G.E. Starr Limited (01230196): administration
- Status
- In administration
- Administration began
- 2024-05-08
- Administrators
- Craig Povey, Gareth Prince
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1975-10-17
- Location
- Birmingham
- Industry
- 25730 Manufacture of tools
From the administrators' statement
G.E. Starr Limited was incorporated in 1975. Lee Sambrook acquired the Company in 2022 via deferred consideration. In the short time under the control of Lee Sambrook the business demonstrated growth both in machine technology, capacity and in top line sales. Up to January 2024 the business had performed close to expectations albeit with a consistent limiting factor of working capital.
Lee Sambrook had recognised the need for specific technology required in servicing the niche automotive customers and the Company invested heavily in laser and press brake machinery. The financing of these machines, whilst serviceable under normal trading conditions, left the business exposed in more challenging financial times as the business was leveraged to a point where downturn in revenue would quickly eat into any head room the business had created.
The first quarter of 2024, saw unexpectedly a significant downturn in sales from all of the three top customers, albeit for only a short period. With the leveraging of the business to realise the potential growth it wasn’t long before the business fell into a stressed position struggling on a cash perspective from February onwards.
Administrators' statement of proposals (2024-07-04) · Companies House register