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

KSA was appointed to assist the company with a Company Voluntary Arrangement (CVA) in August 2017. Turnover for the 2017 trading year, was c£215K.

The company was encountering financial difficulties due to:

  • Historic HMRC debt


  • The company rents storage unit on an informal ad hoc basis.


  • The company employs 2 staff including the director
  •  It was not necessary to utilise the CVA to reduce costs via redundancies.

Bank & Financial facilities

  •  The bank is unsecured and provides no facilities other than a current account
  •  The company has only one finance agreement.


  • The director had provided no Personal Guarantees (P.G’s) to any creditor.
  • The is a small overdrawn director’s loan account which is to be paid back to the company over the first 12 months of the CVA and will be made available to the supervisor of the CVA as additional contributions.

Unsecured Creditor debt:

  •  £30K of which HMRC was 92%

Cost & overhead reduction

  • Overheads have been cut and are under control, so the director is comfortable that profitability can be achieved in a relatively short time frame.

New activity

  •  On-line marketing campaign
  •  Local leaflet drop.
  •  Improved SEO (search engine optimisation)
  •  Improved management information and close liaison with the company accountant.

The nominee’s review was held and the CVA and nominee’s report were subsequently lodged at court.  The CVA proposed 58p in £1 repayment to unsecured creditors over five years.

HMRC provided their response accepting the CVA with modifications (conditions of acceptance). The CVA was accepted by the body of creditors at the creditors meeting and the company is now in CVA.

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