CBR03 Limited (01783424): administration
- Status
- Administration ended
- Administration began
- 2020-09-21
- Administrators
- Engin Faik
- Administrators' firm
- Cornerstone Business Turnaround and Recovery
- Formerly
- Brown and Mason Holdings Limited; Brown and Mason (London) Limited; Starkchoice Limited
- Incorporated
- 1984-01-17
- Location
- Enfield
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- COVID-19
- Cash flow / liquidity pressure
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
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 financial position of the entire Group. A “Group strategic report” in the Company’s statutory accounts for the year ended 30 April 2016 was set out as follows:
“During the financial year, the commodities market experienced a drastic and unprecedented fall in prices of all metals, including ferrous and non-ferrous scrap. The decline was most pronounced during the second half of 2015 into 2016. Against the above backdrop a full review of the profitability of major contracts was performed. The review demonstrated that all contracts remained profitable and indeed are all still expected to generate multimillion-pound profits. However, profits are lower than originally anticipated — the core reason for this reduction being due to the revenue generated from scrap, specifically ferrous. In accordance with the applicable accounting standards, this has necessitated an adjustment to pare back the profit recognised on contracts where it is now evident that the profits will be lower”.
It appeared that the scrap metal market subsequently recovered, and the trading company, BAM, returned to operating profitability in 2017. BAM’s turnover peaked at £59 million in the year ended 30% April 2018.
Administrators' statement of proposals (2020-11-28) · Companies House register