At meetings of the members and creditors held on 10th August 2016, the company was placed in to liquidation and Mike Fortune and Carl Faulds were appointed joint liquidators.
The company was incorporated and commenced trading in December 2014, installing structured and copper cabling in relation to the Broadband Delivery UK (BDUK) project, providing high speed broadband to various areas of the country.
The company initially operated from one of the director’s parent’s home address. The company quickly grew and with the promise of increased workload from its main customer the directors decided to move to a leasehold premises in Fareham, Hampshire, allowing the company to operate efficiently. The company also took on additional staff to accommodate the projected growth.
The company experienced issues receiving payment from its main customer and efforts to ensure payments were received on time were unsuccessful. The customer would often require significant chasing and payment would frequently be late, causing cash flow issues for the company.
The directors arranged for a loan to provide working capital in June 2015, allowing the company time to seek new customers as well as trying to resolve the issues with their main customer.
By August 2015 the situation had not improved but the directors remained confident that the company would overcome its issues and could be a success. They arranged for an additional loan to support cash flow.
Despite the issues faced, the company’s accounts for the period ended December 2015 reported a small profit. Unfortunately the company experienced a quiet Christmas 2015 and earlier 2016, worsening its financial position. As the company was still relatively new, the directors were unable to arrange for any further funding and it was still experiencing problems receiving payments from its main customer.
One of the directors resigned in February 2016 as he was unable to dedicate the time required to turn the company around due to personal issues. The remaining director subsequently concluded that the company was unable to be rescued and that an orderly winding down and collection of the outstanding book debts would provide the best return for creditors.
In July 2016, with pressure from creditors increasing, including HMRC in respect of PAYE and VAT arrears, the director formally instructed Portland to assist in taking steps to place the company in to creditors voluntary liquidation.
Creditors are able to access the first report here