KSA Group files 4 CVAs to restructure a group of companies

8 February 2013

Even when a company’s accounts and records are very poor and there is a tight timescale KSA Group can rescue a business!

We were approached by a South East-based IT and logistics group.  The directors had heard about our work with two previous clients and as such wanted us to help them.

The group came about as a result of a business purchase by a joint venture of two companies.

Group sales were planned to be £25m, however , as below, targets were missed due to loss of contracts.  Sales were sub £12m when we arrived.

A  number of separate companies were created to purchase the assets, handle the employees and there were a couple of associated companies that provided services to the others.   During the acquisitions a finance director was brought in who did not manage the accounts properly and there was poor compliance with HMRC.   HMRC were owed some £2m across the group.  RBS was providing and invoice finance of £1.5-2.2m

However, due to a fall in revenues caused by loss of a key contract with a government agency the whole group was under pressure.  A winding up petition was issued against one company in the group which caused significant time constraints.

So what did KSA group do?

Read the CVA case study and find out