A LOSS-making company which saved about £5,000 when 26 potentially explosive chemical filled drums were "thrown into a hole," dug at the premises, has been ordered to pay £20,000 costs to the Environment Agency.

Steel stockholding firm Vernon Stainless Limited, was "left holding the baby" after seven years ago taking over its Victoria Works, Commercial Street, Oswaldtwistle, site, Burnley Crown Court heard.

The firm was also fined £6,000 after admitting disposing of controlled waste.

The court heard how emergency services, including top fire officers were called in, a clean-up sparked and nearby homes evacuated in February last year, after employees alerted the Agency.

The site, site, previously a drum manufacturers and at the time facing redevelopment, was in the charge of the firm's health and safety officer Robert Clark, 51, also logistics manager, who ordered the hole be dug -- and another pit was in the process of being excavated.

Sentencing the family-run company, Judge Raymond Bennett said Vernon Stainless Limited had been "left holding the baby" when it took over the site where the previous occupants had left more than 100 45-gallon drums.

After the hearing, which was told Mr Clark may now face disciplinary proceedings, managing director John Vernon said the company had paid a high price for what was an ill-judged decision by one of its managers.

Neil Cameron, for Vernon Stainless, said the company was now making a loss and bosses were less than optimistic about the future.

Vernon had not initiated disciplinary proceedings against Mr Clark, of Worsley, Manchester, who continued to work for the company.