CBR02 Limited (00686405): administration
- Status
- Administration ended
- Administration began
- 2020-09-21
- Administrators
- Engin Faik
- Administrators' firm
- Cornerstone Business Turnaround and Recovery
- Formerly
- Brown and Mason Limited
- Incorporated
- 1961-03-14
- Location
- Enfield
- Industry
- 43110 Demolition
Why it went into administration
- COVID-19
- Cash flow / liquidity pressure
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
From the administrators' statement
In 2015/2016, there was a collapse in the scrap metal/steel market and this had a material impact on the Company’s financial position and cash flow requirements. A statement in the Company’s Annual Report:
“During the 2016 financial year, the commodities market experienced a drastic and unprecedented fall in prices of all metals, including ferrous and non-ferrous scrap. Against the above backdrop of this a detailed review of all major contracts was undertaken which demonstrated that whilst all contracts remain profitable, profits were lower than originally anticipated - the core reason for this reduction being due to the revenue generated from scrap, specifically ferrous. In accordance with applicable accounting standards, an adjustment to pare back the profit recognised on contracts to date was required resulting in a significant accounting loss for the 2016 financial year.”
It appeared that the scrap metal market subsequently recovered and the Company returned to operating profitability in 2017. The Company’s turnover peaked at £59 million in the year ended 30th April 2018.
Administrators' statement of proposals (2020-11-28) · Companies House register