The company supplies and erects scaffolding necessary for all aspects of construction and building maintenance.
The director submitted an on-line enquiry to discuss the companys present financial situation with KSA after reading the website.A meeting was held between the director and KSA regional manager; Derek Robinson, on 3rd August 2012. KSA were appointed to assist the company on 7th August 2012.
In the year to 30th June 2011 the company turnover was c. £1.3m whilst it made a loss of c. £74k. Draft accounts to 30th June 2012 show a similar picture t/o c. £1.5m with a los of c. £96k
The company encountered financial and operational difficulties because:
• Burglary to the companies premises resulted in key contract and accounting information being stolen.
• As a result of attempting to retrieve and recreate these records daily financial management and ultimately credit control diminished, resulting in cashflow problems
• Two major new build contracts, combined value of £500K, amounted c.£270k of additional variations, The loss of contract records and failures by the F.D. to attempt collection resulted in this remaining unpaid.
• The former finance director had also not maintained HMRC compliance or payments.
• The FD left the company in July 2012.
Bank had no exposure
• No loan or overdraft facilities.
• Bond and floating charge outstanding
• In fact account £67k in credit at SofA date
Legal action: attempted a court writ for a warrant to arrest the clients funds and assets in respect of future in rent in respect of proposed vacation of premises.
Proposed vacation retracted and legal action ceased.
The CVA has been used to determine 3 finance agreements
Total debt of c. £406.5k inc. HMRC at c. £239.5k (59%)
The CVA meant that 19 jobs have been saved
HMRC approved CVA with standard modifications on 30th January 2013
CVA should be approved by the creditors at the creditors meeting on 18th February 2013
Dividend 48p in £1 (CVA contributions include c. £67k equity release from property in year 4