Tenza Technologies Limited (02027635): administration
- Status
- Administration ended
- Administration began
- 2014-11-06
- Administrators' firm
- Kroll
- Formerly
- API Tenza Limited; Tenza Limited; Nevenden Builders Limited
- Incorporated
- 1986-06-12
- Location
- Suffolk
- Industry
- 17290 Manufacture of other articles of paper and paperboard n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- Funding withdrawn / unable to refinance
- Sustained trading losses
From the administrators' statement
Over its last two financial years, the Company had experienced a significant dectine in sales Sales in the year ended 30 September 2014 were £13 6 million and a net loss of £1 0 million was incurred (prior year net loss was £0 7 million on higher sales of £17 2 million) At the Appointment Date, the Company's creditor ledger totalled £1 5 milhon of which £1 1 millon were due to be paid by the end of October 2014
Sales and margins had suffered due to the loss of business to low cost overseas manufacturers, particularly in the Far East, together with the impact of a stronger Pound Production was being impacted due to cash flow pressure and the consequent Inability to replenish stock
Management had prepared an outline restructuring plan which focussed the business on higher margin bespoke production This would have reduced annual revenues to £3-4 million with a forecast EBITDA of around £0 2-0 3 million The plan required a significant reduction in the workforce The redundancy costs to implement this plan would have been over £0 5 million and the Company was unable to fund such costs
Administrators' statement of proposals (2015-01-05) · Companies House register