Cobsen-Davies Roofing (Southern) Limited (02672830): administration
- Status
- Administration ended
- Administration began
- 2022-09-07
- Administrators
- Kirstie Jane Provan, Gary Paul Shankland
- Administrators' firm
- Begbies Traynor
- Formerly
- Cobsen-Davies Roofing (Sussex/Kent) Limited; Cobsen-Davies Roofing (West Sussex) Limited; Cobsen - Davies Financial Management Limited; Speed 2255 Limited
- Incorporated
- 1991-12-18
- Location
- London
- Industry
- 96090 Other service activities n.e.c.
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Management failings / irregularities
- Parent or group failure
From the administrators' statement
In March 2022, BTG Advisory LLP (a member of the Begbies Traynor Group of companies) (“BTGA”) were engaged by the Group to provide management accounting services to the Group, including the Companies, which included provision of assistance with the production of management accounts and KPI reporting suites, a review of certain financial processes undertaken by the Companies finance teams, and assistance with the new ERP system.
Prior to BTGA’s engagement, it had been identified by management that the Group required additional working capital facilities to assist in cashflow and further financial support. As such, discussions were being held with the Bank to consider the provision of a further working capital facility of c.£3.5M. Due to the aforementioned difficulties, following the implementation of the ERP system, which led to the inaccuracy and reliability of the financial management information, the Group was unable to provide the Bank with the requested management information and forecasts to support the new funding request. As a consequence, the Group was unable to pursue this financing option.
Subsequently, the Group approached its major shareholders for additional funding and financial support. It was clear that before any party would be able to consider providing such facilities, detailed financial information including forecasts would be required to be prepared to support the funding request. Accordingly, in June 2022, interim turnaround specialists were engaged by the Group, including an interim Chief Financial Officer and a Chief Restructuring Officer with extensive restructuring experience (“the Interims”). Part of the scope of works for the Interims was the preparation, in conjunction with the management team, of financial information and forecasts to support the funding requirement. During this time, the Group considered there to be a realistic prospect that one or both of the main shareholders, would provide new funding.
Administrators' statement of proposals (2022-10-18) · Companies House register