annual payment to XNC from £2.1m in 2000 to £1.2m by 2006.

That shortfall was plugged by phantom payments from Mitchells & Butlers to XNC.

The pair colluded with Mitchells & Butlers IT director Stewart Walker, who has emigrated to New Zealand and was not extradited to stand trial.

Both men were bailed and warned to expect jail when they are sentenced on February 18.