Mike Fortune and Carl Faulds of Portland Business & Financial Solutions were appointed joint liquidators of the company by the members and creditors. The company was incorporated in 1997 providing design, production and photographic services and latterly it focused on website design and building for its clients following a restructure in 2013.
In 2013 the company also moved to new offices in Ocean Village, Southampton and invested a significant amount to fit out the new offices to make them state-of-the-art and fit for the growing industry in web design and building. The directors focused on winning new, larger clients to help the company grow. They arranged for additional funding to provide working capital whilst efforts were made to win the larger clients.
Unfortunately the company struggled to win the new clients, despite hiring a commercial director whose role it was to secure the bigger contracts. The company experienced financial difficulties and the directors worked hard to win new clients to help turn the company around. In April 2015 a large contract was won that was expected to help rescue the company. Also the directors renegotiated the company’s lending with its bank to assist with cashflow. Despite winning new contacts, the company’s overheads were such that it was struggling to report a profit. The directors supported the company financially by providing loans personally. The company was successful in winning another large contract towards the end of 2015.
In April 2016 it became clear that there were major issues on the two large projects, both were running late and over budget. A significant amount of time and resource was needed to bring the projects back on track.
The directors began merger talks with another digital marketing agency in May 2016 as it was anticipated this would allow the company to grow and return to profitability. It was decided that the talks should be placed on hold until the company achieved greater stability. During 2016 the company continued to win valuable work, however several projects were put on hold in the lead up to Brexit causing further issues for the company.
By November 2016 it was clear that the company was fast getting in to further financial difficulties and the directors decided to seek independent advice. The directors concluded that the company was no longer viable and instructed us to assist with placing the company in to liquidation.
Creditors can read the full report here.