Watkins and Sole Limited (01163741): administration
- Status
- Administration ended
- Administration began
- 2015-06-10
- Administrators' firm
- KRE Corporate Recovery
- Formerly
- Freeman & Sole Motors Limited
- Incorporated
- 1974-03-20
- Location
- Reading
- Industry
- 52103 Operation of warehousing and storage facilities for land transport activities
Why it went into administration
- HMRC / tax arrears
- Competition / price pressure
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Sustained trading losses
From the administrators' statement
Watkins and Sole Limited (‘WAS’) was incorporated on 23 March 1974 and Watkins & Sole (Transport) Limited (‘WST') was incorporated on 20 July 1982 Michael Higgins, Anita Watkins, Anthony Watkins, John Watkins and Julie Watkins all held directorships in both Companies and Anita Watkins held 25% of the shares for each, with John Watkins holding the remaining 75% of the shareholdings in each company
The Companies operated as specialists in airfretght transportation and traded from leased premises in Sough, Berkshire, Manchester and Bristol The Companies employed 70 staff across all three sites The Companies were under common control and WAS employed the entire workforce and owned all the plant and machinery and office equipment The customer contracts and leased fleet were held in WST, along with the leases for the Companies premises Management charges were levied from WAS to WST in respect of labour and use of the machinery and therefore effectively the two companies traded as one | have therefore combined my report to creditors in order to give an overall understanding of the Companies position
At the end of September 2014, the Companies lost their largest contract worth approximately £25 milton per annum which accounted for over 50% of the Compantes turnover Management took steps to reduce the Companies overheads following the loss of this major contract by moving its primary premises to a smaller location, which took the focus of management and staff away from the core business and sales levels suffered as a result Throughout this difficult period the Companies were effectively funded by the directors John Watkins and Michael Higgins via their directors loan accounts totalling £388,020 and £53,000 respectively During this period the Companies fell into arrears with HM Revenue & Customs ((HMRC’) in respect of PAYE/NI and whilst a time to pay arrangement was agreed, with sales levels at an all-time low, the Companies could not adhere to the terms Management tried to negotiate an extension with HMRC however this was rejected and subsequently on 26 May 2015 the Companies received notice from HMRC that if payment of £273,544 was not received within 7 working days, then winding up petitions would be issued
Administrators' statement of proposals (2015-08-11) · Companies House register