On 8th February 2017 Carl Derek Faulds and Michael Robert Fortune of Portland Business & Financial Solutions were appointed joint liquidators of Wessex Energy Advice Centre Limited (‘the Company’) by members and creditors.
The Company was incorporated on 15 July 2015 under the name Your Greener Life Limited, changing its name to its present style on 17 July 2015. It was set up as a Not for Profit Company with the philosophy of being dedicated to the eradication of fuel poverty via the creation of affordable warmth schemes and the implementation and project management of renewable energy strategies.
The Company undertook contracts for a number of the local authorities including, Dorset County Council, Wirral Borough Council, Bournemouth Borough Council, Exeter City Council and other bodies including Public Health Dorset.
In November 2015, the Company was successful in a tender to manage, on behalf of the Wirral Borough Council, the grant application process for solid wall insulation on a targeted 55 properties in selected areas. The project was funded via a grant pot of £200,000 to meet the installation costs, which was released to the Company over the following 12 months. In addition, the Company was to receive a management fee of £75,000.
The Company continued to expand and on 25 October 2016 the accounts for the first period of trading from 15 July 2015 to 31 July 2016 were finalised showing a small net surplus after tax.
However, in mid-January 2017 the director became concerned at the Company’s ability to meet its ongoing obligations under the large Contract with Wirral Borough Council.
The Director concluded that there was no reasonable prospect of turning the business around and completing the contract. In the absence of any working capital and as the core business was not considered viable due to the low margins, a CVA did not appear a workable option. Furthermore as an Administration appeared unlikely to give any better return for creditors then Liquidation, the Director concluded that the best option would be for the Company to be placed into creditors’ voluntary liquidation.
On the request of a major creditor to the company Portland attended the meeting of creditors and with sufficient voting power requested their appointment as liquidators.
Creditors can access the first report here