Letchworth Roofing Company Limited (01048793): administration
- Status
- Administration ended
- Administration began
- 2012-02-23
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1972-04-07
- Location
- Manchester
- Industry
- 4522
Why it went into administration
- Creditor pressure / legal action
- Cash flow / liquidity pressure
- Loss-making contracts / project overruns
- Sustained trading losses
From the administrators' statement
The Company is a long established roofing contactor and merchandiser The Company traded from leasehold premises in Letchworth, Hertfordshire and covered the Home Counties area The business of the Company was split into four divisions being Projects (contracting), Slating and Tiling, Special Works and Merchandising The Company employed c50 staff and annual turnover was in the region of £11 million
The Company began to expenence financial difficultes as a consequence of a significant decrease in turnover in the second half of the calendar year 2011 In addition, a number of contracts entered into by the Company resulted in losses being incurred on specific proyects The Company was unable to compete in its tendenng process for certain contractual work and as a result the turnover decreased significantly As a result, the Company experienced severe creditor pressure consisting of County Court Judgements, threatening letters from creditors and the issue of statutory demands which would have ultimately resulted in the commencement of winding up proceedings, withdrawal of credit terms from suppliers, commencement of ‘egal actions and the issue of further County Court Judgements
In order to safeguard the Company’s position the directors sought professional advice The Company was insolvent on the basis that it was unable to pay its debts as and when they fell due, and the primary reasons for the Company's insolvency was the decrease in tumover and loss making contracts However, it was recognised that there was a viable business within the Company that could be rescued
Administrators' statement of proposals (2012-04-19) · Companies House register