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CVA Case Study Hampshire Based Garden Services company

Written by Robert Moore Marketing Manager 13 March 2018

The director of the company contacted Sarah Massey of KSA to discuss the company’s present financial situation. Then, after a subsequent telephone conversation with KSA regional manager, Hugh Gabriel, a meeting was requested and held at the company’s premises.

The company operates within the landscaping sector and specialises in domestic gardening services. KSA was appointed to assist the company with a Company Voluntary Arrangement (CVA) in late 2014. Turnover for the previous 12 months had fallen by c£80K, to c£300K. 

The company was encountering financial difficulties due to:

  • Undercapitalisation
  • Rapid an expansion
  • Excessive overheads and 
  • A large bad debt.


  • The company operates from the directors’ home and associated business premises.
  • The company also rents two other units 


  • The company employs 18 staff including the directors
  • The work force was reduced by a total of 5 during late 2014.

Bank & Financial facilities:

  • The bank provided an overdraft facility of c£40k which was secured by a fixed and floating charge over the company’s assets.
  • There was also an outstanding unsecured loan of c£10K
  • There were 5 outstanding financial agreements in respect of motor vehicles.


  • The directors had provided Personal Guarantees (P.G) to the bank in respect of the overdraft facility.
  • The directors made loans of c£7k available to the company and were therefore classed as connected creditors: It is a usual HMRC modification (condition of acceptance) that all connected creditors agree to waive there claim to any monies owed and that claim does not survive the CVA.

Unsecured Creditor debt:

  • c£130K of which HMRC was 92% 
  • Cost & overhead reduction 
  • The workforce was reduced to cut costs.

The company had administration issues to rectify to ensure that connected businesses were kept separate. Early in 2015, after a review of the company’s current position, the director decided he no longer wished to continue with the CVA and that the company could continue without further assistance from KSA. 

Categories: CVA, What is a CVA or Company voluntary arrangement?

Flowers Sent By A Client!

Bouquet of Flowers

We agreed a 2 year Time to Pay Arrangement with HMRC for a client.  They sent some lovely flowers today

A happy client created this cartoon strip for us!


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