At the meetings of members and creditors held on 27th October 2016, the company was placed in to creditors voluntary liquidation and Mike Fortune and Carl Faulds of Portland Business Recovery were appointed joint liquidators of the company.
The company operated from leasehold premises in Notting Hill, London as an independent research firm for its clients in the public and private sectors.
The company commenced trading in September 2014, agreeing a large contract with a connected company shortly after. Although trading appeared to be good throughout 2015, the director struggled to increase turnover to a profitable level with a small loss being reported for the period ended December 2015.
The company’s main customer began to experience financial difficulties in early 2016 and as such failed to settle its invoice due to the company, which in turn caused cashflow difficulties for the company. Third party loans were agreed to assist with cashflow whilst attempts were made to increase turnover to a profitable level. The director remained confident that the company could be a success and anticipated growth in 2016.
The issues with the main customer appeared to have been resolved, however in September 2016 the company was informed that the customer would be unable to pay for any future work and they determined the contract.
The director was aware that this significant loss in revenue would cause serious financial difficulties for the company. He tried to arrange for additional investment to help overcome the financial issues however it soon became apparent this would not be possible.
The director sought a purchaser for the business as it would provide continued employment for the employees and a better outcome for creditors than if the company were to cease trading. Unfortunately, despite some initial interest, a deal could not be agreed.
With the company rapidly running out of funds, the director sought insolvency advice in October 2016. The director concluded that the company could not be rescued and instructed us to assist with placing the company in to creditors voluntary liquidation.
Creditors are able to access the first report here