Incorporated in February 2008, the company’s business was the installation and maintenance of intruder and fire alarm systems in the Dorset area. From 2013, the sole director and shareholder was Simon Miles.
The company steadily grew due to its good reputation in the industry. The company was profitable with turnover increasing year on year.
As the company’s reputation grew, it was attracting more customers principally through word of mouth. In February 2015, the company took on an employee to assist with the increase in work, which increased turnover and profitability.
In the latter part of 2015 the company began to experience issues when the new employee, and only employee other than the director, was unable to work. The director worked hard to try and ensure all works were completed and the high level of service that customers had grown to expect was maintained. Unfortunately the work was too much for him to complete on my own and a backlog started to build. Although the other employee returned to work in early 2016, this was only for a short period until April 2016 when he went on long term sick leave.
The director concentrated his efforts on completing work, however, having to pay statutory sick pay and not having any help to complete orders meant that the company began to experience cashflow difficulties. Unfortunately, in September 2016, the director suffered a stroke and as such was unable to work. The other employee resigned at the end of September having been on sick leave since April 2016. This meant that the company was unable to complete customer orders and maintain the service contracts. The director arranged for the ongoing customer service contracts to be maintained by a friend who also works in the industry. This allowed time for the director to review the company’s financial position and to establish the best route forward, whilst trying to recover from his stroke.
By November 2016, it was clear that the director would be unable to work for some time and that the company financial position could not be recovered in a timescale acceptable to creditors. The director sought insolvency advice from Portland and concluded that steps should be taken to place the company into creditors’ voluntary liquidation.
At the meeting of creditors held on 29th November 2016, Mike Fortune and Carl Faulds of Portland Business ad Financial Solutions and were appointed joint liquidators of the company.
Creditors are able to access the first report here